Showing posts with label FCA. Show all posts
Showing posts with label FCA. Show all posts

Monday, September 28, 2020

DOJ: United States Files Complaint Against Nutter Home Loans for Forging Certifications and Using Unqualified Underwriters to Approve Government-Insured Reverse Mortgages - Gerrymandering & The False Claims Act

If you think this is bad, just wait until we get to Detroit.

Just on a side note, I also found these questionable, federal reverse mortgages with the State of Ohio, but, hey, what do I know?

I know that #sealsmatter.

#maytheheavensfall


The United States has filed a complaint under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 and the False Claims Act against Nutter Home Loans, f/k/a James B. Nutter & Co. (Nutter), for forging certifications and using unqualified underwriters to approve Federal Housing Administration (FHA) insured Home Equity Conversion Mortgages (HECM), the Department of Justice announced today. 

“The HECM program benefits America’s seniors and our communities,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Department of Justice’s Civil Division.  “The Department is committed to holding accountable those who violate the bedrock requirements of this important program.”

“Companies participating in federal programs must operate with honor and integrity,” said Acting U.S Attorney Michael R. Sherwin for the District of Columbia.  “This settlement sends a clear message that we will not tolerate fraud against programs designed to financially help our nation’s seniors.”

“Lenders who willfully disregard FHA requirements for HECM loans expose the program to significant financial losses that threaten the future availability of this important program to seniors,” said Rae Oliver Davis, Inspector General, U.S. Department of Housing and Urban Development.  “This complaint is evidence that we will tirelessly investigate allegations of abuses of the HECM program by FHA lenders.”

The FHA, part of the U.S. Department of Housing and Urban Development (HUD), offers numerous mortgage insurance programs intended to help build and sustain strong communities across America.  The HECM program is a reverse mortgage program specifically for senior homeowners age 62 and older.  The program allows seniors to access the equity in their residences, and thereby age in place in their family home, through a mortgage agreement with a lender that is insured against loss by the FHA.  The United States’ complaint alleges that in order to significantly increase its loan production, Nutter used unqualified underwriters lacking the requirements established by HUD to review and approve HECMs that Nutter ultimately insured with the FHA.  Moreover, on other loans, Nutter forged the signatures of qualified underwriters to make it appear that a qualified underwriter had reviewed and approved the loan. 

This matter was investigated by the Commercial Litigation Branch of the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the District of Columbia, HUD, and HUD’s Office of Inspector General.  The claims asserted against the defendant are allegations only, and there has been no determination of liability.


Voting is beautiful, be beautiful ~ vote.©

Wednesday, September 16, 2020

DOJ: Quantadyn Corporation And Owner Settle False Claims Act Allegations of Bribery To Obtain Government Contracts For Simulators



The Department of Justice announced today that QuantaDyn Corporation (QuantaDyn), headquartered in Ashburn, Virginia, has agreed to resolve civil claims arising from allegations that it engaged in a bribery scheme to steer government contracts for training simulators to the company, as part of a broader settlement that includes a guilty plea by the company.  As part of the plea agreement, QuantaDyn has agreed to pay $37,757,713.91 in restitution, which also will resolve the company’s civil False Claims Act liability for the scheme.  William T. Dunn Jr., the majority owner, President, and Chief Executive Officer of QuantaDyn, has separately paid $500,000 to resolve his personal False Claims Act liability. 

“When government contractors pay bribes to military contracting officials to obtain contracts, they prevent both our military and the American taxpayers from receiving products that are procured fairly and objectively and at a reasonable price,” said Acting Assistant Attorney General Jeffrey Bossert Clark for the Department of Justice’s Civil Division.  “Today’s settlement demonstrates our continuing commitment to protecting the integrity of the government’s procurement process and ensuring that is untainted by fraud and corruption.” 

“I am proud that our team and our law-enforcement partners were able to obtain justice for the American taxpayer in this case.  We will not tolerate fraud against important federal programs,” stated U.S. Attorney John F. Bash for the Western District of Texas.

“The integrity of GSA’s contracting is vital to good government,” said U.S. General Services Administration (GSA) Inspector General Carol Ochoa.  “Our special agents have been tireless in investigating corruption, and we will continue to work with our law enforcement partners to vigorously prosecute it wherever we find it.”

Founded in 2000, QuantaDyn is a privately held software engineering firm specializing in developing training simulation systems for Department of Defense agencies, including the Air Force and the Air National Guard, both as a prime contractor and a subcontractor.  

The civil settlement announced today, which was based on the company and Dunn’s ability to pay, resolves allegations that QuantaDyn, during the time period when Dunn was President, engaged in a bribery scheme to steer the award of government contracts for training simulators to QuantaDyn.  The United States alleged that while Dunn was QuantaDyn’s President, the company formed a corrupt partnership with an Air Force contracting official who provided procurement-sensitive information to QuantaDyn during the pre- and post-award phases of the contract in exchange for bribes.  The United States contended that, as a result of this scheme, QuantaDyn caused a prime contractor to submit false invoices to the United States.

Contemporaneous with the civil settlement, U.S. Attorney John F. Bash for the Western District of Texas announced that the United States and QuantaDyn have entered into a plea agreement to resolve criminal allegations related to the bribery scheme.  On Jan. 15, 2020, the U.S. Attorney’s Office for the Western District of Texas unsealed indictments against QuantaDyn, the former Air Force contracting official, and other individuals.  Under the plea agreement, QuantaDyn has agreed to plead guilty to conspiracy to commit wire fraud, serve a five-year term of probation and to take certain remedial measures, and pay $37,757,713.91 in restitution, a criminal penalty of $6,300,000, and forfeiture of $7,099,863.77.

This civil settlement was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch; the U.S. Attorney’s Office for the Western District of Texas; the GSA Office of Inspector General (OIG), Greater Southwest and Rocky Mountain Investigations Division; the Defense Criminal Investigative Service (DCIS), Southwest Field Office; the U.S. Air Force Office of Special Investigations (AFOSI), Procurement Fraud Detachment 3 in San Antonio; the U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit (CID/MPFU), Southwestern Fraud Field Office; the Internal Revenue Service-Criminal Investigation (IRS-CI); and the Defense Contract Audit Agency (DCAA), Headquarters, Operations Investigative Support Division (OIS).

Except as admitted in the plea agreement, the claims resolved by the civil settlement are allegations only and there has been no determination of liability. 


Voting is beautiful, be beautiful ~ vote.©

Friday, September 11, 2020

DOJ: The Scripps Research Institute To Pay $10 Million To Settle False Claims Act Allegations Related To Mischarging NIH-Sponsored Research Grants - The Dark Descent Continues To Find The Tiny Humans

There are thousands more until we get to the tiny human lab rats....

#maytheheavensfall


The Scripps Research Institute (TSRI) has agreed to pay the U.S. $10 million to settle claims that it improperly charged NIH-funded research grants for time spent by researchers on non-grant related activities such as developing, preparing, and writing new grant applications, teaching, and engaging in other administrative activities, the Department of Justice announced today. 
“The NIH has finite resources to support important research across the nation,” said Acting Assistant Attorney General Jeffrey Clark for the Department of Justice’s Civil Division.  “Today’s settlement demonstrates our commitment to protect those resources by ensuring that NIH grants funds are used for the purposes for which they were intended."
“Federal grant recipients must use the grant funds they receive on tasks that specifically relate to the funded project.  Those that improperly charge the government for costs unrelated to the project must be held accountable,” said U.S. Attorney Robert K. Hur.  “The U.S. Attorney’s Office and the Department of Justice have a duty to protect government resources and ensure they are used appropriately.”
“Taxpayers funds for medical research are finite and the need for scientific advances is great; therefore, it’s critical that these resources are used as intended,” said Special Agent in Charge Maureen R. Dixon, U.S. Department of Health and Human Services Office of Inspector General.  “Working with our law enforcement partners, our investigators will continue to protect these resources so that they are spent appropriately.”
TSRI is a non-profit biomedical research institute with campuses located in Jupiter, Florida and La Jolla, California. TSRI receives millions of dollars in funding from NIH through hundreds of grants each year.  The settlement resolves allegations that between 2008 and 2016, TSRI failed to have a system in place for its faculty to properly account for time spent on activities that cannot be charged directly to NIH-funded projects or are unrelated to the research activities of the NIH-funded project.  Consequently, the U.S. contended that TSRI improperly charged time spent by faculty on developing, preparing, and writing new grant applications directly to existing NIH-funded projects, rather than allocating such charges as indirect costs.  The U.S. also alleged that TSRI improperly charged NIH-funded projects for time spent by its faculty on other activities unrelated to the funded projects, such as teaching, TSRI committee work, and other administrative tasks. 
The settlement resolves allegations originally brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act by Thomas Burris, Ph.D, a former TSRI employee.  The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery.  Dr. Burris will receive $1.75 million.
The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the District of Maryland, and the Office of Inspector General of the Department of Health and Human Services.
The case is captioned U.S. ex rel. Burris v. The Scripps Research Institute, Case No. 1:15-CV-01443 (D. Md.).  The claims resolved by the settlements are allegations only; there has been no determination of liability.

