Category Archives: government fraud spending collusion

Even More Unknown Email Addresses on THAT server

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Mentioned more than once on this blog were questions about how many email addresses were on that server and who they belonged to. Further, how many additional email addresses were uniquely assigned exclusively to mobile devices?
For the Gowdy Benghazi commission to get immediate and full cooperation has been a Herculean task and all parties involved including the State Department has been anything but cooperative under John Kerry, but he does have an agency full of employees to protect and likely some connectivity goes to the White House itself.
Keep popcorn handy for Friday and next week but fair warning some of the hearings are behind closed doors.
A previously unknown e-mail address used by Huma Abedin was discovered on Thursday, just hours before the top Hillary Clinton aide prepares to testify in front of the House Select Committee on Benghazi. Conservative watchdog group Citizens United discovered the address in an e-mail exchange that shows Clinton Foundation CEO Robert Harrison forwarding a speaking invitation for then-Secretary of State Clinton to both Abedin’s State Department account and an unfamiliar Abedin address on November 6, 2012. “I tried to send this to your ‘clintonemail.com’ address, but it bounced back as undeliverable, so here it is again,” Harrison wrote.
The new address begins with “humamabedin,” and appears to be a private e-mail account. The State Department redacted the account’s domain name, citing a personal-privacy exemption. A spokesman for the Benghazi Committee did not immediately respond when asked if the committee was aware of the e-mail account, and if it is under investigation for possibly containing official or classified government information. In August, the State Department admitted to a federal judge that Abedin and others close to Clinton used private accounts to conduct government business, and that they were unable to search those accounts for official records.
Technical issues seemed to plague Clinton’s private e-mail server at times, driving State Department aides and Clinton Foundation employees to use government or private accounts to reach Clinton and her top staff. “Is your e-mail working?” Abedin wrote to Clinton Foundation executive director Stephanie Streett on October 10, 2012. “Mine has been down [since] last night.” Abedin later added that she “can’t even get into my Clinton e-mail.”
The news of an unknown e-mail account and new technical troubles will likely factor in to Abedin’s closed-door testimony before the Benghazi Committee on Friday. In Abedin’s first appearance before the committee, lawmakers are expected to focus on work she did for the private, Clinton-connected consulting firm Teneo while she was still employed at the State Department. Senator Chuck Grassley (R, IA) has expressed concern that Abedin acted as a conduit between Clinton and well-heeled Teneo clients. In one spring 2012 e-mail highlighted by the senator, Teneo’s president asked Abedin to convince Clinton to back Judith Rodin, the head of the Rockefeller Foundation and a Teneo client, for an Obama administration appointment.

Oh, More Counterterrorism Bureaucracy/SPLC

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As you read through this, understand that pesky Southern Poverty Law Center is part of the bureaucracy:

From the Justice Department website:

Wednesday, October 14, 2015
Remarks as prepared for delivery

Thank you, Lorenzo [Vidino], for that kind introduction.

It is an honor to be at this event, co-hosted by the George Washington University’s new Program on Extremism and the Southern Poverty Law Center.

The partnership between SPLC and GW serves as a reminder that violent extremism is neither a new phenomenon, nor one that is limited to any single population, region or ideology.

Since its creation in 1971, SPLC has been an important voice on the wide range of extremist groups throughout this country.  And over the past four decades, the existence of hate, violence and extremism has remained unfortunately all too constant.  Earlier this year, we honored and remembered the victims of the horrific Oklahoma City bombing on the 20th anniversary of that devastating attack.  Less than two months after the anniversary, we again saw unimaginable violence motivated by hate.  A young man killed nine African-American men and women attending a bible class in Charleston, South Carolina.  A senseless, racist act.  The list goes on, past and present.

But as we gather today, new and disturbing trends loom over the horizon – trends we must understand to defeat.

New initiatives, like GW’s program, which focus on empirical research and analysis, are critical to policymakers and the interested public alike.

So although the problem set is by no means new, it is changing, and we must take lessons learned in the past and couple them with trend analysis to understand these shifts.

