• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Lawsuit Alleges "Corruption and Negligence" at Department of Energy

    A lawsuit filed in federal court on Wednesday alleges mass favoritism in the Department of Energy’s decisions to award federal grants to major car companies to develop electric vehicles, according to a legal complaint obtained by Scribe.

    The plaintiff, San Francisco-based XP Technology, says in a complaint filed in the U.S. Court of Federal Claims that “corruption and negligence” pervaded DOE’s decision to award loan guarantees to Ford, Nissan, Tesla Motors, and Fisker Automotive for the development of electric vehicle technology.

    “Investigations have shown that DOE officials intentionally stalled numerous applicants’ reviews in order to force them out of business and protect favored players,” the complaint claims. It adds:

    XP has received information demonstrating that the unprecedented number of failures in the DOE program relative to what DOE officials have claimed to be “the most expensive and extensive due diligence in history” is explained by manipulated reviews, in the due diligence effort, on behalf of what the United States Government Accountability Office (GAO) investigations found to be “favoritism” in published investigation reports. A senate ethics investigation states, in published reports, that “negligence and mismanagement by DOE officials” was a regular occurrence.

    XP, which applied for federal backing under the Advanced Technology Vehicle Manufacturing program, “is seeking to have applicants who were “targeted” receive fair re-reviews, in a transparent manner, if they so desire.”

    In addition to an unfair selection process, XP alleges that DOE retaliated against the company for reporting evidence of negligence and corruption incorporated into the various investigations into the ATVM program.

    After XP staff first reported the incidents, becoming “whistle-blowers”, by reporting the evidence to GAO, Justice Department, The White House Press Office and The Senate Committee on Energy and Natural Resources, among others, they received threats and personal attacks. Over time, the volume of third party investigations, which have validated the charges of questionable acts by DOE staff have become voluminous.

    The Energy Department did not return a request for comment by press time.

    Read XP’s full complaint here:

    Posted in Scribe [slideshow_deploy]

    86 Responses to Lawsuit Alleges "Corruption and Negligence" at Department of Energy

    1. Dave Halpern says:

      Crony socialism at work.

    2. Tim says:

      Surprise! Surprise! Surprise!
      Is there any department in this administration that isn't overwhelmed by corruption?

      • jessie says:

        I am sad to say that i don't believe a single one could pass an investagation.

      • Snow White says:

        Obama is running our government like his African despot predessors ran their countries. Idi Amin, robert Mgawbe, and thier ilk looted their countries of all wealth and left them destitute and in debt. We are in the 60th year of the second reconstruction since the Civil War. Check out the similarities for yoru self. It took the South over 100 years to pay off the debt created by ignorant and unqualified former slaves and their government advisors (carpetbaggers). Today's carpet baggers are lobbyists, community activists and Union bosses. It's going to take us at least 100 years to pay off the trillions that have been spent on projects that have accomplished nothing and nobody knows where the money really went. Someone might want to check to see if any adminsitration officials have foreign bank accts.

      • SunshineConnie says:


      • lesellers says:

        No, there is not.

        It starts in the White House, runs through the Naval Observatory, and doesn't stop until the remotest office of the Department of Agriculture. The whole thing is rotten from head to tail.

        Mr. O'bama, will there ever BE any Jobs?

      • It's not a surprise – it was corrupt under Carter and Reagan when I worked on DoE contracts. The only worse agency – and worse by far – was NASA.

    3. Chimes39 says:

      Just another example of Obama the incompetent awarding his union (organized crime) buddies.

      • Robbo says:

        Incompetant like a fox.
        Always, always, always follow the money.
        These "gooder" people are in it for themselves first. Then they want the power to keep doing it through crony socialism.

      • Mialco says:

        Don't mention Bush administration awarding Haliburton a no-bid contrat for fuel and "other" services in the was over weapons of mass destruction, which was billions and billions of dollars, that we are still paying for, in lives and money. Are we still searching for those weapons? No, we are trying to figure out why we spent money to better the American way of life with energy efficient, economical energy and transportation. Yea, you are a patriot alright.

    4. Bobbie says:

      In America accountability is a must! We're sick of people with government ties and control outside our own but paid by us getting away with their insubordinations while the President demands higher taxes, more revenue to let it continue by covering it up! There's no reason for taxes to increase but much reason to correct those that don't live up to their responsibilities with integrity. We don't accept the way our money is spent or Obama's reason to increase taxes to expand government control that hides corruption and useless wasteful existences! We wouldn't be on a fiscal cliff if accountability of everyone in and associated with government is accounted for!