Voting is beautiful, be beautiful ~ vote.©

Saturday, June 27, 2020

Prelude To Detroit: Bill "Boo Boo" Barr Speaks Upon Stuff

Round Pewter Wire Doll Glasses - Doll Accessories - Doll Supplies ...
Bill "Boo Boo" Barr
Bill "Boo Boo" Barr speaks upon stuff.

Yup.

Stuff.

An allegoric masterpiece, Barb!

It’s like appointing a psychiatrist to perform surgery. Impressive credentials, but not the right ones for the job. 

Transcript: NPR's Full Interview With Attorney General William Barr

Attorney General William Barr poses for a portrait at the Department of Justice in Washington D.C.
Eman Mohammed for NPR

In an interview with Morning Edition's Steve Inskeep, Attorney General William Barr denied that the Justice Department is continually upholding the interest of the president, dismissed concerns about the firing of federal prosecutor Geoffrey Berman and said he does not believe an election conducted mainly by mail can be secure.

Steve Inskeep: Thank you again for taking the time. I'm appreciative to have this opportunity.

Attorney General William Barr: Thank you.

I want to note that in the last few days, there have been three acts of yours that have made the news, sometimes not for the first time. The dismissal of the case against Michael Flynn, which, of course, an appeals court upheld; the Roger Stone case in which a whistleblower questioned the way that you changed the sentencing recommendation; and then the removal of Geoffrey Berman in New York. I want to ask about your underlying authority as you see it in cases like this. Does the president, acting through you, have the power, complete power, to use his authority in cases where he has an interest?

Well, this wasn't a case of the president acting. It was, these were cases of me acting [crosstalk].

Although you say your act as the president's hand. I mean, it's the president acting [crosstalk].

Well, the president ultimately has the authority as chief executive to, quote, see that the laws are faithfully executed against the attorney general who performs that function under the law. And so I will take them in any order you want.

Well, I see here in each case, you have someone who is the president's national security adviser and he'd spoken up publicly in defense of him. Someone who's a close personal friend of the president, who the president said was being unfairly treated. And Geoffrey Berman, a U.S. attorney, who is believed to be investigating cases involving friends of the president, among other matters of interest to the president. In every case, was it appropriate to intervene at the highest levels in what was being done and what personnel did it?

OK well, all cases in the Department of Justice are subject to the supervision of the attorney general. In fact, all the powers carried out by the department are vested in the attorney general and it's appropriate for the attorney general to exercise supervisory authority over cases. So starting with the Flynn case, Flynn was entered into a plea agreement before I arrived that had been there for a long time. And because of legal squabbling, the sentencing didn't come up until after I was attorney general. And he had a new lawyer and she raised a lot of claims. And, you know, we, number one, he was subject to the sentencing process. But before that occurred, the judge started taking up some orders. And we filed a motion to dismiss the indictment based on information we had obtained from another U.S. attorney who I had asked to review the case. There were a lot of issues about that case and it was taking a lot of time to resolve them because the defendant had raised those issues, including misconduct by the government. So I brought in somebody who had been a former FBI agent for 10 years and a prosecutor for 10 years. And I asked him to take a look at it and he recommended that the charges be dismissed.

What I'm driving at is the underlying power here. There's nothing inappropriate about you getting so involved in a case involving a friend of the president. Is that your view of the law?

Well, what I'm saying is, well, Flynn was an appointee in the administration. I don't know whether I would refer to him as [crosstalk] a friend of any administration. But unless there's some conflict of interest that I have, it is appropriate for me to deal with it. And I've said publicly that in those cases, it's very important that the attorney general make sure that there's no political influence at stake involved in that, and there wasn't.

Is there no limit to what the president can do in exercising what you've described as a supervisory authority when it comes to law enforcement cases, even when he has an interest?

So, I testified about this a lot. I think at some point in certain circumstances, presidential action could amount to an abuse of his power. Yes.

Let's take a case that, according to a witness before Congress yesterday, sounded like an abuse of power. Prosecutor Aaron Zelinsky, who said he was a whistleblower, said that in the Roger Stone case, he received pressure to change the sentencing recommendation in a way that he considered inappropriate. And he said he was told by his supervisor that was because of political pressure, because of a fear that the president would be displeased if another course was taken.

Right. Well, the supervisors have said that much of what he said simply false. So, [crosstalk] and the statements he made, he said were, he admitted were double hearsay. He had no direct information. He had never talked to anyone involved in the decision, whereas I actually made the decision. I was the decision maker in that case because there was a dispute. And usually what happens is, disputes, especially in high profile cases, come up to the attorney general. It's not unusual for there to be a dispute in a high-profile case and for it to be resolved by the attorney general. And what actually happened in that case is that the four prosecutors who had prosecuted the case, the first line, they wanted to recommend a seven to nine year sentence on Stone, and the U.S. attorney felt that was too severe and was not justified under the circumstances. And what I said was set forth all the relevant information and leave it to the judge's discretion to select the right decision, which is also not uncommon in the department. And that judge actually gave the sentence that I thought was correct, which was half of what the line prosecutors were recommending. They could not point to any case even remotely close to the seven to nine year sentence. The cases were essentially centered on about two and a half to three years. The judge gave him three years and four months, which I thought was a fair sentence under the circumstances. And it was essentially what I was proposing, or thought was fair. And so the proof of the pudding is in the eating. I made that decision based on what I was felt was fair to that person. Never discussed sentencing with the president. And that decision was made well before the president's tweet about that case.

Now, [crosstalk] regardless of his relationship with the president, he doesn't he doesn't deserve a break, but he certainly doesn't deserve to be treated, and singled out, and treated more harshly than everyone else.

You have indicated that the appropriate limit on a president's power is the people, is the next election. That the president has supervisory authority over law enforcement, that he can involve himself in a case, even if he has an interest in the case, and the appropriate remedy is the people can vote him out or keep him. What do you say to voters thinking about how to vote this year, who see these cases and see a pattern of a president who continually wants to interfere and actually does appear to interfere in cases where he has an interest?

Well, I would say taking them one at a time. There was a lot of hinky stuff in the Flynn case. Everyone knew that. Everyone was wondering why was this case ever brought? We actually went back and found documents that showed that there were a lot of irregularities in what the FBI did. And in fact, when this case was being argued in the appellate court, the appeals panel pointed out, 'Hey, if there were irregularities here, it isn't what Justice Department is doing now, it's what they did when they indicted Flynn.' So I would say that justice was, is being done in that case. I would also say that the same is true in the other case you mentioned, the Stone case. He got the sentence that everyone else would have gotten for that conduct. That's justice. That's the rule of law, treating like people alike.

And just to go to the third case what was the reason for removing Geoffrey Berman?