Today’s event is a good start to that conversation.  We are here to talk about combating domestic terrorism, which the FBI has explained as “Americans attacking Americans based on U.S.-based extremist ideologies.”

Much attention has focused on those inspired by Al Qaeda and the Islamic State of Iraq and the Levant’s (ISIL) message of hate and violence spreading worldwide and reaching homes here in America through the group’s unprecedented social media recruitment efforts.  And rightly so.

But today is a good opportunity to focus the conversation broadly on violent extremism here in America.  The threat ranges from individuals motivated by anti-government animus, to eco-radicalism, to racism, as it has for decades. Many more details here.

DOJ announces new position to focus on domestic terror threat

FNC:

A new national security position is being created to help combat homegrown terror threats, the Department of Justice announced Wednesday.

John Carlin, head of the department’s national security division, announced the new Domestic Terrorism Counsel at a speech Wednesday at George Washington University, to work with DOJ assets on domestic threats.

“…in order to ensure that we are gaining the benefits of the information and input from those eyes on the ground from around the country, and in recognition of a growing number of potential domestic terrorism matters around the United Sates, we have created a new position to assist with our important work in combating domestic terrorism,” Carlin said, according to his prepared remarks.

Carlin emphasized what he called the growing risk from homegrown  terrorism and specifically white supremacy.

“We recognize that, over the past few years, more people have died in this country in attacks by domestic extremists than in attacks associated with international terrorist groups,” Carlin said

“Among domestic extremist movements active in the United States, white supremacists are the most violent. The Charleston shooter, who had a manifesto laying out a racist world-view, is just one example,” Carlin said, before also noting killings by white supremacists in Kansas and Wisconsin.

While he spoke about the threat posed by the Islamic State terror group, he emphasized that law enforcement is focused on racist and anti-government ideologies, and that such ideologies may pose a more serious threat than ISIS.

“More broadly, law enforcement agencies nationwide are concerned about the growth of the “sovereign citizen” movement.  According to one 2014 study, state, local and tribal law enforcement officials considered sovereign citizens to be the top concern of law enforcement, ranking above ISIL and Al Qaeda-inspired extremists,” he said.

Carlin said the new Domestic Terrorism Counsel will serve as the main point of contact for U.S. Attorney offices nationwide. The new official will work to identify trends that can be used to help shape a national strategy.

The Associated Press contributed to this report.

 

EPA Hires Thunderclap….Huh?

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Armed EPA Agents? The Truth Is Way Out There

The EPA’s armed war on alien polluters.

AmericanSpectator: Fox Mulder and Dana Scully, the FBI agents on Fox’s The X-Files, have been known to draw weapons on aliens, poltergeists, and phantoms. But they have an excuse — they’re fictional characters in a network TV drama, coming back on-the-air soon after a long hiatus. Not so the Environmental Protection Agency’s (EPAs) own, real-life agents. They are packing pistols and even heavier firepower to catch the nation’s contributors to global warming and other, mythical phenomena. Truth is stranger than science fiction in today’s Washington, D.C., and the truth is way out there.

According to a report released last week by a watchdog group called Open the Books, the EPA has spent millions of dollars recently on guns, ammo, body armor, camouflage equipment, and even night-vision goggles to arm its agents in the war on polluters.

The Illinois-based investigative group examined thousands of checks totaling more than $93 billion from 2000 to 2014 by the EPA, and its auditors indicate that about $75 million is authorized each year for “criminal enforcement” of America’s clean air and water laws. This includes cash for a cadre of 200 “special agents” that engage in SWAT-style ops.

“We were shocked ourselves to find these kinds of pervasive expenditures at an agency that is supposed to be involved in clean air and clean water,” said Open the Books’ founder, Adam Andrzejewski, a former candidate for governor of Illinois. “Some of these weapons are for full-scale military operations.”

