Category Archives: Whistleblower

Iran Deal: Thomas Pickering Got Big Bucks

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Thomas Pickering is PRO IRAN, let that sink in…

Ex-Clinton official got Boeing bucks while pushing Iran nuke pact – before $25B jet deal

FNC: A former top Clinton administration diplomat who used his political sway to garner support for the Iran nuclear deal apparently was being bankrolled the entire time by Boeing — which is set to make billions off a jet deal with Tehran now that sanctions have been lifted.

 

Thomas Pickering, who also served as co-chairman of the board examining the Benghazi attack response, publicly pushed for the nuclear deal before its approval last year. He did so by penning op-eds, writing to high-level officials and even testifying before Congress.

With the deal in place, Boeing has since moved forward on a $25 billion deal with Iran Air made possible by the nuclear agreement.

While Pickering never denied being on Boeing’s payroll during the talks, he didn’t regularly disclose it either, according to a new report in The Daily Beast. And that’s the problem, transparency advocates say.

“In Pickering’s case, he has a direct connection to Boeing, which I think should be disclosed,” Neil Gordon, an investigator for the Project on Government Oversight, told The Daily Beast. “I think it’s necessary for the public debate. It’s necessary for the public to fully realize the participants’ financial interests. Some of them might have a direct financial stake in a particular outcome.”

Pickering was a former top State Department official in the Bill Clinton administration, and before that ambassador to Russia. He also served as ambassador to the United Nations, Israel and elsewhere in prior administrations.

When Pickering testified before the House Armed Services Committee on June 16, 2014, the biography provided to committee members touted his military and government services but did not list his business ties.

Pickering also sent a July 7, 2015 letter to lawmakers urging them to back the nuclear deal but reportedly did not make his association with Boeing known. The letter was cited by the media, lawmakers and the White House in the push to sell the nuclear deal to the public.

In op-eds for The Washington Post and Tablet, he also made the case for the deal but again did not disclose his ties.

He confirmed to The Daily Beast that he was a Boeing employee from 2001 to 2006 (which was more widely known) and later worked as a “direct consultant” from 2006 to 2015.

Earlier this month, Boeing reached a tentative agreement to sell passenger planes to Iran’s state-run carrier, Iran Air. The deal is the first major business venture after sanctions were eased against Tehran last year and is seen by many as a groundbreaking test for other American companies looking to profit from Iran’s untapped economy.

The deal is still in its early stage and will likely face scrutiny from U.S. trade regulators and lawmakers.

“It’s tragic to watch such an iconic American company make such a terribly short-sighted decision,” Rep. Peter Roskam, R-Ill., told FoxNews.com in a statement. “If Boeing goes through with this deal, the company will forever be associated with Iran’s chief export: radical Islamic terrorism. The U.S. Congress will have much to say about this agreement in the coming days.”

Roskam and Rep. Jeb Hensarling, R-Texas, sent a letter to Boeing CEO Dennis Muilenburg last week raising concerns about Tehran’s history of using commercial planes to support “hostile actors.”

“We strongly oppose the potential sale of military-fungible products to terrorism’s central supplier. American companies should not be complicit in weaponizing the Iranian Regime,” the lawmakers wrote.

Boeing wrote back saying it would follow the lead of the U.S. government with regards to working with Iran Air and that “any and all contracts with them will be contingent upon continued approval.”

“And as we have stated repeatedly, should the U.S. Government reinstate sanctions against the sale of commercial passenger airplanes to Iranian airlines, we will cease all sales and delivery activities as required by U.S. law,” Tim Keating, Boeing senior vice president, wrote.

Five years ago, the Obama administration slapped sanctions on Iran Air, claiming the company used passenger and cargo planes to transport rockets and missiles to places such as Syria, sometimes disguised as medicine or spare parts. In other cases, members of Iran’s Revolutionary Guard Corps took control of flights carrying sensitive cargo.

Although U.S. officials never said such conduct ended, the administration used a technicality to drop those sanctions as part of last year’s seven-nation nuclear deal. The agreement also allowed the Treasury Department to license American firms to do business in Iran’s civilian aviation sector. The changes enable Boeing to sell up to 100 aircraft to Iran Air, by far the most lucrative business transaction between the U.S. and Iran since the 1979 Islamic Revolution and U.S. Embassy hostage crisis.

State Department spokesman John Kirby said the sale and any possible future deals depend on Iran’s good behavior.