[crosstalk] That's personnel action, which of course is different. You know, in the criminal justice process, as I've made clear, it's very important that politics be kept out of that. Now, in this other matter, which is a personnel appointment, obviously all U.S. attorneys are appointed by the president and can be removed by the president. And, you know, that's been for as long as there have been U.S. attorneys. And New York is one of the preeminent offices in the Justice Department. The president had never made an appointment to that office. Geoffrey Berman was interim. He was appointed by the court as a temporary U.S. attorney holding the fort. He was living on borrowed time from the beginning. And when a really strong, powerful candidate raised his hand, that is Jay Clayton, currently the chairman of the S.E.C., a prominent New York lawyer from Sullivan and Cromwell, very well-known and highly regarded, an independent, and he said that he was prepared to leave the government, was going back up, wanted to go back up to New York but very much would desire this job, I view that as an opportunity to put in a very strong person as a presidential appointment to that office.

And there was no consideration, or let me ask it a different way. Did you consider the possibility that some might find that inappropriate, given the matters that Mr. Berman was investigating and the president's interest in those matters?

I certainly was aware that given the current environment, anytime you make a personnel move, you know, conspiracy theorists will suggest that there's something, there's some ulterior motive involved. But I felt this was actually a good time to do it because I was not aware of anything that should in reality, give rise to that.

And let me circle back to that big question. How do you answer a voter who sees a pattern here of continually upholding the personal interests of the president?

Well, I'd say that there is no such pattern. I would say that that is a media narrative that has been adhered to, where things that happen all the time in the Department of Justice are misrepresented to the public and cast is somehow suspicious. I mean, do you think someone, do you think a 68-year-old man, with no prior criminal history record, should have gone to prison for a decade for what happened? You know, for misleading Congress? Show me a case where that's even remotely close. As I've said, the judge herself said that the case closest was the Scooter Libby case, who got about three years, and she gave three years and four months. So that's justice. That's what we call justice. And there was a Democratic senator who said that, you know, part of the job of the attorney general or being the attorney general is like being a sheriff standing in front of the jail. There's always the mob. And these days, the media is very prominent among the mob, who either want someone hung or they want him sprung. And part of what the Department of Justice is about and the attorney general is about, is ignoring the mob and the calls and the false narratives, and doing in each case what they think is right. Right and just for the individual, that's what I'm doing and that's why I'll continue to do.

Because you mentioned equal justice. Can you name a case or two where you have intervened so dramatically where the person involved was not connected to the president?

Off the top of my head, I'm sure there were a number of cases since I've been here that I've done that

You can't think of one but...

Well, frequently, cases, you know, we don't go discussing who's under investigation at any given time.

OK, but you're saying there are other cases where you have personally involved yourself in...

Yes. When cases come up, who do you think they come to? And why do you think we have one attorney general? We have 93 United States attorney's offices and we have 50 states. We don't run a department to have 50 different rules of law. We run a department that looks across the whole country to make sure people are treated equally. You can only do that if you have one office that's responsible for that. And that's me.

I read with interest, Attorney General, a speech you gave at Notre Dame, some time ago, came to my home state and did that. Thank you very much. And you promoted the idea of religious education. You also offered a particular idea of the founders who wrote the Constitution. You said that by and large, the founding generation were Christians and they were imbued with those values, which you'd like to continue today.

That's not exactly true [crosstalk]. I was talking about religion generally. Now, they were Christians and so if you're talking about them, they were Christians. But I was talking about the role of religion.

You're talking about the role of religion today.And speaking of Christians, then. Christianity has a particular view of human nature. What does it teach you that [the] president would do with completely unchecked power, with absolute power?

The president doesn't have unchecked power. All power corrupts and absolute power corrupts absolutely. As Lord [John Dalberg-] Acton famously said. So that's why we have a Constitution. And that's why, as I've given speeches about the presidency, I've pointed out that the real miracle of our, in Philadelphia was actually Article 2 of the Constitution, because many people sort of that the Cliff Notes version of our founding was that we fought against a king, and therefore we have to be very suspicious of presidential power. But actually, what happened was, after the Articles of Confederation and almost losing the Revolutionary War, the framers decided to frame a limited office of president.

That was, what most experts on the Constitution would say, is that they, what was unusual is they actually created a very strong office, but they hedged it in with a lot of limitations. It's not a king. It's four years. It's the only office elected by all the people of the United States, not just by a congressional district, but by all the people. It has inherently limited powers. Congress has most of the powers in the federal government. The president can't raise money or anything like that. So all the limitations that the Whigs, the English Whigs, wanted to put on the king have been put on the office of [the] president, it's a limited office. But in emergencies such as war, it has broad powers. And I have to say, Steve, one of the things that perplexes me about all these people who challenged me on the idea of executive power and its nature, they seem perfectly content to sit back and let governors, who are executives and have constitutions, make the most sweeping decisions about people's livelihood. Basically, putting the entire population in home detention and telling people that they have to shut down their livelihood and their business. And they leave that to the discretionary decision of governors. And I haven't heard the media at all saying, 'Hmm this is a pretty broad use of power. Where does it say in the Constitution they have that power?'

I have heard you, or your department, raise that question, specifically involving the governor of Hawaii who has imposed certain limitations for people to quarantine themselves when coming to Hawaii from out of state. The Justice Department has weighed in on a lawsuit against that restriction. Is this something that is of personal interest to you? Did you take part in that decision?

Yes, I've taken part in a lot of those decisions, but actually, that particular decision did not go to the whether or not the governor had the power, whether that was part of the executive power. What that went to is whether or not that was permissible to put those kinds of limits on interstate travel, because that is a constitutional right. And whether that was a reasonable restriction on interstate travel. So we raised that question.

The governor of Florida at one point had restrictions on people coming from out of state. Now, as the cases have shifted, and Florida's gone up and New York has gone down in numbers of cases, New York is imposing restrictions on people coming from out of state. Would you oppose those restrictions as well?

There are different kinds of restrictions, and the question is whether they're reasonable under the circumstances. For example, requiring someone to stay in 14 days of quarantine versus having a test where the results come back quickly. There are different ways of doing it.

I want to ask, Attorney General, about the Durham investigation while we have a few moments. There is a longstanding practice in the Department of Justice against releasing politically sensitive information close to an election. We're getting closer and closer to an election. Is there still time before the election for the Durham report to be known?

All right. Well, as I've said a few times, no one under investigation in the Durham matter is running for president. And I've said publicly that neither President Obama or Vice President Biden are under investigation. And I've also said I'm committed to having the American people have a free choice in this election between the candidates and I don't want the Department of Justice to be interfering in that.

The Durham investigation is another matter where the president has expressed very strong opinions. Does the president have the power under the Constitution to tell you how the Durham investigation needs to come out?

No.

He has supervisory authority [crosstalk].

To tell us how the investigation comes out? [crosstalk] An investigation of facts is an investigation of facts. I mean, even the president can't change facts.

He can't tell you to have the report come out a certain way? Regardless of the facts?

No, I don't think he can. I mean, I think Durham is going to report the facts.

So there is a limit on the president's interference in law enforcement then [crosstalk]. Underlying facts is what the limit is.

Yeah, I have said that, for example, if the president directed an attorney general to indict somebody where there was no predicate, no probable cause and no basis for the indictment, that would be a grave abuse of presidential power. And no attorney general would carry that out and be worth their salt. And I've said this in my confirmation. The president tells you to do something that has no legal basis like that, can't be justified under the law, then the attorney general shouldn't do it. The attorney general's responsibility is to make sure that the laws are faithfully executed.

What instruction, if any, has the president given you about assuring a secure election in 2020?

About what?

About assuring a secure election in 2020?

Well, our main focus has been obviously trying to ensure against foreign influence. And so we have a very strong program, interagency program, trying to monitor efforts by foreign countries to influence the election. And, you know, we're committed to trying to prevent that or if we can't prevent it, at least alert the American people as to what's going on. Other than that, the Department of Justice always is concerned about election fraud. And on every election, we're very attentive to whether there's election fraud.