Some of these military operations have been reported in the media. Two years ago, the EPA was involved in an armed raid at a small town in Alaska where miners were accused of polluting local waters, as Fox News reported that EPA “armed agents in full body armor participated.”

The EPA’s own website describes the activities and mission of the criminal enforcement division as “investigating cases, collecting evidence, conducting forensic analyses and providing legal guidance to assist in the prosecution of criminal conduct that threatens people’s health and the environment.”

Don’t blame President Obama for this alone. The EPA was first given police powers in 1988 during the Reagan era. These days, EPA also conducts joint projects with the Department of Homeland Security as it engages in what a media report calls “environmental crime-fighting.”

“For more than 30 years,” according to the EPA website, “there has been broad, bipartisan agreement about the importance of an armed, fully-equipped team of EPA agents working with state and federal partners to uphold the law and protect Americans.”

But that’s not all that the Open the Books investigators found. Backing up these armed environmental crusaders are scores of highly paid lawyers and other professionals.

The report showed that seven of 10 EPA workers earn more than $100,000 a year, and EPA’s $8 billion budget also finances the salaries of 1,000 attorneys, making the agency one of the biggest law firms in the U.S.

The EPA is hardly going solo in this armed adventure against America, however. The agency has collaborated with the U.S. Department of Homeland Security, and a recent report by the U.S. Department of Justice indicates that more than 40 federal agencies, with 100,000 officers, carry guns and make arrests.

How far will EPA agents go to enforce the law as they interpret it? The Sixth Circuit Court of Appeals on Friday issued a temporary stay on the Environmental Protection Agency’s new Clean Water Rule that regulates “waters of the U.S.” The court decided the EPA’’s Rule that originally became effective on August 28, 2015 requires “further judicial analysis.” The new Clean Water Rule defined navigable waters to include tributaries and wetlands, and even puddles caused by rainstorms. The rule defines which waterways would be protected by the Clean Water Act of 1972. A total of 18 states are challenging the new rule. Perhaps the new water rules will be enforced at gunpoint by armed agents if President Obama and EPA Administrator Gina McCarthy decide that “environmental justice” requires it.

*** Gina likes Thunderclap, so she hired them for crowd-sourcing positive responses.

Join a Thunderclap for Clean Water 

EPA is planning to use a new social media application called Thunderclap to provide a way for people to show their support for clean water and the agency’s proposal to protect it. Here’s how it works: you agree to let Thunderclap post a one-time message on your social networks (Facebook, Twitter or Tumblr) on Monday, September 29 at 2:00 pm EDT.  The message will be posted on everyone’s walls and feeds at the same time.
Here’s the message: “Clean water is important to me. I want EPA to protect it for my health, my family, and my community. www.epa.gov/USwaters”

 

Sign up to join the Thunderclap for Clean Water: http://thndr.it/1rUOiaB

 

Read about the Thunderclap.

EPA Publishes Final 2012 and Preliminary 2014 Effluent Guidelines Program Plans

Under Clean Water Act section 304(m), EPA develops biennial plans for issuing new regulations or revising existing regulations to control industrial wastewater discharges. While EPA’s final 2012 plan and preliminary 2014 plan do not propose any new effluent guidelines for industry, EPA is announcing initiation of detailed studies of the petroleum refining industry and centralized waste treatment facilities, and continuation of its preliminary review of the metal finishing industry. EPA will accept public comments on the preliminary 2014 plan through November 17, 2014. Learn more.

Section 319 Success Story: Ionine Creek, Oklahoma

Ionine Creek in Grady County runs through an area of high cattle, wheat, and hog production. An assessment of the creek’s fish community in 2004 revealed a poor biological condition, prompting Oklahoma to add the creek to the state’s Clean Water Act section 303(d) list of impaired waters for biological impairment. Implementation of best management practices to reduce runoff from grazing land and cropland and to improve wildlife habitat decreased sediment and nutrient contributions to the creek and provided better in-stream habitat. As a result, Oklahoma removed Ionine Creek from Oklahoma’s list for fishes bioassessment. Ionine Creek now fully attains its fish and wildlife propagation designated use. The complete success story can be found here.

