Issa and Grassley: Top ATF Official in Operation Fast and Furious Remains on Extended Paid Leave while Simultaneously Employed by Major Financial Services Company

WASHINGTON - Sen. Chuck Grassley and Rep. Darrell Issa have asked the Acting Director of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to explain how a top ATF official involved in Operation Fast and Furious, Bill McMahon, can remain on paid leave while simultaneously drawing an additional six figure salary from a major financial services company.  Given McMahon's extensive involvement in the leadership failures of Operation Fast and Furious, Grassley and Issa sought a detailed explanation of why the Justice Department would approve this special arrangement for McMahon.

"Under any reading of the relevant personnel regulations, it appears that ATF management was under no obligation to approve this sort of arrangement," wrote Issa and Grassley. "Given McMahon's outsized role in the Fast and Furious scandal, the decision to approve an extended annual leave arrangement in order to attain pension eligibility and facilitate full-time, outside employment while still collecting a full-time salary at ATF raises a host of questions about both the propriety of the arrangement and the judgment of ATF management."

The letter continues: "ATF has essentially facilitated McMahon's early retirement and ability to double dip for nearly half a year by receiving two full-time paychecks?one from the taxpayer and one from the private sector.  Moreover, ATF did not wait for the Office of Inspector General to complete its report on Fast and Furious before approving the arrangement.  This is in sharp contrast to the posture the agency has taken with whistleblowers like Special Agent John Dodson, who is told he must wait until the Inspector General's report is complete before the agency will even consider his simple request for a statement retracting the false statements made about him by agency leadership."

The text of their letter is available here and embedded below.  The first part of the final report on the joint Congressional investigation of conduct in Operation Fast and Furious is available here. The report presents evidence detailing numerous errors and decisions by ATF officials and the Arizona U.S. Attorney's Office that led to serious problems - including inter-agency communication failures between ATF, DEA, and FBI.

Here is a copy of the text of the letter.

August 21, 2012

Mr. B. Todd Jones

Acting Director

Bureau of Alcohol, Tobacco, Firearms, and Explosives

99 New York Avenue, NE

Washington, DC 20226

Dear Acting Director Jones:

It has come to our attention that ATF's former Deputy Assistant Director for Field Operations, William McMahon, has recently obtained full-time employment in the private sector while remaining a full-time employee in ATF's Office of Professional Responsibility.  In addition to retaining his position at ATF, McMahon is also serving as Executive Director of the Global Security and Investigations Group at J.P. Morgan in the Philippines.  A senior ATF official confirmed McMahon's status during a phone call last week.  This unusual arrangement is apparently designed to allow Mr. McMahon to reach retirement eligibility while on extended leave for four or five months and simultaneously begin a second career before separating from government employment.

Our most recent joint staff report on Operation Fast and Furious, released on July 31, 2012, scrutinized the role McMahon played in the operation.[1] We detailed his failure to supervise the activities of the Phoenix Field Division during Fast and Furious, his admitted failure to read important documents he was responsible for authorizing, and his false testimony regarding his role in authorizing applications for wiretaps in the case.[2] Despite these failings, ATF not only continues to keep him on its payroll, but also has authorized him to take several months of annual leave while earning a six-figure salary from ATF and an even larger salary at the same time working in the private sector.

While the legality of McMahon's outside employment and leave arrangement may arguably be unclear, the fact that ATF management chose to authorize it is not.  Under any reading of the relevant personnel regulations, it appears that ATF management was under no obligation to approve this sort of arrangement.  Given McMahon's outsized role in the Fast and Furious scandal, the decision to approve an extended annual leave arrangement in order to attain pension eligibility and facilitate full-time, outside employment while still collecting a full-time salary at ATF raises a host of questions about both the propriety of the arrangement and the judgment of ATF management.