The U.S. could revoke the license for the deal if planes, parts or services are “used for purposes other than exclusively civil aviation end-use” or if aircraft are transferred to individuals or companies on a U.S. terrorism blacklist, Kirby said.

Any suggestion “that we would or will turn a blind eye to Iran’s state sponsorship of terrorism or their terrorist-supporting activities is completely without merit,” Kirby said.

The details of the arrangement between Boeing and Iran Air aren’t entirely clear. Iran’s Transportation Minister Abbas Akhoundi said it could match the $25 billion package between the Islamic Republic and Boeing’s European rival, Airbus. Iran Air has stated its interest in purchasing new Boeing 737s — single aisle jets that typically fly up to five hours. It also wants 777s — larger planes that can carry passengers for 12 hours or more.

But if Iran Air continues supporting Iranian military or Revolutionary Guard operations, it would put the Obama administration or any successor in a bind.

Revoking the license and suspending future plane transfers risks angering the Iranians, who’ve already complained about not receiving sufficient benefit for their nuclear concessions. It also could mean billions in lost revenue for a large American company with more than 130,000 employees in the United States.

**** Hold on, it gets worse, much worse.

Lawmakers Seek to Re-Open ‘Flawed’ Iran Nuclear Weapons Investigation

Revelations Obama admin knew of possible weapons work, stayed silent

FreeBeacon: U.S. lawmakers and foreign policy insiders are calling on the international community to re-open its “flawed” investigation into Iran’s past nuclear weapons research, according to conversations with multiple sources who say the extent of Iran’s past nuclear work is likely much larger than previously believed.

The calls to reinvestigate Iran’s nuclear work come on the heels of revelations by anonymous U.S. officials who said the Obama administration held onto evidence showing the Islamic Republic performed extensive nuclear weapons research—a finding that contradicts findings by international monitors and longstanding claims by Iranian officials.

Administration officials made no mention of the finding when International Atomic Energy Agency (IAEA) inspectors first discovered it in December, but now say the evidence is proof Iran worked to build nuclear weapons as recently as 2003.

The discovery has prompted lawmakers to demand that the IAEA re-open its currently closed investigation into Iran’s past nuclear weapons work.

“The Obama administration’s contradiction of both Iran and the IAEA on this uranium issue calls for a re-examination of the flawed potential military dimensions report,” Rep. Mike Pompeo (R., Kansas), a member of the House’s intelligence committee, told the Washington Free Beacon. “The IAEA cannot claim to have an accurate accounting of the situation while nuclear particles are unaccounted for.”

U.S. officials promised Congress during negotiations with Iran that no deal would be implemented until the issue of Iran’s past nuclear weapons work was settled.

“Even Obama administration officials disagree with the report’s conclusions, now six months later,” Pompeo said. “It is common sense that when you uncover a problem, you investigate until you find a solution. Now all agree we have a new fact—and a problem. Failing to investigate what happened with Iran’s nuclear weapons program sets a dangerous precedent.”

Sen. Mark Kirk (R., Ill.), another vocal critic of the administration’s diplomacy with Iran, told the Free Beacon that international inspectors with the IAEA were not thorough enough in their investigations due to “political pressure” from pro-Iran forces.

“It’s deeply troubling that the world’s nuclear watchdog, the International Atomic Energy Agency, appears to have lost its independence due to the Iran nuclear deal,” Kirk said. “Nuclear inspectors should have intensified their investigation into Iran’s nuclear weapons program after uranium particles were found at Iran’s military base at Parchin, but instead they stood down due to political pressure.”

Senior congressional officials apprised of the situation told the Free Beacon that the administration ignored these new nuclear findings at a critical point in its diplomacy with Iran.

“The IAEA’s PMD [Possible Military Dimensions] report came out in December, and Obama administration officials are only just now speaking—anonymously—on why they disagree with the report and why these nuclear materials are a huge problem,” the source said. “They cannot so easily assuage their consciences and undo the damage they caused by closing the PMD case. The Obama administration’s decision to ignore Iran’s covert nuclear weapons development, and attempt to sweep it under the rug, will no doubt haunt us for decades.”

Pompeo and other House lawmakers introduced a bill in January that would require the Obama administration to provide a full accounting of Iran’s past nuclear weapons work before any sanctions on the Islamic Republic were lifted.