 

 

Delivered Documents Go Deeper on Clintons’

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There is no longer doubt that certain personnel at the State Department were in collusion with the Clintons, but this time on the Foundation side and with regard to Bill giving speeches for big money.

Each time there was a speech request for Bill, the procedure was to pass the full speech application request to the State Department to determine if the sponsors were acceptable and approved. A database is maintained at State for diplomatic purposes on global and domestic corporations such that the speech requests would be only somewhat investigated. This also gives rise to the fact that government and especially corporations use the State Department and likewise in reverse to advance mutual relationships, agendas and of course money is always involved. Thanks to Judicial Watch for their tireless work as noted below.

 

Clinton Cash Connections Exposed – New Docs Raise Questions On Clinton Conflicts of Interest

 

The Clinton email scandal is serious enough. Nonetheless, it is useful to remember what exactly Mrs. Clinton was trying to hide before our litigation forced the disclosure of her separate email system. You can bet that the cover up of the depth of her abuse of office for private gain is one thing about which she does not want you to know the full truth. Judicial Watch is in the lead in uncovering these Clinton cash abuses. This week, we released 789 pages of State Department “ethics” review documents concerning former Secretary of State Hillary Clinton, revealing that at least one speech by Bill Clinton appeared to take place without the required State Department ethics approval. The documents also include a copy of Bill Clinton’s draft consultant agreement with Laureate Education, Inc., which was submitted for ethics review by the State Department. But the State Department redacted the information regarding compensation and the specific services Bill Clinton was hired to provide to the controversial “for profit” education company. The documents were released as a result of a federal court order in our history-making Freedom of Information Act (FOIA) lawsuit filed against the State Department on May 28, 2013, (Judicial Watch v. U.S. Department of State (No. 1:13-cv-00772)). The documents include heavily redacted emails from 2009 about the review of a speech Bill Clinton was set to give to the Institute of Scrap Recycling Industries (ISRI). An April 1, 2009, email from then-State Department Senior Ethics Counsel Waldo W. “Chip” Brooks notes that the ethics review approval of the speech “was in the hands of Jim [Thessin] and Cheryl Mills. They were to discuss with Counsel to the former President. I do not know if either ever did.” A follow-up September 1, 2009, email to Brooks from a colleague asks, “[W]as there ever a decision on the Clinton request involving scrap recycling? Below is the last e-mail I have on it – I assume it just died since I don’t’ have an outgoing memo approving the event …” Brooks responds two minutes later:

“I think the decision was a soft call to Clinton’s attorney and the talk did not take place. You might want to send an email to [Clinton Foundation Director of Scheduling and Advance] Terry [Krinvic] and tell her that you have a gap in your records because you were gone and wanted to know if the President ever did talk before ISRI?

In fact, Bill Clinton spoke to the scrap recycling group on April 30, 2009, for a reported fee off $250,000. The documents also include a request from Doug Band of the Clinton Foundation for an ethics review of Mr. Clinton’s proposed consulting arrangement, through WJC LLC, with Laureate Education, Inc. The Obama State Department redacted key terms of the attached May 1, 2010, draft agreement, including Mr. Clinton’s fees and the nature of Mr. Clinton’s services. Laureate Education, Inc. is the world’s largest, for-profit, international higher education chain and reportedly uses many of the same practices that spurred a 2014 regulatory crackdown by the Obama administration on for-profit colleges in the United States. In 2010, according to The Washington Post, the company hired former President Clinton to serve as its honorary chancellor, and since that time the former president has made more than a dozen appearances in countries such as Malaysia, Peru, and Spain on the company’s behalf. Since 2010, the former president reportedly has been paid more than $16 million from the company for his services. The Clinton-Laureate connection is rich. The Daily Caller did some digging into the Clinton tax returns that were highly revealing:

Clinton signed on as the honorary chancellor of Laureate International Universities, a subsidiary of Laureate Education, in 2010. Despite the honorary nature of his position, that didn’t stop the company from paying him on average approximately $3 million a year. The investment likely paid off, though, as Clinton has lent Laureate significant legitimacy and has served as an advocate for the company overseas, making appearance in countries like Peru and Malaysia to praise it. In addition to these direct payments, Laureate also donated to the Clinton Foundation and has cooperated with the Clinton Global Initiative.