On July 18, 2012, we wrote to you regarding your message in "ChangeCast #8: Choices and Consequences" and the chilling effect it might have on future whistleblowers.  While we appreciated the clarification you provided after we raised concerns, this decision regarding McMahon appears to send the opposite message of the one you said you intended in that ChangeCast.  Rather than imposing consequences for his admitted failures, the ATF appears to be rewarding McMahon.  Through this unusual arrangement, ATF has essentially facilitated McMahon's early retirement and ability to double dip for nearly half a year by receiving two full-time paychecks?one from the taxpayer and one from the private sector.  Moreover, ATF did not wait for the Office of Inspector General to complete its report on Fast and Furious before approving the arrangement.  This is in sharp contrast to the posture the agency has taken with whistleblowers like Special Agent John Dodson, who is told he must wait until the Inspector General's report is complete before the agency will even consider his simple request for a statement retracting the false statements made about him by agency leadership.

This is not the culture of change that you promised to bring to ATF.

In light of McMahon's outside employment at J.P. Morgan, please answer the following questions to help us better understand how this could have occurred:

1)      5 C.F.R. § 3801.106(b)(1) prohibits "outside employment that involves ...  litigation, investigations, grants, or other matters in which the Department of Justice is or represents a party, witness, litigant, investigator or grant-maker."  Accordingly, what steps, if any, did ATF take prior to approving the arrangement to ascertain whether McMahon's position at J.P. Morgan would involve any "litigation, investigations, grants, or other matters in which the Department of Justice is or represents a party, witness, litigant, investigator or grant-maker?"

2)      If no such steps were taken, why not?

3)      If such steps were taken, please describe the determination ATF made regarding the prohibition in 5 C.F.R. § 3801.106(b)(1)(iii) and the basis for ATF's determination in detail.

4)      If ATF determined that McMahon's work at J.P. Morgan would be prohibited by 5 C.F.R. § 3801.106(b)(1)(iii), was the prohibition waived in accordance with section 3801.106(b)(2)?

5)      If the prohibition was waived, what were the grounds for the waiver?

6)      What is the current employment status of William McMahon at ATF?

7)      When is William McMahon eligible for full retirement benefits from ATF?

8)      When will William McMahon officially leave ATF?

9)      Who at ATF gave final approval of McMahon's employment with J.P. Morgan?  On what date was this approval given?

10)  On what date did McMahon's outside employment commence?

11)  How much ATF sick leave has McMahon used while being employed at J.P. Morgan?

12)  How much ATF sick leave does McMahon have remaining?

13)  How much ATF annual leave has McMahon used while being employed at J.P. Morgan?

14)  How much ATF annual leave does McMahon have remaining?

15)  On how many other occasions in the last three years has ATF authorized a similar arrangement involving (a) approving annual leave extending over several months, (b) an employee not yet eligible to retire prior to commencing annual leave, (c) approval of full-time employment while on annual leave, and (d) a career field where the employee's experience at ATF is directly related to the outside employment and can be reasonably seen as a motivating factor in the hiring decision?  For each prior similar instance, please provide a detailed explanation of the circumstances and the reason for authorizing the arrangement.

16)  When did you first become personally aware of McMahon's employment at J.P. Morgan?

17)  Do you approve of this particular outside employment arrangement?

In addition, please provide the following documents:

18)  All internal documents and communications relating to McMahon's scheduled separation from ATF, including memos, e-mails, and hand written notes, including, but not limited to, communications with ATF's designated agency ethics official.

19)  All internal documents relating to McMahon's outside employment at J.P. Morgan, including memos, e-mails, and hand written notes, including, but not limited to, communications with ATF's designated agency ethics official.

20)  A detailed timeline of the involvement of the ATF Office of Chief Counsel regarding McMahon's employment at J.P. Morgan.

21)  A full copy of ATF's personnel manual, including, but not limited to, policies regarding sick leave, annual leave, and outside employment.

22)  Detailed information regarding McMahon's time and attendance at ATF, including records from the WebTA program, from August 1, 2011 until the present.