Another source who works closely with Congress on the Iran issue told the Free Beacon that the new nuclear disclosures cast doubt on past international reports claiming that Iran has stopped all nuclear work.

“It’s time to reopen the so-called PMD file, to figure out what weapons work Iran was doing,” the source said. “The IAEA is supposed to make sure that Iran has stopped all of the nuclear weapons work it was doing, but here is a place where there is broad confusion over what nuclear weapons work was happening. So there’s no way for the IAEA to confirm it stopped. The first step to fixing that is to have the IAEA go back into Parchin and figure out exactly what was happening.”

One last item:

UANI Sparks Debate in India on Risks and Propriety of Doing Business in Iran

UANI Leadership Pens Op-ed and Conducts Interview in Indian Media

New York, NY – United Against Nuclear Iran (UANI), the non-profit, non-partisan organization dedicated to heightening awareness of the danger the Iranian regime poses to the world, has sparked a national debate in India on the risks and propriety of doing business in Iran. UANI is in the midst of a global education and awareness campaign focused on the corporate risks of doing business with Iran.

In a June 19 op-ed in The New Indian Express, UANI Chairman Sen. Joseph I. Lieberman warned that doing business with “Iran can create more problems for India than it can solve“:

In Iran, business is routinely intertwined with terrorism. Therefore, if Indian companies sign deals with Tehran, they will be lending support to its belligerent behaviour… Pursuing business in Iran can also lead to losing out on more lucrative opportunities in countries that oppose its hegemonic policies. For instance, India has the choice to invest in the US, Britain, France, Germany, Japan, Saudi Arabia, Kuwait, UAE, other GCC countries, and allied countries with a combined GDP of over $32 trillion, or take a gamble on Iran’s economy with a GDP of under $400 billion. There is a real risk that Indian companies investing in Iran will lose market share in some of these other countries. So, while Iran could help alleviate India’s energy problems, there are better ways to solve those. Doing business with the regime can create even more problems for New Delhi-economically, diplomatically, and in terms of security.

In a June 10 interview in India’s Hard News, UANI CEO Amb. Mark D. Wallace said:

UANI is aware of the economic and political links between Iran and India. UANI is also aware of similar ties between India, the US and numerous other countries in the region that feel threatened by Iranian aggression. I doubt it is in India’s national interest to side with a state associated with terrorism, corruption and money laundering over a confederation of responsible state actors opposed to Iranian regional hegemony. Moreover, if India wants to oppose corruption and terrorism, it cannot at the same time embolden and reward a regime that is notoriously corrupt and also the world leading state sponsor of terrorism. Indian leaders should back up their rhetoric with action and use its ties and link to Iran to influence the regime to change its terrorist behaviour and corrupt business environment instead of prematurely rewarding Iran with Indian business.

A statement by Sen. Lieberman and Amb. Wallace regarding Indian Prime Minister Narendra Modi’s visit to Iran on May 22-23 was featured widely in Indian media, including the Business Standard, India Today, DNA India, CNN-News18, and the Deccan Chronicle. UANI reminded Prime Minister Modi of his previous strong statements about fighting terrorism and corruption.

The Business Standard responded to the statement with an editorial addressing the “unsolicited advice” from the “maverick former Senator” Joe Lieberman.

Hearing Scheduled on Radical Islam in Combating Terrorism

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In part from Conservative Review: Next Tuesday, June 28, Sen. Ted Cruz (R-TX), who chairs the Judiciary Subcommittee on Oversight, Agency Action, Federal Rights and Federal Courts, will conduct a hearing investigating the willful blindness on the part of the relevant law enforcement agencies to domestic Islamic terror networks.  The subject of the hearing is “Willful Blindness: Consequences of Agency Efforts To Deemphasize Radical Islam in Combating Terrorism.”

Attorney General Loretta Lynch announced at a press conference that the motives of the Orlando jihadist might never be known and that “our most effective response to terror…is unity and love.”  This comes on the heels of the government’s attempt to redact any mention of Islamic rhetoric in the 911 call and DHS releasing another internal document scrubbing all references to Islamic terror. Just this week, the Council on American-Islamic Relations (CAIR), a front group for Hamas, was allowed to sit in on FBI interviews with members of the Fort Pierce mosque. The FBI was supposed to cut ties with CAIR, and DOJ was supposed to prosecute them in 2009 following the Holy Land Foundation trial, in which CAIR was implicated as a co-conspirator, yet they are granted full access to FBI counter-terrorism investigations.