The latest State Department documents also show some push-back by ethics officials concerning proposed Clinton speeches to Chinese government-linked entities. State Department officials, for example, had several questions about a proposed 2009 speech to a subsidiary of the Shanghai Sports Development Corporation, a Chinese “quasi-government” agency. Rather than answer the questions, the Clinton Foundation representative emailed “we are not going to proceed with this.” State Department ethics official “Chip” Brooks commented on the withdrawal of the Chinese speech in December 2009 to then-Deputy Legal Adviser Jim Thessin, “Cooler heads have prevailed.” The documents show the State Department approved scores of requests by former President Bill Clinton to appear as the featured speaker at events sponsored by some of the world’s leading international investment and banking firms, including J.P. Morgan, Barclays, Merrill Lynch, Sweden’s ABG, PriceWaterhouseCoopers, Brazil’s Banco Itau, Vista Equity Partners, Goldman Sachs, Vanguard Group (described as “one of the world’s largest investment management companies”), Canada’s Imperial Bank of Commerce, and Saudi Arabia’s SAGIA conglomerate (which claims to be the “gateway to investments in Saudi Arabia”). While the majority of the documents do not contain the fees that Clinton charged for his speaking services, those that are disclosed reveal that the former president routinely received six-figure honorariums for his advice to the international investment counseling firms and banking institutions, including:

  • Barclays Capital Singapore – $325,000 • Needham Partners South Africa – $350,000 • Cumbre de Negocios (sponsored by Nacional Financiera and El Banco Fuerte de Mexico) – $275,000 and $125,000) • NTRPLC (which describes itself as “developing a new investment portfolio of wind projects in Ireland and the UK”) – $125,000

The documents reveal that between 2009 and 2011, former President Clinton spoke to more than two dozen leading international investment firms and banking institutions, many of them on more than one occasion. At least one of the documents shows that Hillary Clinton Chief of Staff Cheryl Mills used a non-governmental email account for the Clinton ethics reviews. Mills reportedly negotiated the “ethics agreement” on behalf of the Clintons and the Foundation that required the Clintons to submit to rigorous conflict-of-interest checks. Despite this, and in apparent violation of Obama administration ethics rules, the documents reveal that Bill Clinton’s requests for speaking engagement approval were invariably copied to Mills, who was involved in ethics reviews as chief of staff for Mrs. Clinton at the State Department. The documents also include the demands that Bill Clinton’s speakers bureau, The Harry Walker Agency, laid out for a speech sponsor in Slovenia. Notably, the documents require that press be kept in a “designated, roped off area in the back of the room with a staff escort” and that the “press should not be given access to any area where the President likely may be.” This JW lawsuit broke open the Clinton cash scandal by forcing the disclosure of documents that provided a road map for over 200 conflict-of-interest rulings that led to at least $48 million for the Clintons and the Clinton Foundation during Hillary Clinton’s tenure as secretary of State. Previously disclosed documents in this lawsuit, for example, raise questions about funds Clinton accepted from entities linked to Saudi Arabia, China and Iran, among others. This and other JW lawsuits on Benghazi were the key pressure that forced the disclosure of the Clinton email system. Judicial Watch’s litigation to obtain these conflict of interest records is ongoing. The State Department has yet to search the email records Mrs. Clinton purportedly turned over to the agency last year, despite Judicial Watch’s first requesting these records in 2011 and filing this lawsuit in 2013. The State Department also has yet to explain why it failed to conduct a proper, timely search in the 20 months between when it received our request on May 2, 2011, and February 1, 2013, when Secretary Clinton left office. Judicial Watch also is pressing the State Department to conduct a reasonable search for records, including any emails on the Hillary Clinton email server. On September 3, Judicial Watch filed a request with the court for discovery from the State Department and/or Mrs. Clinton in order to find these records so they might finally be searched as the law requires. Specifically, Judicial Watch’s attorneys ask the court to take steps to obtain the records directly:

