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A federal committee said San Antonio's CRE8AD8 “did not have significant experience in the type of food distribution called for."
Just when you thought San Antonio event planner CRE8AD8 would never again hit your newsfeed, the company is back in the news.
This time, the company has been sued by its former partner in the Trump administration's Farmers to Families program, a pandemic-era food program mired in controversy and claims of mismanagement.
What's more, CRE8AD8 has countersued.
In short, CRE8AD8 owner Gregorio Palomino and San Antonio chef Iverson Brownell — partners in the $39.1 million contract — are suing each other for fraud, according to filings in state district court in San Antonio.
Brownell's Fork and Garden catering and events firm first alleged in a December 2022 lawsuit that Palomino failed to fulfill an agreement to split the profits from the federal contract. Instead, Palomino made “excessive payments” to himself and his family members, the suit alleges.
Palomino fired back in February with a counterclaim that alleges he already paid Brownell $40,000 to drop any claims against him. According to the countersuit, Palomino is suing Fork and Garden for damages between $200,000 and $1 million for “flagrant violations” of the settlement agreement that Palomino says he and Brownell reached in December of 2020. The suit is also seeking attorney’s fees.
Representatives of the companies attended a March 14 hearing at which they tentatively agreed to an April 4 deadline to submit any and all relevant information to the court, filings show.
If you’re in need of a CRE8AD8 drama refresh, buckle in.
CRE8AD8 first drew fire in May of 2020 for landing a $39.1 million Farmers to Families contract, which would facilitate the delivery of food to needy families during the pandemic. At the time, CRE8AD8 had no previous track record in the food-distribution business.
The event planner faced more scrutiny for citing relationships with entities such as USAA, Valero Energy and Fiesta San Antonio — claims which were later denied by officials of those organizations — and for claiming at one point that it was still working under the contract even though the pact hadn't been renewed.
An October 2021 study released by a U.S. House subcommittee created specifically to examine the efficiency and transparency of federal pandemic relief programs blasted the quality of the San Antonio company's work as a vendor. The document stated that CRE8AD8 “did not have significant experience in the type of food distribution” needed to fulfill the work.
Nonprofits that received food from Palomino's company told investigators the boxes were often wet or collapsing and sometimes held rotten food, according to the report. Nonprofits also reported deliveries that were improperly packaged and inaccurate — or completely nonexistent — which the report says created “a significant risk of fraud.”
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