This hearing will likely focus on which figures within the federal government worked to squelch any research connecting the dots between local Muslim Brotherhood officials, these individual terrorists, and foreign terror networks. Senators on the committee now have an opportunity to expose the Muslim Brotherhood influence within DHS and the FBI, their invidious “Countering Violent Extremism” Agenda, and their hand in covering up counter-terrorism investigations.  They can demonstrate how the federal government has hamstrung local law enforcement by refusing to cooperate and share information regarding jihadists living in their communities.

Most importantly, this is the first opportunity to finally change the narrative from the false discussion about guns, which has nothing to do with Islamic Jihad. Hopefully, this committee hearing will be the beginning of a concerted effort for the legislative branch to actually engage in some critical oversight of the perfidious actions within the top echelons of federal law enforcement.  The fact that GOP leaders in the House and Senate are not pushing multiple hearings and legislation dealing with this issue is scandalous, but unfortunately, not unexpected. Full story and audio is found here from Conservative Review.

****   

“Based on open-source research conducted on a list provided by the Department of Justice, the Subcommittee on Immigration and the National Interest has determined that at least 380 of the 580 individuals convicted of terrorism or terrorism-related offenses between September 11, 2001 and December 31, 2014, were born abroad.” More here.

Further: In June 2016, CIA Director John Brennan testified that ISIS “is probably exploring a variety of means for infiltrating operatives into the West, including in refugee flows, smuggling routes and legitimate methods of travel.”

·           In March 2016, the top U.S. military commander in Europe—Air Force General Philip Breedlove—told a Senate Committee that ISIS is infiltrating the ranks of refugees entering Europe, and that terrorists, returning foreign fighters and criminals are now part of the “daily” refugee flow.

·           In September 2015, when asked if ISIS could infiltrate the refugees, Obama’s former top envoy on the coalition to defeat ISIS, General John Allen told ABC News, “I think we should watch it. We should be conscious of the potential that Daesh (aka ISIS) may attempt to embed agents within that population.”

·           In October 2015, FBI Director James Comey said during a House Committee on Homeland Security hearing that the federal government does not have the ability to conduct thorough background checks on all of the 10,000 Syrian refugees that the Obama administration says will be allowed to come to the U.S.

In September 2015, the US Director of National Intelligence, James Clapper said “We don’t obviously put it past the likes of ISIL to infiltrate operatives among these refugees.”

·           In September 2015, State Department Spokesman John Kirby admitted it’s “possible” for those with ISIS ties to sneak in the US through the refugee program.

·           In February 2015, when asked by Rep. Michael McCaul if bringing in Syrian refugees could pose a risk to Americans, Deputy Director of the National Counterterrorism Center Nicholas Rasmussen said “It’s clearly a population of concern.”

·           In February 2015 assistant director for the FBI, Michael Steinbeck said in a House Homeland Security hearing that he was “concerned” that bringing in Syrian refugees could pose a greater risk to Americans.

·           In April 2015 House Homeland Security Committee Chairman, Rep. Michael McCaul said, “The intelligence community has briefed me that [terrorists] want to exploit the refugees — [that] terrorists want to exploit the refugee program to infiltrate and get in.”

 

Per Documents, State Dept. Knew About Hillary Server

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Emails: State Dept. scrambled on trouble on Clinton’s server

WASHINGTON (AP)— State Department staffers wrestled for weeks in December 2010 over a serious technical problem that affected emails from then-Secretary Hillary Clinton’s home email server, causing them to temporarily disable security features on the government’s own systems, according to emails released Wednesday.

The emails were released under court order Wednesday to the conservative legal advocacy group Judicial Watch, which has sued the State Department over access to public records related to the presumptive Democratic presidential nominee’s service as the nation’s top diplomat between 2009 and 2013.

The emails, reviewed by The Associated Press, show that State Department technical staff disabled software on their systems intended to block phishing emails that could deliver dangerous viruses. They were trying urgently to resolve delivery problems with emails sent from Clinton’s private server.

“This should trump all other activities,” a senior technical official, Ken LaVolpe, told IT employees in a Dec. 17, 2010, email. Another senior State Department official, Thomas W. Lawrence, wrote days later in an email that deputy chief of staff Huma Abedin personally was asking for an update about the repairs. Abedin and Clinton, who both used Clinton’s private server, had complained that emails each sent to State Department employees were not being reliably received.

