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Wednesday, April 22, 2009

SBA Executive Covered Up Billions In Fraud and Abuse

FOR IMMEDIATE RELEASE
April 22, 2009

Petaluma, Calif. - Since 2003, a consistent flow of federal investigations have been released which have found the Small Business Administration (SBA) has allowed billions of dollars in federal small business contracts to be diverted to Fortune 500 firms.

Several of the investigations found large businesses had committed fraud in the form of "vendor deception" and "false certifications" to illegally take billions of dollars in federal small business contracts.

Most of the nation's largest newspapers and television networks such as ABC, CBS and CNN have covered the story. (ABC, http://www.asbl.com/abc_evening_news.wmv; CBS, http://www.asbl.com/cbs.wmv; CNN, http://www.asbl.com/showmedia.php?id=1170)

Despite irrefutable evidence indicating that Fortune 500 firms were receiving thousands of federal small business contracts, SBA Press Office Director Mike Stamler launched an aggressive campaign to cover up the fraud and abuse, and stop any media coverage on the issue.

Stamler assailed any journalist who dared to tell the story of the SBA's involvement in the widespread abuses. A number of journalists reported receiving Stamler's profanity riddled emails on a regular basis. After receiving one of Stamler's profanity laced communications, the Long Island Business Journal (LIBJ) posted an article on its blog titled, "Expletives the SBA's Forte."

The SBA's own Office of Inspector General has released several scathing reports describing the rampant fraud and abuse as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today…"

Stamler responded by intensifying his campaign to intimidate journalists into dropping the story, and by launching a campaign to convince the public that the staggering abuses in small business contracting programs were nothing more than a "myth."

Lloyd Chapman, President of the American Small Business League (ASBL), prompted the initial U.S. Government Accountability Office (GAO) investigation into fraud and abuse in SBA contracting programs. Additionally, Chapman has won a series of Freedom of Information Act (FOIA) lawsuits against the SBA forcing the agency to release thousands of pages of documents, which prove Fortune 500 firms were receiving billions of dollars in federal small business contracts.

After several journalists complained to the ASBL that Stamler had libeled and slandered Chapman, the ASBL requested Stamler's e-mails and phone records under FOIA.

The SBA has refused to release Stamler's phone records, and the ASBL has filed suit in United States District Court, Northern District of California. The ASBL plans to file an additional suit against the SBA to obtain all of Stamler's e-mails in preparation for a suit against Stamler and the SBA for libel and slander.

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Tuesday, April 21, 2009

SBA Petitions Federal Judge to Drop Lawsuit for Executive's Phone Records

FOR IMMEDIATE RELEASE
April 21, 2009

Petaluma, Calif. – On April 16, 2009, the Small Business Administration (SBA) filed a motion in United States District Court, Northern District of California to dismiss a lawsuit filed by the American Small Business League (ASBL) for the telephone records of SBA Press Office Director Mike Stamler. (http://www.asbl.com/documents/motiondismissmpa.pdf)

The ASBL filed the case on March 13, 2009 after the SBA refused to provide all of Stamler's telephone records for the years 2006 and 2007. (http://www.asbl.com/documents/20090312complaint.pdf)

The ASBL originally requested all of Stamler's phone records under the Freedom of Information Act (FOIA) after a number of journalists complained that Stamler had libeled and slandered ASBL President Lloyd Chapman. Chapman has won a series of federal lawsuits against the SBA forcing the agency to release thousands of pages of embarrassing information, which indicated the SBA was complicit in the diversion of billions in federal small business contracts to Fortune 500 firms.

Most recently, the SBA dropped an appeal in the Ninth Circuit Court of Appeals after United States District Court Judge Marilyn H. Patel forced the SBA to release the specific names of all of the firms that received federal small business contracts for fiscal years (FY) 2005 and 2006 to the ASBL. The list included the names of hundreds of Fortune 500 firms and other large businesses in the U.S. and Europe. On April 15, 2009, Patel directed the SBA to pay the ASBL's legal fees associated with the case. (http://www.asbl.com/documents/feeaward_sba_names_of_firms.pdf)

“In every lawsuit we have filed, the judge found the SBA was not being honest with the court and ruled in favor of the ASBL. There is a pattern here that cannot be denied. The SBA always loses, and the judge's ruling always indicates the agency was lying to the court. Clearly, the SBA must have a lot to hide,” ASBL President Lloyd Chapman said. “America is in one of the most severe recessions in our nation's history, and we may slide into a depression. Despite this, President Obama is allowing up to $400 million a day in federal small business contracts to be diverted away from middle class America, and into the hands of some of the largest companies in the world. It is time for President Obama to honor his campaign promise to American small businesses when he said, ‘It is time to end the diversion of federal small business contracts to corporate giants.’ ” (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)

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Monday, April 20, 2009

HispanicBusiness.com: Battle Between a Small-Business Advocate and the SBA Gets Personal

Over the weekend, HispanicBusiness.com ran a substantial story regarding the American Small Business league and its President Lloyd Chapman. The story is titled, "Battle Between a Small-Business Advocate and the SBA Gets Personal." It can be read by clicking here: (http://www.hispanicbusiness.com/entrepreneur/2009/4/17/battle_between_a_smallbusiness_advocate_and.htm#)