SBA Oversight Committee Statement

Daniel Lucero (former Deputy District Director, NV District Office)

Summary

I, Daniel Lucero was an SBA employee from 2009 to 2017. I started as a Business Opportunity Specialist (GS-13) in
the NC office. I advanced to the DDD position (GS-14) in Nevada in 2014. I was improperly terminated in 2017 on a
variety of trumped charges stemming from a systemic process of retaliatory, harassing and discriminatory actions
taken by Mr. Janan Raju against me. Mr. Raju was assigned as Acting DD in January 2017 by Mr. Eugene Cornelius
(SES) following the sudden death of the DD (Robert Holguin GS-15). Mr. Raju’s actions were related to my
attempt to exercise employee discipline for misconduct of 2 staff employees; Nanette Randolph, BOS GS-13 for
falsifying completion of her 8(a) work for at least 3 years, and Sabrina Abousaleh, DSA GS-6 for insubordination
and not following orders. Some of their issues were for the management concerns cited in the recent SBA IG
reports related to 8(a) program issues. During this process, I reached out to all levels of SBA leadership for
assistance; Acting RA Robert Blaney (GS-15), RA Michael Vallente (SES), Acting Assoc Administrator Robert Steiner
(SES), H/R Employee Relations Supervisor Denise Biaggi-Ayer (GS-15), H/R Chief Elise Hernandez (SES), OGC lawyer
James Cantlon, EEO Director Stubblefield (SES), IG Director Ware (SES), Deputy Administrator Joe Loddo (SES), and
even SBA Administrator Linda McMahon. All to no avail as none of them responded to any of my calls/emails. Mr.
Raju even withheld one of my paychecks for 3 weeks, as well as filing false complaints about me to the local
Federal Protective Service, trying to give the impression I was a Direct Threat to the office. Ms Biaggi-Ayer had Mr.
Blaney sign out a letter putting me on permanent telework until my termination in December 2017 without even
questioning me about the vague issues cited in her letter (see attached SBA letter of 3/8/17). She just took Mr.
Raju’s word for it. In my termination case, even the Proposing Officer Dorothy Overal (SES) and Deciding Officer
(John Miller (SES) never considered the various complaints I filed (see Complaints below). They considered them
not relevant. So I was forced into an early retirement. I am also not able to apply for any federal positions due to
the SF-50 entries made by the agency in my personnel file. Additionally during this time, I was also not given
proper consideration for promotion to District Director (GS-15) because of all the retaliatory, harassing, and
discriminatory actions taken by Mr. Raju, and the complacency of the agency leadership to not protect my
employment rights. This despite the consistent excellent annual performance evaluations and bonuses I received
while with SBA. As a veteran, I also reported this to the Dept of Labor USERRA program.

The SBA IG reports on “The Most Serious Management and Performance Challenges” for 2017 – 2020 filed with
Congress fail to address these types of management problems impacting the agency’s ability for successful
mission completion, become a high-performing organization, and to strengthen its leadership capacity. The
reports cite weakness in SBA controls, long standing skill gaps, lack of sufficient staff resources in terms of
number/knowledge/skills to perform critical functions, lack of sustained priority attention, and frequent turnover
of leadership. GAO also reported the need for further action to close the competency gap. My termination was
also contrary to OHRS ‘s program to develop future leaders, and representative of the agency not addressing
human capital management as a top challenge for SBA as cited in the reports. The SBA leadership I reached out
also never followed agency SOPs to protect my employment rights.

My background and skills are uniquely suited for SBA, with over 40 years of leadership skills, 30+ years of federal
experience (23 years in military/9 years in federal civil services), 15 years of government contracting experience,
and 18 years as a small business owner. I’m also a disabled veteran (Vietnam era with 3 combat tours) diagnosed
with PTSD, issues due to Agent Orange exposure, and back problems. See attached Lucero short resume.

Complaints

During this time, in addition to reaching out to SBA leadership via phone and email, I filed the following formal
complaints:
 - 3/8/18 to the SBA Conflict Resolution Ctr,
- 3/8/17 Anti-harassment complaint to the SBA EEO office,
- 3/19/17 Initial EEO complaint to the SBA EEO office
- 4/5/17 Misconduct charges against Raju to SBA IG. Subsequent updates were filed on:
o 5/21/17 Update to Raju misconduct per EEO filing
o 7/20/17 Abousaleh telework vs. Religious comp time for Ramadan
o 11/28/17, IG team came to my house to threaten/intimidate me with msg from NVDD Joe
Amato (“If you come to the office, I’ll have you arrested”).
o 1/23/19 Abousaleh promotion to GS-11 for which there no job announcement.
- 4/3/17 Management Review;
- 6/8/17 Formal EEO complaint the SBA EEO office
- 6/25/17 Whistleblower complaint to OSC
- 8/9/17 USERRA complaint to Dept of Labor (Veteran promotion discrimination/retaliation)

It should be noted that for the 11/28/17 IG filing, I also notified the Administrator (Linda McMahon) and SBA IG
head Mike Ware SES of this attempt of intimidation and threat. Again no one responded.

