{"id":25228,"date":"2023-04-20T10:45:12","date_gmt":"2023-04-20T10:45:12","guid":{"rendered":"https:\/\/one.sightlinemg.com\/federaltimes\/uncategorized\/2023\/04\/20\/dea-chief-faces-probe-into-swampy-hires-no-bid-contracts\/"},"modified":"2026-08-08T05:04:55","modified_gmt":"2026-08-08T05:04:55","slug":"dea-chief-faces-probe-into-swampy-hires-no-bid-contracts","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/federaltimes\/federal-oversight\/watchdogs\/2023\/04\/20\/dea-chief-faces-probe-into-swampy-hires-no-bid-contracts\/","title":{"rendered":"DEA chief faces probe into \u2018swampy\u2019 hires, no-bid contracts"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">A federal watchdog is investigating whether the U.S. Drug Enforcement Administration under chief Anne Milgram improperly awarded millions of dollars in no-bid contracts to hire past associates, people familiar with the probe told The Associated Press.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Among the spending under scrutiny by the Justice Department\u2019s Office of Inspector General is $4.7 million for \u201cstrategic planning and communication\u201d and other contracts that were used to hire people Milgram knew from her days as New Jersey\u2019s attorney general and as a New York University law professor \u2013 at costs far exceeding pay for government officials.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At least a dozen people have been hired under such contracts, including some in Milgram\u2019s inner circle handling intelligence, data analytics, community outreach and public relations \u2014 work often requiring security clearances and traditionally done by DEA\u2019s own 9,000-person workforce.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/federaltimes\/management\/2020\/06\/18\/retired-dea-agents-say-agency-has-legacy-of-discrimination\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"169\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/dea-badge.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Retired DEA agents say agency has legacy of discrimination<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">The former agents pointed to a court ruling last year that said the DEA has failed to even the playing field for black agents seeking promotions.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">Also under scrutiny is $1.4 million to a Washington law firm for a recent review of the DEA\u2019s scandal-plagued foreign operations that was <a href=\"https:\/\/apnews.com\/article\/dea-corruption-drugs-fentanyl-cocaine-mexico-colombia-10be9ba84b73752683a8492a62f732f2\">widely criticized<\/a> for giving short shrift to agent misconduct and how to prevent it. That review was co-authored by Boyd Johnson, former right-hand man to one of Milgram\u2019s closest friends, Preet Bharara, when he was U.S. Attorney in Manhattan. Bharara himself landed at the firm, WilmerHale, even as the review was being conducted.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cSome of these deals look very swampy,\u201d said Scott Amey, general counsel of the nonpartisan Project on Government Oversight, noting that federal contracting is not intended to bypass the government hiring process and should be conducted with no preferential treatment and avoiding even the appearance of a conflict of interest. Contractors are also prohibited from performing \u201cinherently governmental functions\u201d such as directing federal employees.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cContracts should never be awarded based on who you know,\u201d Amey said.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1455\" height=\"744\" src=\"\/wp-content\/uploads\/2026\/08\/635919125675288959-dea-logojpg.jpg\" alt=\"\" class=\"wp-image-27371\" srcset=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/635919125675288959-dea-logojpg.jpg 1455w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/635919125675288959-dea-logojpg.jpg?resize=300,153 300w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/635919125675288959-dea-logojpg.jpg?resize=768,393 768w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/635919125675288959-dea-logojpg.jpg?resize=1024,524 1024w\" sizes=\"auto, (max-width: 1455px) 100vw, 1455px\" \/><figcaption class=\"wp-element-caption\">U.S. Drug Enforcement Administration Agents simulate a raid in their Tactical Training Facility in Quantico, Virginia. (TIM SLOAN\/AFP\/Getty Images)<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Details of the widening inquiry, which began several months ago in response to employee complaints, came from several people interviewed by the Inspector General\u2019s office who discussed the ongoing probe and provided contracting documents on the condition of anonymity. If misconduct is found, the Inspector General can recommend anything from administrative sanctions to criminal prosecution.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The probe comes as the DEA is struggling with repeated revelations of agent misconduct that have rocked the federal narcotics agency and a <a href=\"https:\/\/apnews.com\/article\/science-health-covid-opioids-death-rates-ba8af16246240aae4b044238ce19e6b6\">fentanyl crisis<\/a> claiming more than 100,000 overdose deaths a year that Milgram <a href=\"https:\/\/apnews.com\/article\/drug-charges-sinaloa-cartel-el-chapo-867532c8cde69d6a8bd1eca4457acfad\">has called<\/a> the \u201cdeadliest drug threat our country has ever faced.