Some people noticed when you raised concerns about the security of mail-in ballots, as the president also has very loudly and said without evidence that there is a lot of fraud or can be a lot of fraud, you raised a specific concern about foreign entities counterfeiting ballots and mailing them in.

Well, I think there's a range of concerns about mail-in ballots. And let me just clarify here. I'm not talking about a mail-in ballot for a limited number of cases where somebody, you know, is going to be traveling around the world, and the way that the state has provided for that is, you mail in your ballot. I'm talking about a comprehensive rule where all the ballots are essentially mail-in, and there's so many occasions for fraud there that cannot be policed. I think it would be very bad. But one of the things I mentioned was the possibility of counterfeiting.

Did you have evidence to raise that specific concern?

No, it's obvious.

It's obvious that it can be done.

Of course, we got to a lot of, why do you think we go to the problems we do in crafting single dollar bills?

Sure.

Because, make it hard to counterfeit. Now--

Do they not also go through procedures like that with mail-in ballots?

You've seen them. They're pretty primitive.

Kim Wyman, the attorney general of Washington State, was on NPR and was told about your concern, and said, I wish Attorney General Barr would come out and see the security measures that we do have. She's a Republican.Would you take up that offer?

Well, I'm not sure I'm going to go out to Washington state [crosstalk] right now. Glad to call her up [crosstalk]. But, you know, I don't think Washington state has much experience dealing with our adversaries' intelligence services.

Are you able to share any evidence that intelligence agencies have gathered that any foreign entities have targeted this area?

I think foreign entities are — I have specific reason to believe that there are a number of foreign countries that do want to sow discord in the United States by undermining confidence in the results of the election. And I think if we do adopt programs of mail-in, that will be an area which they will exploit. And I think you don't have to be a rocket scientist to figure that one out.

Do you believe that an election conducted mainly by mail can be secure?

Personally, no. I mean, we just mailed out checks under this program. And what is it? I heard something like 20 percent or something were misdirected.

You think the same thing could happen with millions of mail-in ballots?

I know things can happen like that. Because I know people move, a very high percentage in the United States, people move all the time. And I also know that you can easily take things out of mailboxes.

One other thing, Attorney General, regarding the recent protests. You made statements raising concerns about left-wing extremists in the protests and your named Antifa, specifically. One of our correspondents looked earlier this month. I believe it was June 9. And while a number of people have been arrested in connection with the protests, and a good number of crimes were committed, as a matter of fact, there was no record of someone connected with any Antifa organization, and it's not really an organization, who had been named up to that point in prosecutions. You did say around that time that there had been not public information regarding Antifa. Are you able to say now, a couple of weeks later, that anyone has been arrested in connection with that activity you named?

Yes, but...[crosstalk]

Someone with Antifa? Someone with some antifascist organization?

Yes, but when we arrest people and charge them at this stage anyway, we don't charge them for being a member of Antifa. We charge them for throwing a Molotov cocktail, or we charge them for possession of a gun, or possession of gasoline and things to make bombs with. Those are the kinds of charges that are filed. Even less sensational charges, such as battery. But we are building, we are obtaining information and intelligence about the operations of these people. Do you really? I mean, do watch the videotapes of these demonstrations?

I've watched the videotapes [crosstalk].

You don't see agitators in hoodies with earpieces, you know, distributing things to throw and things like that? You don't see that? You don't see people walking through districts with high-end stores, methodically breaking out the windows with sledgehammers or skateboards? Who are they?

Saw lots of break ins. Absolutely.

Not break-ins and looting. This was not looting. No, no. You obviously haven't been watching these videos as we have been watching them. [crosstalk]

I've been out on the streets. And there have been specific crimes that seem to have been committed under the cover of the protests, as well as any kind of engineered violence. But wouldn't you have, if you had somebody who was a member of an extremist group, wouldn't you have mentioned that, and your prosecutors would have mentioned that, in the bail hearing? Like there'd be a public record, that you had evidence of extremists?

Well, at this stage, being a member of a group, and Antifa is really sort of an umbrella term [crosstalk] used for a number of groups. There are a number of groups that have specific names that we're aware of that are Anti-- that's why I've said Antifa-type groups, that some of the people that have been arrested and some of the people that have been charged and some of the people that are under investigation, we have approximately 300 investigations right now, nationwide, do identify as Antifa. So I'm not sure, you know.

OK. Can I ask about one more thing that's on my mind? You were asked about systemic racism the other day in law enforcement, and you said, if I may summarize briefly, it's not really there. It was at one time. It was on the books. It was part of the law. The laws have been removed and there are still problems, but law enforcement is working on that. And I wonder...

I was talking about police departments.

Police departments are working on that. And I want to acknowledge that police departments and a lot of parts of the country do work on that. And yet, statistically, just to pick one statistic, a black man in the United States, statistically, is far more likely to be shot by a police officer than someone of a different race. Why do you think that is?

Well, there are 8,000 Blacks who are killed every year. Eighty-five percent of them are killed by gunshots. Virtually all of those are Blacks on Blacks. I think that there are a number of the statistics on police shootings of unarmed, unarmed individuals are not skewed toward the African American. There are many whites who are shot unarmed by police. Now, those numbers, as I said, have been going down in the past. Five years ago it was 38 African-Americans who were unarmed were shot by police. Thirty-eight in a year. This past year it was 10. Of those six were physically attacking the police when they were shot. So these are not events that happen every day. I know that the media is very interested them, as everyone is interested in them [crosstalk]. Well, everyone's interested in it. But I think the media is ignoring the fact that 8,000 African Americans are killed by crime in high-crime areas, and 10 were killed last year by police, six of whom were under attack when they shot. So you have to put it in perspective. And that's why, you know, I think it is wrong to demonize all the police and all the police departments, as you know, systemically racist and going out looking to shoot unarmed black men. I've seen some cases where it appeared gratuitous, and obviously, those are serious cases and are pursued by the Department of Justice's civil rights violations, which is the statute we have to address those issues. But some of them, while use of excessive force, you know ... during struggles and other things. So I think you have to put these in perspective.

I keep saying final question and it keeps not being true because I keep getting more I want to ask you. You have raised concerns about the direction of the country and the direction the government, the direction of presidential power over the last several decades. Now we're in this period of conflict and chaos, which can be fairly said, regardless of where you are on the political spectrum, this is a, this is a disturbing time for many people. Do you look out at the country and see a country that is moving toward a better place in the right direction, now that some of these issues have been joined from your perspective?

Some of which issues?

Well, the issues that have been fought over in the last several years regarding race, regarding the economy, regarding presidential power, regarding everything else. Do you feel the conflicts of this time are working us toward a better country or not so?

I think, you know, I think America was making a lot of progress on race. I mean, we elected Barack Obama as president. I think the economy was becoming more inclusive. And I think Blacks were participating more in the economy and at record numbers. But I do think that there are some impediments to the advancement of African Americans in society. The principal, one of the principal ones, not the principal one, is that they are being deprived of equal opportunity to attend good schools. And that's, I think that's one of the civil rights issues of our time. I think that they should we should essentially give these inner-city families the buying power to send their kids wherever they want to send them.

I was thinking larger even than race, though. You've raised a question of a society that is in some kind of moral trouble, that is losing its bearings. Do you think that in the conflicts of these last few years, the society is beginning to regain its bearings as you would like them to be?

Yeah, I think I think under President Trump's leadership, with the growing opportunity and some of the stands that he's taken, have put us on a better track. Now, I think what's happened in the last few weeks is a combination of things. I think the people out committing the destruction and the chaos, as you say, they're actually a fairly small group. And I don't think they're representative of what America wants, what they think. I think it's a small group that's deliberately trying to create chaos. And I also think the morale of the country right now has been affected by the pandemic. And that's another factor there. But I do think that as we come out of the pandemic and our economy rebounds, that we do have a promising future.

Attorney General, thank you so much. Thank you.

