Schroeder Facing Army Debarment, Report Says
The U.S. Army is seeking to prohibit State Assemblyman Robert Schroeder and his companies from doing any business with the federal government because of alleged poor performance for work in Afghanistan.
The U.S. Army has moved to debar State Assemblyman Robert Schroeder from doing business with the federal government, according to a report on BusinessWeek.com.
The decision follows a suspension of Schroeder and his two Hillsdale-based companies, All Points International Distributors (API) and Hercules Global Logistics, by the Special Investigator General for Afghanistan Reconstruction (SIGAR) because he allegedly failed to deliver tents to a military base in Afghanistan and failed to pay about $155,000 to an Afghan subcontractor.
The U.S. government paid API $617,000 for the aircraft maintenance tents, according to a quarterly SIGAR report.
Debarred contractors are prohibited from doing any business with the federal government, including "non-procurement transactions" like grants or loans.
Schroeder, a Washington Township resident, has faced numerous legal troubles this year. In August, he was charged with writing two bad checks to investors for about $400,000. He is also facing numerous lawsuits for allegedly failing to repay loans and mortgages totalling millions of dollars. In October, Lakeland Bank filed a suit alleging Schroeder had defaulted on a $500,000 loan.
Schroeder's two companies are also facing eviction. Oritani Bank filed seven suits against Schroeder in August for mortgages totalling about $3.5 million. A rent receiver was appointed for the properties, but Schroeder allegedly failed to make rent payments for two properties occupied by his own businesses, and the rent receiver filed to evict them in October.