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The DEA declined to make Milgram available for an interview or to discuss the investigation and specific contracts, instead releasing a statement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cDEA has acted with urgency to set a new vision, target the global criminal networks responsible for hundreds of thousands of American deaths, raise public awareness about how just one pill can kill, and promote and recruit hundreds of highly talented people,\u201d it said. \u201cThese changes have been made through an extensive and multi-part process, and we are committed to ensuring that DEA is working relentlessly to protect the national security, safety, and health of the American people.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Anthony Coley, a former Justice Department spokesman who has known Milgram for 15 years, said the investigation may stem from employees who aren\u2019t happy with such organizational change and are seeking ways to \u201cpush back or undermine it, even if the underlying allegations aren\u2019t true.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cBut that\u2019s what inspectors general are for,\u201d he said, \u201cto call balls and strikes.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With a tough New Jersey bravado and data-driven \u201cMoneyball\u201d approach to the war on drugs, the 52-year-old Milgram came to the DEA nearly two years ago with a mandate to clean house.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But the Biden appointee quickly ruffled feathers by pushing out several career DEA officials she viewed as part of a cliquish culture that allowed misconduct to flourish. Instead, she favored the counsel of newly installed attorneys and data crunchers who work with her in an isolated part of the 12th floor of DEA headquarters known as \u201cthe bubble.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Milgram has also made a point to show zero tolerance for sexual misconduct and racism in the ranks, warning agents they may now be fired for certain first offenses \u2014 a departure from previous administrations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One of her first actions was ordering an external review of the DEA\u2019s sprawling foreign operations, which spans 69 countries. It came in the wake of the high-profile arrest of <a href=\"https:\/\/apnews.com\/article\/soccer-sports-la-liga-money-laundering-puerto-rico-38aed2da8cd0ac237aca28aa39321105\">Jos\u00e9 Irizarry<\/a>, a disgraced agent now serving a 12-year federal prison sentence after confessing to laundering money for Colombian drug cartels and skimming millions from asset seizures and informants to fund an international joyride of fine dining, parties and prostitutes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">\u2018Stunningly vague\u2019<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">But those selected to carry out the review raised eyebrows. One, John \u201cJack\u201d Lawn, is a DEA legend but the 87-year-old\u2019s insights date from his tenure leading the agency in the 1980s. After leaving government, Lawn headed the Century Council, a beverage industry group, which funded research into campus alcohol abuse that was conducted by Milgram\u2019s mother, a Rutgers University expert in the field.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Lawn\u2019s co-author, Boyd Johnson, worked as a prosecutor on international drug cases before becoming a partner at WilmerHale. Both Johnson and Milgram have close ties to Bharara, who after being fired as U.S. attorney by President Donald Trump joined the NYU faculty alongside Milgram and together hosted the legal issues podcast <a href=\"https:\/\/podcasts.apple.com\/us\/podcast\/the-cafe-insider-podcast-via-cafe-audio-pass\/id1571993380\">\u201cCafe Insider.\u201d<\/a> Last year \u2014 as the foreign operations review was being conducted \u2014 Bharara joined WilmerHale. And this year, DEA hired away from the firm Milgram\u2019s former NYU research assistant to become her deputy chief of staff.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Competitive bidding rules for the review were sidestepped by the DEA\u2019s argument of \u201cunusual and compelling urgency,\u201d saying the \u201cthreat of illicit foreign drugs to the health and safety of the American public has never been greater.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But instead of the projected six months to get the review out, it took nearly three times that long.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt\u2019s a complete waste of taxpayers\u2019 money,\u201d said Matthew Donahue, who led DEA\u2019s foreign operations until he butted heads with Milgram and was transferred to Colombia, a demotion that prompted him to retire.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Donahue said he and several other DEA overseas veterans were never interviewed as part of the <a href=\"https:\/\/www.dea.gov\/documents\/2023\/2023-03\/2023-03-24\/dea-foreign-review-report\">review<\/a>, which scarcely mentioned Irizarry or other scandals, and borrowed heavily from publicly available audits and DEA operating manuals.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt\u2019s something that could\u2019ve been written in three days,\u201d he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Iowa Republican Sen. Chuck Grassley, a longtime voice against government waste and member of the Senate Judiciary Committee, ripped WilmerHale\u2019s review as \u201cstunningly vague\u201d and recently sent Johnson a <a href=\"https:\/\/www.grassley.senate.gov\/imo\/media\/doc\/grassley_to_wilmer-hale_-_dea_foreign_ops_review.pdf\">letter<\/a> requesting a range of records, background on his relationship with Milgram and asking whether she or anyone else at DEA requested edits of the report.