Please provide the requested documents and your detailed responses to these questions as soon as possible, but no later than 5:00 p.m. on September 4, 2012.  When producing documents to the Committee on Oversight and Government Reform, please deliver separate production sets to both the Majority Staff in Room 2157 of the Rayburn House Office Building and the Minority Staff in Room 2471 of the Rayburn House Office Building.  The Committees prefer, to the extent possible, to receive documents in electronic format.

The Committee on Oversight and Government Reform is the principal oversight committee of the House of Representatives and may at "any time" investigate "any matter" as set forth in House Rule X.  The Senate Judiciary Committee's jurisdiction includes, inter alia, oversight of the Department of Justice and the agencies under the Department's jurisdiction.  An attachment to this letter provides additional information about responding to the Committees' request.

If you have any questions concerning this matter, please contact Tristan Leavitt of Senator Grassley's staff at (202) 224-5225, or Henry Kerner of Chairman Issa's staff at (202) 225-5074.  We look forward to receiving your response.  Thank you for your prompt attention to this matter.

Sincerely,

____________________________   ______________________________

Darrell Issa, Chairman                       Charles E. Grassley, Ranking Member

Committee on Oversight and                            Committee on the Judiciary

Government Reform                         U.S. Senate

U.S. House of Representatives

Enclosure

cc:           The Honorable Elijah E. Cummings, Ranking Member

U.S. House of Representatives, Committee on Oversight and Government Reform

The Honorable Patrick Leahy, Chairman

U.S. Senate, Committee on the Judiciary

The Honorable Michael E. Horowitz, Inspector General

U.S. Department of Justice

WEST DES MOINES, IOWA - Aug. 22, 2012 - The Iowa Farm Bureau Political Action Committee (PAC), guided by statewide grassroots input from 98 Iowa counties, has made their 'Friend of Agriculture' designations for the 2012 elections. Candidates seeking national offices this fall have been selected by the state's largest grassroots farm organization based on their support of Farm Bureau policy, voting record and support for Iowa's rural communities.

"Actions matter," said Dallas County farmer and IFBF PAC Chair, Rod Collins. "Our PAC carefully evaluates the candidates' track records to determine who has demonstrated support for our farmers and issues that directly impact their families, businesses and communities.  It's a process that emphasizes Farm Bureau policies over partisan politics.  The fact that 98 counties participated in the process shows our members are committed and focused on strengthening agriculture and rural Iowa."

Long-time Congressmen Steve King and Tom Latham were designated Friends of Agriculture in newly-drawn U.S. House Districts 4 and 3, respectively.  Newcomer Ben Lange from Quasequeton, Iowa, was designated for U. S. House District 1.

The grassroots effort to designate Friends of Agriculture is guided by members and begins in July when county committees start evaluating candidates. The nine-member, bipartisan PAC committee reviews evaluations and questionnaires, while also considering candidates' positions on issues of importance to members, leadership on Farm Bureau priorities and past voting records.

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About Iowa Farm Bureau

The Iowa Farm Bureau Federation is a grassroots, statewide organization dedicated to helping farm families prosper and improve their quality of life.  More than 153,000 families in Iowa are Farm Bureau members, working together to achieve economic growth, educational improvement, and environmental quality in their communities.  For more information about Farm Bureau and agriculture, visit the online media center at www.iowafarmbureau.com.

CHICAGO - August 21, 2012. Governor Pat Quinn today took action on the following bills:

Bill No.: HB 5203

An Act Concerning: Elections

Petitions for nomination are deemed to be filed simultaneously when two or more are filed within the last hour of the filing deadline.

Action: Signed

Effective Date: Jan. 1

Bill No.: SB 3614

An Act Concerning: State Government

Requires the Health Facilities and Services Review Board's (HFSRB) Long-Term Care Facility Advisory Subcommittee to evaluate and make recommendations to the HFSRB regarding the buying, selling, and exchanging of beds between long-term care facilities.

