Richard F, Davet
PO Box 10092
Cleveland, OH 44110
Phone 216-451-6211
fdavet(@gmail.com
Emai
July 18. 2016
Via Email
Leonard J. DePasquale
Chief Counsel. FHFA-OIG
Office of Inspector General
Federal Housing Finance Agency
400 7" Street SW
Washington, DC 20219
RE: Your voice mail call this past week
Dear Mr.DePasquale:
‘Thank you for your phone call.
It has come to my attention an exchange of correspondence dated May 17 snd May 31, 2016
between Senators Grassley and Johnson and the FHFA OIG copies of which are attached.
In your response letter dated May 31,2016 to the Senator’s staff you allude to “pending
matters”. I would like to know if my issues with the FHFA OIG are included in those matters?
Please advise.
Thank you.
Sincerely,
{s) Richard Davet
Rflec
Ce: The Honorable Laura $. Wertheimer
Enel : Grassley/Johnson letter 051716
DePasqale letter 053116.United States Senate
WASHINGTON, OC 20510
May 17,2016
VIA ELECTRONIC TRANSMISSION
‘The Honorable Laura S, Wertheimer
Inspector General
Federal Housing Finance Agency
400 Seventh Street, SW
‘Washington, DC 20024
Dear Inspector General Wertheimer:
‘As you know, the Homeland Security and Governmental Affairs Committee and the Judiciary
‘Committee have been inquiring into various issues regarding the Federal Housing Finance Agency
Office of Inspector General (FHFA-OIG). In the course of that inquiry, it has come to the Committees”
attention that your office is the subject of one or more complaints before the Integrity Committee of the
‘Council of the Inspectors General on Integrity and Efficiency (CIGIE) and the Office of Special Counsel
(OSC). Ithas also come to the Committees’ attention that your office has retained one or more private
attorneys in some capacity, perhaps in connection with these proceedings or the Committees” inquiry.
Government agencies should generally obtain most of the legal services they need from government
attomeys—whether from in-house attorneys or attorneys from another agency.' For example, Inspectors
General may consult with and obtain advice from other counsel within the Inspector General community
without incurring the added expense of private counsel.
In certain circumstances, where the proper authority exists, agencies may hire outside counsel.
However, given the added expense and the substantial resources already devoted to paying for in-house
legal advice, outside counsel should only be engaged when clearly authorized and necessary. In order to
better understand the nature and circumstances of legal representation procured for or by FHFA-OIG,
please provide responses to the following questions:
1, Has FHFA-OIG retained any private attorney(s)? If so, please provide a copy of all retainer
agreements, including the hourly rate of pay.
2. For each attorney hired:
a. whom precisely does the attorney represent?
for what purpose was each attorney retained?
cc. what is the scope of the representation?
4. how much has been paid to each attomey to date?
* See, eg, 5 U.S.C. § 3106 (providing that agencies should refer litigation matters to the Department of Justice unless
‘otherwise authorized by law).Page 2 of 3
3. Please describe the legal authority for FHFA-OIG to hire a private attorney for the purposes
described in your answer to question number 2.
4. According to FHFA-OIG's 2015 Congressional Budget Justification, the FHFA-OIG Office of
Counsel serves as the chief legal advisor to the Inspector General and provides independent legal
advice, counsel, and opinions to FHFA-OIG about, among other things, its programs and
operations. Why was the FHFA-OIG Office of Counsel deemed insufficient to provide
representation in this instance?
5. Prior to hiring outside counsel, did FHFA-OIG explore the possibility of using the expertise
found at other agencies of the government on a temporary or short-term basis?
6. Please describe the efforts made to determine whether the proposed employment of outside
counsel would be cost-effective, including the analysis performed and the outcome of that,
analysis.
7. What procedures were used to ensure that the hiring of any private attorney was competitive and
designed in a manner to reduce the prospect or appearance of favoritism and result in a higher
quality legal service and savings in cost?
8. What efforts were made to identify conflicts or potential conflicts and how are those conflicts
being managed?