After technical staffers turned off some security features, Lawrence cautioned in an email, “We view this as a Band-Aid and fear it’s not 100 percent fully effective.”

The AP initially reported Wednesday that the emails described security features being turned off on Clinton’s own private server, but State Department spokesman John Kirby clarified hours later that the emails described “a series of troubleshooting measures to the department’s system — not Secretary Clinton’s system — to attempt to remedy the problem.”

The emails were released under court order Wednesday to the conservative legal advocacy group Judicial Watch, which has sued the State Department over access to public records related to the presumptive Democratic presidential nominee’s service as the nation’s top diplomat between 2009 and 2013.

Clinton has repeatedly denied there is any evidence her private email server ever was breached. Her campaign did not immediately provide comment Wednesday.

Days after the technical crisis, on Jan. 9, 2011, an IT worker was forced to shut down Clinton’s server because he believed “someone was trying to hack us.” Later that day, he wrote, “We were attacked again so I shut (the server) down for a few min.” It was one of several occasions when email access to Clinton’s BlackBerry smartphone was disrupted because her private server was down, according to the documents.

The AP reported last year that in the early morning hours of Aug. 3, 2011, Clinton received infected emails, disguised as speeding tickets from New York. The emails instructed recipients to print the attached tickets. Opening an attachment would have allowed hackers to take over control of a victim’s computer.

In a blistering audit released last month, the State Department’s inspector general concluded that Clinton and her team ignored clear internal guidance that her email setup broke federal standards and could leave sensitive material vulnerable to hackers. Her aides twice brushed aside concerns, in one case telling technical staff “the matter was not to be discussed further,” the report said.

The State Department has released more than 52,000 pages of Clinton’s work-related emails, including some that have since been classified. Clinton has withheld thousands of additional emails, saying they were personal. The emails released Wednesday were not made available until after the inspector general’s office published its report, and Judicial Watch asked a federal judge to force the State Department to turn them over.

The case is one of about three dozen lawsuits over access to records related to Clinton’s time as secretary, including one filed by the AP. As part of its ongoing suit, lawyers from Judicial Watch on Wednesday questioned Bryan Pagliano, a former IT staffer for Clinton who helped set up the server, under oath. According to the group, Pagliano repeatedly responded to questions by invoking his Fifth Amendment right against self-incrimination, as he did last year before a congressional committee.

The FBI is also investigating whether Clinton’s use of the private email server imperiled government secrets. It has recently interviewed Clinton’s top aides, including former chief of staff Cheryl Mills and Abedin.

Republican presidential candidate Donald Trump said in a speech Wednesday that Clinton’s email server “was easily hacked by foreign governments.” Trump cited no new evidence that hackers had successfully breached Clinton’s server, but he said unspecified enemies of the United States were in possession of all her emails.

“So they probably now have a blackmail file over someone who wants to be President of the United States. This fact alone disqualifies her from the presidency,” Trump said. “We can’t hand over our government to someone whose deepest, darkest secrets may be in the hands of our enemies.”

**** The lies, the lies…

State Department Memo Conflicts With Claims From Top Security Official

State Department official claimed he did not know about private Hillary server

 FreeBeacon: State Department official who told Congress he had no knowledge of Hillary Clinton’s private email server was included on an internal memo that discussed the server’s installation on March 17, 2009, the day it was allegedly set up.

The memo and other documents published by the watchdog group Judicial Watch on Wednesday conflict with claims that State Department security official John Bentel was unaware of Clinton’s personal email server.

Bentel has declined through his attorney to answer questions about the server from the Senate Judiciary Committee, citing a lack of knowledge. The committee has repeatedly sought testimony from Bentel over the past several months.

“According to his attorney, Randall Turk, Mr. Bentel knew nothing about the server at the time,” said Senate Judiciary Committee Chairman Charles Grassley in floor remarks on May 26. “Mr. Bentel’s attorney claimed that his client only learned of the controversial email arrangement after it was reported in the press.”

Bentel’s attorney did not respond to request for comment.

The March 17, 2009 server memo was emailed Bentel and three other State Department security officials from a department IT officer. It was headlined “Secretary Residential Installation Hotwash.” The term “hotwash” is a reference to a briefing that takes place after a consequential event.

