Sen. Warren Targets RI’s Picerne and Other Military Housing Violators

Monday, April 29, 2019

GoLocal News Team

Senator Elizabeth Warren

John Picerne, the flamboyant CEO of Corvias who has come under fire by members and the families of the United States military for running substandard housing is now the target of Presidential candidate U.S. Senator Elizabeth Warren (D-MA) who is pushing for reform legislation.

Picerne’s company Corvias is one of the largest providers of housing to America’s military and their families and the Rhode Island-headquartered company has secured contracts with the United States Army that will generate $1 billion in fees.

Warren said in announcing the legislation on Friday, “On base after base around the country, military families were raising the alarm about their living conditions — toxic mold, lead paint, faulty wiring, mice infestation. Ceilings collapsed. Mold took over entire rooms. Kids were getting sick. And when families reported their concerns to their command, they were greeted with a shrug — or worse. Because of the way housing contracts are written, there was little the local base commander could do.”

Picerne’s Lavish Living -- and Political Donations

At a United States Senate Armed Services Committee hearing in February, the families of members of the U.S. military told story after story of the substandard housing owned and maintained by the Rhode Island company.

Families reported deplorable housing conditions in Picerne's properties. The family's substandard are in stark contrast to the lavish lifestyle of Picerne.

Picerne has been buying mansions and castles in Florida, Ireland and Rhode Island.

Picerne's property in Ireland

The Irish Times reported in June 2016, “Property mogul John Picerne, the founder and chief executive of Corvias Group, has emerged as the US-based buyer of Capard House. Corvias specialises in the construction, renovation and management of military and student accommodation in the United States, among other services.” Picerne paid a reported €4m at the time.

"The profits have helped afford Picerne, 56, a yacht, private jet travel, and mansions renovated by celebrity decorator Martyn Lawrence Bullard, known for his work with the Kardashian family and fashion designer Tommy Hilfiger," reported Reuters.

Reuters wrote about Picerne's Lifestyle:

At his own homes, Picerne has employed British designer Martyn Lawrence Bullard, a star of the cable TV show Million Dollar Decorators.

In Picerne’s six-bedroom neo-Georgian brick house in Providence, the designer installed black-and-white marble floors. Bullard told Australia’s Belle Magazine the floor design was inspired by Rome’s Pantheon. The home features chrome and jade accents, a Murano-glass chandelier and a faux-zebra rug.

Bullard also redecorated a $6 million Rhode Island beach home across Narragansett Bay from Newport, where Picerne docks his 49-foot Italian-made yacht, the Under My Skin. In the living room, the designer hung a gilded chandelier, sheathed the walls in black seagrass and added chairs clad in turquoise-hued leather. 'I took my inspiration from the Victorians,' he told another magazine. On Instagram, John Picerne lauded Bullard’s 'genius design.'”

Senator Reed refuses to return or donate Picerne's donations

Many of Rhode Island's top elected officials have received tens of thousands in campaign donations. U.S. Senator Jack Reed has received $21,375 to his campaign account and his political action committee. Reed, who is the ranking member of the Armed Services Committee in the Senate, has refused to donate or return the contributions he has received from Picerne.

SEE GoLocal's Interview With Reed Here.

Reed is just one of the top recipients of Picerne’s donations.

Rhode Island Congressman Jim Langevin (D-2) has received $18,400 from Picerne, U.S. Congressman David Cicilline (D-1) has received $10,300 and U.S. Senator Sheldon Whitehouse (D-RI) has received $9,800.

Former Congressman Patrick Kennedy (D-1) received $25,000 and the late U.S. Senator John Chafee (R-RI) received $750, but prior to Picerne entering the military housing market. Rhode Island state officials have received substantial donations. The Rhode Island Democratic State Committee has received $47,000 and Governor Gina Raimondo (D-1) has received $8,000 in donations.

Military Families Live a Very different Life

The fees for military contracts are a windfall for Picerne, but military families told a very different story about their lifestyles in Picerne's housing.

The non-profit Military Family Advisory Network (MFAN) conducted an online survey from January 30 to February 6 to understand the scope of problems in military homes.

Photos of conditions of Corvias housing units

Of the 14,558 respondents who now live in privately managed military housing or have resided in such homes in the past three years, nearly 56 percent said they had "negative or very negative experiences" with their houses.

Corvias is one of the private military housing companies most cited for deplorable housing conditions.

“Our military families do not deserve this after all the sacrifices they make,…It is criminal. It is unbelievable the extent of this cover-up,” testified Janna Driver, the wife of an active-duty Air Force service member and mother of five children, according to Stars and Stripes.

See Some of the Military Housing Complaints Below

Warren's Legislation

“It was a good deal (privatization)— for the private developers. Over the past 20 years, a small handful of companies have taken over 99% of domestic military family housing. Every month, the federal government pays them rent directly out of a service member’s paycheck, along with various bonuses and incentive fees. The risk is low — and the profits are enormous.,” said Warren.

Corvias CEO John Picerne

"But this system has turned out to be a lousy bargain for military families. With their focus on short-term payoffs, private developers failed to invest in and maintain the properties with which they were entrusted. For its part, the Pentagon neglected to conduct any meaningful oversight, instead repeatedly paying performance bonuses despite systemic complaints. As a result, our military families have been left on their own to suffer the consequences," said Warren.

Regarding Warren's proposed legislation, Reed's spokesman Chip Unruh said in a statement to GoLocal on Friday, "Senator Reed is working on fixing military housing and he thinks Senator Warren’s bill is a very helpful addition to the process as he drafts the annual National Defense Authorization law with Chairman Inhofe."

Warren said in introducing the reforms, "Let’s start with something simple: if a developer does not live up to the terms of its agreement to maintain habitable properties for our military families, we should not reward them with bonuses and other incentive payments. In fact, I will require the Secretary of Defense to standardize leases across the military services and review all existing housing contracts for violations before they can be renewed."

"Under my proposal, every base will have a housing office staffed with advocates for the service member — not beholden to a private contractor. That office will have independent authority to inspect housing on base to ensure that it is safe, clean, and meets all state and local requirements," she added.

Corvias did not respond to requests for comment.