Tags: Labor Official | Corruption

Labor Official Resigns Amid Corruption Probe

Thursday, 28 Jul 2011 01:56 PM

 

WASHINGTON — An assistant secretary at the Department of Labor has resigned after an internal investigation found that he improperly steered federal contracts to friends and former colleagues.

A report by the agency's inspector general says Raymond Jefferson used his position as head of the Veterans Employment and Training Service to pressure or intimidate other employees to make the awards.

Jefferson left his post on Tuesday. He was appointed by President Barack Obama in 2009.

The report says Jefferson helped one friend get hired as a subcontractor for about $700,000. That was twice as much as other firms were paid for similar work.

The Labor Department says it has taken steps to restrict the contracting authority of officials at the agency.

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