In anticipation of the upcoming election, the department today (October 27) provided information about its efforts, through the Civil Rights and Criminal Divisions, to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted, without incidence of discrimination, intimidation or fraud.
Civil Rights Division:
The Civil Rights Division is responsible for ensuring compliance with the civil provisions of federal laws that protect the right to vote, and with criminal law prohibiting discriminatory interference with that right.
The Civil Rights Division’s Voting Section enforces civil provisions of federal laws that protect the right to vote including: the Voting Rights Act; the National Voter Registration Act; the Uniformed and Overseas Citizens Absentee Voting Act; and the Help America Vote Act. Among other things, these laws prohibit discrimination based on race or membership in a minority language group; prohibit intimidation of voters; provide that voters who need assistance in voting because of disability or illiteracy can obtain assistance from a person of their choice; require minority language election materials and assistance in certain jurisdictions; provide for accessible election machines for voters with disabilities; require provisional ballots for voters who assert they are eligible but whose names do not appear on poll books; provide for absentee ballots for service members and U.S. citizens living abroad; and require states to ensure that citizens can register at driver license offices, public assistance offices and other state agencies; and include requirements regarding maintaining voter registration lists.
The Civil Rights Division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and suppression based on race, color, national origin or religion. As it has in the past, on Election Day, Nov. 2, 2010, the Civil Rights Division will implement a comprehensive program to help ensure ballot access that will include the following:
The Civil Rights Division will announce later this week which states will have federal personnel as election monitors and observers at polling places.
Civil Rights Division attorneys in both the Voting and Criminal Sections in Washington, D.C., will be ready to receive election-related complaints of potential violations relating to any of the statutes the Civil Rights Division enforces. Attorneys in the division will take appropriate action and will consult and coordinate with local U.S. Attorneys’ Offices and with other entities within the Department of Justice concerning these complaints on and after Election Day, as appropriate.
Civil Rights Division staff will be available at special toll-free numbers to receive complaints related to ballot access (1-800-253-3931) (TTY line 1-877-267-8971). In addition, individuals can also report complaints, problems or concerns related to voting via the Internet. Forms may be submitted through a link on the department’s Web page: www.justice.gov/.
Criminal Division and the Department's 94 U.S. Attorneys’ Offices:
The Department’s Criminal Division oversees the enforcement of federal laws that criminalize voter fraud and protect the integrity of the federal election process.
The Criminal Division’s Public Integrity Section and the Department’s 94 U.S. Attorneys’ Offices are responsible for enforcing the federal criminal laws that prohibit various forms of election fraud, such as vote buying, multiple voting, submission of fraudulent ballots or registrations, destruction of ballots or registrations, voter intimidation, alteration of votes and malfeasance by election officials, as well as federal civil law prohibiting voter intimidation that does not involve discrimination or intimidation on grounds of race or color.
The department’s Ballot Access and Voting Integrity Initiative requires that each of the department’s U.S. Attorneys’ Offices coordinate with state law enforcement and election officials before the federal general elections regarding the handling of election-related matters in their respective districts. In addition, the department provides annual training for the Assistant U.S. Attorneys who serve as District Election Officers (DEOs) in their respective districts, which the department conducted this year on Aug. 31 and Sept.1. DEOs are responsible for overseeing potential election crime matters in their districts and coordinating with the department’s election crime experts in Washington, D.C.
On Nov. 2, 2010, these offices will work together and with the FBI to ensure that complaints from the public involving possible voter fraud are handled appropriately and expeditiously. Specifically:
* Federal prosecutors within the Public Integrity Section, the DEOs in U.S. Attorneys’ Offices, FBI officials at headquarters in Washington, D.C., and special agents serving as Election Crime Coordinators in the FBI’s 56 field offices will be on duty while polls are open to receive complaints from the public and take appropriate action.
* Public Integrity Section prosecutors will also be available to consult and coordinate with the U.S. Attorneys’ Offices and FBI regarding the handling of election crime allegations.
Voter fraud complaints may be directed to any of the local U.S. Attorneys’ Offices, the local FBI offices or the Public Integrity Section (202-514-1412). A list of U.S. Attorneys’ Office can be found at www.justice.gov/usao/offices/index.html and a list of FBI offices can be found at: www.fbi.gov.
Both protecting the right to vote and combating voter fraud are essential to maintaining the confidence of all Americans in our system of government.
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Showing posts with label fraud. Show all posts
Showing posts with label fraud. Show all posts
Thursday, October 28, 2010
Monday, September 20, 2010
President Obama Goes Back on Campaign Promise with Jobs Bill
/PRNewswire/ -- The Small Business Jobs Act being pushed by President Obama contains a loophole that will legalize contracting fraud while protecting large fraudulent businesses from prosecution, and stands in stark contradiction to a campaign promise made by President Obama.
In February of 2008, President Obama stated, "It is time to end the diversion of federal small business contracts to corporate giants." (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php) President Obama made this statement to address ongoing fraud and abuse in federal small business contracting programs that cost small businesses over $100 billion a year in missed contract opportunities. Federal law currently mandates that a minimum of 23 percent of all federal contract dollars go to small businesses.
Since 2003, there have been over a dozen federal investigations, which have found Fortune 500 firms and thousands of large companies around the world as the actual recipients of federal small business contracts. The Small Business Administration's (SBA) Inspector General has listed this problem as the number one management challenge facing the agency for the past five consecutive years and referred to this problem as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.asbl.com/documentlibrary.html)
Section 1341 of H.R. 5297, the Small Business Jobs Act, contains specific language that will allow the SBA to develop policies and procedures to protect large businesses that have misrepresented themselves as small businesses from prosecution for felony contracting fraud. Section 16(d) of the Small Business Act prescribes a penalty of up to ten years in prison and a fine of not more than $500,000 per occurrence for firms that have misrepresented themselves as small businesses.
Some of the firms that have received government small business contracts include: Rolls-Royce, British Aerospace (BAE), Lockheed Martin, Boeing, Northrop Grumman, L-3 Communications, SAIC, Titan Industries, Raytheon, Dell Computer, Xerox, French firm Thales Communications, Italian firm Finmeccanica SpA, and Ssangyong Corporation headquartered in Seoul, South Korea. Textron, a Fortune 500 firm, received over $775 million in federal small business contracts in a single year.
