Buck Naked Politics

Contractor Fraud: Driving up Medicare Costs by Billions

by Deb Cupples |  Tomorrow, at 7 pm EST, CBS's 60 Minutes will run a segment on Medicare fraud -- which does, in fact, cost our Medicare program billions of dollars each year.  I saw the teaser (below), which briefly discusses one man's former habit of billing Medicare for goods or services that he never provided and never even had.

As I've written many times since 2007, it's not just fake companies that commit Medicare fraud.  Many "legitimate" companies that have contracts with Medicare have also robbed Medicare (e.g., by double-billing, over-billing, and billing for goods or services that either weren't needed or weren't provided).  For more than a dozen examples, see this post.

I'm glad that the Justice Department is (once again) cracking down.  I just hope that the Department won't restrict itself to going after the little guys, while letting the big guys routinely get away with bilking us taxpayers out of billions.

Watch CBS News Videos Online

Justice Department Cracks Down on Medicare Fraud (Again)

by Deb Cupples |  As I've been saying since I started blogging nearly three years ago, waste, fraud and abuse on the part of private contractors have contributed heavily to our nation's outrageous health care costs.  [Examples are linked at the end of this post.]

Medicare is known for being a target of contractors' waste, fraud, and abuse -- and contractors often got away with it during the Bush Administration, due to Mr. Bush's tendency to turn a blind eye to the bad conduct of private companies.

How rampant is Medicare fraud?  The Justice Department states that -- in 2008, alone -- Medicare Fraud Strike Forces "secured 588 criminal convictions; obtained 337 civil administrative actions against individuals and organizations who were committing Medicare fraud, and recovered more than a $1 billion in health care fraud monies under the False Claims Act."  

Yesterday, the Justice Department announced that it is at least planning to focus on preventing Medicare fraud (kudos to the Justice Department):

Crime Report: Dade Prison Guards Incited for Allegedly Directing Inmate to Attack Other Inmates

It's horrifying that people who are paid with tax dollars would abuse the trust we taxpayers place in them.  The U.S. Justice Department reports:

"The Justice Department today announced that a federal grand jury in Miami returned a three-count indictment on Sept. 11, 2009, charging former Dade Correctional Institution (DCI) officers Cordell J. White and Christopher W. Bonnet, current DCI Sergeant Obe D. L’Bert, and former DCI inmate Larry T. Williams with violating, and conspiring to violate, the civil rights of other inmates at DCI.

"The indictment alleges that on Oct. 26, 2008, defendants L’Bert and White arranged for defendant-inmate Williams, aka Monster, to assault another inmate, identified in the indictment as D.T. L’Bert and White allegedly moved D.T. to Williams’s cell and waited outside of the cell while Williams assaulted and injured D.T. The indictment further alleges that on Nov. 1, 2007, defendants White and Bonnet arranged for Williams to assault another inmate, identified in the indictment as F.H., then escorted Williams to F.H’s cell and waited outside of the cell while Williams assaulted and injured F.H."

Ashcroft May Be Liable for Holding Americans Without Charges?

Back in 2003, a Kansas-born American man named Lavani Kidd was arrested in a U.S. airport and held for weeks.  He never was charged with a crime and he never was called as a witness in the relevant case.  He was simply labeled -- perhaps because he had converted to the Muslim faith in college, had changed his name to Abdullah al-Kidd, and was on his way to Saudi Arabia to do graduate work in Islamic Studies.  Who knows why?

In 2005, he sued the Justice Department.  Via Memeorandum, The New York Times reports:

"Former Attorney General John Ashcroft may face personal liability for the decisions that led to the detention of an American citizen as a material witness after the Sept. 11 attacks, a federal appeals court panel ruled on Friday.

"In the decision, a three-judge panel of the United States Court of Appeals for the Ninth Circuit, in San Francisco, was sharply critical of the Bush administration’s practice of holding people it suspected of terrorism without charges, as material witnesses."

See the rest of the story here.

The Torture Administration, Part ###: Justice Department Refused to File Charges Against CIA Officials Who Violated Anti-Torture Statute

More confirmation, as if any were needed, of the Bush administration's indifference to the Rule of Law. From a 2-page article in The Washington Post:

"The [CIA], where appropriate, took its own disciplinary action when the Department of Justice declined prosecution," CIA spokesman George Little said Saturday.

A spokesman for the agency declined to comment on details of the episodes, but current and former government officials said the use of the gun is described in a classified CIA inspector general's report, which is slated to be released in declassified form on Monday....

A federal judge in New York ordered the release of the report in response to a lawsuit by the American Civil Liberties Union. Attorney General Eric H. Holder Jr. has been reviewing the document in an effort to decide whether to launch an investigation into the CIA's coercive interrogation methods....

The U.S. anti-torture statute bans acts intended to inflict severe mental or physical pain or suffering resulting from, among other things, "the threat of imminent death" or threats of being "subjected to death."  (Read article)

Catching Up on Crime Reports

by Deb Cupples |  I'm a corruption junkie, evident in the hundreds of posts I've done on corporate corruption and government- contractor fraud.  Last month, between other projects and vacation, I was pretty slack about keeping up with my indictments, convictions and settlements reports.

