Luke Rosiak

This is an agency that, prior to the pandemic, had a nine-story office tower in K Street for only 60 employees. Its hallways were lined with oil paintings of those employees and other artwork purchased from the boss's wife with government funds.

This is an agency that, prior to the pandemic, had a nine-story office tower in K Street for only 60 employees. Its hallways were lined with oil paintings of those employees and other artwork purchased from the boss's wife with government funds.

Good times, I guess. They built an in-house gym. They had a smoking lounge, showers in their office. This was an agency that was created to offer voluntary mediation services between businesses and unions. But plenty of private arbitrators already do that. So the main purpose of FMCS kind of became, as far as I could tell, just a slush fund for its employees. They had an office in Honolulu.

Good times, I guess. They built an in-house gym. They had a smoking lounge, showers in their office. This was an agency that was created to offer voluntary mediation services between businesses and unions. But plenty of private arbitrators already do that. So the main purpose of FMCS kind of became, as far as I could tell, just a slush fund for its employees. They had an office in Honolulu.

And basically, they would just commit what seemed like fraud in a way that was shocking. I mean, they listed the boss, Scott Beckenbaugh, as being on a six-year-long business trip to D.C. so that his rent and all of his meals would be paid for by the government just for showing up for work every day. He wouldn't have to dip into his $174,000 salary. They put relatives on the payroll.

And basically, they would just commit what seemed like fraud in a way that was shocking. I mean, they listed the boss, Scott Beckenbaugh, as being on a six-year-long business trip to D.C. so that his rent and all of his meals would be paid for by the government just for showing up for work every day. He wouldn't have to dip into his $174,000 salary. They put relatives on the payroll.

Yes, and any time a whistleblower or auditor, one of which actually I think wanted to make an FBI referral, raised issues, they would fire that person. One time they escorted a lady out of the building with armed guards for calling attention to the way they were using these purchase cards.

Yes, and any time a whistleblower or auditor, one of which actually I think wanted to make an FBI referral, raised issues, they would fire that person. One time they escorted a lady out of the building with armed guards for calling attention to the way they were using these purchase cards.

One accountant wrote an email to the General Services Administration warning about how they were abusing those cards, and then Director George Cohen forced her to write an email rescinding it. Now, FMCS employees actually did something called unblocking their government purchase cards, which removed restrictions against abuse, and then used them to buy whatever they wanted.

One accountant wrote an email to the General Services Administration warning about how they were abusing those cards, and then Director George Cohen forced her to write an email rescinding it. Now, FMCS employees actually did something called unblocking their government purchase cards, which removed restrictions against abuse, and then used them to buy whatever they wanted.

One leased a BMW, another paid for his wife's cell phone and cable TV at his vacation home, including an extra package for the golf channel. They had a recreation fund, they called it, that they used to buy champagne and $200 coasters for that champagne.

One leased a BMW, another paid for his wife's cell phone and cable TV at his vacation home, including an extra package for the golf channel. They had a recreation fund, they called it, that they used to buy champagne and $200 coasters for that champagne.

Yeah, and listeners might be wondering, how did you spend a year investigating this agency? It was just abolished. Well, I made these findings a decade ago, and nothing was done. This is stuff that's kind of been out there, and what's thrilling to me is that... Finally, people care. Things that kind of have been an open secret in Washington for a long time.

Yeah, and listeners might be wondering, how did you spend a year investigating this agency? It was just abolished. Well, I made these findings a decade ago, and nothing was done. This is stuff that's kind of been out there, and what's thrilling to me is that... Finally, people care. Things that kind of have been an open secret in Washington for a long time.

Now that Doge is in town, it looks like some of those things are finally changing. And the documented behavior of this agency makes it a lot harder to argue with Doge when it says that this kind of thing does occur in government.

Now that Doge is in town, it looks like some of those things are finally changing. And the documented behavior of this agency makes it a lot harder to argue with Doge when it says that this kind of thing does occur in government.

I don't know if people are really going to want to know that answer. Probably true.

I don't know if people are really going to want to know that answer. Probably true.

Thank you, John.

Thank you, John.