Voting is beautiful, be beautiful ~ vote.©

Saturday, April 18, 2020

Paul O'Neill, Progenitor Of TARP Is Extracted From Humanity

Paul O'Neill
Former U.S. Treasury Secretary Paul O'Neill, progenitor of TARP and the Detroit Land Bank Authority, is extracted from humanity.

Gerrymandering was a strong area of his expertise.

I wonder how Steve Mnuchin is doing, right about now?

According to Wikipedia:

In 1989, he was approached by President George H. W. Bush to be Secretary of Defense. O'Neill declined, but recommended Dick Cheney for the position. Bush then pursued O'Neill to chair an advisory group on education that included Lamar Alexander, Bill Brock, and Richard Riley.

#maytheheavensfall

Former Treasury Secretary Paul O'Neill dies at age 84

U.S. Treasury Secretary Paul O'Neill holds a news conference at the U.N. Conference for Financing of Development in Monterrey, Mexico on March 20, 2002. O'Neill died Saturday, April 18, 2020. He was 84.

Paul O'Neill, a former Treasury secretary who broke with George W. Bush over tax policy and then produced a book critical of the administration, died Saturday. He was 84.

O'Neill's son, Paul O'Neill Jr. confirmed that his father died at his home in Pittsburgh after battling lung cancer for the last couple of years. After a few surgeries and chemotherapy, he decided against any further intervention four or five months ago, he said.

"There was some family here and he died peacefully," the son said. "Based on his situation, it was a good exit."

A former head of aluminum giant Alcoa, O'Neill served as Treasury secretary from 2001 to late 2002. He was forced to resign after he objected to a second round of tax cuts because of their impact on deficits.

O'Neill's blunt speaking style more than once got him in trouble as Treasury secretary. He sent the dollar into a tailspin briefly in his early days at Treasury when his comments about foreign exchange rates surprised markets. In the spring of 2001, O'Neill jolted markets again when during Wall Street's worst week in 11 years, he blandly declared "markets go up and markets go down."

He was more focused on the traditional Treasury secretary's job of instilling confidence during times of turbulence later that year when he helped get Wall Street re-opened after the Sept. 11 terror attacks. O'Neill was also instrumental following the attacks in beefing up the government's programs to disrupt financing to terrorist groups.

Treasury Secretary Steven Mnuchin said Saturday on Twitter, "Saddened to hear of the passing of the former 72nd Treasury Secretary, Paul O'Neill. He served @USTreasury and America with distinction during challenging times. My condolences to his family."

Tony Fratto, who served as O'Neill's Treasury spokesman, described O'Neill as a "working class guy" who "cared about how things impacted real people."

Fratto, currently a partner with Hamilton Place Strategies in Washington, said that one of O'Neill's passions was workplace safety, and that he would tour the Treasury building looking for safety issues that needed to be fixed.

After leaving the administration, O'Neill worked with author Ron Suskind on an explosive book covering his two years in the administration. O'Neill contended that the administration began planning the overthrow of Iraqi President Saddam Hussein right after Bush took office, eight months before the Sept. 11 terrorist attacks.

O'Neill depicted Bush as a disengaged president who didn't encourage debate either at Cabinet meetings or in one-on-one discussions with Cabinet members. He said the lack of discussion in Cabinet meetings gave him the feeling that Bush "was like a blind man in a roomful of deaf people."

He said major decisions were often made by Bush's political team and Vice President Dick Cheney. O'Neill had been recruited to join the Cabinet by Cheney, his old friend from the Gerald Ford administration. But it was Cheney who told O'Neill that the president wanted his resignation. It was part of a move by Bush to shake up his economic team and find a better salesman for a new round of tax cuts the president hoped would stimulate a sluggish economy.

When the book, "The Price of Loyalty: George W. Bush, the White House and the Education of Paul O'Neill" came out in early 2004, Bush spokesman Scott McClellan discounted O'Neill's descriptions of White House decision-making and said the president was "someone that leads and acts decisively on our biggest priorities."

After leaving the Cabinet, O'Neill returned to Pittsburgh, where he had headed Alcoa from 1987 to 1999. He resumed working with the Pittsburgh Regional Health Care Initiative, a consortium of hospitals, medical societies and businesses studying ways to improve health care delivery in Western Pennsylvania. The subject had interested him since his days as a budget analyst in Washington with the Office of Management and Budget.

He also devoted time in retirement to projects that would deliver clean drinking water to Africa. As Treasury secretary, O'Neill had focused attention on poverty and combating diseases such as AIDS in Africa, touring the continent with Irish rock star Bono.

While at Alcoa, O'Neill lifted the company out of the doldrums during his 12-year stint as the Pittsburgh company's CEO. Shortly after he took the job in April 1987, he began emphasizing factory safety and employee dignity as a top priority.

His ideas weren't initially well received by profit-driven investors, who cared more about Alcoa's financial performance. After hearing one of O'Neill's first presentations as Alcoa's CEO, one money manager decided the company had put a "crazy hippie in charge" and advised his 20 largest clients to sell its stock, according to the book, "The Power of Habit" by Charles Duhigg.

That investor later called it one of his worst decisions. By the time, O'Neill stepped down as CEO in 1999, Alcoa's accident rate had plunged and its stock had soared more than seven-fold at a time it was part of the Dow Jones Industrial Average.

Before joining Alcoa, O'Neill had been president from 1985 to 1987 of International Paper Co., a firm he had joined in 1977 after leaving OMB.

After graduating with an economics degree from California State University in Fresno in 1961, O'Neill joined the Veterans Administration in Washington, working as a computer systems analyst. He later moved to OMB and rose to become deputy director of the budget agency from 1974 to 1977, providing budget guidance to then-President Gerald Ford.

In June 2019, O'Neill received the Gerald R. Ford Medal for Distinguished Public Service, according to a piece in his hometown paper, the Pittsburgh Post-Gazette. Cheney and Alan Greenspan, who headed the Federal Reserve when O'Neill was Treasury secretary, are among the past recipients of the award.

O'Neill is survived by his wife, four children, 12 grandchildren and 15 great grandchildren.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

New TARP Rules: Curb Executive Pay, Bonuses, Parachutes

Former Treasury Secretary Paul O'Neill calls pay limits "a large mistake."

Feb. 4, 2009 — -- Wall Street was bearish today over President Obama's new $500,000 pay limit for executives of financial institutions who he said have come "hat in hand" asking for taxpayers' help.

The new limits, which would affect banks that accept "exceptional assistance" from the public treasury, would also impose stricter rules on golden parachutes, entertainment, holiday parties, conferences and the use of corporate jets.

Scott Talbott, senior vice president of government affairs at the Financial Services Roundtable, expressed concerns about the new executive compensation restrictions.

"The pay scale for Wall Street is different for the pay scale for America," Talbott told ABC News. "So these numbers look large, but the market value for these executives - there's a very small talent pool of individuals that have the education, experience and knowledge to operate a global, international services firm in this day and age."

Executives may quit banks that fall under the new $500,000 pay limits, he warned.

"I don't think the issue is a dollar amount. It's being paid what you're worth… Would you be willing to work for less than what you think you're worth?" Talbott asked.

The compensation limits might also make banks hesitant to ask the federal government for help.

"Companies will have to reevaluate whether the benefits are still worth it under the new rules," he said.

Former Treasury Secretary Paul O'Neill said Obama's move "is going to be a very popular populist move.... even though I think it is a large mistake."

O'Neill, who served under President George W. Bush, told ABC News that the banks would have complied if Obama had asked them to voluntarily follow the new limits. He also pointed out that many of the banks' employees get annual bonuses, not just the top executives. Should the limits apply to them, too, O'Neill asked.

He also said the pay limits could hurt the banks' ability to compete. "To the degree there are competing institutions out there not affected by the new edict, does this give those institutions a significant competitive advantage in attracting talent?"

White House spokesman Robert Gibbs dismissed suggestions that the pay caps could hurt the already ailing banks.

"I think we've struck the right balance," Gibbs said.

Obama's pay limits were endorsed by House Minority Leader John Boehner, a Republican from Ohio.

