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State investigates food service official
By William McCall, Associated Press Writer
Wednesday, January 24, 2007 | No comments posted.
PORTLAND - Gov. Ted Kulongoski said Tuesday a federal investigation into alleged kickbacks to the state prison food service administrator totaling at least $650,000 may lead to tougher oversight of the purchasing program.
“Certainly the governor takes this investigation very seriously,” said Anna Richter Taylor, the governor's spokeswoman.
Farhad “Fred” Monem has been placed on administrative leave from the Oregon Department of Corrections after federal agents accused him and his wife, Karen, of receiving kickbacks or bribes.
No charges have been filed against Monem or others accused of involvement.
David Angeli, the attorney for Fred Monem, declined comment.
A spokeswoman for U.S. Attorney Karin Immergut also declined comment on the joint FBI and Internal Revenue Service investigation.
The allegations are part of an affidavit filed in U.S. District Court in Eugene to support a search warrant for the Monems' home, Fred Monem's business office in Salem, and a safe deposit box the couple kept at a Salem bank.
The affidavit portrayed the couple living a lavish lifestyle from 2003 to 2006, including at least 15 trips to the Mandalay Bay Hotel and Casino in Las Vegas and the purchase of a $77,000 BMW - roughly what Fred Monem earns per year at his state job.
The search turned up more than $12,000 in cash in a briefcase in a closet at the couple's house, along with four packages of marijuana and a package of hashish, according to court documents.
“Without the bribery/kickback payments made to Fred and Karen Monem ... it is my opinion that the purchase and acquisition of assets and lifestyle expenditures made by the Monems ... would not have been possible,” IRS Special Agent Robert Salisbury wrote in the affidavit.
Fred Monem, 48, had built a reputation as a “whiz kid” who had saved the state Department of Corrections millions of dollars in inmate food costs by purchasing food nearing its expiration date and also through buying in bulk.
The scheme allegedly involves food distributors and brokers in California, New York and Maryland but centered on a distributor in Santa Clarita, Calif., named Levin & Lawrence Inc.
Monem purchased bulk food from Levin & Lawrence that was labeled “distressed” because it is close to the expiration date and kicked back a profit to Fred Monem, according to the affidavit.
A man who answered the phone at Levin & Lawrence on Tuesday, but did not identify himself, declined comment on behalf of the company.
The Department of Corrections issued a statement Tuesday saying the investigation does not appear to involve any inmates or state prisons and no arrests have been made.
“We are of course disappointed that allegations have surfaced regarding a department employee,” Max Williams, director of the Oregon Department of Corrections, said in the statement. “We hold ourselves and all employees to the highest ethical standards and we take very seriously any suggestion that those standards have been violated.”
“Certainly the governor takes this investigation very seriously,” said Anna Richter Taylor, the governor's spokeswoman.
Farhad “Fred” Monem has been placed on administrative leave from the Oregon Department of Corrections after federal agents accused him and his wife, Karen, of receiving kickbacks or bribes.
No charges have been filed against Monem or others accused of involvement.
David Angeli, the attorney for Fred Monem, declined comment.
A spokeswoman for U.S. Attorney Karin Immergut also declined comment on the joint FBI and Internal Revenue Service investigation.
The allegations are part of an affidavit filed in U.S. District Court in Eugene to support a search warrant for the Monems' home, Fred Monem's business office in Salem, and a safe deposit box the couple kept at a Salem bank.
The affidavit portrayed the couple living a lavish lifestyle from 2003 to 2006, including at least 15 trips to the Mandalay Bay Hotel and Casino in Las Vegas and the purchase of a $77,000 BMW - roughly what Fred Monem earns per year at his state job.
The search turned up more than $12,000 in cash in a briefcase in a closet at the couple's house, along with four packages of marijuana and a package of hashish, according to court documents.
“Without the bribery/kickback payments made to Fred and Karen Monem ... it is my opinion that the purchase and acquisition of assets and lifestyle expenditures made by the Monems ... would not have been possible,” IRS Special Agent Robert Salisbury wrote in the affidavit.
Fred Monem, 48, had built a reputation as a “whiz kid” who had saved the state Department of Corrections millions of dollars in inmate food costs by purchasing food nearing its expiration date and also through buying in bulk.
The scheme allegedly involves food distributors and brokers in California, New York and Maryland but centered on a distributor in Santa Clarita, Calif., named Levin & Lawrence Inc.
Monem purchased bulk food from Levin & Lawrence that was labeled “distressed” because it is close to the expiration date and kicked back a profit to Fred Monem, according to the affidavit.
A man who answered the phone at Levin & Lawrence on Tuesday, but did not identify himself, declined comment on behalf of the company.
The Department of Corrections issued a statement Tuesday saying the investigation does not appear to involve any inmates or state prisons and no arrests have been made.
“We are of course disappointed that allegations have surfaced regarding a department employee,” Max Williams, director of the Oregon Department of Corrections, said in the statement. “We hold ourselves and all employees to the highest ethical standards and we take very seriously any suggestion that those standards have been violated.”
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