Wednesday, October 30, 2013

General Services Administration Sale of Historic Coast Guard Cutter Storis A Disgrace

Dr. John Bryan - Co-owner of US Metals Recovery, LLC.

You really have to hand it to the GSA - General Services Administration, for some of the people they choose to do business with in their online auctions. Take the former Coast Guard Cutter Storis, for example. A retired cutter listed on the National Registry of Historic Places after an impressive 64-year service record which includes being the first vessel to circumnavigate the north American Continent.

In June of 2013, the GSA put the Storis up for auction with a minimum reserve price of $100,000. On June 27, 2013 when the auction closed, there had been two bids submitted with the highest bid being $70,100, far less than the reserve. The GSA bent their own rules and accepted the bid of $70,100, submitted by US Metals Recovery, LLC. of San Diego. 
Company records have revealed that US Metals is barely two years old but, extensive research has not found a phone number listed for the company. There has been no records found that lists a physical address for the business. 
Records list the companies co-owners as Mark Jurisich and Dr. John R. Bryan, both of San Diego.

The California Secretary of State shows the LLC's status as:   Franchise Tax Board (FTB) Suspended/Forfeited

The GSA's terms for the buyer of the ship stated that the merchandise was to be removed within 10-business days from the date of the sale. The removal date was grossly ignored by not only Jurisich but, the GSA as well when a total of 120 days passed before Jurisich sent a tug to pick her up.
ONE HUNDRED and TWENTY DAYS! 
There must have been a valid reason the GSA could allow such a blatant breach of contract but, several calls and emails to the GSA seeking answers all went un-answered.

Perhaps the GSA would have declined to accept the bid from US Metals Recovery had they known that the young company was not an active California business. Perhaps the GSA would have scrutinized the integrity of the bid, the company and the two owners, Mark Jurisich and Dr. John Bryan.
Perhaps the GSA would have opted to reject the bid had they checked court records. If they had looked into it they would have discovered that US Metals Recovery, Jurisich and Bryan had been sued in San Diego County in April of this year. It comes as no surprise that Jurisich ignored the terms of the contract with the GSA because, the Plaintiff filed suit against them for.... Breach of Contract/Warranty. See the court record below.


Case Title:  
NEXTGEAR CAPITAL INC VS. U S METALS RECOVERY LLC [IMAGED]
Case Number:  37-2013-00044031-CU-BC-CTL   Case Location:San Diego   
Case Type:Civil  Date Filed:04/12/2013
Category:CU-BCWBreach of Contract/Warranty

Plaintiff/Petitioner  
Last Name or Business Name  First Name  Primary (P)  
NEXTGEAR CAPITAL INC     P  

Defendant/Respondent  
Last Name or Business Name  First Name  Primary (P)  
U S METALS RECOVERY LLC     P  
U S METALS RECOVERY LLC     P  
USMR     P  
BRYAN   JOHN RODNEY   
JURISICH   MARK ROBERT   

Imaged Case  
Documents are available for viewing online,  
and at all Register of Actions Kiosks  
Select [File Location] button above for location details

Microfilm  
Microfilm ID  Location  Reel Number  Frame Number  
This case has not been microfilmed.  

The information below shows the company status with the California Secretary of State.
Business Registration | California (Foreign State)
California Secretary of StateData updated October 29, 2013Business Details
Business Name:U. S. METALS RECOVERY LLC
Citizenship:Foreign
State of Incorporation:NV
Business Type:Limited Liability Company
Mailing Address:2102 HANCOCK STE 200
SAN DIEGO, CA 92110
Status:Franchise Tax Board (FTB) Suspended/Forfeited
Secretary of State ID:201009110222
Incorporation Date:02/26/2010
Business Description:USED CAR DEALER
Amendments
Number of Amendments Filed:1
Total Pages Filed:3
Note the business type they are listed under is "Used Car Dealer."
The GSA must have thought they were dealing with upstanding citizens, I would assume. It turns out that Mark R Jurisich was not born in the US and allegedly commented to the Storis preservation group that he did not care about the history behind the ship nor those trying to save it.

Going back a few years in the court records shows what might be considered a pattern of un-professional behavior with one of the owners, John Bryan. Public court records show Bryan as a Defendant in a civil suit for.... Breach of Contract. (see below)

Primary Name
 BRYAN,JOHN
Party Type
 Secondary or other defendant
Case Number
 N10229
Filing Date
 Apr 21 1978
Opposing Name
 KERN & HEROLD INC
Case Type
 Breach of Contract
Case Category
 Civil Complaint
Court Code
 North County

Court records also show Bryan named as the Defendant in a separate civil suit filed a year later for..... You guessed it, Breach of Contract. (see below)
Primary Name
 BRYAN,JOHN
Party Type
 Secondary or other defendant
Case Number
 430346
Filing Date
 Feb 14 1979
Opposing Name
 DEIMLING,NORMAN
Case Type
 Breach of Contract
Case Category
 Civil Complaint
Court Code
 San Diego

Had the GSA known what type of people they were dealing with, it would be noble of them to claim that people change and deserve a second chance. Note: Nothing suggests the GSA did anything to obtain any background information on the buyers. Had they looked, surely they would have discovered the civil law suit in 1996 where John Bryan was named as one of the Defendants in a case he was accused of.... FRAUD!  (see below)

Primary Name
 BRYAN,JOHN
Party Type
 Secondary or other defendant
Case Number
 701638
Filing Date
 Jul 5 1996
Opposing Name
 ALLARD,BENSON L
Case Type
 Fraud
Case Category
 Civil Complaint
Court Code
 San Diego

The GSA really should be commended for bending their own rules with the sale terms for the former Coast Guard Cutter Storis.
While the GSA had the option to turn the cutter over to the non-profit group Storis Museum, who had been working since 2007 with its plans to obtain the ship in order to make it into a museum and training tool for Naval Cadets... They chose to deny the group the chance to secure a piece of American history in favor of bending their own rules to do business with two men with histories of being sued for breach of contract and fraud!

The result of the GSA's choosing to conduct business with criminals has been the literal destruction of the former cutter Storis as it was delivered to Ensenada, Mexico on October 29, 2013 where it was sold for scrap.

To the General Services Administration I can only say... "Thank You! We expect nothing less of you."
(the previous statement was purely sarcasm.)
On a serious note, I will say in all seriousness....
"The GSA's handling of the historic Storis was an absolute disgrace and should be held accountable."

1 comment:

  1. I am so disappointed and think they should be held accountable. As a former contracting officer for the Coast Guard we were required to get our three bids and research the legitimacy of the company. We would loose our contracting license over something like this. CGC Storis was my first ship I proudly served, search & rescue, fishery patrols, ice breaking are only some of the missions she performed. Such a disgrace to allow the queen of the fleet to be slaughtered in Mexico.

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