"I think if anybody is looking to the taxpayer to help bail their company out, these kinds of executive compensation limits are appropriate," he said.

On the $500,000 pay limit, Boehner said, "I think somebody's got to pick a number. The president has picked one. I applaud him for doing it."

ABC News contacted all 30 institutions that received $1 billion or more in bailout money, and most of them ignored the calls or declined to comment.

GMAC, which got $5 billion, said it is already subject to compensation limits imposed by the Bush administration. "We intend to comply with those requirements. We have no further comment," GMAC said.

In scolding language, the president said that the changes are necessary to help stabilize the economy.

"We've got to restore trust," Obama said. "And in order to restore trust, we've got to make certain that taxpayer funds are not subsidizing excessive compensation packages on Wall Street."

The president echoed his inauguration address when he said there would be a "new era of responsibility."

"We all need to take responsibility," he said while announcing the new compensation rules with Treasury Secretary Tim Geithner. "And this includes executives at major financial firms who turned to the American people, hat in hand, when they were in trouble, even as they paid themselves their customary lavish bonuses."

"What gets people upset – and rightfully so – are executives being rewarded for failure. Especially when those rewards are subsidized by U.S. taxpayers," Obama said.

The $500,000 salary limit is still more than Obama makes -- $400,000 -- but is a pittance compared to the $20 million that Kenneth Lewis took home in 2007 as head of Bank of America, a corporation that needed $45 billion of public money to save it from its mountain of bad loans.

The president said the new rules announced today would be accompanied by an effort to determine "how corporate governance and compensation rules can be reformed."

Exceptions to the New Rules
There are exceptions to the new executive pay rules, however.

Banking executives can get extra compensation in restricted stock, but only stock that will not vest until taxpayers are repaid the loans, plus interest.

Companies bailed out by Uncle Sam are permitted to waive the $500,000 rule if they disclose executive compensation and allow investors a nonbinding vote on executive pay.

Banks that have already received several hundred billion dollars from the Troubled Asset Relief Program under the Bush administration won't be subject to the new rules. But several of those banks are expected to come back to the federal till for additional relief.

The new Obama TARP rules will require those companies to demonstrate they have complied with the previously issued restrictions on executive pay and lending requirements, and agree to strict monitoring and oversight going forward.

The new rules also make it harder for corporate titans to live the high life on the public dollar. They include restrictions on how the money can be spent, with a bull's-eye on such items as aviation expenses, office renovations, entertainment and corporate parties.

The new Treasury provisions expand rules established under the Bush administration. Restrictions on golden parachutes originally applied to only the top five executives of an affected bank. That will now be extended to the top 10 officials, and golden parachutes for the next 25 top officials will be limited to one year's pay.

Clawback rules that would require banking officials would have to return bonuses if found to have falsified reports. Those rules originally applied to a bank's top five executives, but under the rules detailed today that would be extended to the top 25 bank officials.

The public has been repeatedly infuriated by examples of federally subsidized bankers still spending lavishly on themselves while laying off tens of thousands of employees and of retirement nest eggs vaporized.

Obama called it "shameful" last week when it was reported that bankers had handed out $18.5 billion in bonuses at the end of 2008, despite the dreadful year of financial losses. The White House had to intervene to persuade Citigroup to abandon plans to buy a $50 million executive jet after getting its $45 billion boost. Merrill Lynch's former CEO John Thain had to be shamed into personally repaying the $1 million he spent on renovating his office while surviving on an additional $45 billion public loan. Bank of America partied hardy at the Super Bowl last weekend. And this week, Wells Fargo reluctantly canceled a corporate outing to Las Vegas.

GOP Emboldened By Obama Stumbles
The new rules should bring a cheer from a frustrated public, a sound that the Obama White House hasn't heard in a while. The withdrawal of two top appointees this week because they hadn't paid all their taxes even prompted the president to repeatedly apologize Tuesday for not adhering to the ethical standard he had publicly set for his administration.

"This was running the possibility of really hurting his reformist image," George Stephanopoulos, ABC News' chief Washington correspondent, told "Good Morning America" today.

The withdrawal of former Senate Majority Leader Tom Daschle was particularly damaging because Daschle was going to be the health and human services secretary and the point man on Obama's efforts to reshape the country's health-care system.

The stumbles could also embolden Republicans who are opposing large parts of the president's economic stimulus package.

"The president's going to have to agree to some changes right now," Stephanopoulos told "GMA."

Obama will meet today with Sen. Bill Nelson, D-Neb., and Maine's two Republican senators, Olympia Snowe and Susan Collins. The trio are spearheading a centrist group of Democrats and Republicans working to reshape the stimulus bill.

"There will still be differences with this group," Stephanopoulos said. "The president doesn't want to bring the package down as far as some of these senators want to go. But they're going to be working intensively on a compromise today."

Voting is beautiful, be beautiful ~ vote.©

Saturday, February 1, 2020

OVERSIGHT: Attempting To Find Out Why Congress Cloaks Whistleblowers

Yes, that is correct, no one likes a snitch.

Trust me, I should know.

When you are a federal employee and you snitch, they like to do things like cut off your paycheck, snatch your congressional credit union account, wipe out your pension, destroy your work history and tell everyone they know that you are crazy.

Then, if you snitch on what they are doing, like making fake ass law, stealin' children, land & votes, they will do nasty things to your children.

Yippers.

They call actions attacking the whistleblower retaliation, but you can never document retaliation against the whistleblower, if there exists anonymity.

But, if you are a whistleblower, who snitches in the public square, in the public record, on a daily basis, for over 10 years, these federal employees and elected officials, like the members of this committee, will conspire to take out their leader, through foreign sub-contractors, of course.

Just as you will see in Child Protective Services proceedings, you are not allowed to face your anonymous accuser which makes it your word against an undetermined juridic person.

So, in essence, if an anonymous whistleblower is an undetermined juridic person, then, that anonymous whistleblower has no legal standing in a court of law, making any legal proceedings to be devoid of due process.

How can you know the whistleblower is not lying, or just not credible because the Inspector General only becomes the recorder of hearsay, which is not acceptable in a court of law?

Whistleblower laws were designed to cover up fraud.

Period.

It is such a shame that the committee never asked about the definition of the "Whistleblower under Protection on Order of the Highest Authority".

#perkinscoiesucks



Thursday, January 9, 2020

New York City Bar To Bar Bill Barr From The Bar For Promulgating The Trafficking Of Tiny Humans

Image result for teddy bear with glasses
Bill *Boo Boo* Barr
"Praise the tax exempt god."
Here is the speech that triggered the referral.

DOJ: Bill Barr Contemporaneously Advises & Advocates Foreign Corporate Parental Rights - Happy Trafficking Tiny Humans Month


I tried to tell Boo Boo Barr that is was not cool to promulgate the purveying and procuring of tiny humans, particularly by foreign corporations, but he did not want to listen to me.


It really does not matter because Trump was never duly elected, which means his appointment and confirmation was illegitimate, but, hey, what do I know?


Oh, well.

I really tried to tell him.

#maytheheavensfall

New York City Bar Association asks Congress to investigate Barr conduct

The New York City Bar Association is calling on congressional leaders to launch an investigation into Attorney General William Barr, saying his public remarks threaten "public confidence in the fair and impartial administration of justice."

“These public statements by Mr. Barr also contravene the norms applicable to his office and warrant further investigation by Congress as part of an inquiry into Mr. Barr’s conduct as Attorney General more generally,” the group wrote in a six-page letter sent Wednesday to the top Democrat and Republican in each chamber.

Among the examples cited by the bar association was an October speech at the University of Notre Dame, posted on the Justice Department website, in which the attorney general said “the founding generation … believed that the Judeo-Christian moral system corresponds to the true nature of man” and that “Judeo-Christian moral standards are the ultimate utilitarian rules for human conduct.”