Despite all my efforts to following the rules and avenues of recourse, none have been successful. It’s impossible
for one individual to fight an entire agency when there is a concerted effort of tribal retaliation at all levels. I bring
this to your attention as the SBA Oversight committee because I know you don’t expect such employee abuse to
be happening, especially to a veteran. I would be happy to testify as appropriate. Complete set of all documents
are available. I have named the individuals specifically involved so you may call them to testify and be held
accountable.

Thank you for listening. I would hope future such incidents of career destruction don’t happen. Especially to those
with an excellent career record. Any assistance you may be able to provide in my case would be appreciated.

Daniel Lucero
5836 Montina Vines St.
North Lass Vegas, NV 89081
704 287-9865; gri@zianet.com
 Basis for retaliation/Impact on SBA Mission

Nanette Randolph BOS, GS-13

In 2015, Nanette Randolph was identified as falsifying completion of her 8(a) program oversight responsibilities
(see Lucero Statement of Fact) for a number of years. She falsified completion of required annual reviews and
eligibility reviews. She also failed to:
- make appropriate 8(a) database entries in BDMIS and E-8a,
- conduct 8(a) Orientation for new firms (SBA SOP 80 05 3a Chap 3.3)
- review business plans, (13cfr124.402)
- obtain firm financial reports and tax returns (13cfr124.602)
- conduct site reviews, (SBA SOP 80 05 3a Chap 3.3)
- maintain contracting files, (SBA SOP 80 05 3a Chap 4a.72)

Misconduct charges were filed to SBA H/R in 2015 but were never processed due to the interference by Eugene
Cornelius (SES). She retired in April 2016 to avoid discipline. Her misconduct impacted the integrity and
effectiveness of the agency’s 8(a) business development program for the State of Nevada. It ultimately placed the
agency at a higher risk of program fraud. This also impacted one of the agency’s main mission to deliver an
effective 8(a) program, to ensure only eligible firms obtain and perform on small business awards, and to
legitimately remain in the program. Additionally this impacted Congress and other federal policymakers to
determine whether the government was maximizing contract opportunities for small businesses and participation
in small business programs. Eugene Cornelius (SES) was directly responsible for this failure of internal oversight.
The issues discussed are presented in my EEO filing of 6/8/17 (SBA 03-17-036), EEOC case 480-2018-00270X

History of Ms Randolph and Eugene Cornelius: Mr. Cornelius has a history of not allowing personnel action to be
taken against Ms. Randolph. This was an abuse of his authority, and a sign of his gross mismanagement of his
position as Deputy Associate Administrator for Field Operation for SBA. When Mr. John Scott was NVDD from
2000s to 2010, he experienced misconduct issues with Ms Randolph. She was suspended for several days. Mr.
Cornelius later fired Mr. Scott in retaliation. The then DDD (Dennis Wengert) was also demoted and transferred
back to the Idaho District office; again retaliation. The next DD (Ed Cadenna) was directed by Mr. Cornelius to
issue an SF-52 to promote Ms Randolph to GS-13. Her position did not rate this as the NVDO had less than 40 8(a)
firms, total. There are GS-12 BOSs in the DC office managing portfolios of over 100 firms each. Mr. Cornelius also
directed Ms Randolph be placed on 2 day a week telework although this is a District office function. These actions
showed Mr. Cornelius’s personal preference toward Ms. Randolph that he did not share with all the employees
under his leadership. When the new BOS (Barry Van Order) was hired, he had a lot of problems with Ms.
Randolph. She would not give him access to the 8a files on her computer, did not mentor him, etc. Mr. Van Orden
complained to the DD (Mr. Cadenna). Mr. Van Order was told, he’d have to get used to it as Ms. Randolph was
one of the “protected ones.”.

These retaliatory actions are similar to what I experienced when Mr. Cornelius assigned Mr. Raju as Acting DD
who retaliate against me as outlined in a variety of my formal complaint outlined below.