"It is unbelievable that President Obama is going to create a loophole to benefit the corporate giants he promised to kick out of federal small business contracting programs," ASBL President Lloyd Chapman said. "When you see President Obama on television, I want every American to realize that his administration is giving over $1 million a minute in small business contracts to some of the largest companies in the world."
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In February of 2008, President Obama stated, "It is time to end the diversion of federal small business contracts to corporate giants." (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php) President Obama made this statement to address ongoing fraud and abuse in federal small business contracting programs that cost small businesses over $100 billion a year in missed contract opportunities. Federal law currently mandates that a minimum of 23 percent of all federal contract dollars go to small businesses.
Since 2003, there have been over a dozen federal investigations, which have found Fortune 500 firms and thousands of large companies around the world as the actual recipients of federal small business contracts. The Small Business Administration's (SBA) Inspector General has listed this problem as the number one management challenge facing the agency for the past five consecutive years and referred to this problem as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.asbl.com/documentlibrary.html)
Section 1341 of H.R. 5297, the Small Business Jobs Act, contains specific language that will allow the SBA to develop policies and procedures to protect large businesses that have misrepresented themselves as small businesses from prosecution for felony contracting fraud. Section 16(d) of the Small Business Act prescribes a penalty of up to ten years in prison and a fine of not more than $500,000 per occurrence for firms that have misrepresented themselves as small businesses.
Some of the firms that have received government small business contracts include: Rolls-Royce, British Aerospace (BAE), Lockheed Martin, Boeing, Northrop Grumman, L-3 Communications, SAIC, Titan Industries, Raytheon, Dell Computer, Xerox, French firm Thales Communications, Italian firm Finmeccanica SpA, and Ssangyong Corporation headquartered in Seoul, South Korea. Textron, a Fortune 500 firm, received over $775 million in federal small business contracts in a single year.
"It is unbelievable that President Obama is going to create a loophole to benefit the corporate giants he promised to kick out of federal small business contracting programs," ASBL President Lloyd Chapman said. "When you see President Obama on television, I want every American to realize that his administration is giving over $1 million a minute in small business contracts to some of the largest companies in the world."
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Tuesday, June 8, 2010
HHS Secretary Kathleen Sebelius and U.S. Attorney General Eric Holder Send Letter to State Attorneys General On New Outreach and Education Efforts to Combat Medicare Fraud
U.S. Secretary of Health and Human Services Kathleen Sebelius and Attorney General of the United States Eric Holder today sent a letter to state attorneys general urging them to work with HHS and federal, state, and local law enforcement officials to mount a substantial outreach campaign to educate seniors and other Medicare beneficiaries about how to prevent scams and fraud beginning this summer. The outreach campaign is another step in the ongoing work of the Health Care Fraud Prevention Enforcement Action Team (HEAT), a cabinet-level initiative launch by HHS and DOJ in May 2009.
“We are heading into the week when our first tax-free $250 donut hole rebate checks will be mailed out to Medicare beneficiaries who have fallen into the coverage gap. Accordingly, we are especially concerned about fraud and increased activity by criminals seeking to defraud seniors – and we are seeking your help to stop it,” said Secretary Sebelius and Attorney General Holder in the letter. “Building on our record of aggressive action, we will use the new tools and resources provided by the Affordable Care Act to further crack down on fraud.”
In the letter, the Secretary and Attorney General outline education and outreach efforts where state attorneys general could make a big difference. These include efforts to cut the improper payment rate, which tracks fraud, waste and abuse in the Medicare Fee for Service program, in half by 2012; a series of regional fraud prevention summits around the country over the next few months; regular health care fraud task force meetings to facilitate the exchange of information with partners in the public and private sector, and to help coordinate anti-fraud effort; HHS’s plans to double the size of the Senior Medicare Patrol and to put more boots on the ground in the fight against Medicare fraud; and a new educational media campaign this summer to educate Medicare beneficiaries about how to protect themselves against fraud.
The full letter follows.
June 8, 2010
Dear Attorney General:
It was a pleasure to have the opportunity to speak with you and your staff a few weeks ago. We wanted to send you a letter summarizing our discussions and following up with some suggestions of ways we can work together to protect the American people from health care fraud.
In the two months since the Affordable Care Act was signed into law, we have made substantial progress on providing better choices for consumers, tackling health care costs, and holding insurance companies accountable. But while we have been hard at work, scam artists and criminals continue to profit from misinformation about the Affordable Care Act.
Since early April, we have heard increasing reports about seniors being asked to provide their Social Security numbers in order to receive a “donut hole” check under the new law, raising concerns about potential identity theft scams. We have fielded consumer complaints about phony insurance policies, and our Senior Medicare Patrols have been receiving a growing number of calls from people across the country reporting potential fraud schemes.
We are heading into the week when our first tax-free $250 donut hole rebate checks will be mailed out to Medicare beneficiaries who have fallen into the coverage gap. Accordingly, we are especially concerned about fraud and increased activity by criminals seeking to defraud seniors – and we are seeking your help to stop it.
The President has asked us to reach out to you and to other federal, state, and local law enforcement officials across the country to mount a substantial outreach campaign to educate seniors and other Medicare beneficiaries about how to prevent scams and fraud. Some important components of these outreach and education efforts, where you and your staff could make a big difference, are described below.
First, the President has directed the Department of Health and Human Services (HHS) to cut the improper payment rate, which tracks fraud, waste and abuse in the Medicare Fee for Service program, in half by 2012.
Second, following on the National Health Care Fraud Summit we co-hosted in Washington earlier this year, the President has asked both our Departments to convene a series of regional fraud prevention summits around the country over the next few months. The first summit will take place in Miami on July 16. Other summits will follow in, for example, Los Angeles, Las Vegas, Detroit, Boston, New York, and Philadelphia.
These summits will bring together top federal and state officials; representatives of federal, state, and local law enforcement; representatives of our agencies; the health care provider community, such as hospitals and doctors; local businesses; the Senior Medicare Patrol; caregivers; and seniors, for a day of panels and training sessions. Your expertise and experience will be instrumental to the success of these events.
Third, at the Attorney General’s request, the Acting Deputy Attorney General has sent a memo to every United States Attorney in the country asking them to convene regular health care fraud task force meetings to facilitate the exchange of information with partners in the public and private sector, and to help coordinate anti-fraud efforts. Most of these meetings will be held quarterly, with some exceptions for smaller districts. All 93 U.S. Attorneys have been asked to put a plan into place and schedule their first meeting by August 16, 2010. We hope that you and your office will take part in these regular exchanges on effective fraud fighting strategies.