Other examples cited in the letter include a speech Barr gave at the Federalist Society’s National Lawyers Convention in November, when he allegedly “vilified progressives,” and an interview last month where he “rejected the inspector general’s findings, asserting instead that a separate ongoing investigation into the FBI’s actions that he personally had directed would likely reach a different conclusion.”

The Justice Department's inspector general released a report in December that found FBI agents were not motivated by political bias in opening investigations into associates of the Trump campaign in 2016. Barr later disputed some aspects of the report.

This is not the first time that the group has criticized Barr. In October, they called for Barr to recuse himself from a Justice Department review of the Trump administration's dealings with Ukraine.
Voting is beautiful, be beautiful ~ vote.©

DOJ: Happy False Claims Decade 2020 - The End Of Medicaid Fraud In Child Welfare & Its Trafficking Tiny Humans

Much love.

Here is to the end of trafficking tiny humans.

#maytheheavensfall

Qui tam pro domino rege quam pro se ipso in hac parte sequitur


The Department of Justice obtained more than $3 billion in settlements and judgments from civil cases involving fraud and false claims against the government in the fiscal year ending Sept. 30, 2019, Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division announced today.  Recoveries since 1986, when Congress substantially strengthened the civil False Claims Act, now total more than $62 billion.

“The significant number of settlements and judgments obtained over the past year demonstrate the high priority this administration places on deterring fraud against the government and ensuring that citizens’ tax dollars are well spent,” said Assistant Attorney General Hunt.  “The continued success of the department’s False Claims Act enforcement efforts are a testament to the tireless efforts of the civil servants who investigate, litigate, and try these important cases as well as to the fortitude of whistleblowers who report fraud.”
"Recover our children."
 Of the more than $3 billion in     settlements and judgments  recovered by the Department of Justice this past fiscal year, $2.6 billion relates to matters that involved the health care industry, including drug and medical device manufacturers, managed care providers, hospitals, pharmacies, hospice organizations, laboratories, and physicians.  This is the tenth consecutive year that the department’s civil health care fraud settlements and judgments have exceeded $2 billion.  The amounts included in the $2.6 billion reflect only federal losses, but in many of these cases the department was instrumental in recovering additional millions of dollars for state Medicaid programs.
In addition to combating health care fraud, the False Claims Act serves as the government’s primary civil tool to redress false claims for federal funds and property involving a multitude of other government operations and functions.  The Act helps to protect our military and first responders by ensuring that government contractors provide equipment that is safe, effective, and cost efficient; to protect American businesses and workers by promoting compliance with customs laws, trade agreements, visa requirements, and small business protections; and to protect other critical government programs ranging from the provision of disaster relief funds to farming subsidies. 
In 1986, Congress strengthened the Act by increasing incentives for whistleblowers to file lawsuits alleging false claims on behalf of the government.  These whistleblower, or qui tam, actions comprise a significant percentage of the False Claims Act cases that are filed.  If the government prevails in a qui tam action, the whistleblower, also known as the relator, typically receives a portion of the recovery ranging between 15 and 30 percent.  Whistleblowers filed 633 qui tam suits in fiscal year 2019, and this past year the department recovered over $2.1 billion in these and earlier filed suits.
Health Care Fraud
The department investigates and resolves matters involving a wide array of health care providers, goods, and services.  The department’s health care fraud enforcement efforts not only recover money for federal health care programs, such as Medicare, Medicaid, and TRICARE, but also help deter fraud schemes that put patients at risk and increase health care costs. 
Reflecting the department’s commitment to holding drug companies accountable for their role in the opioid crisis, two of the largest recoveries involving the health care industry this past year came from opioid manufacturers.  In one matter, as part of a global resolution of criminal and civil claims, Insys Therapeutics paid $195 million to settle civil allegations that it paid kickbacks to induce physicians and nurse practitioners to prescribe Subsys for their patients.  The kickbacks allegedly took the form of sham speaker events, jobs for the prescribers’ relatives and friends, and lavish meals and entertainment.  The government also alleged that Insys improperly encouraged physicians to prescribe Subsys for patients who did not have cancer, and lied to insurers about patients’ diagnoses to ensure payment by federal healthcare programs.  In another matter, Reckitt Benckiser Group plc paid a total of $1.4 billion to resolve criminal and civil liability related to the marketing of the opioid addiction treatment drug Suboxone, which is a formulation of the opioid buprenorphine.  As part of the resolution, RB Group paid $500 million to the United States to resolve civil allegations that it directly or through subsidiaries promoted Suboxone to physicians who were writing prescriptions for uses that were unsafe, ineffective, and medically unnecessary; promoted Suboxone Film using false and misleading claims that it was less susceptible to diversion, abuse, and accidental pediatric exposure than other buprenorphine products; and took steps to delay the entry of generic competition in order to improperly control pricing of Suboxone.
The department also pursued other cases involving drug manufacturers.  For example, Avanir Pharmaceuticals paid over $95 million to resolve allegations that it paid kickbacks and engaged in false and misleading marketing to induce healthcare providers in long term care facilities to prescribe the drug Neudexta for behaviors commonly associated with dementia patients, which is not an approved use of the drug.  The department also continued to investigate efforts by drug manufacturers to facilitate increases in drug prices by funding the co-payments of Medicare patients.  Congress included co-pay requirements in the Medicare program, in part, to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs.  This year, seven drug manufacturers – Actelion Pharmaceuticals US Inc., Amgen Inc., Astellas Pharma US Inc.Alexion Pharmaceuticals, Inc., Jazz Pharmacueticals Inc., Lundbeck LLC, and US Worldmeds LLC – paid a combined total of over $624 million to resolve claims that they illegally paid patient copays for their own drugs through purportedly independent foundations that the companies in fact treated as mere conduits.
The department also reported substantial recoveries involving a variety of other healthcare providers.  Pathology laboratory company Inform Diagnostics, formerly known as Miraca Life Sciences Inc., paid $63.5 million to resolve allegations that it paid kickbacks to referring physicians in the form of subsidies for electronic health records (EHR) systems and free or discounted technology consulting services.  Greenway Health LLC, an EHR software vendor, paid over $57 million to resolve allegations that it misrepresented the capabilities of its EHR product “Prime Suite” and provided unlawful remuneration to users to induce them to recommend Prime Suite to prospective new customers.  Encompass Health Corporation (formerly known as HealthSouth Corporation), the nation’s largest operator of inpatient rehabilitation facilities (IRFs), paid $48 million to resolve allegations that some of its IRFs provided inaccurate information to Medicare to maintain their status as an IRF and to earn a higher rate of reimbursement, and that some admissions to its IRFs were not medically necessary. 
Procurement Fraud
In the past year, the department also pursued a variety of fraud matters involving the government’s purchase of goods and services.  For example, five South Korea-based companies – SK Energy Co. Ltd., GS Caltex Corporation, Hanjin Transportation Co. Ltd.Hyundai Oilbank Co. Ltd. and S-Oil Corporation – agreed to resolve allegations that they engaged in anticompetitive conduct targeting contracts to supply fuel to the U.S. military in South Korea and made false statements to the government in connection with their agreement not to compete.  The United States Department of Defense paid substantially more for fuel supply services in South Korea than it would have absent collusion on the fuel supply contracts.  In total, the five companies paid over $162 million as part of the False Claims Act settlements.
The Civil Division entered into a $34.6 million settlement with aluminum extrusion manufacturer Hydro Extrusion Portland Inc., formerly known as Sapa Profiles Inc. (SPI), to resolve SPI’s civil liability for causing a government contractor to invoice NASA and the Department of Defense’s Missile Defense Agency (MDA) for aluminum extrusions that did not comply with contract specifications.  Government contractors purchased aluminum extrusions from SPI for use on rockets for NASA and missiles provided to the MDA.  SPI provided those contractors with falsified certifications after altering the results of tensile tests designed to ensure the consistency and reliability of aluminum extrusions. Several of the rockets used by NASA crashed, resulting in the loss of the NASA payloads that they carried.  SPI also resolved related criminal claims arising from the same conduct. 
The department recovered over $27 million from Northrop Grumman Systems Corporation (NGSC) in a settlement resolving False Claims Act allegations related to two battlefield communications contracts with the United States Air Force.  The settlement resolved allegations that NGSC billed the Air Force for labor hours purportedly incurred by individuals stationed in the Middle East who had not actually worked the hours claimed. 