To the extent Secretary Clinton or her agents or vendors continue to have access to this agency system of records, or any records from the system that have migrated or been transferred to any new servers, storage devices, or back-up systems, Judicial Watch respectfully submits that a constructive trust must be imposed on any such records and systems so that the State Department can access and search them for records…

Accordingly, Judicial Watch asks the court to order the State Department:

To identify, either through declarations or discovery, all information in its possession or control about the transfer of any data from the “clintonemail.com” server to Secretary Clinton’s vendor and whether any such data is still available or otherwise recoverable from the vendor’s server, storage devices, or back-up systems. If the State Department asserts that it does not have this information or cannot obtain it, limited third-party discovery of Secretary Clinton and/or her vendor should be authorized to enable the Court to obtain the information, which is necessary to remedy the State Department’s failure to search the server during Secretary Clinton’s tenure in office, its further failure to secure all federal records on the server when Secretary Clinton left office, and Secretary Clinton’s wrongful retention of these records after she left office.

Judicial Watch’s court filing details how it was “wrongful and in violation of federal law and State Department regulations” to allow Hillary Clinton “to retain exclusive access to this agency system of records (Clinton’s separate email server) and the official State Department communications and records it contains after she left office on February 1, 2013.” In short, we’re asking the court to allow us to figure out where the Clinton documents are and to take steps to make sure they are preserved and searched as the law requires. These records show that the “ethics reviews” of Bill and Hillary Clinton’s potential conflicts of interest was a joke. JW supporters should be proud of how their support resulted in a lawsuit that helped force the disclosure of Hillary Clinton’s separate email system. And now we hope that it results in getting all the Clinton emails searched to find out what else Hillary Clinton didn’t want the American people to see about her shady dealings. Judicial Watch’s FOIA lawsuit has become particularly noteworthy because it has been reported that the Clinton Foundation, now known as the Bill, Hillary, & Chelsea Clinton Foundation, accepted millions of dollars from at least seven foreign governments while Mrs. Clinton served as secretary of State. The Clinton Foundation has acknowledged that a $500,000 donation it received from the government of Algeria while Mrs. Clinton served as secretary of State violated a 2008 ethics agreement between the foundation and the Obama administration. Some of the foreign governments that have made donations to the Clinton Foundation include Algeria, Kuwait, Qatar, and Oman, have questionable human rights records. Links to the full production of documents can be found here: May 4, 2015; June 15, 2015; July 27, 2015 and September 4, 2015. Feel free to review the documents and let us know if you find anything important that we might have missed!

Hello FBI, What about this $125 Billion?

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Where is the U.S. Department of Treasury? Where is the White House? (rhetorical)

By the hour scandals come out of the Federal government where the reaction is: ‘it is under investigation’ or we have created a task force to advise on how to correct the issue or it was due to a computer glitch.

Never do we hear that someone is going to prison for malfeasance or theft or obstruction.

So how about putting pressure on the White House to call in the FBI, build the case and then move to a criminal case? Sounds great huh? Maybe even House of Cards will do a whole series on the waste, fraud and corruption, after all it is revenue generating right? Oh…one more thing, whistleblowers have a very short life and career span in Washington DC, but there are laws where Federal employees must comply and report waste, fraud and abuse….well so it goes.

Well back to the $125 billion, while that was only LAST year.