Fourth, HHS will be doubling the size of the Senior Medicare Patrol and putting more boots on the ground in the fight against Medicare fraud. Since 1997, HHS and its Administration on Aging have funded Senior Medicare Patrol projects to recruit and train retired professionals and other senior citizens about how to recognize and report instances or patterns of health care fraud. Close to three million Medicare beneficiaries have been educated since the start of the program, and more than one million one-on-one counseling sessions have taken place with seniors or their caregivers. Currently, the Senior Medicare Patrol program funds projects in every state, the District of Columbia, Puerto Rico, Guam, and the U.S. Virgin Islands.
Fifth, the Centers for Medicare & Medicaid Services, in conjunction with the Administration on Aging, will be launching an educational media campaign this summer to educate Medicare beneficiaries about the importance of staying vigilant with their personal Medicare information and getting the facts out about the new law so that scam artists are not able to prey on seniors.
The more we can educate the American people about fraud prevention, the better chance we have to protect taxpayer dollars and the Medicare trust fund. The Affordable Care Act also contains some important new tools and resources that will directly help law enforcement officials crack down on fraud.
As you are well aware, fraud schemes have plagued public and private health care plans for decades. Fraudsters have been stealing billions of dollars a year from Medicare, Medicaid, and private health insurers. A year ago, our Departments joined forces to combat fraud in federal health programs. Through the establishment of the Health Care Fraud Prevention Enforcement Action Team (HEAT), we have expanded special anti-fraud Medicare Fraud Strike Forces into seven cities, developed sophisticated new techniques of fraud prevention data analysis, and redirected program integrity resources to fraud hot spots.
Building on our record of aggressive action, we will use the new tools and resources provided by the Affordable Care Act to further crack down on fraud. These include new criminal and civil penalties, enhanced information technology to track and prevent fraud in the first place, and new authorities to prevent bad actors from billing Medicare and Medicaid. HHS has already issued the first set of fraud prevention regulations required under the new health law. These regulations strengthen provider enrollment requirements to ensure we have the ability to better identify, screen, and audit providers and claims.
As we do our part in Washington, we want to work closely with you and other state officials to fight fraud. In that vein, the Affordable Care Act also strengthens state officials’ ability to detect and root out Medicaid fraud. For example, the law provides new access to Medicaid data for the Secretary of HHS that will help both states and the Administration to coordinate anti-fraud activities and gives states greater incentives and flexibility in identifying and collecting Medicaid overpayments. It also helps to promote enhanced information technology to track and prevent fraud, including predictive modeling techniques that can identify abusive or fraudulent billing patterns, audits, and a shared provider database for pre-enrollment screening and post-enrollment anomaly monitoring.
Securing health care coverage, affordability, and choices for Americans requires hard work and vigilance. We stand ready to serve as a resource and partner for you as we work together to fight fraud, implement the provisions of the new health reform law, and strengthen our health care system.
Sincerely,
Eric Holder
Attorney General
Kathleen Sebelius
Secretary of Health and Human Services
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“We are heading into the week when our first tax-free $250 donut hole rebate checks will be mailed out to Medicare beneficiaries who have fallen into the coverage gap. Accordingly, we are especially concerned about fraud and increased activity by criminals seeking to defraud seniors – and we are seeking your help to stop it,” said Secretary Sebelius and Attorney General Holder in the letter. “Building on our record of aggressive action, we will use the new tools and resources provided by the Affordable Care Act to further crack down on fraud.”
In the letter, the Secretary and Attorney General outline education and outreach efforts where state attorneys general could make a big difference. These include efforts to cut the improper payment rate, which tracks fraud, waste and abuse in the Medicare Fee for Service program, in half by 2012; a series of regional fraud prevention summits around the country over the next few months; regular health care fraud task force meetings to facilitate the exchange of information with partners in the public and private sector, and to help coordinate anti-fraud effort; HHS’s plans to double the size of the Senior Medicare Patrol and to put more boots on the ground in the fight against Medicare fraud; and a new educational media campaign this summer to educate Medicare beneficiaries about how to protect themselves against fraud.
The full letter follows.
June 8, 2010
Dear Attorney General:
It was a pleasure to have the opportunity to speak with you and your staff a few weeks ago. We wanted to send you a letter summarizing our discussions and following up with some suggestions of ways we can work together to protect the American people from health care fraud.
In the two months since the Affordable Care Act was signed into law, we have made substantial progress on providing better choices for consumers, tackling health care costs, and holding insurance companies accountable. But while we have been hard at work, scam artists and criminals continue to profit from misinformation about the Affordable Care Act.
Since early April, we have heard increasing reports about seniors being asked to provide their Social Security numbers in order to receive a “donut hole” check under the new law, raising concerns about potential identity theft scams. We have fielded consumer complaints about phony insurance policies, and our Senior Medicare Patrols have been receiving a growing number of calls from people across the country reporting potential fraud schemes.
We are heading into the week when our first tax-free $250 donut hole rebate checks will be mailed out to Medicare beneficiaries who have fallen into the coverage gap. Accordingly, we are especially concerned about fraud and increased activity by criminals seeking to defraud seniors – and we are seeking your help to stop it.
The President has asked us to reach out to you and to other federal, state, and local law enforcement officials across the country to mount a substantial outreach campaign to educate seniors and other Medicare beneficiaries about how to prevent scams and fraud. Some important components of these outreach and education efforts, where you and your staff could make a big difference, are described below.
First, the President has directed the Department of Health and Human Services (HHS) to cut the improper payment rate, which tracks fraud, waste and abuse in the Medicare Fee for Service program, in half by 2012.
Second, following on the National Health Care Fraud Summit we co-hosted in Washington earlier this year, the President has asked both our Departments to convene a series of regional fraud prevention summits around the country over the next few months. The first summit will take place in Miami on July 16. Other summits will follow in, for example, Los Angeles, Las Vegas, Detroit, Boston, New York, and Philadelphia.
These summits will bring together top federal and state officials; representatives of federal, state, and local law enforcement; representatives of our agencies; the health care provider community, such as hospitals and doctors; local businesses; the Senior Medicare Patrol; caregivers; and seniors, for a day of panels and training sessions. Your expertise and experience will be instrumental to the success of these events.
