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Crowdsourced Timeline: Torching the USPS [Work in Progress, UPDATE-2]

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[NB: Check the byline, thanks. Updates appear at the bottom of this post. /~Rayne]

Well now. This has been a day to beat all days, hasn’t it?

Who would ever have guessed — during the middle of a scandal in which a Trump donor+appointee engaged in dismantling the U.S. Postal Service to obstruct a general election and a Census — that U.S. Postal Agents with U.S. Coast Guard assistance would arrest a Trump advisor on a boat with a Chinese dissident business person?

It’s mind boggling and delicious at the same time.

Also today: the NAACP Legal Defense and Educational Fund and Public Citizen filed a lawsuit against the U.S. Postal Service and current Postmaster General Louis DeJoy, arguing changes made to the USPS system violate federal law, disrupting mail delivery and may cause voter disenfranchisement this November.

I wrote that DeJoy’s “equipment reductions” and staffing changes may have violated 18 U.S. Code § 1701.Obstruction of mails generally, as well as 18 U.S. Code § 371 Conspiracy to Defraud the U.S., and possibly 18 U.S. Code § 1346 Honest Services Fraud.

NAACP and Public Citizen argue DeJoy’s changes violate 39 U.S. Code § 3661 – Postal services by failing to obtain public comment first before finalizing and implementing changes, as well as 39 U.S. Code § 101(e) – Postal policy by failing to “give the highest consideration to the requirement for the most expeditious collection, transportation, and delivery of important letter mail.”

There’s a tidbit in the complaint which I hope the court addresses when it addresses relief:

17. The PAEA in 2006 established the Postal Regulatory Commission as “an independent establishment of the executive branch.” Id. § 501. “The Postal Regulatory Commission is composed of 5 Commissioners, appointed by the President, by and with the advice and consent of the Senate. The Commissioners shall be chosen solely on the basis of their technical qualifications, professional standing, and demonstrated expertise in economics, accounting, law, or public administration, and may be removed by the President only for cause. Each individual appointed to the Commission shall have the qualifications and expertise necessary to carry out the enhanced responsibilities accorded Commissioners under the Postal Accountability and Enhancement Act.” Id. § 502(a). “No Commissioner shall be financially interested in any enterprise in the private sector of the economy engaged in the delivery of mail matter.” Id. § 502(b).

Emphasis mine. DeJoy isn’t qualified to be a commissioner and should be removed.

And more today: nonprofit organization Citizens for Responsibility and Ethics in Washington (CREW) also filed a complaint with the Department of Justice against DeJoy today, asking for an investigation into DeJoy’s actions which will undermine voting by mail for Trump’s political benefit. CREW’s concerned that DeJoy did more than violate the Hatch Act:

Criminal law (18 U.S.C. § 610) [Hatch Act] prohibits anyone from commanding any employee of the federal government to engage in political activity. Another provision (18 U.S.C § 595) bars anyone “employed in any administrative position by the United States” from using, in connection with any federally-funded activity, their “official authority for the purpose of interfering with, or affecting, the nomination or the election of any candidate for the office of President.”

I’m waiting for an entity to sue the U.S. Postal Service and current Postmaster General Louis DeJoy for interfering with the delivery of Census forms which may yet be in circulation.

Senator Gary Peters has requested DeJoy appear before a Senate Homeland Security & Governmental Affairs Committee tomorrow. Let’s hope both ballots and Census forms come up in the hearing.

What might be helpful to both persons following the hearing tomorrow and the House Oversight Committee hearing on Monday, August 24, is a timeline of relevant events related to Louis DeJoy’s installment as U.S. Postmaster General, the appointments of the current USPS Board of Governors, and the changes DeJoy as ordered.

Here’s a partially constructed timeline. If there’s an event or item you believe is key, please share it in comments and I’ll insert it in chronological order.

~ ~ ~

October 16, 2016 — DeJoy donation: $25,000 to to American Crossroads, pro-Trump super PAC run by Robert Duncan, chair of USPS Board of Governors which appointed DeJoy. DeJoy was the Republican National Committee’s national deputy chairman and was North Carolina State Chair for Trump Victory during the 2016 campaign.