      • Rob says:

        This is one reason that maybe the private sector should be driving innovation, and not the government.!

      • You betcha! Another set of solid reasons for not only smaller/ de-centralized govt, but also the restoration of States' rights, our US Constitution, and "borders, language, culture". Implosion, aye

    5. greg gregory says:

      Corruption and negligence in our federal government? Please say it ain`t so.

    6. Rann Xeroxx says:

      It does not matter if money is being handed out by repubs or dems, giving the government money, corrupts government. Only have them spend what they absolutely have to, such as defense, state department, etc. Everything else such as entitlements, labor, energy, etc should be handled as close to the local government as possible.

    7. yourmomscalling says:

      the corruption in our government is overwhelming

    8. jb80538 says:

      Corruption in a governemnt agency?! I just can't believe it!

    9. walt c says:

      In light of this, we obviously need to expand the program under The Won's second term. Right? /sarc

    10. Citizen says:

      House of cards is starting to crumble…. Hang on folks, it is going to be a bumpy ride!

    11. Jack Kinch says:

      Green energy grants(gifts) were made to friends and campaign contributors to NOno'. We already knew this as we knew it was a waste of more taxes. Parasites do not care about this as long as they get welfare. There are now more parasites than producers. $16.25 trillions in debt and growing hourly.

    12. Jack Kinch says:

      My comment most appropiate

    13. mark4444az says:

      This just in: The current administration is corrupt from the top down and noone seems to care.

    14. eddiet says:

      When do they get the next round of money?

    15. Rory Conaway says:

      What else would you expect from a party that believes that the end justifies the means. The party is based on lies and subjogating the idiots who think they are getting free stuff from the rich. All the time, the party is stealing from their future to enrich themselves.

    16. Barry Kurth says:

      The stench of the Obama Administration grows worse and worse with each passing day.

    17. Jeigh says:

      Go get em!

    18. guest1 says:

      Who's surprised? I mean, really.

    19. Skippy says:

      Under the Obama administration, nothing they do suprises me anymore. Corruption from the top down. Talk about trickle down economics…..

    20. Craig McDow says:

      No kidding! Check out the loser who is Secretary there and his past comments.

      This is just another lie, mis-management and inept way of doing business of the Obama Adminstration.
      ("It's Bush's fault")

    21. jessix says:

      Business as usual in this corrupt country.

      Is anyone really surprised?

      • charleynash says:

        All governments tend toward corruption. That's why the founding fathers wanted to limit the scope and size of government.

    22. bunjo says:

      Just business as usual in the Obama administration

    23. hater says:

      Complain all you want, but we vote for them over and over again. The definition of insanity is doing the same thing over and expecting different results.

    24. Tarmangani says:

      Still another example of why the government has no business getting "hands on" with business. They have no right according to the Constitution and this is why. Our founders knew better.

    25. mtnhiker says:

      I am surprised it has taken this long for someoen to file suit.

    26. gman says:

      Never appeared on my teleprompter, will, ah, um, er wait for some investigation by the department.

    27. JP Reiderer says:

      Not surprised at all. Bill Clinton was almost impeached on much less. his guy deserves the boot.

    28. Luke John says:

      Let's see, the Dept. of Energy was founded in the 1970's under the Nixon administration with the mandate "To reduce our dependence on foreign oil" now 40 years and many trillions of dollars later, we are still funding foreign despots and people who hate us. We are still hardly scratching the surface of our known reserves and ALL the "alternative energy" modalities are disasters, only surviving via massive taxpayer subsidies.

      Time to reduce this department to it's regulatory minimum – say about 2-5% of it's current size and budget.

    29. Rusty Bender says:

      Corruption, in the government?!?! How could it be so? Looks like it is about time for Holder to get a promotion for his exceptional work! Any scrutinity about Holders performance is fueled by pure racism and will not be tolerated by this PERFECT administration! end /sarc

    30. Gompers says:

      John Doerr is an Obama Bundler who as a member of Obama’s Jobs Council, had input as to which firms received funds under the Stimulus Act of 2009. Doerr is a partner in the Kleiner Perkins venture capital firm, which invests a lot in green energy companies.
      Sixteen of the 22 firms in which Doerr had partial ownership received money from the Stimulus Act.
      What a coincidence! Doerr was helping Obama choose which firms to support and somehow 16 of Doerr's 22 firms were selected! And Doerr is a BIG contributor to Dem politicians, especially Obama!
      Senator Dianne Feinstein (D-CA) invested $1M with Doerr three weeks before the Stimulus Act passed. Her investment tripled in value in less than one month.
      Isn't that another AMAZING coincidence?
      That’s how this corrupt Administration works – they give BIG rebates to their contributors who in turn line the pockets of powerful Dem politicians.

