Showing posts with label Tremco and purchasing cooperatives. Show all posts
Showing posts with label Tremco and purchasing cooperatives. Show all posts

Sunday, January 14, 2018

Lewisburg School District continues to ignore the public. LETTER TO THE EDITOR. Max Bossert

Friends:

As distasteful as it was to report on a lying Florida Senator, the cases just keep on coming.  Why Ron?  Because it's a system rigged to favor one manufacturer, and increase commissions.

Why do they only want one manufacturer?  Because Purchasing Cooperatives are essentially "Commissioned Salesmen", and get 2%-4% of the contract amount.  They do not get paid to seek competitive pricing because that would mean less money for them.  Understood?  It's a SCAM., AND NOTHING MORE.

Type "School Roofing Scam" on YouTube, and you'll see what I mean.

U.S. Communities is one of the worst.  Lying about Garland being competitive is hilarious, once you know the facts.  Garland got their contract with U. S. Communities with 55 pages of BLANK DOCUMENTS.  What on earth did they compare $0.00 to?

Here is a very recent case of schools getting ripped off by the scheme.  "Predatory Sales Model" as I refer to them.   On average, these Purchasing Cooperative "sole source" contracts cost the taxpayer approximately 50% MORE than competitive, open, and fair, bidding scenarios.

Very special thanks to those who had enough, and did something about it.






http://www.dailyitem.com/opinion/we-the-people-are-being-robbed/article_dcf39cc8-0feb-501b-8fbd-8cce1295060c.html



LETTER TO THE EDITOR: We, The People are being robbed

By Max Bossert | Letter to the Editor

The Lewisburg School District continues to ignore the public.
A recent letter from Stacy Gasteiger (Dec. 22) about cronyism at the local level could not be more true.
The superintendent, the school board president, business manager will stop at nothing to be able to deal with the CSIU, KPN and Tremco of Ohio (who just used their other name of Weatherproofing Technologies) to mislead the voting public to get their project approved for the Linntown Elementary School roofing project.
To explain everything, the Lewisburg School District does not purchase anything from local business. The business manager has presented the roofing project four times since early spring. The original cost was $740,000. We requested they reconsider and they did stop the contract. Since then the price has fluctuated from $740,000 to $489,726 for the same project.
This is a project that could be done by any local tax paying contractor for less than $200,000.
I know this because we and other roofers are certified to do this type of work and we have been roofing since 1974 as well as roofing at the Linntown Elementary School some 30 years ago.
A copy of the bidding process required by the state was hand carried to the superintendent, the board president and business manager yet they continue to skirt the fair bidding practice set by the State of Pennsylvania and have awarded the contract to Waterproofing Technologies for $489,726.40. This cost, I believe, is $289,000 more than any other certified local roofer would charge for the same project if they had bothered to get more than one bid.
It certainly makes you wonder who is getting the extra $289,000.  
NOTE:  Tremco, and Garland Salesmen get paid 25% commission, where mainstream manufacturers pay salary.  That's a lot of money (the 25% Commission) that doesn't actually go into the job itself.
My personal opinion is that we need to get a new board president, new business manager and new local superintendent.
Remember citizens, it’s our responsibility to say something if you see something. I see people who are stealing money from our school district.
Please check out Tremco and Waterproofing Technologies at www.procurement-reform.org to see that we are not just blowing smoke.
Max Bossert,
West Milton
---------------------------------------
Very well done, and I am proud of those who stand up to the scam.  Those of us who scream for fairness, are typically at the hands of intellectual elitists who have no concept of modern roofing technique, material, or competitive bidding processes.  A complete fool can see how the "Roofing Scam" works.

They aren't spending their money, they're spending YOUR MONEY!  Republican, Democrat, and Independent, doesn't matter. They are supposed to be responsible stewards of our money, but instead, act as gravy sucking pigs at the trough.  Sorry to paint with such a broad brush, but the exceptions are few. 

Say NO to Purchasing Cooperatives, and the two vendors they prop up:  Tremco, and Garland.  
If you don't, you may find yourself in the news, and not the way you dreamed it.
Reject negativity in all forms, and always remember to keep looking "UP".

Constructive criticism is welcomed, and encouraged.
Respect.
Robert R. Solomon
Public Procurement Analyst
Florida Certification
CCC 1325620
Tampa, Florida




Wednesday, September 14, 2016

RPM (Tremco) Facing SEC Fraud Case.

Thank you to the wonderful people at Durability + Des8ign.
http://www.durabilityanddesign.com/news/?fuseaction=view&id=15485

Note the SEC is demanding a jury trial.  
This is going to get ugly, and not long after the DOJ fined them $61,000,000.00 for abusing GSA contracts.  If Tremco fell of the earth's surface tomorrow, nobody would miss them.

Purchasing Cooperatives who enable them are just as responsible, and I hope they get a good "Wut Fer" as well.