9, The Administrative Conference of the United States has recommended that any agency that
anticipates a need to hire private attorneys should prepare written public guidelines concerning
‘when and how it will seek outside counsel and that agencies should prepare an annual report
listing basic information relating to legal service contracts awarded.’ Has FHFA-OIG completed
these actions? If so, please provide a copy and indicate where they have been made public. If
not, please explain why not,
Please provide your responses to these questions no later than May 31, 2016, Should you have
any questions, please contact Paul Junge of Chairman Grassley’s staff at (202) 224-5225 or Michael
Lueptow of Chairman Johnson’s staff at (202) 224-4751. Thank you for your cooperation in this
important matter.
Sincerely,
Chak
Charles E. Grassley
Chairman
‘Committee on the Judiciary
2 Agency Hiring of Private Attomeys, 52 Fed. Reg. 23,632 (June 24, 1987).‘The Honorable Patrick J. Leahy
Ranking Member
Committee on the Judiciary
The Honorable Thomas R. Carper
Ranking Member
Committee on Homeland Security
and Governmental Affairs
Carolyn N. Leer
Special Counsel
United States Office of Special Counsel
1730 M Street, NW
‘Washington, DC 20036
‘The Honorable Michael E. Horowitz
Chair of Council of the Inspectors General on Integrity and Efficiency (CIGIE)
1717 H Street, NW, Suite 825
Washington, D.C. 20006
Page 3 of 3OFFICE OF INSPECTOR GENERAL
Federal Housing Finance Agency
400 7th Street SW, Washington, DC 20219
May 31, 2016
David Brewer, Chief Investigative Counsel Jason Foster, Chief Investigative Counsel
Michael J. Lueptow, Investigative Counsel Paul Junge, Investigative Counsel
Committee on Homeland Security ‘Committee on the Judiciary
and Governmental Affairs United States Senate
United States Senate Washington, DC 20510
Washington, DC 20510
Via Electronic Mail
Subject: Response to Request for Information dated May 17, 2016
Gentlemen:
‘Thank you for your inquiry regarding the Federal Housing Finance Agency (FHFA) Office of
Inspector General (FHFA-OIG) retention of outside counsel. FHFA-OIG has retained outside
counsels to assist with pending matters related to and arising out of an administrative personnel
action and Congressional inquiries.’ Attorney Peter Broida, Esq. of Arlington, VA, and
Zuckerman Spaeder LLP of Washington, DC have been retained to represent FHFA-OIG in
regard to one or more issues related to the above referenced matters.”
Kindly note that additional responses and information sought in your requests comprise pre-
decisional and deliberative information, as well as attomey-client communications, all of which
are privileged and involve pending matters. Accordingly, that information is not included in this
production. As with the prior requests for privileged information, we remain prepared to discuss
‘with Committee staff possible approaches that may result in a mutually satisfactory resolution.
"HFA, like other prudential regulators, isan independent agency of the federal government, with independent
tion authority. See 12 US.C. $§ 4511, 4513(c), and 4517(d). See also Humphrey's Ex'r v. United Sates, 29S,
USS, 602, 629 (1935); FDIC v. Irwin, 727 F. Supp. 1073 (N.D. Tex. 1989), aff'd. 916 F.2d 1051 (Sth Cit, 1990);
Compiroller of Currency v. Lance, 632 F. Supp. 437 (N.D. Ga. 1986). FHA is funded through assessments from
the entities it regulates, which are not Government or public funds. 12 U.S.C. §§ 4516(a), (D.
2 Mr. Broida’s hourly fee is $400; Zuckerman Spaeder’s hourly fees range from $775 to $850.
Non-PublicLetter to Messrs. Brewer, Lueptow, Foster, and Junge
May 31, 2016
Page 2
‘Thank you for your interest in FHFA-OIG. Please call me at (202) 730-2830 with any questions.
Respectfully,
Fa Ke
Chief Counsel, FHFA-OIG