"Did I think money was being spent wisely?" asked Christopher Bryson, an aspiring filmmaker who worked as an Eclipse logistics coordinator. "My answer is no. It just wasn't well managed."
The auditors said $15 million in expenses submitted by Eclipse could not be substantiated. For example, auditors were able to find supporting documents for only $326,873 of the $5.8 million that Eclipse spent directly on accounting, administration, consulting, management and contract labor.
The auditors noted that Sims not only paid herself $5.4 million in compensation as "President/Owner" but also that she gave herself a $270,000 pension.
In addition to focusing on the direct Eclipse expenses, auditors raised concerns about expenses Eclipse employees charged to separate accounts at the hotels chosen by Pearson. Auditors highlighted scores of other expenses run up or approved by Eclipse: hundreds of thousands of dollars for valet parking, unexplained cash advances, dry cleaning and other spending at the hotels, many of which were high-end or resort-style establishments.
Sims and her business associate, Eclipse Vice President Nita Sullivan, declined repeated requests for interviews. A Washington lawyer hired to help the women respond to questions from federal auditors said they have cooperated with authorities and have nothing to hide. The lawyer, Pamela J. Mazza, declined to discuss the contract or the current investigation.
"Eclipse Events completed its work on time and to the satisfaction of the prime contractor at the fixed price negotiated between Eclipse Events and NCS Pearson," Mazza said in a statement.
Pearson officials said they "believed that Eclipse's rates were reasonable" and "that Eclipse did a good job." In response to the audit, Pearson said, "However, TSA's frequent changes and revised requirements greatly impacted [Pearson] and its subcontractors as they both struggled to meet TSA's ever-changing demands and schedule changes."
But Pearson officials also had concerns about the Eclipse bills. Pearson officials negotiated a $1.5 million discount from Eclipse after a Pearson contracting official questioned Eclipse's expenses. Pearson officials pointed out to The Post that $6 million in Eclipse expenses were "recognized or reimbursed by the government." The Pearson officials also said that the $15 million in expenses highlighted by the auditors was factored into negotiations with the government that resulted in a reduction of Pearson's final contract amount to $741 million.
On the specific point of Sims's $5.4 million compensation, the company said that it did not have access to Eclipse's records and that it "cannot validate how much Eclipse paid to its principal. If [the $5.4 million] is accurate, the personal enrichment is outrageous."
Former Eclipse associates interviewed by The Post in recent weeks described Sims as bright, charming and capable. Her friends dismissed the possibility of impropriety, saying she and Sullivan are both devout Christians who would never take advantage of the government for personal gain.
Sullivan, who lives near Orlando, and Sims have known each other for years. Corporate records show that they have operated at least six related companies in Florida and California in the past five years, all of them registered at their home addresses or post office boxes.
When Sims got the Pearson subcontract, she turned to Sullivan and made her vice president of Eclipse, the audit said. Midway through the work, Sullivan created a new company, WJS Consulting Inc., out of her Florida home. WJS received $5.2 million in consulting fees from Eclipse, the audit said. Sullivan said she used the money to hire labor for the project.