The first bullet point on the memo discussed Clinton’s “Unclassified Partner System,” which identified a server in the “basement telephone closet.”

Clinton’s email server was reportedly set up on March 17, 2009, and she did not turn over any emails to the State Department that were sent or received before that date.

Judicial Watch received a copy of the memo, as well as other documents, as part of an ongoing public records lawsuit against the State Department. The document was previously mentioned in a State Department Inspector General report last month, which outlined extensive failures in the department’s public records process. However, the report did not list the recipients of the memo.

Other documents mentioned in the IG report raise additional questions about Bentel’s knowledge of Clinton’s server, according to Grassley. The report cited two State Department staffers who allegedly expressed concerns about the security of the setup to Bentel and were told to stop discussing the issue.

The Judiciary Committee chairman sent a letter to Bentel’s attorney on June 3, citing the discrepancies and again requesting an interview.

“At no time since I informed you of what we have learned from our interviews has Mr. Turk amended his position that you have ‘no memory or knowledge’ of these matters,” wrote Grassley.

“Based on the OIG report, it appears that your attorney’s representations to the Committee may have been false and misleading,” he added. “If the testimony to the Inspector General is true, then you did know of Secretary Clinton’s non-government email server and her private email use.”

Turk responded on June 10 to say his client “respectfully declines this invitation, as he has with prior invitations,” adding that Bentel had already discussed the issue with the House Select Committee on Benghazi.

Michael Jackson’s Twisted Pornography Collection

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News events and stories are generally worse than is ever reported. Some things may never be reported. In the case of Michael Jackson there was much more and below is in part of his case on child pornography. For the full summary go here, but do so with caution and warning of how graphic and disgusting it is as reported by the DailyMail.

   

‘One of the juveniles appeared to be a young teenager; the other appeared to be adolescent (pre-teen),’ stated the report.

‘The name “Greg” was printed above the child who appeared to be off teenage years. This subject appeared to be wearing a white terry cloth robe.

‘The name “Kendall” was printed over the adolescent aged individual. The adolescent individual was bare chested.

‘The picture does not depict the lower half of the children so it cannot be ascertained as to what they were wearing with regard to lower clothing.’

The reported later noted when describing these photos: ‘The phrases “Are you scared yet?” and “Ha! Ha!” were printed on the lower portion of the picture.’

There were more photos of those two boys found in another box of photos, this time alongside Jackson himself.

‘Again, these individuals were posed in provocative manners with bare chests,’ said the report.

Arrest: Jackson was accused of sexually assaulting Gavin Arvizo, a 13-year-old cancer survivor at the time of the search (mugshot above)

Arrest: Jackson was accused of sexually assaulting Gavin Arvizo, a 13-year-old cancer survivor at the time of the search (mugshot above)

Jackson was ultimately acquitted in 2005 after being charged with seven felony counts of child molestation and two felony counts of providing an intoxicant to a minor under the age of 14 when Gavin Arvizo came forward claiming that he had been sexually assaulted by the singer.

Gavin was a 13-year-old cancer survivor at the time of the alleged incidents.

The claims made by Gavin were similar to the ones made a decade earlier when another 13-year-old boy, Jordan Chandler, came forward to say he had been molested by Jackson.

No charges were ever filed against the singer however after police discovered the Chandler’s father may have been attempting to extort Jackson and the young boy’s mother claimed Jackson never touched her son.

Jordan however was able to perfectly describe Jackson’s buttocks, pubic hair, and distinctive marks on both his testicles and penis.

The mark on the penis could only be seen if it was lifted and was otherwise not visible. More here including video or the first raid on the home.

 

DoJ: National Healthcare Fraud Takedown

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In what the Justice Department is calling the largest takedown of healthcare fraud in U.S. history, federal authorities on Wednesday brought charges against 301 people for $900 million in false billings.

Among those charged includes 61 doctors, nurses, and other licensed medical professionals who, among other crimes, allegedly committed money laundering, identity theft, and Medicare Part D pharmacy fraud. Across the country, 23 states and 36 federal districts coordinated with the Justice Department and the Department of Health and Human Services to go after the alleged fraud schemes.

The defendants allegedly submitted Medicare and Medicaid claims the Justice Department said “were medically unnecessary and often never provided.” Some of the defendants were paid kickbacks for providing information for fraudulent bills. At least 28 doctors were among those charged on Wednesday. More from Atlantic.