Third, at the Attorney General’s request, the Acting Deputy Attorney General has sent a memo to every United States Attorney in the country asking them to convene regular health care fraud task force meetings to facilitate the exchange of information with partners in the public and private sector, and to help coordinate anti-fraud efforts. Most of these meetings will be held quarterly, with some exceptions for smaller districts. All 93 U.S. Attorneys have been asked to put a plan into place and schedule their first meeting by August 16, 2010. We hope that you and your office will take part in these regular exchanges on effective fraud fighting strategies.
Fourth, HHS will be doubling the size of the Senior Medicare Patrol and putting more boots on the ground in the fight against Medicare fraud. Since 1997, HHS and its Administration on Aging have funded Senior Medicare Patrol projects to recruit and train retired professionals and other senior citizens about how to recognize and report instances or patterns of health care fraud. Close to three million Medicare beneficiaries have been educated since the start of the program, and more than one million one-on-one counseling sessions have taken place with seniors or their caregivers. Currently, the Senior Medicare Patrol program funds projects in every state, the District of Columbia, Puerto Rico, Guam, and the U.S. Virgin Islands.
Fifth, the Centers for Medicare & Medicaid Services, in conjunction with the Administration on Aging, will be launching an educational media campaign this summer to educate Medicare beneficiaries about the importance of staying vigilant with their personal Medicare information and getting the facts out about the new law so that scam artists are not able to prey on seniors.
The more we can educate the American people about fraud prevention, the better chance we have to protect taxpayer dollars and the Medicare trust fund. The Affordable Care Act also contains some important new tools and resources that will directly help law enforcement officials crack down on fraud.
As you are well aware, fraud schemes have plagued public and private health care plans for decades. Fraudsters have been stealing billions of dollars a year from Medicare, Medicaid, and private health insurers. A year ago, our Departments joined forces to combat fraud in federal health programs. Through the establishment of the Health Care Fraud Prevention Enforcement Action Team (HEAT), we have expanded special anti-fraud Medicare Fraud Strike Forces into seven cities, developed sophisticated new techniques of fraud prevention data analysis, and redirected program integrity resources to fraud hot spots.
Building on our record of aggressive action, we will use the new tools and resources provided by the Affordable Care Act to further crack down on fraud. These include new criminal and civil penalties, enhanced information technology to track and prevent fraud in the first place, and new authorities to prevent bad actors from billing Medicare and Medicaid. HHS has already issued the first set of fraud prevention regulations required under the new health law. These regulations strengthen provider enrollment requirements to ensure we have the ability to better identify, screen, and audit providers and claims.
As we do our part in Washington, we want to work closely with you and other state officials to fight fraud. In that vein, the Affordable Care Act also strengthens state officials’ ability to detect and root out Medicaid fraud. For example, the law provides new access to Medicaid data for the Secretary of HHS that will help both states and the Administration to coordinate anti-fraud activities and gives states greater incentives and flexibility in identifying and collecting Medicaid overpayments. It also helps to promote enhanced information technology to track and prevent fraud, including predictive modeling techniques that can identify abusive or fraudulent billing patterns, audits, and a shared provider database for pre-enrollment screening and post-enrollment anomaly monitoring.
Securing health care coverage, affordability, and choices for Americans requires hard work and vigilance. We stand ready to serve as a resource and partner for you as we work together to fight fraud, implement the provisions of the new health reform law, and strengthen our health care system.
Sincerely,
Eric Holder
Attorney General
Kathleen Sebelius
Secretary of Health and Human Services
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Thursday, September 24, 2009
Judicial Watch Files Lawsuit against HUD to Obtain ACORN Documents Seeks Records Related to HUD's Taxpayer Support
Judicial Watch Files Lawsuit against HUD to Obtain ACORN Documents
Seeks Records Related to HUD's Taxpayer Support of Controversial Community Organization
/Standard Newswire/ -- Judicial Watch, the public interest group that investigates and prosecutes government corruption, announced today that it has filed a Freedom of Information Act (FOIA) lawsuit against the Department of Housing and Urban Development (HUD) to obtain records related to federal grants provided to the controversial "community organization" Association for Community Reform Now (ACORN).
Judicial Watch filed its original Freedom of Information Act request on July 17. HUD acknowledged receipt of the request by letter on August 4th and granted itself additional time to process the request. However, HUD has not abided by its own extended deadline and has failed to provide Judicial Watch with a specific date by which it would respond, even after Judicial Watch agreed to limit the scope of the request to just seven states. (These states are California, Texas, Washington, Illinois, Pennsylvania, Arkansas, and Louisiana.) By law, HUD had 20 days to respond to Judicial Watch's request. Judicial Watch filed its lawsuit on September 23, 2009.
Judicial Watch seeks the following records:
1. Any and all documents concerning money given to the ACORN and/or any of its affiliates (since January, 2000).
2. Any and all documents concerning any actions and/or disbarments against ACORN, for reasons including but not limited to abuse of grant money, misconduct, etc. (since January, 2000).
Over the last two weeks, the U.S. Senate has voted to deny ACORN access to housing funds, while the House of Representatives voted to deny ACORN all federal funds. The U.S. Census Bureau, meanwhile, has severed its partnership with the organization for the 2010 U.S. Census. The IRS also just severed a program relationship with ACORN. These actions were taken after videos surfaced depicting ACORN workers attempting to advise undercover reporters on how to evade tax, immigration and child prostitution laws. Most relevant to the lawsuit against HUD, are the videos depicting ACORN workers providing advice on purchasing a house to run as a brothel for underage, illegal alien girls.
"The Obama administration needs to come clean to the American people about its relationship with this disgraced organization, especially in light of President Obama's personal connections to ACORN," said Judicial Watch President Tom Fitton. "Given ACORN's scandalous record, the federal government has no business supporting the organization with taxpayer dollars. It is troubling, given President Obama's promises of transparency, we have had to sue to try to gain access to the ACORN documents."
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Seeks Records Related to HUD's Taxpayer Support of Controversial Community Organization
/Standard Newswire/ -- Judicial Watch, the public interest group that investigates and prosecutes government corruption, announced today that it has filed a Freedom of Information Act (FOIA) lawsuit against the Department of Housing and Urban Development (HUD) to obtain records related to federal grants provided to the controversial "community organization" Association for Community Reform Now (ACORN).