Early January 2017 — According to The Charlotte Observer, “DeJoy was one of Trump’s biggest N.C. donors and fundraisers. Records show he gave $111,000 to the Trump Victory Fund, a joint committee that split money between the campaign and party groups. He gave the Republican National Committee another $273,000 to help elect Trump.”

October 7, 2017 — DeJoy hosted a $25,000 minimum donation fundraising dinner for Trump at his home in Greensboro, NC.

October 2019 — Then-Postmaster General Marge Brennan announced her impending retirement.

December 10, 2019 — Treasury Secretary Steve Mnuchin met with David Abney, chairman and CEO of UPS, a competitor of USPS.

March 27, 2020 — Before COVID-19, a fundraising event was scheduled. The event hosted by DeJoy in Greenboro NC was intended to benefit Trump’s re-election campaign, the RNC and several state Republican parties, including North Carolina’s.

April 9, 2020 — Then-Postmaster General Brennan warned of a $13 billion revenue shortfall due “directly to COVID-19” and an additional $54.3 billion in losses over 10 years. USPS could “run out of cash this fiscal year” on September 30 if it did not receive federal funding.

May 23, 2020 — On or about this date, DeJoy was named national finance chairman for CLT Host 2020, the local organizing committee for the Republican National Convention. At the time the convention was scheduled to be held in Charlotte, NC.

January 15, 2020 — DeJoy donation: $150,000 to Trump’s campaign; $217,800 to the Republican National Committee.

January 16, 2020 — DeJoy donation: $10,000 to the North Carolina Republican Party.

February 7, 2020 — AG Bill Barr freezes campaign finance investigations.

February 12, 2020 — DeJoy donation: $35,000 to the National Republican Congressional Committee.

February 19, 2020 — DeJoy donation: $210,600 to Trump’s campaign.

April 1, 2020 — USPS Board of Governors adopts new mission statement.

April 2020 (date TBD) — DeJoy’s and spouse Wos’ joint charity helped found the Burr Center at Wake Forest University

April 9, 2020 — DeJoy donations: $35,000 to help re-elect Rep. Kevin McCarthy (R-CA), in November; $27,200 to the National Republican Congressional Committee; $5,000 to the Majority Committee PAC, which says on Facebook its goal is “holding Nancy Pelosi accountable and helping Republicans take back the House of Representatives.”

May 6, 2020 — DeJoy sworn in as Postmaster General and CEO.

May 14, 2020 — NC Senator Burr steps down as SSCI chair due to FBI investigation of his trade.

May 15, 2020 — House passed the HEROES Act containing $25 billion in funding for the USPS.

May 15, 2020 — USPS presentation, “Equipment Reduction” proposed plan.

June 15, 2020 — First day on the job at USPS according to DeJoy.

June 15, 2020 — Senate Minority Leader Chuck Schumer sent a letter to the USPS Board of Governors asking them for their communication with the White House about DeJoy’s appointment.

June 17, 2020 — American Postal Workers Union was told of plans to remove 671 automated mail sorters — more than 10 percent of the total — from operation throughout the country.

July 10, 2020 — USPS circulated to employees a document entitled “PMGs expectations and plan” outlining changes DeJoy would order, including elimination of overtime, letter carriers would limit the time and scope of their delivery routes, and certain customer service windows would close during lunchtime. A document also circulated reviewing the changes, entitled, “Mandatory Stand-Up Talk: All Employees,” subtitled, “Pivoting For Our Future” (Pivot Instructions).

July 13, 2020 — DeJoy announced a prohibition to overtime and any other measures local postmasters use to alleviate shortages of staff hours.

Mid-July 2020 — USPS Board of Governors responded to Sen. Schumer’s request; Schumer said they told him “much of the information I requested was confidential.” The board had used an executive search firm which refused to waive a nondisclosure agreement.

