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You and I may be on the hook for hundreds of millions of dollars after the SEC allegedly falsified documents on a leasing contract.
The SEC's ten year lease cost us 556.
For the building space panoramic views white marble interiors limestone red -- all paneling.
And of course ADR -- But no workers because here's the kicker seems the SEC overestimated.
The space it needed by.
My next guest wants to know who's been fired so far and what other heads need to roll over the scandal.
California congressman Jeff -- joins me now.
-- -- Wow how do you find this first of all.
It was outrageous I mean here we're facing the nation's largest debt crisis and there's agencies that are going out there and doing this type of egregious act over a weekend I mean they just made up these numbers to try to get a great building.
And and so they overbought -- -- by 300% but then.
Tell us about this wideout -- -- found some some contracts actually with white -- -- predated what did that tell you.
Well we did not only had inspector general go up when we wanted to make sure we research is very well and we found that.
You don't not only should somebody be fired for you know grossly.
Miss calculating this.
But they've actually broken the law you know to change it documents to back -- -- to wide amount just try to fool government or try to fool congress.
You know this has been referred to the Department of Justice so not only do want somebody fired.
We wants to -- go to jail over this service -- -- Missouri commission paid to someone.
I don't know I mean you know certainly -- were looking in all aspects as we continue to do more and more room investigative research on it.
Because we not only believe the somebody broke the law but this this could go much deeper and our.
Ascent is doing the math in my head I know if you buy a house or sell houses usually anywhere between two and 4% commission.
About 2% of that numbers -- close eleven million dollars.
Absolutely and -- there are other agencies that continue to do so many agencies have their own leasing authority.
We have now taken back policing authority from the SEC but we wanna take back policing authority from all these agencies so this type of wasteful spending stops.
And now so just who we can clear -- -- sorry audience understands.
This is what a ten year lease that we signed for going forward in terms that would be needing the space.
-- now and now they're trying to -- sublease it out to other agencies and the question as do those other agencies need the space so.
-- I mean -- half a billion dollars.
All wasteful spending and were trying to rectify the situation not only by firing people.
But ultimately we want to set an example for every other agency that this is gonna happen and in the longer.
Chairman denim thank you very much for staying on and please let us know of anything develops on this 10 or any other -- for that matter.
Absolutely thank you thank disarm or let's bring it out to the panel RD is -- -- way to break this lease.
Yeah I -- a well yes I haven't seen the actual document but usually isn't what it's gonna cost us you don't think -- just gonna give up 550.
Million dollars I don't know what's more damp wind is born aptitude big -- -- joined by a margin guns in Mexico or half a billion dollars at least how could you -- -- should.
Monumental mistake -- think about it is it was.
How many people.
We can pay their Social Security check with -- locate -- I mean -- imagine him in my law firm if -- my associates and audio via -- we're not rented out placement the next ten years.
Much more space and we have -- would need and it's excessive the amount of money I mean.
We forget -- fired I'd be Colin I'd be called for an investigation like we're doing you have guessing the.
Isn't the only one that goes on like this probably not a parent but this is the -- agency that brought us Bernie Madoff the Lehman Brothers collapse -- -- at the wheel when Wall Street was going down.
-- -- -- -- you know Jewish city brought us they were sleeping while all that's all that was happening -- it was their job to regulate these industries and make sure this wasn't happening and the irony of this is they thought they were gonna get more power under the Dodd-Frank bill which was the new sweeping financial regulatory bill.
That bill actually -- apparel away from them empower other things like the CFTC.
To regulate the market -- right on because -- this is the agency that I deal with -- present criminal clients.
Because they didn't cross this deal file this form when he traded this stock -- traded this bond.
They expect the people they are regulating to be following every regulation to the not an artist side you say more regulations more roles but look what happens when you get more rules and regulations.
That has small lot.
Well you know and let's keep in mind that under both Bill Clinton and George W.
Bush this commission was actually got -- in terms of the number of employees.
And southern Forstmann levels they they weren't able to do what they needed to do during a liquidity crisis they were able to -- -- they weren't able to handle it properly and I'm glad that we're now looking at a bump of about 800 in terms of workforce but you're right this is this is exactly.
The problem with bureaucracy.
That it will because he's -- -- -- is a bureaucracy.
Or is it big government and by the way I'm not really sure they're not the same I think there might be a dollar while giving a semi here's the point dealt.
Obama wants to grow government he said it but -- explicitly even hide that fact bigger government is better he spends more that's bigger government.
The the government -- more waste.
Well now not bigger government is to grow government he is growing government in some ways to create jobs.
But existing agencies will both -- you know why I like our budget cutting off again sorry.
Grow jobs -- the only jobs he's growing our government jobs and we agreed that he should've done more in terms of stimulating the private sector.
-- less crony capitalism I think we both agree on on those fronts but a government job is a job.
And he's not growing at unnecessarily these are positions that we -- -- -- job and it takes money out of -- not put an -- there and that's an.
And -- to create these jobs that could've been done a lot more efficiently done a lot of the people who saw that there was a 600.
Million dollar real estate a contract for office space and what you put them in the existing field -- that's it if -- did that -- has effectively been -- Actually what that amount of money again it's absolute ineptitude and it cannot be tolerated by the American people spent half a billion dollars in last Murdock -- you.
I would very much agree and I'm glad that congress did its job and stepped in and providing the oversight is needed.
We -- well when I was gonna thing.
-- -- -- today I'm -- -- and oversight what are -- talking about.
Well the fact that the 550 million dollar contract is now being investigated that they didn't get that property that they sublease did not handle the situation an -- investigation got -- -- does bigger government more.
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