Sabrina Abousaleh DSA GS-6

In 2016, Ms Abousaleh started to become defiant and issues with excessive leave, despite having an excellent
work performance record in her first year with SBA (2015). Informal and formal counseling had no effect. These
disciplinary issues were sent to H/R for processing. She was placed on 6 month leave restriction in Sept. 2016. She
was marked down on her 2016 performance evaluation making her ineligible for her ladder promotion in Jan.
2017. Like Ms Randolph, her misconduct chargers were not processed by H/R due to Mr. Cornelius’s (SES)
intervention. During his deposition of 18 July 2018 taken in EEOC case 480-2018-00270X, Mr. Cornelius
acknowledged he was receiving phone calls from Ms Abousaleh during this time, unbeknown to me, her
supervisor. Like the Randolph case, Cornelius did not allow personnel action to be taken against her. He also had
her 2016 evaluation changed seemingly making her eligible for her promotion, but she still retained a 2 in an
element still making her ineligible. Additionally Cornelius testified he discussed the Abousaleh issues with me
which never happened. He never responded to my calls or emails concerning the Abousaleh case. This includes
the 1/3/17 email I sent him expressing my concern how H/R was not processing Abousaleh’ s misconduct case like
the Randolph case. Cornelius also stated in his deposition he assigned Raju because I lacked leadership skills, and I
was not the type of manager suited for SBA. This is another example of why when Mr. Cornelius assigned Mr.
Raju as Acting DD to retaliate against me as outlined in a variety of my formal complaint outlined below. Again
these issues are discussed in my EEO filing of 6/8/17 (SBA 03-17-036), EEOC case 480-2018-00270X.

Janan Raju Acting NVDD GS-15

On 17 January 2017, Mr. Raju was assigned as the Acting District Director following the sudden death of the DD,
Mr. Robert Holguin GS-15 on 15 January 2017 (the 16th was a holiday). This was a total surprise to me, the then
Regional Administrator, and Mr. Raju supervisor, Victor Park (SES) as I had been functioning as the DD, DDD and
lead BOS during Mr. Holguin’s hospitalization for 2 months. The very week Raju was assigned and continuing until
he completed his assignment, he started retaliating against the actions I was taking with Abousaleh as her
supervisor, and against my assigned duties outlined in my position description. This includes:

- After I issued a letter informing Abousaleh she would not be receiving her ladder promotion due to
ineligibility per Master Labor Agreement Article 28 Section 6 and SBA SOP 33 04 2 V.C.3, Raju called
H/R to give her ladder promotion. H/R did so despite me informing them of her ineligibility.
- Canceling weekly scheduled staff meeting,
- Directing not to call H/R to check on the status of personnel requisitions,
- Accusing me of not completing work assignments and a lack of planning,
- Delay signing my leave request to return to NC to close on the sale of my house citing a concern of a
lack of coverage in the office. This despite there being 2 managers in the office, he and I and I having
over 207 hrs. of use or loss on the books. Additionally Raju had been absent from the office 4 out of 8
days in January and 11 of 28 days in February,
- After I issued a letter informing Abousaleh that I would be extended her leave restriction for
additional 3 months as she had not successfully completed her current leave restriction having 40 hrs.
of AWOL, Raju rescinded this, and cited this as a discipline issue against me,
- Withholding signing my timecard, delaying receipt of a paycheck for 3 weeks. This despite me meeting
the requirement per SBA SOP 36 00 Ch 3.c, OPM Handbk on Alternative Work Schedule pg. 11,
Compressed work Schedules Basic Work Requirement, and 5USC6121.5.a.,
- Filed a false Federal Protective Service report against me, citing me as a Direct Threat to the office.
Also reported this the H/R,
- Made a false report to H/R that I was again being aggressive, belligerent, using profanity and abusive
language against him. This was disputed by employee statements who were present.

This is but a sample of the examples cited in my EEO filing of 6/8/17 (SBA 03-17-036), EEOC case 480-2018-
00270X.

Raju went on to exhibit addition personal preference (protective personnel practices) toward Abousaleh by:
 - Allowing her to telework at home during the 2017 Ramadan despite not having work for her. He
should have placed her on Religious Comp Time which she would have to pay back. She didn’t have to
pay back regular telework.
- In 2018, Abousaleh was advanced to GS-11, despite not being eligible. She stated in her deposition of
4/11/18 for my MSPB case (SF-0752-18-0212-I-1) that she competed for the position as it was open to
the public. I specifically sent a letter to the head of H/R (Mr. Hernandez) to see if there was such a job
posting. I stated “no” in his response letter.

I filed a variety of these misconduct issues related to Raju and the agency in my IG complaint (#14629).