Today I'll begin catching up (five at a time should do).

Thirty-two people (doctors and health-care executives) have been indicted for schemes to submit more than $16 million in false Medicare claims in the Houston area.  Is it any wonder that Medicare costs so much -- with so many private contractors allegedly over-billing or fraudulently billing the Medicare program? (Justice Dept.)

Nyree Pettaway of Houston pleaded guilty to conspiring to help cover up the bribery and money-laundering scheme(s) of her uncle, Army contracting officer Maj. John C. Cockerham.  Mr. Cockerham pled guilty in 2008 to awarding illegal Iraq-related contracts in exchange for roughly $9 million in bribes. (Justice Dept.)

More after the jump:

Rove Had Bigger Role than Thought in Firing U.S. Attorneys

I remember nearly two years ago, when ex-Attorney General Alberto Gonzales' resigned amid  scandal -- after nine or ten of his underlings resigned, partly because our Justice Department had become so politicized.  I remember the repeated ignoring of congressional subpoenas by Bush Adminsitration officials who apparently did not want to say what they knew about Justice Department politicization.

Via Memeorandum, the Washington Post reports:

"Political adviser Karl Rove and other high-ranking figures in the Bush White House played a greater role than previously understood in the firing of federal prosecutors almost three years ago, according to e-mails obtained by The Washington Post, in a scandal that led to mass Justice Department resignations and an ongoing criminal probe.

"The e-mails and new interviews with key participants reflect contacts among Rove, aides in the Bush political affairs office and White House lawyers about the dismissal of three of the nine U.S. attorneys fired in 2006: New Mexico's David C. Iglesias, the focus of ire from GOP lawmakers; Missouri's Todd Graves, who had clashed with one of Rove's former clients; and Arkansas's Bud Cummins, who was pushed out to make way for a Rove protege."

See the rest of the story here.  The big question is this: will the Obama Administration seek to hold accountable those officials who blatantly ignored the rule of law and corrupted our Justice Department.

Memphis Cop Pleads Guilty to Stealing Money from Latino Motorists

by Deb Cupples |  The police department in Memphis, Tennessee sure does seem to have troubles.  In February, I blogged about seven Memphis cops who'd (or more than two years) robbed alleged drug dealers of marijuana, cocaine, and cash.  Yes, evidence at trial suggests that the perpetrator-cops sold the purloined drugs (thereby putting the drugs back on the streets) and pocketed the profits.

Last week, a Memphis policeman named Carlton Moore pleaded guilty to three counts of violating civil rights by stealing money from motorists. The Justice Department reports:

"Carlton Moore, formerly an officer with the Memphis Police Department, pleaded guilty on Thursday in federal court in Memphis, Tenn., to three counts of violating civil rights for stealing money from motorists while acting under color of law. Moore faces up to three years in prison.

"Moore admitted that on March 1 and March 14, 2008, and again on May 4, 2009, he surreptitiously stole cash from three Latino drivers he pulled over while on duty as a Memphis police officer. During these stops, Moore ordered the victims out of their vehicles, patted them down and removed personal items from them during the search. He then stole money from the victims before returning their personal items and releasing them."

Defense Contractors Spend 18 Years Fighting Taxpayers after Taking Money but Failing to Complete a Job

by Deb Cupples | 'Talk about a galling sense of entitlement.  The contractors involved in this case include General Dynamics and McDonnell Douglas. The Justice Department reports:

"In 1988, the Navy awarded the $4 billion fixed-price contract for development of the A-12, which was to be a stealthy, carrier-based attack aircraft. The program encountered serious technical difficulties, and in 1991, after the Department of Defense refused to approve additional funding for the program, the Navy terminated the contract because it was substantially over budget and behind schedule.

Defense Contractor Involved in Bribery re: Bullet Proof Vest Contract

The Justice Department reports:

"According to the plea agreement filed in the U.S. District Court in the District of  Columbia on Dec. 18, 2007, and unsealed today, Diana Bakir Demilta, a U.S. citizen, pleaded guilty to one count of wire fraud. Demilta, the President of Global-Link Distribution LLC, a defense contracting company with operations in the International Zone, Baghdad, Iraq, subverted the competitive bidding process used by the Department of Defense and the Multi-National Security Transition Command - Iraq for a bullet-proof vest contract by submitting multiple sham bids from about September 2004 until about March 2005.

"In addition, Demilta admitted that she paid at least $60,000 to an unnamed public official to induce that person to influence the award of contracts and to induce expedited payments for contracts awarded to Demilta’s company...."

Another Drug Maker to Settle Justice Dept. Fraud Suit

by Deb Cupples |  Last week, I blogged about drug giant Wyeth, which agreed to settle a Justice Department fraud suit after the company allegedly (and knowingly) "failed to give the government the same discounts it provided to private purchasers of its drugs, as required by laws governing the Medicaid program. 

