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B-125302, DEC. 8, 1955

B-125302 Dec 08, 1955
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INGRAM: REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 17. YOU STATE THAT THERE WAS NO FRAUD INVOLVED IN THE LOAN TRANSACTIONS AND REQUEST THAT WE ASSIST IN OBTAINING FOR YOU RELIEF FROM LIABILITY FOR THE LOSS. YOU ALSO POINT OUT THAT IF THE GOVERNMENT'S CLAIM IS ALLOWED TO STAND IT "WILL SET A PRECEDENT THAT WILL ENDANGER ALL SIMILARLY SITUATED FEDERAL EMPLOYES.'. IT WAS REPORTED THAT THE LOSSES TO THE UNITED STATES WERE ATTRIBUTABLE TO IRREGULARITIES ON YOUR PART. IN PERFORMING OTHER FINANCIAL TRANSACTIONS WHICH WERE CLEARLY BEYOND THE SCOPE OF THE AUTHORITY VESTED IN YOU. IT WAS ADMINISTRATIVELY DETERMINED THAT SUCH ACTIONS. OUR OFFICE IS NOT IN A POSITION TO RELIEVE YOU FROM YOUR OBLIGATION TO THE UNITED STATES IN THE MATTER.

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B-125302, DEC. 8, 1955

TO MR. FRED B. INGRAM:

REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 17, 1955, AND ENCLOSURE, RELATIVE TO THE CLAIM OF THE UNITED STATES AGAINST YOU FOR LOSSES IT HAS SUSTAINED INCIDENT TO YOUR SERVICES AS A FORMER COUNTY SUPERVISOR, FARMERS HOME ADMINISTRATION, WEWOKA, OKLAHOMA.

YOUR LETTER FURNISHES A BRIEF HISTORY OF YOUR SERVICE WITH THE ABOVE AGENCY AND OF YOUR HANDLING OF THE EMERGENCY LOANS UNDER ITS LOAN PROGRAM WHICH RESULTED IN THE LOSS TO THE GOVERNMENT. YOU STATE THAT THERE WAS NO FRAUD INVOLVED IN THE LOAN TRANSACTIONS AND REQUEST THAT WE ASSIST IN OBTAINING FOR YOU RELIEF FROM LIABILITY FOR THE LOSS. YOU ALSO POINT OUT THAT IF THE GOVERNMENT'S CLAIM IS ALLOWED TO STAND IT "WILL SET A PRECEDENT THAT WILL ENDANGER ALL SIMILARLY SITUATED FEDERAL EMPLOYES.'

IN A LETTER DATED NOVEMBER 16, 1954, FROM THE DEPARTMENT OF AGRICULTURE, TRANSMITTING THE CLAIM TO OUR OFFICE FOR COLLECTION, IT WAS REPORTED THAT THE LOSSES TO THE UNITED STATES WERE ATTRIBUTABLE TO IRREGULARITIES ON YOUR PART. THE RECORD SHOWS THAT THE IRREGULARITIES PRINCIPALLY INVOLVED THE MAKING OF LOANS TO PERSONS UNDER LOAN PROGRAMS OF THE FARMERS HOME ADMINISTRATION AUTHORIZED BY THE BANKHEAD-JONES FARM TENANT ACT WITHOUT FIRST OBTAINING CERTIFICATIONS FROM THE LOCAL COMMITTEE AS TO ELIGIBILITY OF LOAN APPLICANTS AS PRESCRIBED BY LAW, AND ALSO, IN PERFORMING OTHER FINANCIAL TRANSACTIONS WHICH WERE CLEARLY BEYOND THE SCOPE OF THE AUTHORITY VESTED IN YOU. IT WAS ADMINISTRATIVELY DETERMINED THAT SUCH ACTIONS--- REGARDLESS OF YOUR MOTIVES THEREFOR--- RESULTED IN YOUR ASSUMING FULL RESPONSIBILITY FOR THE LOSSES SUSTAINED BY THE GOVERNMENT THEREBY.

ACCORDINGLY, OUR OFFICE IS NOT IN A POSITION TO RELIEVE YOU FROM YOUR OBLIGATION TO THE UNITED STATES IN THE MATTER.

YOU ARE ADVISED THAT THE CLAIM NOW IS IN THE PROCESS OF BEING PREPARED FOR PRESENTATION TO THE DEPARTMENT OF JUSTICE FOR APPROPRIATE ACTION, AND IT IS ASSUMED THAT YOU WILL HEAR FROM THAT DEPARTMENT AT A LATER DATE WITH RESPECT THERETO.

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