July 27, 2020 — Sen. Mitch McConnell (R-KY) introduced HEALS Act as counter to House bill HEROES Act; the senate bill contains no funding for the USPS.

July 29, 2020 — The Washington Post reported that in consideration for a $10 billion loan, DeJoy gave Mnuchin proprietary information about USPS’s private-sector contracts including Amazon, FedEx and UPS.

Late July, 2020 — Thomas J. Marshall, USPS’s general counsel and executive vice president, sent a letter to 46 states “warning that it cannot guarantee all ballots cast by mail for the November election will arrive in time to be counted,” according to a report by the Washington Post on August 14.

August 4, 2020 — U.S. mail delays contributed to ballots arriving too late to be completed or mailed back in
time to be counted Missouri’s August 4, 2020 primary election.

August 4, 2020 — Trump lied about speaking with DeJoy about the USPS.

August 5, 2020 — Sen. Schumer and Rep. Pelosi met DeJoy, along with Mnuchin and White House Chief of Staff Mark Meadows to negotiate both funding and the Pivot changes implemented by DeJoy.

August 6, 2020 — Sen. Gary Peters (D-MI) launched investigation into USPS delivery delays.

August 7, 2020 — First meeting of  USPS Board of Governors DeJoy attended; results of third quarter, ended June 30, released. DeJoy also announced he had reassigned or displaced 23 senior USPS officials.

August 9, 2020 — Trump lied again about speaking with DeJoy about the USPS.

August 10, 2020 — DeJoy acknowledged in a USPS-wide memo that the Pivot Instructions “impacted our overall service levels.”

August 12, 2020 — Rep. Carolyn Maloney (D-NY) introduced the Delivering for America Act.

August 13, 2020 — Photos of removed postal equipment appeared online.

August 13, 2020 — DeJoy sent a memo acknowledging recent changes have “unintended consequences that impacted our overall service levels.” No effort was made to halt or reverse the changes set in motion, however.

August 13, 2020 — Trump admitted in an interview that “he opposes a $25 billion emergency injection sought by the U.S. Postal Service, as well as a Democratic proposal to provide $3.6 billion in additional election funding to the states,” according to the Washington Post. “They need that money in order to make the post office work, so it can take all of these millions and millions of ballots,” said Trump.

August 16, 2020 — Speaker Pelosi called for an emergency session of House to address the USPS crisis.

August 16, 2020 — Senator Gary Peters, ranking member of the Senate Homeland Security & Governmental Affairs Committee, called for an emergency hearing.

~ ~ ~

One thing that bothers me which hasn’t gotten much attention is DeJoy’s continuing relationship with XPO Logistics. Yes, it’s a conflict of interest that he continues to own a chunk of XPO’s stock while he is Postmaster and CEO of USPS since XPO is a USPS contractor and a competitor since it also carries shipments for USPS competitors.

CREW’s complaint is in no small part focused on this conflict as well as DeJoy’s marital assets tied up in hundreds of thousands of dollars in UPS and J.B. Hunt trucking company in addition to the tens of millions in XPO Logistics from which DeJoy had not divested.

But logistics services, especially freight haulers, have long been prone to corruption.

Take for example an indictment last October:

According to court documents, Leonid Teyf, 57, was part of a scheme where several trucking companies paid more than $1 million in bribes to the Utah FedEx ground hub manager.

Teyf, you’ll recall, is a Russian national and a business crony of Yevgeny “Putin’s Chef” Prigozhin; he was arrested in late 2018 because of a murder-for-hire plot. He had two homes in the Raleigh, NC area which were raided by the feds.

At the time of Teyf’s original arrest there was no indication in local news reporting there was anything more to Teyf’s offenses besides the murder-for-hire accusation and immigration law violations.

How did Teyf end up involved in logistics in Utah, connected with USPS competitor FedEx?

DeJoy may have zero relationship with Teyf, but DeJoy had been the CEO of New Breed Logistics (NBL) for decades. NBL customers included USPS.