In part: What GAO Found

A number of strategies, including implementing preventive controls and addressing GAO’s prior recommendations, can help agencies reduce improper payments, which have been a persistent, government-wide issue. The improper payment estimate, attributable to 124 programs across 22 agencies in fiscal year 2014, was $124.7 billion, up from $105.8 billion in fiscal year 2013. The almost $19 billion increase was primarily due to the Medicare, Medicaid, and Earned Income Tax Credit programs, which account for over 75 percent of the government-wide improper payment estimate. Federal spending in Medicare and Medicaid is expected to significantly increase, so it is critical that actions are taken to reduce improper payments in these programs. Moreover, for fiscal year 2014, federal entities reported estimated error rates for 10 risk-susceptible programs that exceeded 10 percent. Recent laws and guidance have focused attention on improper payments, but incomplete or understated estimates and noncompliance with criteria listed in federal law hinder the government’s ability to assess the full extent of improper payments and implement strategies to reduce them. For example, for fiscal year 2014, 2 federal agencies did not report improper payment estimates for 4 risk-susceptible programs, and 5 programs with improper payment estimates greater than $1 billion were noncompliant with federal requirements for 3 consecutive years. Identifying root causes of improper payments can help agencies target corrective actions, and GAO has made numerous recommendations that could help reduce improper payments. For example, strengthening verification of Medicare providers and suppliers could help reduce improper payments. GAO has stated that continued agency attention is needed to (1) identify susceptible programs, (2) develop reliable estimation methodologies, (3) report as required, and (4) implement effective corrective actions based on root cause analysis. Absent such continued efforts, the federal government cannot be assured that taxpayer funds are adequately safeguarded. The full report is here.

Government burns $125B in improper payments, GAO says

FederalTimes:

A Government Accountability Office report found that the federal government racked up more than $124 billion in improper payments in 2014, $19 billion above the previous year.

The Oct. 1 report found that the surge in payments came almost exclusively from Medicare, Medicaid, and Earned Income Tax Credit programs, which account for 75 percent of improper payments across the federal government.

“Federal spending in Medicare and Medicaid is expected to significantly increase, so it is critical that actions are taken to reduce improper payments in these programs,” the report said.

Improper payments include things like overpayments, underpayments or payments made for goods and services not received.

GAO estimated that since agencies began reporting improper payments in 2003, $1 trillion in federal funding has been lost to the issue.

The report called for greater compliance from government agencies, citing findings that five federal programs with more than $1 billion in improper payments were noncompliant with federal law for three years.

U.S. Comptroller General Gene Dodaro testified before the Senate Committee on Finance on Oct. 1 to address the report’s findings as well as GAO’s recommendations.

“Reducing improper payments is critical to safeguarding federal funds and could help achieve cost savings and improve the government’s fiscal position,” Dodaro said in testimony.

The report noted that Medicaid and Medicare accounted for $77.4 billion in improper benefits in 2014. To fix the problem, GAO suggested the Centers for Medicare and Medicaid improve Medicare automated audits, track postpayment recovery audit activities, remove Social Security numbers from Medicare cards to help prevent fraud and other reforms.

GAO recommended improving efficiency and oversight for Medicaid, including tracking liability for third-party insurers. CMS concurred with the recommendations and, in some cases, was already working on implementation plans for them.

The other big source of improper payments identified in the report was from the Earned Income Tax Credit, a refundable tax credit for low- to moderate-income earners, particularly those with children.

The report identified $17.7 billion in improper payments related to EITC, largely to due to the credit being incorrectly claimed on tax returns.

“As we have reported, a root cause of EITC noncompliance is that eligibility is determined by taxpayers themselves or their tax return preparers and that IRS’s ability to verify eligibility before issuing refunds is limited,” the report said.

Dodaro said that while the some fraud could play a role in improper EITC payments, the complexity of tax law has led to mistaken applications, which perpetuate improper payments.

“Complexity is definitely the heart of the problem here with the error rates,” he said. “We’re not suggesting they be made more complex. What we are suggesting is that Congress regulate paid tax preparers.”

Dodaro cited Oregon’s practice of regulating paid tax preparers, which originated in the 1970s, and pointed to a 2008 study that found Oregon tax returns are 72 percent more likely to be accurate than a comparable return from paid preparers in other states.

Read the report here.