2022 04 27 Clyburn To Delmar Re Yellow Corp B934f6662438
Date
2022-04-27
Full text
April 27, 2022
The Honorable Richard K. Delmar
Deputy Inspector General
Office of Inspector General
U.S. Department of the Treasury
1500 Pennsylvania Avenue
Washington, D.C. 20220
Dear Deputy Inspector General Delmar:
The Select Subcommittee on the Coronavirus Crisis is investigating waste, fraud, and
abuse in pandemic relief programs, including those implemented by the Department of the
Treasury. A Select Subcommittee investigation of the Coronavirus Aid, Relief and Economic
Security (CARES) Act loan program for companies “critical to maintaining national security”
administered by the Department of the Treasury has raised concerns about the program’s
administration as well as the veracity of the representations made by Yellow Corporation, which
received the 95% of the program’s funds. Yellow Corporation, formerly YRC Worldwide Inc.
made misleading representations to government officials in the course of its efforts to obtain a
loan under the CARES Act. For example, while the CARES Act national security loan program
made funds available to offset losses incurred as a result of the coronavirus, one executive’s
email communications show that Yellow intentionally sought to use loan funds for “catch up”
capital investment while the company had its “hand in the cookie jar.” Yellow also represented
in its application to Treasury for a national security loan that it provided twice the share of
certain trucking services to the Department of Defense (DOD) than DOD itself assessed.
Detailed information about the Select Subcommittee’s findings are available in the enclosed staff
report, which is being released today.
I write today to request that the Office of Inspector General (OIG) investigate whether
any of the misleading representations the company made in applying for its $700 million loan
constitute knowing false claims and false statements within the meaning of the False Claims Act,
or otherwise violate federal law.1 I request that OIG refer any evidence or assessment that the
company violated the False Claims Act or any other laws to the Department of Justice.
1
31 U.S.C. § 3729.
The Honorable Richard K. Delmar
Page 2
If you have any questions regarding this matter, please contact Select Subcommittee staff
at (202) 225-4400. Thank you for your assistance in this matter.
Sincerely,
__________________________
James E. Clyburn
Chairman
cc: The Honorable Steve Scalise, Ranking Member