Wyeth's reported failure simultaneously saved the company hundreds of millions of dollars -- while costing us taxpayers the same amount. 

Today, I learned that drug maker Aventis has agreed to settle a Justice Department fraud suit for $95 million after the company allegedly engaged in conduct similar to Wyeth's conduct.  The Justice Department reports:

TPMtv's "The Day in 100 Seconds" (May 27, 2009 Video) -- Justice (Sotomayor & Gonzalez)

After the jump....

The Torture Administration: Gonzo on the DoJ's Role in Torture -- "I Did My Best to Defend Our Country"

by Teh Nutroots |  Poor little berk, I really believe that's what he thinks he was doing.  Video after the jump:

Maine's Education Department to Settle Justice Department Suit for $1.5 Million

 by Deb Cupples |  The Justice Department reports:

"The Maine Department of Education (MDE) has agreed to pay the United States $1.5 million to settle allegations that it submitted false information to the U.S. Department of Education regarding the state education agency’s eligibility to receive federal funds under the Migrant Education Program....

Government Joins Whistle Blower Fraud-Suit against Drug Giant Wyeth

  by Deb Cupples |  And people wonder why this nation's health care costs have skyrocketed? 

Given how many fraud cases the Justice Department has pursued against health-care industry companies of all sorts (hospitals, drug companies, labs, pharmacies...), there is simply no excuse for Congress and the Executive Branch to fail to recognize the contribution of greed to health-care costs run amok -- or to fail to enact laws and policies to reduce those costs.

The Justice Department reported:

More Law-Enforcement Crimes: Jail Workers Plead Guilty to Detainee Abuse

by Deb Cupples |  Some people are addicted to crime shows, like CSI or Law and Order.  Me, I'm a Justice Department junkie. 

Cases involving physical abuse and dishonesty by law-enforcement officials are most chilling to me, because anyone could have one-too-many glasses of wine, put on a seat belt, and end up in jail.  Anyone's curious teenager could end up in a police pat-down while the kid is carrying a zip-loc baggie stuffed with marijuana.

I understand that jail time isn't supposed to resemble a week at Disney World.  At the same time, the human beings who get arrested or occupy our nation's jails have constitutional rights: I suspect that freedom from being slapped or punched or sodomized are among those rights.

If the three jail guards discussed below end up on the other side of the jail bars, they'll likely gain a new appreciation for constitutional rights.  The Justice Department reported:

From the Department of Wrist Slapping: Drug Maker to Pay $9 Million to Settle Civil Case

 by Deb Cupples | The Justice Department has decided to defer (for three years) the prosecution of drug maker Novo Nordisk, which allegedly gave illegal kickbacks in exchange for acquiring contracts from the Iraqi government.  Here's the skinny:

"A criminal information [i.e., complaint] was filed today against Novo in U.S. District Court for the District of Columbia charging Novo with one count of conspiracy to commit wire fraud and to violate the books and records provisions of the Foreign Corrupt Practices Act (FCPA).

Obama DoJ Preparing to Fit Up Antitrust Laws with Some Sharp New Teeth

by Teh Nutroots | Welcome news if true.  Annnnd.... The New York Times says that it is!

The new enforcement policy would reverse the Bush administration’s approach, which strongly favored defendants against antitrust claims. It would restore a policy that led to the landmark antitrust lawsuits against Microsoft and Intel in the 1990s.

The head of the Justice Department’s antitrust division, Christine A. Varney, is to announce the policy reversal in a speech she will give on Monday before the Center for American Progress, a liberal policy research organization. She will deliver the same speech on Tuesday to the United States Chamber of Commerce.

Though the wingnut faction of the GOP -- by which of course I mean the GOP -- will try to convince them otherwise, this is good news for Main Streeters and innovators. After all, the Bush Justice Department didn't file even one case against a dominant company for violating antitrust law.  (NYT)

New York Times: The Story Behind the Torture Administration's Use of "Harsh Interrogation" Methods

 image adapted from photo by Sasha Aikin (xander76), pursuant to CC license

by Damozel | Back in 2003, it seems, Bush made a seemingly benevolent and quite correct statement concerning the US attitude toward torture, which sent alarm bells ringing up and down the line in the CIA.  (New York Times)  ""The United States is “committed to the worldwide elimination of torture and we are leading this fight by example,” Mr. Bush proclaimed, vowing to prosecute torture and to prevent “other cruel and unusual punishment.”" 

Naturally, he didn't mention that he'd authorized CIA interrogators to use "brutal tactics" on Al Qaeda detainees.  (NYT)  The proclamation was issued in support of the UN International Day in Support of Victims of Torture.  And, the rest, as they say, is history:

Jon Stewart on the Jane Harman Scandal ("This Conversation Does Not Exist")

by Damozel | "The FBI investigates a possible corruption case involving two congresswomen, an Israeli lobby, and a popular kids' program."  All she had to do to become head of the committee dealing with espionage was to help out a couple of people accused of espionage...."It's like strangling a manatee to become head of the EPA."

After the jump....