Durability + Design
   
ABOUT  |  SUBSCRIBE  |  ADVERTISE  |  CONNECT
Follow us on Twitter Like us on Facebook

D+D News


RPM Faces SEC Fraud Case

Wednesday, September 14, 2016

More items for Building Envelope
Comment|More

The U.S. Securities and Exchange Commission has charged RPM International Inc. and its general counsel with disclosure and accounting fraud stemming from a Department of Justice investigation regarding roofing materials and services provided to the government.
According to the agency’s statement, RPM and Edward W. Moore, 59, “failed to disclose a material loss contingency, or record an accrual for, a government investigation when required to do so under governing accounting principles and securities laws.”
Meanwhile, RPM leaders say the allegations are without merit.
Tremco Case
The SEC’s complaint, filed Friday (Sept. 9), says that from 2011 through 2013, RPM and its subsidiary Tremco Inc.—a manufacturer of roofing materials, construction sealants and waterproofing systems—were under investigation by the DOJ for overcharging the government on certain contracts.
RPM settled the DOJ investigation and litigation for $65.1 million in August 2013.
accounting
© iStock.com / Sky_Blue
The SEC announced it had lodged a disclosure and accounting fraud case against RPM International for failing to disclose a loss contingency or record an accrual for an investigation by the Department of Justice.
As RPM's general counsel and chief compliance officer, Moore allegedly oversaw RPM's response to the DOJ investigation, the SEC said. However, Moore did not inform RPM's CEO, CFO, Audit Committee, and independent auditors, of material facts about the investigation, the complaint alleges.
For example, Moore reportedly “knew but failed to inform” RPM executives that:
  • RPM sent DOJ estimates showing RPM's subsidiary overcharged the government on the contracts under investigation by a material amount;
  • RPM agreed to submit a settlement offer by a specific date to resolve the DOJ investigation; and
  • Prior to submitting the settlement offer to DOJ, RPM's overcharge estimates increased substantially to at least $28 million.
Misleading Documents
The SEC alleges that RPM filed multiple false and misleading documents with the SEC because of Moore’s actions. For example, RPM allegedly failed to disclose in its SEC filings:
  • Any loss contingency related to the DOJ investigation, or to record an accrual on its books, when required to do so by governing accounting principles and the securities laws; and  
  • A material weakness in its internal control over financial reporting and its disclosure controls when in fact such weakness existed.
“Because of RPM’s false and misleading SEC filings, investors were not timely informed that a material loss relating to the DOJ investigation was reasonably possible or probable,” the complaint states. “Investors also were not timely notified of a material weakness in RPM’s internal control over financial reporting and its disclosure controls.”
In August 2014, RPM did restate its financial results for three quarters that occurred during the DOJ investigation and filed amended SEC filings for those quarters, disclosing the DOJ investigation and related accruals, the commission said in its announcement. In the restated filings, RPM also disclosed errors relating to the timing of its disclosure and accrual for the DOJ investigation.
RPM
RPM International
The DOJ investigation in question occurred between 2011 through 2013, when RPM and one of its subsidiaries—roofing materials, construction sealants and waterproofing systems company Tremco Inc.—were under scrutiny for overcharging the government on certain contracts.
“RPM’s restatement thus confirmed that the company’s original SEC filings referenced above were materially false and misleading,” the complaint notes.
Rules Cited
The SEC's complaint charges RPM with violating specific antifraud provisions of the federal securities laws of the Securities Act of 1933; reporting provisions of the federal securities laws of the Securities Exchange Act of 1934 and rules thereunder; and the books and records and internal controls provisions of the federal securities laws of the Exchange Act.
The complaint also charges Moore with violating certain sections of the Securities Act and rules under the Exchange Act.
The complaint seeks permanent injunctions, repayment of “ill-gotten gains” plus interest and penalties.
RPM’s Response
In response to the enforcement action, RPM’s CEO, Frank C. Sullivan, issued a statement Friday asserting that “the restatements had no impact on the audited results for the fiscal year ended May 31, 2013, and the company's audit committee concluded that there was no intentional misconduct on the part of any of its officers.”
Sullivan added: "We believe the allegations have absolutely no merit and are the product of prosecutorial overreach. We intend to vigorously defend ourselves and expect our position to be vindicated in court."
Further, RPM filed a Form 8-K with the SEC on Friday, stating that the company has “cooperated with the SEC’s investigation and believes the allegations mischaracterize both the company’s and Mr. Moore’s actions in connection with the matters related to the company’s quarterly results in fiscal 2013 are without merit.”
The filing also noted its confidence in Moore’s integrity and conduct.
RPM International is the parent company of Carboline, Tremco and dozens of other coating, sealant and chemical brands. The company is based in Medina, OH.
The SEC has demanded a jury trial.
--------------
Reject negativity in all forms, and always remember to keep looking "UP".
Respect.

Ron