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThough DEA originally billed this report as a \u2018comprehensive review\u2019 of DEA\u2019s foreign operations strategy, the report glosses over or ignores serious shortcomings at the agency and spends much of its 49 pages quoting from publicly available documents that one could have pulled off a web site,\u201d Grassley wrote in the letter last week.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Neither Lawn, Johnson, Bharara nor WilmerHale responded to requests for comment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">New Jersey ties<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Another no-bid contract under scrutiny went to Jose Cordero, a longtime New York City police official whose ties to Milgram go back to 2007 when as attorney general she named him New Jersey\u2019s first statewide director of gangs, guns and violent crime.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Together they overhauled the police department in Camden \u2014 then under state control due to soaring crime and corruption \u2014 by crunching crime stats and intelligence data in real time to deploy resources as needed. The approach won national praise as the homicide rate in what was then the country\u2019s most dangerous city was slashed by nearly half.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe have a lot of culture to change,\u201d Milgram said in a 2014 <a href=\"https:\/\/www.youtube.com\/watch?v=ZJNESMhIxQ0\">TED talk<\/a> on applying statistics to crime fighting. \u201cBut the great news about all of it is that we know it works.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Less than three weeks after taking the top job at DEA, Milgram awarded Cordero what has become a nearly $400,000 contract to conduct data analysis of crime stats.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But Donahue said Cordero\u2019s expertise in urban policing has less value to the DEA, which processes a flood of intelligence from foreign and domestic wiretaps, as well as informants, to dismantle cross-border criminal networks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Cordero didn\u2019t respond to requests for comment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Clearing<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Several of the hires in question joined DEA through The Clearing, a Washington-based federal contractor that provides outsourced administrative services to the DEA and other federal agencies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Clearing\u2019s $4.7 million in billings to the DEA for \u201cstrategic planning and communication consulting services\u201d over the past two years have accounted for 30% of its federal contracts during that period, records show.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Among those from The Clearing under scrutiny is Lena Hackett, a former Democratic congressional staffer and founder of Community Solutions, an Indianapolis consulting firm focused on public health and criminal justice. Milgram described her as her main partner in a policing reform project she established in Indianapolis while teaching at NYU.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Internal records show Hackett regularly briefs field offices, prepares policy statements and memos for Milgram and meets with families affected by the fentanyl crisis. For her services, the DEA budgeted $257 an hour \u2014 more than triple the hourly rate earned by the agency\u2019s top civil servants, including the head of community outreach.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Another brought in through The Clearing is Julia Pacetti, a New York City publicist who has led media campaigns for prominent public figures and authors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to documents, Pacetti\u2019s firm JMP\/Verdant collected $11,500 a month plus expenses to write news releases, handle interview requests and arrange news conferences\u2014 work some DEA employees viewed as redundant given the agency\u2019s existing staff of public relations employees.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Several recent DEA news releases \u2013 including those announcing fentanyl busts as part of the agency\u2019s <a href=\"https:\/\/www.dea.gov\/onepill\">\u201cOne Pill Can Kill\u201d<\/a> enforcement surge \u2013 came not from the DEA\u2019s official email account but from \u201cJulia Pacetti-Verdant.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Neither The Clearing, Hackett nor Pacetti responded to requests for comment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis looks terrible to taxpayers,\u201d said Don Fox, former acting director and general counsel of the Office of Government Ethics. \u201cThe appearance is awful.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Among the spending under scrutiny is $4.7 million for \u201cstrategic planning and communication\u201d and other contracts used to hire people Milgram 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By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>DEA chief faces probe into \u2018swampy\u2019 hires, no-bid contracts - Federal Times<\/title>\n<meta name=\"description\" content=\"Among the spending under scrutiny is $4.7 million for \u201cstrategic planning and communication\u201d and other contracts used to hire people Milgram knew.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DEA chief faces probe into \u2018swampy\u2019 hires, no-bid contracts\" \/>\n<meta property=\"og:description\" content=\"Among the spending under scrutiny is $4.7 million for \u201cstrategic planning and communication\u201d and other contracts used to hire people 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