In separate settlement agreements with the Civil Division, American Airlines paid $22 million and British Airways Plc/Iberia Airlines paid $5.8 million to resolve allegations that they falsely reported the times they transferred possession of United States mail to foreign postal administrations or other intended recipients under contracts with the United States Postal Service (USPS).  USPS contracted with the airlines to take possession of receptacles of United States mail at six locations in the United States or at various Department of Defense and Department of State locations abroad, and then timely deliver that mail to numerous international and domestic destinations.  
The software development company Informatica LLC paid $21.57 million to resolve allegations that it caused the government to be overcharged by providing misleading information about its commercial sales practices that was used in General Services Administration (GSA) contract negotiations.  Informatica allegedly provided false information concerning its commercial discounting practices for its products and services to resellers, who then used that false information in negotiations with GSA for government-wide contracts.  The false disclosures caused GSA to agree to less favorable pricing, and, ultimately, government purchasers to be overcharged. 
Other Fraud Recoveries
The number and variety of judgments and settlements announced during fiscal year 2019 reflect the diversity of fraud recoveries arising under the False Claims Act.  For example, Duke University paid $112.5 million to resolve allegations that it violated the False Claims Act by submitting applications and progress reports that contained falsified research on federal grants to the National Institutes of Health (NIH) and to the Environmental Protection Agency (EPA).  Luke Hillier, the majority owner and former Chief Executive Officer of Virginia-based defense contractor ADS, Inc., paid $20 million to settle allegations that he fraudulently obtained federal set-aside contracts reserved for small businesses that his company was ineligible to receive.  In order to qualify as a small business, companies must satisfy defined eligibility criteria, including requirements concerning size, ownership, and operational control.  The government alleged that Hillier caused ADS to falsely represent that it qualified as a small business concern and that, as a result of Hillier’s representations, his company was awarded numerous small business set-aside contracts for which it was ineligible.  The government previously resolved related claims against ADS for $16 million and Charles Salle, the former general counsel of ADS, for $225,000.
The department also continued its efforts to hold accountable those who seek to abuse their license to remove minerals from federal lands in exchange for the payment of an appropriate royalty.  This past year, gas marketer B. Charles Rogers Gas Ltd. (BCR) and its owners paid over $3.5 million to resolve allegations that they engaged in a scheme to reduce mineral royalty payments for natural gas removed from federal lands.  Another individual who worked with BCR while employed as a gas supply manager at a natural gas distributor paid an additional $800,000 to resolve his alleged role in the scheme.
In another matter, Omega Protein Corp. and Omega Protein, Inc. paid $1 million to resolve allegations that it obtained a loan from the United States by falsely certifying compliance with federal environmental laws.  A leading domestic producer of Omega-3 rich fish oil, protein-rich specialty fishmeal, and organic fish solubles, Omega allegedly certified to the Oceanic and Atmospheric Administration, an agency within the Department of Commerce, that it was complying with federal environmental laws while knowingly and unlawfully discharging pollutants and oil into U.S. waters. 
North Greenville University (NGU) paid $2.5 million to resolve allegations that it submitted false claims to the U.S. Department of Education.  Title IV of the Higher Education Act (HEA) prohibits any institution of higher education that receives federal student aid from making incentive payments to student recruiters based on their success in securing student enrollment.  The settlement resolves allegations that NGU compensated a student recruiting company based on the number of students who enrolled in NGU’s programs, in violation of the prohibition on incentive compensation.  
Holding Individuals Accountable
The department continued its commitment to use the False Claims Act and other civil remedies to deter and redress fraud by individuals as well as corporations.  In addition to the settlements with Luke Hillier and Charles Salle discussed above, the following are additional examples of recoveries involving individuals. 
The department negotiated separate settlements with the individual owners of seven Osteo Relief Institutes for a total recovery from the owners and their clinics of more than $7.1 million.  The settlements resolved allegations that the defendants knowingly billed Medicare for medically unnecessary viscosupplementation injections and medically unnecessary knee braces.  Viscosupplementation is a treatment for osteoarthritis, in which a doctor injects a gel-like fluid into a patient’s knee joint to act as a lubricant and to supplement the natural properties of joint fluid.  The government alleged that these clinics administered viscosupplementation injections to patients who did not need them, used multiple brands of viscosupplements successively on patients without clinical support, and used discounted viscosupplements reimported from foreign countries.  The government also alleged that they provided unnecessary custom knee braces to patients. 
In addition to negotiating a settlement with Vanguard Healthcare LLC for approximately $18 million in allowed claims to resolve allegations of grossly substandard nursing home services, the department also pursued Vanguard’s majority owner and CEO and Vanguard’s former director of operations.  These two individuals collectively paid $250,000 to resolve allegations that five Vanguard-owned skilled nursing facilities submitted false claims to Medicare and Medicaid for nursing home services that were grossly substandard or worthless, including allegations that the facilities failed to administer medications as prescribed, failed to provide standard infection control or wound care, failed to take prophylactic measures to prevent pressure ulcers, and failed to meet basic nutrition and hygiene needs of their residents. 
This year, the department also obtained a $21 million settlement with a compounding pharmacy, Diabetic Care Rx LLC (which does business as Patient Care America), and a private equity firm, Riordan, Lewis & Haden Inc., (RLH) to resolve a lawsuit alleging that they submitted false claims to Tricare, the federal health care program for military members and their families, through their involvement in a kickback scheme to generate referrals of prescriptions for expensive pain creams, scar creams, and vitamins, regardless of patient need.  At the same time as this settlement with Diabetic Care and RLH, the department secured settlements totaling over $300,000 with Diabetic Care Rx’s Chief Executive Officer and former Vice President of Operations.  All of the settlements were based on the defendants’ ability to pay. 
Recoveries in Whistleblower Suits
Of the $3 billion in settlements and judgments reported by the government in fiscal year 2019, over $2.1 billion arose from lawsuits filed under the qui tam provisions of the False Claims Act.  During the same period, the government paid out $265 million to the individuals who exposed fraud and false claims by filing these actions.
The number of lawsuits filed under the qui tam provisions of the Act has grown significantly since 1986, with 633 qui tam suits filed this past year – an average of more than 12 new cases every week.
“Whistleblowers continue to play a critical role identifying new and evolving fraud schemes that might otherwise remain undetected,” said Assistant Attorney General Hunt.  “Taxpayers have benefitted greatly from these individuals who are often required to make substantial sacrifices to bring these schemes to light.”
In 1986, Senator Charles Grassley and Representative Howard Berman led the successful efforts in Congress to amend the False Claims Act to, among other things, encourage whistleblowers to come forward with allegations of fraud.  In 2009 and 2010, further improvements were made to the False Claims Act and its whistleblower provisions.  Congress also included in the False Claims Act authority for the government to dismiss cases that do not advance the goal of fraud prevention, and during the past year the government made increasing use of this tool to help prioritize and protect the expenditure of government resources.  
Finally, Assistant Attorney General Hunt expressed appreciation for the many dedicated public servants throughout the department’s Civil Division and the U.S. Attorneys’ Offices, as well as the agency Offices of Inspector General and the many other federal and state agencies that contributed to the department’s False Claims Act recoveries this past fiscal year.  
“The accomplishments announced today reflect the extraordinary efforts of the men and women throughout the government committed to protecting the federal fisc and the integrity of the government’s programs,” said Assistant Attorney General Hunt.  “Having served many years in the Civil Division, I have witnessed the passion and dedication of the talented employees who have committed their careers to serving the American people and defending the interests of our great nation.”
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Except where indicated, the government’s claims in the matters described above are allegations only and there has been no determination of liability.  The numbers contained in this press release may differ slightly from the original press releases due to accrued interest.
The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

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