    31. john solis says:

      There is NO Constitutional authority to regulate energy.
      Perhaps because of that absence, they have failed to produce any in four decades.

    32. John B says:

      IMPEACHMENT ASAP !!!!!!!!!!!

    33. Frankok K. says:

      Should include suing G.E.'s Jeffie Inmelt (who also ran libs at NBC) as he reportedly got a deal with stinky Obama for Volt charging systems besides getting to be head of the inept "Jobs" council – was to buy 12000 stupid Volts for GE employees – probably bought one for his wife or another honey.

    34. iambicpentamaster says:

      Thou shalt not nay-say thy Obamessiah's tomfoolery.

    35. Milton Brahier says:

      OBAMA and his administration own all of this mis-mangement…..our media have failed the American public

    36. feduptoo says:

      Is anyone honest in this administration?

    37. Been There says:

      I worked for one of the companies that went out of business as a result of this, and from my personal point of view, there was definitely favoritism. But to be fair, the political climate changed so dramatically during the ATVM application process, that it became too risky politically for them to move forward with smaller company applications, especially with GOP members of Congress and Senate turning from favoring to attacking the program as the election season drew closer. In the beginning, there was definitely a sense that lobbyists would grease the wheels, but that evaporated as the Republicans began attacking the program, and by then Ford, Nissan, Tesla and Fisker had already gotten their awards. So I blame the DOE favoritism and negligence in part, but also blame undue pressure from the GOP to stonewall the program all together that caused companies to hang in limbo which couldn't afford to since we were all working off of private investment capital.

    38. poorhardworker says:

      IMHO…government has forgotten who they work for! The government creates nothing except more mouths to feed from those that produce and pay taxes. They majority of them have never made a financial decision about money that was "theirs" (risking capital to create jobs…and yes…profits–that dirty word according Democrats and takers). I, for one, am sick of they way they spend my hard earned (and harder paid because it is paid to incompetents) tax dollars. Time to take stock…and see how you long you want to continue to let these fiscally irresponsible nincompoops use your money…just saying. They are doing a grave disservice to people who produce. Might be interesting to see what happens if those that produce…stop producing. Really easy to use other people's money!

    39. Reader11722 says:

      DOE, yet another violation of our rights. The gov’t constantly violates our rights.
      They violate the 1st Amendment by caging protesters and banning books like “America Deceived II”.
      They violate the 4th and 5th Amendment by allowing TSA to grope you.
      They violate the entire Constitution by starting undeclared wars.
      Impeach Obama.
      Last link of “America Deceived II” before it is completely banned: http://www.amazon.com/America-Deceived-II-Possess

    40. DearMom says:

      GREEN = The New RED

    41. Malik Nidal says:

      XP Technologies is ignorant, greedy, sexist and racist. The FBI should investigate them.

    42. LBlock says:

      Quick tip: Google "XP Technology." Really try to find information on this company and its history. XP Technology doesn't appear to have a website, past products, or made technological advances (the only thing that comes up is this lawsuit, as a matter of fact). As you see in the lawsuit, all XP Technology submitted were patents and a design plan. However, they have no history of making cars or anything, for that matter. Also, look up their address (1001 Bridgeway #166, Sausalito, CA – also listed in the lawsuit) to view their "facility." And then be honest with yourself – if they DID provide funds to this unestablished company, wouldn't many of you be griping about government excess and waste of tax payers' dollars?

    43. iwasthere says:

      DOE with assert agency and executive priv – and then stone wall on all documents and email. Eventually on appeal they will get an order to partially comply – then they will produce a box load of redacted documents, then another motions to compel – and another appeal – then years have gone by. And so the agency marches on. – and in the meantime black listing all the players in the original complaint.

    44. Jamesb says:

      This Obama Regime's entire existence has been one long, Jesse Jackson style shakedown. "Quid pro quo Clarice, quid pro quo."
      Loan guarantees for personal and reelection campaign contributions. How else will Okenyan be able to afford his mansion in Hawaii and penthouse next to Jay Z in NYC?