Action: Signed

Effective Date: Aug. 21, 2013

Bill No.: SB 3673

An Act Concerning: Human Immunodeficiency Virus

Amends the AIDS Confidentiality Act and Section 9 of the Criminal Code of 1961 to include the court as an entity which may be notified of the identity of a person who has been tested for HIV or has tested positive for HIV when that individual is involved in a case of criminal transmission of HIV.

Action: Signed

Effective Date: Immediately

Bill No.: SB 3823

An Act Concerning: Child Visitation

Allows the Secretary of State to suspend the driver's license of anyone who fails to comply with a visitation order.

Action: Signed

Effective Date: Immediately

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Large swaths of Americans seem to have drastically different views of how humans came to be, according to a June Gallup poll.

Nearly half of America - 46 percent - agrees with the creationist view that humans are purely the product of God, absent of evolution, within the last 10,000 years. Fifteen percent believe humans evolved independent of God, which is 6 percent more than 30 years ago.

These millions of Americans are pitted on two sides of a conflictwhich has a solution, says engineering physicist Daniel Friedmann, CEO of the aerospace company known for building the space station's robotic arm and author of The Genesis One Code (www.danielfriedmannbooks.com).

"The creation-evolution conflict is a recurring point of contention in the United States, from the presidential election to what should be taught in schools," he says. "American science legend Carl Sagan tried to settle this conflict by calling both camps 'non-overlapping magisteria' - in other words, science and religion each preside as the source of wisdom over separate domains."

Friedmann argues that both wisdoms are two sides of the same coin and can enlighten each other. The reason the debate developed in the first place, he says, is because the discoveries of modern science of an old Earth seemed to conflict with descriptions in the Bible of a young Earth.

"People believed both could not be right," he says. "It had to be one or the other - science or religion."

But they both agree on the timeline for the development of the universe and life on Earth, Friedmann says. He has developed a formula that converts "Bible time" to years as we know them. When applied to calculating the age of the universe and life on Earth, the Bible consistently matches scientific estimates derived from the study of fossil timelines, the solar system and the cosmos.

His formula -- 1,000 X 365 X 7,000 -was derived from references in religious texts and science. The first number is found in Psalms, which says a year for God is 1,000 years for mortals. The second refers to the amount of days in one solar year. The third comes from scriptural study that indicates one creation day in Genesis equals 7,000 God years.

When those numbers are multiplied in human years, each creation day is an epoch of 2.56 billion years, he says. Using the formula, the biblical age of the universe is 13.74 billion years. Scientific estimates put the universe's age at 13.75 billion, plus or minus 0.13 billion, he says.

"I have nothing but respect for scientists like Sagan and Stephen Hawking, but I feel that both were wrong about religion to varying degrees, especially Dr. Hawking," he says. "Last year, Hawking dismissed religion, publicly calling it a 'fairy tale' for people who are afraid of death. I think that is a terriblynaive and misinformed view of what millions of people have believed in for more than a millennium."

These are a few of the reasons Hawking is wrong, Friedmann says:

• The Bible and science agree on what happened and when it happened with respect to the formation of the universe and the appearance of life on Earth.

• The term "creation days" can be shown from biblical sources to be 2.5 billion years. Using this conversion factor, it is clear that the Bible is correct about timelines we have confirmed through science, including the age of the universe.

• If the Bible and science agree on what happened and when it happened, do we really have a conflict? It is time to reexamine and bury the conflict between science and religion.  In fact, Friedmann in his book, shows that religion has answers to science's three biggest questions.

• By continuing this false dichotomy of religion vs. science, we are severely limiting progress and our potential as humans. Nearly 54 percent of the world's population - Christians, Jews and Muslims - assert the truth of biblical scripture. Recognition of a commonality among diverse cultures, while linked to scientific principle, provides a better chance to advance the understanding of our origins.

About Daniel Friedmann

Daniel Friedmann is CEO of MDA, anaerospace company in Canada, which among other things, specializes in robotics used on the international space station. He has a master's in engineering physics and 30 years' experience in the space industry. He has published more than 20 peer-reviewed scientific papers on space industry topics. He is also a longtime student of cosmology and religion.