DeJoy’s company was acquired by XPO Logistics in 2014 for $600 million; DeJoy continued after the acquisition on NBL’s executive management and board of directors until May 2018. XPO Logistics’ competitors included DHL, FedEx, UPS, and J.B. Hunt Transport Services — and surely must have included USPS to some extent, considering the expedited package handling companies are USPS’s competitors.

Did DeJoy’s business ever cross with Teyf’s, considering they were both in logistics, were both living in North Carolina less than two hours apart (DeJoy in Greenboro and Teyf in Raleigh)?

Are there other possible corrupt entities which have their fingers in the mix with DeJoy’s wrecking crew management style? Can you think of ways in which corrupt entities could manipulate this situation for their benefit?

~ ~ ~

Let’s try to keep this thread focused on the USPS.

.
UPDATE-1 — 9:05 A.M. ET —

The Senate hearing was scheduled for 9:00 am but the start appears to be running late. You can watch the video conference at:

CSPAN https://www.c-span.org/video/?474940-1/senate-hearing-us-postal-service#

NPR (embedded video at this link, scroll down) https://www.npr.org/2020/08/21/904366258/postmaster-general-faces-senate-as-controversy-persists-over-usps-cuts

It’s also being carried on some broadcast and cable networks.

A couple new items related to NC’s Senator Richard Burr have been added to the timeline. Was his vote for approval persuaded by contributions or contributions-in-kind?

UPDATE-2 — 10:30 A.M. ET —

One of our community members, Vicks, shared a link to an article in Supply Chain News about XPO Logistics. As I noted in comments, this company in which DeJoy retains a substantive investment interest had suffered from a downturn in business in late 2018-early 2019. The loss of business volume was sizable enough to warrant evaluating restructuring of the firm into smaller entities for divestment.

This may suggest why Treasury Secretary Steve Mnuchin is involved in the USPS scandal:

… XPO said it has hired high powered investment and legal firms to execute the processes. Those include Goldman Sachs and JPMorgan Chase as financial advisers and Wachtell, Lipton, Rosen & Katz as its legal adviser in the review process. …

Amazon’s own logistics company cut into XPO’s business at the same time Trump’s tariffs increased retail prices, reducing consumer demand. Rather than cutting costs and riding it out, or trying to find ways to spin off to Amazon, or trying to partner with Amazon’s competitors Target/Walmart/other, XPO looked at breaking up, thereby getting investment bankers involved.

Investment banks want to shake more cash out of XPO and its subs; they need to improve its prospects to do so. They want to find more business for XPO or its future spinoffs so they lean on Mnuchin to get dirt on competitor USPS which is a vendor to Amazon. UPS is involved because it wants to maintain its share of the market and it’s willing to help lean on USPS by providing its own take on expense allocation.

It’s corrupt as fuck. Mnuchin is favoring Wall Street investment banks and a Trump donor over a Constitutionally-mandated service. Fuck him.

Another question comes to mind about the drivers behind XPO’s fortunes: were companies which were adversely affected by the tariffs “picked off” by investment banks, possibly with Mnuchin’s help, to increase short selling opportunities and other forms of vulture capitalism?

Work In Progress: Saving the USPS

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[NB: Check the byline, thanks! /~Rayne]

Before we look at current status, I want to make a point about what Louis DeJoy has done to the U.S. Postal Service. I hope that members of Congress or their staff members stopping in here pay close attention to this point.

DeJoy is maliciously destroying the U.S. Postal Service — quite likely violating 18 U.S. Code § 1701.

VICE had obtained a presentation outlining an “Equipment Reduction” dated May 15, 2020, one week after he was sworn in as CEO and Postmaster General.

This plan to reduce equipment — and the services the equipment provided — wasn’t whipped up in one week. It had to have been studied and created well before May 15.

Imagine for a moment you are an operations manger in one of a collection of high-output manufacturing plants across the U.S.. Your new boss comes in and says he wants to eliminate as much as 50% of your production capacity. How long would it take you and your co-workers in production engineering to identify the equipment which will least affect your production capability under peak demand?

Would it take you a week? Doubtful.