Judicial Watch filed its original Freedom of Information Act request on July 17. HUD acknowledged receipt of the request by letter on August 4th and granted itself additional time to process the request. However, HUD has not abided by its own extended deadline and has failed to provide Judicial Watch with a specific date by which it would respond, even after Judicial Watch agreed to limit the scope of the request to just seven states. (These states are California, Texas, Washington, Illinois, Pennsylvania, Arkansas, and Louisiana.) By law, HUD had 20 days to respond to Judicial Watch's request. Judicial Watch filed its lawsuit on September 23, 2009.
Judicial Watch seeks the following records:
1. Any and all documents concerning money given to the ACORN and/or any of its affiliates (since January, 2000).
2. Any and all documents concerning any actions and/or disbarments against ACORN, for reasons including but not limited to abuse of grant money, misconduct, etc. (since January, 2000).
Over the last two weeks, the U.S. Senate has voted to deny ACORN access to housing funds, while the House of Representatives voted to deny ACORN all federal funds. The U.S. Census Bureau, meanwhile, has severed its partnership with the organization for the 2010 U.S. Census. The IRS also just severed a program relationship with ACORN. These actions were taken after videos surfaced depicting ACORN workers attempting to advise undercover reporters on how to evade tax, immigration and child prostitution laws. Most relevant to the lawsuit against HUD, are the videos depicting ACORN workers providing advice on purchasing a house to run as a brothel for underage, illegal alien girls.
"The Obama administration needs to come clean to the American people about its relationship with this disgraced organization, especially in light of President Obama's personal connections to ACORN," said Judicial Watch President Tom Fitton. "Given ACORN's scandalous record, the federal government has no business supporting the organization with taxpayer dollars. It is troubling, given President Obama's promises of transparency, we have had to sue to try to gain access to the ACORN documents."
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CREW Files Dept. of Justice Complaint against Rep. Mike Ross
(BUSINESS WIRE)--Today, Citizens for Responsibility and Ethics in Washington (CREW) asked the Department of Justice to investigate whether Rep. Mike Ross (D-AR) engaged in bribery and honest services fraud by selling a piece of commercial property for more than its worth to a pharmacy chain with an interest in pending legislation.
According to a story appearing in the September 22, 2009 Politico, in June 2007, Rep. Mike Ross sold Holly’s Health Mart in Prescott, Arkansas to USA Drug for $420,000. In addition, the owner of USA Drug, Stephen L. LaFrance, also paid Rep. Ross and his wife, Holly, between $500,000 and $1 million for the pharmacy’s assets and Ms. Ross was paid between $100,001 and $250,000 for signing a covenant not to compete with Super D Drug Acquisition as part of the sale. In addition, just two weeks after the sale, Rep. Ross received a $2,300 campaign contribution from Mr. LaFrance.
At the time of the sale, the county assessor’s office valued the pharmacy’s building and the land on which it sits at $263,000, $157,000 less than the Rosses were paid. ProPublica hired a licensed real estate appraiser in Prescott, Arkansas to assess the property, and he valued it at $198,000, less than the county’s assessment, which was raised from $263,000 to $269,000 this year. Another Prescott real estate professional said county property assessments tend to be slightly below market value, but usually not more than 5% below. Nevada County, which includes Prescott, also questioned the purchase price. A contractor hired by the county to update property assessments every five years contacted USA Drug to verify the purchase price, finding it inconsistent with commercial property values in the area.
Even assuming a price of 5% above the assessment, the building and property would have had a value of no more than $276,150. Therefore, at a minimum, it appears the Rosses received at least $143,850 more than the property’s value -- and perhaps as much as $222,000 more, excluding the additional money paid for the non-compete clause -- when they sold it to USA Drug.
In 2008, USA Drug was the 15th largest drug chain in the country with an estimated $906 million in sales and the pharmacy industry is aggressively lobbying Congress regarding proposed health care reform legislation. Two months after the purchase of the Ross property, Mr. LaFrance was profiled in the Arkansas Democrat-Gazette. He opined if the government does not interfere, there are “nothing but good days ahead” for the pharmacy business.
As a member of the Energy and Commerce Committee and the Blue Dog Coalition, Rep. Ross has been integrally involved in the debate over health care reform. This past June, the National Association of Chain Drug Stores thanked Rep. Ross for introducing legislation authorizing payments to pharmacists to train patients how to manage their medications.
Rep. Ross receives significant financial support from the health care industry. According to OpenSecrets.org, this campaign cycle Rep. Ross has so far received $81,100 from those in health-related industries, $23,850 of which is from the pharmaceutical/health products industry. In the 2008 cycle, Rep. Ross received $261,275 from the health care interests, $50,600 of which was from the pharmaceutical/health products industry.
CREW executive director Melanie Sloan stated, “With the sale of his business and the high priced non-compete covenant, Rep. Ross has gone from accepting campaign contributions from those with legislative interests before him to accepting significant personal financial benefits of dubious legality.” Sloan continued, “The situation is reminiscent of that in which former Rep. Randy “Duke” Cunningham sold his house to a defense contractor for an amount above its value in return for legislative assistance – a sale that ultimately resulted in Rep. Cunningham’s conviction on criminal charges.” Sloan explained, “Given that Rep. Ross received a personal financial benefit conservatively valued at no less than $143,850 and probably a great deal more, both the sale of the property for $420,000 and payment of no less than $100,001 for the covenant not to compete certainly merit criminal investigation.”
Federal bribery law prohibits public officials from directly or indirectly demanding, seeking, receiving, accepting, or agreeing to receive or accept anything of value in return for being influenced in the performance of an official act. Honest services fraud prohibits members of Congress from depriving their constituents, the House of Representatives, and the United States of the right of honest service.
At a time when health care reform legislation is a matter of pressing concern and heated debate, it is particularly important for Americans to have faith that their government officials are making decisions based on the best interests of the nation rather than their own financial interests. As a result, it is imperative for law enforcement authorities to thoroughly investigate Rep. Ross’s conduct.
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According to a story appearing in the September 22, 2009 Politico, in June 2007, Rep. Mike Ross sold Holly’s Health Mart in Prescott, Arkansas to USA Drug for $420,000. In addition, the owner of USA Drug, Stephen L. LaFrance, also paid Rep. Ross and his wife, Holly, between $500,000 and $1 million for the pharmacy’s assets and Ms. Ross was paid between $100,001 and $250,000 for signing a covenant not to compete with Super D Drug Acquisition as part of the sale. In addition, just two weeks after the sale, Rep. Ross received a $2,300 campaign contribution from Mr. LaFrance.