    45. The Extreme Attitude says:

      Ask Harry Reid and his boys how long things like this have been going on. It has been a very lucrative proposition for those two between green (money) energy and trains bound for nowhere.

    46. Ultimately says:

      I think Obama should run again in 2016 ………let those that voted for him this year re-elect him…….he will eventually run out of "working people's" money and turn on his own "entitlement" crowd……..what a breath of fresh air. I have "hope" for change………

    47. xsnake says:

      Welcome to the new People's Republic of America…..brought to us by a republican party that was incapable of defeating one of the worst Presidents in American history.

    48. spfldo says:

      Socialism and Corruption go together like bread and butter. Make no mistake, Obama is a Socialist.

    49. Joe_E_in_the_IE says:

      And in other news: fish swim, birds fly, sun rises and sets.

    50. Don says:

      That does it. I have no doubt in my mind any longer that this President must be impeached and removed from office, for the sake of the nation.

    51. TJP says:

      Well of course thy were going to use taxpayer money to prop up large union shops. The FDA does the same thing with big drug companies. Corruption is rife, and it just gets worse when Dems are in power.

    52. stevef says:

      Crony Capitalism is one of the five hallmarks of totalitarian fascism…..The Obamite administration also gives evidence of the other four.

    53. They should include the ENTIRE Obama Cartel.

      Obama impeached VERY SOON over Benghazi! :)

    54. Wait till THE TRUTH on Benghazi comes out.

      Obama Lied, Four Americans DIED!

    55. Disban DOE. Have they delivered a single gallon of gas? Have the contributed to drive oil prices down? Have they produced a single watt of energy?
      Did they do anything to assist the residents of NY and NJ?
      Just another self serving government agency.

    56. But what about global, I mean climate changes……gag!

    57. John Doe says:

      I work at DoE. It is a very corrupt agency. They hire friends for positions and do all kinds of illegal things. I hate the place. Have been there for years and have been trying to find another job elsewhere for years. DoE should be audited by the Office of Personnel Management. It should also be shut down!

    58. Bruce says:

      The admin will not be held accountable…similar to a budget not being passed for 4 years. It's illegal but is anyone pressing the issue?

    59. Lib-Watcher says:

      It's just a coincidence that the failed companies who got money were large donors or became large donors and bundlers for the re-election of "The One". Nothing to see here… move along.

    60. Mutantone says:

      All very much along the Communist agenda reward those that support the regime with lucrative government rewards, punish those that did not support the regime with tax investigations, harsh legal actions. And for proof all we have to do is follow the campaign contributions

    61. XP Technology is well justified in fighting the criminal democrat party Regime and its nightmarish "Department of Energy."

      However, not one person in 100,000 will ever hear about this case. The democrat party corrupt media will be aware of, but continue to totally cover up the crimes. And (I am sorry to say) who reads the fine reporting in this Heritage publication? 3,500 people in a nation of 350,000,000?

    62. Jayson says:

      I have no problem paying higher taxes if that revenue was spent wisely. The issue is not higher taxes or cutting spending. The issue is we need effective and accountable government when it spends our money.

    63. gvoll says:

      If you look at the x prize foundation more closely then you will find out that elon musk, owner of tesla and space x, is on the board of directors. Talk about conflict of interest.

    64. Alfrom Fl says:

      This is what the 59Mill or so voted for – Corruption, ignoring the law and taxes (http://patriotupdate.com/32916/36-obama-aides-owe-833970-in-back-taxes-media-silent). If you read about Obama in books written before the 08 election, you would have read about Chicago politics where a truck driver or friend of the admin was given a government job that required a particular skill and associated college degree which the truck driver didn't have. So why would the Obama admin on the federal level be any different – don't expect the "experts" appointed by this admin to know anything about the job they are in. Thanks to the media, this nonesense will go on and on and the news will be filled with juvenile issues. It is disgusting.

    65. Mike M says:

      Can someone please explain why we are still giving money to other nations (billions) when we don't have it to give. Cut them off before we raise taxes.

    66. Jay says:

      We the people decide to do it its corruption, we th individual do it its venture capitalism. I smell hypocrisy

    67. Masked Avenger says:

      What a mess! Needs to be closed down so the country will be able to grow it's energy policy the right way, free market demand!

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.