 

Lynch/Justice Department: Good morning everyone and thank you all for being here.  I am joined by several key leaders in our nation’s efforts to address health care fraud: Department of Health and Human Services Secretary [Sylvia] Burwell; Assistant Attorney General for the Criminal Division [Leslie] Caldwell; United States Attorney [Wifredo] Ferrer of the Southern District of Florida; FBI Associate Deputy Director [David] Bowdich; HHS Deputy Inspector General for Investigations [Gary] Cantrell; DCIS Acting Director [Dermot] O’Reilly; and [Shantanu] Agrawal, Deputy Administrator and Director of the Center for Program Integrity at the Centers for Medicare and Medicaid Services.

We are here today to announce a significant step in the federal government’s ongoing work to keep our nation’s health care system free of fraud and exploitation and to ensure that taxpayer dollars are used lawfully and appropriately.  Over the last three days, the Medicare Fraud Strike Force – a joint effort between the Department of Justice and the Department of Health and Human Services – executed a significant nationwide health care fraud takedown.  This action involved charging or unveiling charges against  approximately 300 defendants in 36 federal districts for their alleged participation in a variety of schemes involving more than $900 million in fraudulent billings, making this the largest takedown in the Strike Force’s nine-year history.

The defendants named in these charges include doctors, nurses, pharmacists, physical therapists and home health care providers.  They are accused of a wide range of serious crimes, from conspiring to commit health care fraud to making false statements and from bribery to money laundering.  They submitted dishonest claims, charged excessive fees and prescribed unnecessary drugs.  One group of defendants controlled a network of clinics in Brooklyn that they filled with patients through bribes and kickbacks.  These patients then received medically unnecessary treatment, for which the clinic received over $38 million from Medicare and Medicaid – money that the conspirators subsequently laundered through more than 15 shell companies.  In another case, a Detroit clinic billed Medicare for more than $36 million, even though it was actually a front for a narcotics diversion scheme.  And yet another defendant took advantage of his position in a state agency in Georgia by accepting bribes and recommending the approval of unqualified health providers.  These are just a few examples of the criminals that we targeted in this operation and although the specific nature of their wrongdoing varied from case to case, all of them betrayed the basic principles of their professions.

In addition to the usual patterns of fraud and deception that we’ve encountered in the past, we also saw new trends emerging in this year’s charges.  For instance, in a number of cases involving the Medicare prescription drug benefit program known as Part D, we saw new evidence of identity theft, including the use of stolen doctors’ IDs to prepare fake prescriptions.  We have also seen a growing number of cases involving compounded medications, which are combinations of two or more drugs prepared by a licensed professional.  In recent years, the cost of these drugs has grown exponentially, making them a more attractive target for criminals looking to exploit them for profit.

As this takedown should make clear, health care fraud is not an abstract violation or benign offense.  It is a serious crime.  The wrongdoers that we pursue in these operations seek to use public funds for private enrichment.  They target real people – many of them in need of significant medical care.  They promise effective cures and therapies, but they provide none.  Above all, they abuse basic bonds of trust – between doctor and patient; between pharmacist and doctor; between taxpayer and government – and pervert them to their own ends.  The Department of Justice is determined to continue working to ensure that the American people know that their health care system works for them – and them alone.

In tackling these challenges, the Medicare Fraud Strike Force relies on close cooperation between the federal, state and local, governments.  Since 2014, the Justice Department’s Criminal Division has organized an annual National Health Care Fraud Training Conference for Assistant U.S. Attorneys and state and federal law enforcement officers, which has substantially expanded the reach of our actions.  More than 20 non-Strike Force U.S. Attorney’s Offices participated in this year’s takedown, helping us to combat health care fraud in a total of 30 federal districts nationwide, from Alaska to Florida.  We were also assisted by approximately 20 state Medicaid Fraud Control Units, a reflection of the close partnership between state and federal authorities in combatting health care fraud – a partnership that we will continue to strengthen in the days ahead.

I want to thank my colleagues in the FBI, the Criminal Division and U.S. Attorneys’ Offices for their ongoing efforts to combat health care fraud.  I want to thank all of the state and local law enforcement officers across the country who participated in this complex and fast-moving takedown.  And I look forward to continuing our work together in the days ahead.

At this time, I’d like to turn things over to Secretary Burwell, who has been a dedicated leader and indispensable partner in this critical work and who will provide additional details on today’s announcement.