At the time of the sale, the county assessor’s office valued the pharmacy’s building and the land on which it sits at $263,000, $157,000 less than the Rosses were paid. ProPublica hired a licensed real estate appraiser in Prescott, Arkansas to assess the property, and he valued it at $198,000, less than the county’s assessment, which was raised from $263,000 to $269,000 this year. Another Prescott real estate professional said county property assessments tend to be slightly below market value, but usually not more than 5% below. Nevada County, which includes Prescott, also questioned the purchase price. A contractor hired by the county to update property assessments every five years contacted USA Drug to verify the purchase price, finding it inconsistent with commercial property values in the area.
Even assuming a price of 5% above the assessment, the building and property would have had a value of no more than $276,150. Therefore, at a minimum, it appears the Rosses received at least $143,850 more than the property’s value -- and perhaps as much as $222,000 more, excluding the additional money paid for the non-compete clause -- when they sold it to USA Drug.
In 2008, USA Drug was the 15th largest drug chain in the country with an estimated $906 million in sales and the pharmacy industry is aggressively lobbying Congress regarding proposed health care reform legislation. Two months after the purchase of the Ross property, Mr. LaFrance was profiled in the Arkansas Democrat-Gazette. He opined if the government does not interfere, there are “nothing but good days ahead” for the pharmacy business.
As a member of the Energy and Commerce Committee and the Blue Dog Coalition, Rep. Ross has been integrally involved in the debate over health care reform. This past June, the National Association of Chain Drug Stores thanked Rep. Ross for introducing legislation authorizing payments to pharmacists to train patients how to manage their medications.
Rep. Ross receives significant financial support from the health care industry. According to OpenSecrets.org, this campaign cycle Rep. Ross has so far received $81,100 from those in health-related industries, $23,850 of which is from the pharmaceutical/health products industry. In the 2008 cycle, Rep. Ross received $261,275 from the health care interests, $50,600 of which was from the pharmaceutical/health products industry.
CREW executive director Melanie Sloan stated, “With the sale of his business and the high priced non-compete covenant, Rep. Ross has gone from accepting campaign contributions from those with legislative interests before him to accepting significant personal financial benefits of dubious legality.” Sloan continued, “The situation is reminiscent of that in which former Rep. Randy “Duke” Cunningham sold his house to a defense contractor for an amount above its value in return for legislative assistance – a sale that ultimately resulted in Rep. Cunningham’s conviction on criminal charges.” Sloan explained, “Given that Rep. Ross received a personal financial benefit conservatively valued at no less than $143,850 and probably a great deal more, both the sale of the property for $420,000 and payment of no less than $100,001 for the covenant not to compete certainly merit criminal investigation.”
Federal bribery law prohibits public officials from directly or indirectly demanding, seeking, receiving, accepting, or agreeing to receive or accept anything of value in return for being influenced in the performance of an official act. Honest services fraud prohibits members of Congress from depriving their constituents, the House of Representatives, and the United States of the right of honest service.
At a time when health care reform legislation is a matter of pressing concern and heated debate, it is particularly important for Americans to have faith that their government officials are making decisions based on the best interests of the nation rather than their own financial interests. As a result, it is imperative for law enforcement authorities to thoroughly investigate Rep. Ross’s conduct.
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Wednesday, May 6, 2009
American Association for Homecare Applauds Senate 'STOP' Act, Which Aims to Prevent Medicare Fraud and Abuse
/PRNewswire / -- The American Association for Homecare applauds Senators Mel Martinez (R-Fla.), John Cornyn (R-Tex.), and several others for introducing the "STOP" Act (S. 975) which targets Medicare waste, fraud, and abuse. The Seniors and Taxpayers Obligation Protection (STOP) Act is designed to reduce the billions of dollars lost to waste and fraud every year by creating additional prevention and detection systems for the Medicare program.
The STOP Act will give the Centers for Medicare and Medicaid Services (CMS), the Department of Health and Human Services (HHS), and the Social Security Administration (SSA) more tools needed to prevent waste, fraud, and abuse in the Medicare system before it starts. The bill is co-sponsored by Senators Lamar Alexander (R-Tenn.), Susan Collins (R-Maine), Bill Nelson (D-Fla.), and David Vitter (R-La.), Jim DeMint (R-S.C.), Lindsey Graham (R-S.C.), Bob Corker (R-Tenn).
"The American Association for Homecare has been working closely with Senator Martinez and his staff over the past year to help identify the most effective and direct measures to stop waste, fraud, and abuse in the Medicare program," said American Association for Homecare President Tyler J. Wilson. "We applaud the Senators' efforts to protect patients, seniors, and taxpayers, and we appreciate the fact that provisions in this bill reflect recommendations from our Association's Medicare Anti-Fraud Legislative Action Plan. We also strongly support President Obama's goal of preventing Medicare fraud, which he has identified as a priority in his 2010 budget."
Earlier this year, the American Association for Homecare urged members of Congress to adopt the Medicare Anti-Fraud Legislative Plan. This legislative action plan outlines tough, effective steps to stop waste, fraud, and abuse in Medicare's home medical equipment (HME) sector before it starts. Among the provisions detailed in the legislative proposal are more rigorous quality standards, increased penalties for fraud, mandated site inspections for new providers, and real-time claims analysis. For more information about the Medicare Anti-Fraud Legislative Action Plan, please visit www.aahomecare.org/stopfraud.
The recently introduced STOP Act includes provisions that mirror recommendations from the American Association for Homecare Anti-Fraud Legislative Plan, such as mandates for:
- Pre-enrollment site visits and unannounced site visits for new home medical equipment providers;
- Site visits for current providers that are re-enrolling, as well as an unannounced site visit after re-enrollment;
- Real-time data analysis (like that used to identify credit card charging patterns) to identify and investigate unusual billing and ordering practices that could indicate fraud or abuse; and
- Checks to ensure that the provider is qualified and enrolled to bill the type of item or service that is on the claim for reimbursement.
As Ranking Member of the U.S. Senate Special Committee on Aging, Sen. Martinez will hold a hearing later today to discuss legislative solutions aimed at eliminating Medicare and Medicaid waste, fraud, and abuse. In a statement submitted to the Committee, the American Association for Homecare expressed its support for the Committee's efforts to fight waste in Medicare:
"The Association and its members want to work with Congress, the Administration, and CMS to enact these new steps to prevent criminals from abusing Medicare.... While HME fraud only constitutes a small fraction of overall Medicare fraud, we firmly believe that any abuse of the Medicare system is a disgraceful waste of taxpayers' dollars and represents theft of resources needed by patients, seniors, and individuals with disabilities."