Would it take only a week for hundreds of plants across the country to do this same study and advise which equipment could be removed to eliminate any excess expense and yet provide reasonably reliable service?

Would it take only a week to prepare a finished presentation of a nationwide study with a proposed equipment reduction given the wide range of facilities across the country and operations managers?

No. Hell no.

DeJoy is executing a plan which had been in the works for some time intended to hollow out the U.S. Postal Service.

Let’s call this a conspiracy because you know damned well DeJoy didn’t do this all by himself given his postal service-free background. The public needs to know when this started and who was in on the planning.

~ ~ ~

Now, let’s optimistically assume the USPS continues to operate the way it has in the past to ensure customers continue to seek its services over commercial competitors like FedEx and UPS. You’ve gotten post card-like mailers and other kinds of promotional materials informing USPS customers about their services, rates, and changes to either.

Have any Americans anywhere in the U.S. received advance notification that their USPS service would be slowed down so they could adjust their mailing practices?

Have any Americans received notification that any familiar blue mailboxes near them would be removed or locked?

Have any Americans received advice on how they should adjust their mailing practices based on the changes to the USPS system closest to them?

No. Nada. Not one advisory or promotional mailer or brochure has shown up on line. Not even Trump supporters are sharing them.

DeJoy is NOT improving service if he’s allowing customers to fly blind about the changes to USPS. He is NOT making any effort to win over or retain USPS customers, which should be the first rule in trying to make profits — not pissing off the customer base.

This restructuring and reduction of equipment is intentional and malicious, executed with no outreach to customers whether individuals or businesses.

~ ~ ~

We’d heard reports that sorting machines had been tossed in dumpsters. We haven’t see photos turn up yet but we’ve now seen images of purported sorting machines sitting outside USPS facilities inside a fence, like so:

Photo: Sorting machines outside main post office, Cleveland OH – by Jim Anderson via Twitter

These machines will likely not work properly without considerable assessment now that they have been sitting out in the elements. Some parts may corrode and seize if exposed to high humidity, rain, and salt at any USPS facilities near oceanfront.

They were not stripped down for parts and put in an inventory for repair of similar equipment still on the floor.

They were not stored inside sub-optimized USPS facilities or warehouses to protect them from the elements.

They were not inventoried and submitted to an auction house for resale as scrap to recover value for taxpayers, in spite of the plan/conspiracy having enough time to identify how many/which machines would be pulled from USPS facilities before mid-May.

It’s not clear that some equipment or parts haven’t been stolen, either.

These machines which are taxpayers’ assets have been maliciously destroyed.

DeJoy is NOT reducing expenses and recovering costs to the USPS under some stupid notion of making a profit which no other government entity is required to do.

~ ~ ~

A lot of our community members reached out to their members of Congress and to the USPS Board of Governors to protest DeJoy’s destruction of the USPS.

The House and Senate Dems have been working on this as well as state officials.

Check this Twitter thread for examples of work done Friday-Saturday: https://twitter.com/golikehellmachi/status/1294396702632194048

See also Rep. Don Beyer’s thread outlining what’s being done through Sunday: https://twitter.com/RepDonBeyer/status/1294659358194896896

House Speaker Nancy Pelosi notified House members Sunday they should return to session to work on this crisis:

AUGUST 16, 2020 PRESS RELEASE

Dear Democratic Colleague,

The Postal Service is a pillar of our democracy, enshrined in the Constitution and essential for providing critical services: delivering prescriptions, Social Security benefits, paychecks, tax returns and absentee ballots to millions of Americans, including in our most remote communities.

Alarmingly, across the nation, we see the devastating effects of the President’s campaign to sabotage the election by manipulating the Postal Service to disenfranchise voters. Postmaster General Louis DeJoy, one of the top Trump mega-donors, has proven a complicit crony as he continues to push forward sweeping new operational changes that degrade postal service, delay the mail, and – according to the Postal Service itself – threaten to deny the ability of eligible Americans to cast their votes through the mail in the upcoming elections in a timely fashion. These delays also threaten the health and economic security of the American people by delaying delivery of life-saving medicines and payments. In 2019, 1.2 billion prescriptions were delivered through the Postal Services, including almost 100 percent from the VA to veterans.