Included in this formal statement was the AAHomecare Medicare Anti-Fraud Legislative Plan that proposes the following 13 specific recommendations to stop fraud and abuse in the homecare sector:
1. Mandate Site Inspections for All New Home Medical Equipment Providers A
July 2008 GAO report underscored the need for CMS to ensure that its
contractors are conducting effective site inspections for all new
applicants for a Medicare supplier number.
2. Require Site Inspections for All HME Provider Renewals All renewal
applications should require an in-person visit by the National Supplier
Clearinghouse (NSC), the contractor that CMS uses to ensure integrity
in the Medicare program.
3. Improve Validation of New Homecare Providers Additional validation of
new providers should be included in a comprehensive and effective
application process for obtaining a Medicare supplier number.
4. Require Two Additional Random, Unannounced Site Visits for All New
Providers Two unannounced site visits should be conducted by NSC during
the first year of operation for new HME providers.
5. Require a Six-Month Trial Period for New Providers The NSC should issue
a provisional, non-permanent supplier number to new suppliers for a
six-month trial period. After six months of demonstrated compliance,
the provider would receive a "regular" supplier number.
6. Establish an Anti-Fraud Office at Medicare CMS should establish an
office with the sole mandate of coordinating detection and deterrence
of fraud and improper payments across the Medicare and Medicaid
programs.
7. Ensure Proper Federal Funding for Fraud Prevention Increase federal
funding to ensure that NSC completes site inspection and other
anti-fraud measures.
8. Require Post-Payment Audit Reviews for All New Providers Medicare's
program safeguard contractors should conduct post-payment sample
reviews for six months worth of claims submitted to Medicare by new
providers.
9. Conduct Real-Time Claims Analysis and a Refocus on Audit Resources
Medicare must analyze billings of new and existing providers in real
time to identify aberrant billing patterns more quickly.
10. Ensure All Providers Are Qualified to Offer the Services They Bill A
cross-check system within Medicare databases should ensure that
homecare providers are qualified and accredited for the specific
equipment and services for which they are billing.
11. Establish Due Process Procedures for Suppliers CMS should develop
written due process procedures for the Medicare supplier number
process, including issuance, denial and revocation of the Medicare
supplier number. The procedures must include, for example, an
administrative appeals process and timelines.
12. Increase Penalties and Fines for Fraud Congress should establish more
severe penalties for instances of buying or stealing beneficiaries'
Medicare numbers or physicians' provider numbers that may be used to
defraud the government.
13. Establish More Rigorous Quality Standards Ensure that all accrediting
bodies are applying the same set of rigorous standards and degree of
inspection to their clients.
-----
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The STOP Act will give the Centers for Medicare and Medicaid Services (CMS), the Department of Health and Human Services (HHS), and the Social Security Administration (SSA) more tools needed to prevent waste, fraud, and abuse in the Medicare system before it starts. The bill is co-sponsored by Senators Lamar Alexander (R-Tenn.), Susan Collins (R-Maine), Bill Nelson (D-Fla.), and David Vitter (R-La.), Jim DeMint (R-S.C.), Lindsey Graham (R-S.C.), Bob Corker (R-Tenn).
"The American Association for Homecare has been working closely with Senator Martinez and his staff over the past year to help identify the most effective and direct measures to stop waste, fraud, and abuse in the Medicare program," said American Association for Homecare President Tyler J. Wilson. "We applaud the Senators' efforts to protect patients, seniors, and taxpayers, and we appreciate the fact that provisions in this bill reflect recommendations from our Association's Medicare Anti-Fraud Legislative Action Plan. We also strongly support President Obama's goal of preventing Medicare fraud, which he has identified as a priority in his 2010 budget."
Earlier this year, the American Association for Homecare urged members of Congress to adopt the Medicare Anti-Fraud Legislative Plan. This legislative action plan outlines tough, effective steps to stop waste, fraud, and abuse in Medicare's home medical equipment (HME) sector before it starts. Among the provisions detailed in the legislative proposal are more rigorous quality standards, increased penalties for fraud, mandated site inspections for new providers, and real-time claims analysis. For more information about the Medicare Anti-Fraud Legislative Action Plan, please visit www.aahomecare.org/stopfraud.
The recently introduced STOP Act includes provisions that mirror recommendations from the American Association for Homecare Anti-Fraud Legislative Plan, such as mandates for:
- Pre-enrollment site visits and unannounced site visits for new home medical equipment providers;
- Site visits for current providers that are re-enrolling, as well as an unannounced site visit after re-enrollment;
- Real-time data analysis (like that used to identify credit card charging patterns) to identify and investigate unusual billing and ordering practices that could indicate fraud or abuse; and
- Checks to ensure that the provider is qualified and enrolled to bill the type of item or service that is on the claim for reimbursement.
As Ranking Member of the U.S. Senate Special Committee on Aging, Sen. Martinez will hold a hearing later today to discuss legislative solutions aimed at eliminating Medicare and Medicaid waste, fraud, and abuse. In a statement submitted to the Committee, the American Association for Homecare expressed its support for the Committee's efforts to fight waste in Medicare:
"The Association and its members want to work with Congress, the Administration, and CMS to enact these new steps to prevent criminals from abusing Medicare.... While HME fraud only constitutes a small fraction of overall Medicare fraud, we firmly believe that any abuse of the Medicare system is a disgraceful waste of taxpayers' dollars and represents theft of resources needed by patients, seniors, and individuals with disabilities."
Included in this formal statement was the AAHomecare Medicare Anti-Fraud Legislative Plan that proposes the following 13 specific recommendations to stop fraud and abuse in the homecare sector:
1. Mandate Site Inspections for All New Home Medical Equipment Providers A
July 2008 GAO report underscored the need for CMS to ensure that its
contractors are conducting effective site inspections for all new
applicants for a Medicare supplier number.
2. Require Site Inspections for All HME Provider Renewals All renewal
applications should require an in-person visit by the National Supplier
Clearinghouse (NSC), the contractor that CMS uses to ensure integrity
in the Medicare program.
3. Improve Validation of New Homecare Providers Additional validation of
new providers should be included in a comprehensive and effective
application process for obtaining a Medicare supplier number.