Lives, livelihoods and the life of our American Democracy are under threat from the President.

That is why I am calling upon the House to return to session later this week to vote on Oversight and Reform Committee Chairwoman Maloney’s “Delivering for America Act,” which prohibits the Postal Service from implementing any changes to operations or level of service it had in place on January 1, 2020. House Democratic Leader Hoyer will soon be announcing the legislative schedule for the coming week.

To save the Postal Service, I am also calling upon Members to participate in a Day of Action on Tuesday by appearing at a Post Office in their districts for a press event. In a time of a pandemic, the Postal Service is Election Central. Americans should not have to choose between their health and their vote.

As we protect the Postal Service and access to the ballot, we continue to lead the fight for The Heroes Act as the coronavirus crisis continues to spiral further out of control.

I am grateful to Members for their enthusiasm about returning to Washington, and I am grateful for their suggestions for what else we may consider acting upon when we return.

Thank you for your enthusiasm, leadership and friendship.

NANCY

Originally scheduled for September 17, House Oversight Committee  called DeJoy and USPS board of governors chair Robert M. Duncan to testify at an emergency session hearing on Monday, August 24. DeJoy’s agreed to appear.

One might wonder if the protesters which have gathered outside his golf side mansion have influenced his decision.

Last Wednesday, House Oversight Committee chair Carolyn Maloney (D-NY) introduced the Delivering for America Act which reverses DeJoy’s “changes so this fundamental American service can continue unimpeded.”

According to Maloney’s office:

The Delivering for America Act would prohibit the Postal Service from implementing any changes to the operations or level of service it had in place on January 1, 2020, until the COVID-19 pandemic has ended. This legislation would maintain current service standards as well as the integrity of our elections and bedrock democratic principles.

It’s likely too late to reverse the all the changes made to the USPS sorting system though some changes like pulling the blue mailboxes or locking them could be returned to their previous condition.

The real challenge ahead: forcing the Senate Majority Leader to allow this bill to go through the Senate, and finding enough GOP votes to pass the bill with a veto-proof majority.

The GOP needs to prove it isn’t trying to kill more Americans by squashing this bill. Too many voters have already been at risk of serious harm because their medications haven’t arrived by mail on time.

This is yet one more clue to DeJoy’s intentions driving the changes to the USPS: he made no obvious effort to mitigate threats to Americans’ health and security before he made any changes.

~ ~ ~

Finally, I have to tell you I have had it up to fucking here ~slashing gesture below chin~ with the left-wing whining  DO SOMETHING.

Stop the god damned whining or go sit in the time-out chair until you’ve decided you can do something constructive yourself.

There’s a lot to be done which isn’t the responsibility of members of Congress who are already doing what they are supposed to do (which, by the way, includes meeting constituents as well as asking for their votes in the now-shortened break time they have before Election Day).

The whining is a serious problem in itself because it discourages voters at a time when they are already feeling down because of Team Trump’s unrelenting attacks on democracy combined with the pressure of the ongoing pandemic.

Encourage others to do what they can to push back. At a minimum, take the time to educate yourself and help friends and family do likewise about options to vote.

Look into early voting. Look into dates to obtain absentee/mail-in ballots and how to turn them into clerk’s drop boxes if mail is not an option. Or make a plan to vote in person. Begin by checking your voter registration status.

Check with your state’s secretary of state and attorney general to see if they are taking action to halt the changes or develop alternatives to support voters. Some states’ attorneys general are preparing to file suit against DeJoy and the USPS.

Need more guidance? Celeste P. has a deep Twitter thread of actions people can take to save the USPS, including pressure on the GOP senate to pass the HEROES Act economic aid bill which includes funding for the USPS.

This is a government of, by, and for the people. We are the people we have been waiting for to fix this mess.

Let’s get it in gear and go.