4. Require Two Additional Random, Unannounced Site Visits for All New
Providers Two unannounced site visits should be conducted by NSC during
the first year of operation for new HME providers.
5. Require a Six-Month Trial Period for New Providers The NSC should issue
a provisional, non-permanent supplier number to new suppliers for a
six-month trial period. After six months of demonstrated compliance,
the provider would receive a "regular" supplier number.
6. Establish an Anti-Fraud Office at Medicare CMS should establish an
office with the sole mandate of coordinating detection and deterrence
of fraud and improper payments across the Medicare and Medicaid
programs.
7. Ensure Proper Federal Funding for Fraud Prevention Increase federal
funding to ensure that NSC completes site inspection and other
anti-fraud measures.
8. Require Post-Payment Audit Reviews for All New Providers Medicare's
program safeguard contractors should conduct post-payment sample
reviews for six months worth of claims submitted to Medicare by new
providers.
9. Conduct Real-Time Claims Analysis and a Refocus on Audit Resources
Medicare must analyze billings of new and existing providers in real
time to identify aberrant billing patterns more quickly.
10. Ensure All Providers Are Qualified to Offer the Services They Bill A
cross-check system within Medicare databases should ensure that
homecare providers are qualified and accredited for the specific
equipment and services for which they are billing.
11. Establish Due Process Procedures for Suppliers CMS should develop
written due process procedures for the Medicare supplier number
process, including issuance, denial and revocation of the Medicare
supplier number. The procedures must include, for example, an
administrative appeals process and timelines.
12. Increase Penalties and Fines for Fraud Congress should establish more
severe penalties for instances of buying or stealing beneficiaries'
Medicare numbers or physicians' provider numbers that may be used to
defraud the government.
13. Establish More Rigorous Quality Standards Ensure that all accrediting
bodies are applying the same set of rigorous standards and degree of
inspection to their clients.
-----
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Monday, January 19, 2009
Obama Stimulus Plan Breaks Campaign Promise to Small Businesses
/PRNewswire-USNewswire/ -- On February 22, 2008, Barack Obama released the following statement:
"It is time to end the diversion of federal small business contracts to corporate giants."
(http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
The statement was made in response to more than 12 federal investigations, which found billions of dollars in federal small business contracts had been diverted to Fortune 500 corporations, their subsidiaries and thousands of other large businesses in the United States and Europe.
Report 5-15 from the Small Business Administration (SBA) Office of Inspector General stated, "One of the most important challenges facing the SBA and the entire Federal government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards." (http://www.sba.gov/IG/05-15.pdf)
Since the exposure of this issue in 2002, nearly every major newspaper in the United States has covered the diversion of federal small business contracts to Fortune 500 firms.
Now, in the face of one of the most catastrophic economic disasters in U.S. history, President-elect Obama has failed to include any provision in his economic stimulus plan to stop the diversion of billions of dollars in federal small business contracts to Fortune 500 firms.
President-elect Obama's refusal to take decisive action to stop the diversion of up to $100 billion a year in federal small business contracts seems to be a direct contradiction to everything he has said about taking "dramatic action" to "put people back to work."
Many of the nation's most respected experts on the economy like Dr. Laura Tyson and Carly Fiorina agree the best way to stimulate our nation's failing economy is to direct federal infrastructure funds to small businesses. Tyson is the former Chair of the U.S. President's Council of Economic Advisers during the Clinton Administration and is currently an economic adviser to President-elect Barack Obama. Fiorina is the former CEO of Hewlett-Packard and McCain campaign economic advisor.
President-elect Obama's refusal to stop the fraud and abuse in federal small business contracting programs will only result in more lost jobs at middle class firms across the nation.
"It does not make sense to throw nearly a trillion of hard earned taxpayer dollars at an economic stimulus plan and then ignore fraud and abuse in longstanding federal programs specifically designed to create jobs and stimulate the middle class economy," President of the American Small Business League Lloyd Chapman said. "It would take one sentence in this bill to create thousands of jobs and to redirect billions of dollars in federal contracts to legitimate small businesses all around the country. My advice to President-elect Obama is that if he sincerely wants to create jobs in America he needs to include this one line in the stimulus package, 'The federal government can no longer report awards to publicly traded companies as small business awards.'"
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"It is time to end the diversion of federal small business contracts to corporate giants."
(http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
The statement was made in response to more than 12 federal investigations, which found billions of dollars in federal small business contracts had been diverted to Fortune 500 corporations, their subsidiaries and thousands of other large businesses in the United States and Europe.
Report 5-15 from the Small Business Administration (SBA) Office of Inspector General stated, "One of the most important challenges facing the SBA and the entire Federal government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards." (http://www.sba.gov/IG/05-15.pdf)
Since the exposure of this issue in 2002, nearly every major newspaper in the United States has covered the diversion of federal small business contracts to Fortune 500 firms.
Now, in the face of one of the most catastrophic economic disasters in U.S. history, President-elect Obama has failed to include any provision in his economic stimulus plan to stop the diversion of billions of dollars in federal small business contracts to Fortune 500 firms.
President-elect Obama's refusal to take decisive action to stop the diversion of up to $100 billion a year in federal small business contracts seems to be a direct contradiction to everything he has said about taking "dramatic action" to "put people back to work."
Many of the nation's most respected experts on the economy like Dr. Laura Tyson and Carly Fiorina agree the best way to stimulate our nation's failing economy is to direct federal infrastructure funds to small businesses. Tyson is the former Chair of the U.S. President's Council of Economic Advisers during the Clinton Administration and is currently an economic adviser to President-elect Barack Obama. Fiorina is the former CEO of Hewlett-Packard and McCain campaign economic advisor.
President-elect Obama's refusal to stop the fraud and abuse in federal small business contracting programs will only result in more lost jobs at middle class firms across the nation.
"It does not make sense to throw nearly a trillion of hard earned taxpayer dollars at an economic stimulus plan and then ignore fraud and abuse in longstanding federal programs specifically designed to create jobs and stimulate the middle class economy," President of the American Small Business League Lloyd Chapman said. "It would take one sentence in this bill to create thousands of jobs and to redirect billions of dollars in federal contracts to legitimate small businesses all around the country. My advice to President-elect Obama is that if he sincerely wants to create jobs in America he needs to include this one line in the stimulus package, 'The federal government can no longer report awards to publicly traded companies as small business awards.'"
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