USuncutMN says: Tax the corporations! Tax the rich! Stop the cuts, fight for social justice for all. Standing in solidarity with http://www.usuncut.org/ and other Uncutters worldwide. FIGHT for a Foreclosure Moratorium! Foreclosure = homelessness. Resist the American Legislative Exchange Council, Grover Norquist and Citizen's United. #Austerity for the wheeler dealers, NOT the people.



We Are The 99% event

USuncutMN supports #occupyWallStreet, #occupyDC, the XL Pipeline resistance Yes, We, the People, are going to put democracy in all its forms up front and center. Open mic, diversity, nonviolent tactics .. Social media, economic democracy, repeal Citizen's United, single-payer healthcare, State Bank, Operation Feed the Homeless, anti-racism, homophobia, sexISM, war budgetting, lack of transparency, et al. Once we identify who we are and what we've lost, We can move forward.



Please sign and SHARE

Showing posts with label fraud. Show all posts
Showing posts with label fraud. Show all posts

Saturday, June 11, 2011

June 10th, 2011 8:22 PM Disturbing New Statistics Show Huge Percentage Of Financial Fraud Against U.S. Government Comes From Healthcare Industry



Ever wondered who the biggest culprits are, when it comes to defrauding the taxpayers of the United States?

The answer to that question may surprise you.According to some shocking new statistics from the nonprofit Taxpayers Against Fraud (TAF) public interest group, the ranks of the admitted federal cheaters are occupied almost entirely by health insurers and the healthcare pharmaceutical industry.That’s the clear and thoroughly disturbing conclusion to be found in a revealing TAF study of the “Top 20” fraud lawsuits (ranked by dollar amounts) to have been decided by court judgments or agreed-upon settlements in recent years. Amazingly, the list of penalty awards – as adjudicated under legal procedures mandated by the U.S. False Claims Act – contains no fewer than 19 healthcare or health insurance entities . . . and only a single financial entity who isn’t engaged in the business of health insurance or medical care.
Astonishing? You bet it is. Even a quick look at the list of recent fraud convictions and fraud case settlements involving the U.S. healthcare industry (to review them for yourself: www.taf.org) should be enough to make any alert taxpayer ask: Why haven’t all of these obvious fiscal abuses by healthinsurers and the pharmaceutical industry been reported in the news media . . . even as the entire nation continues to debate the future of healthcare reform?As the Taxpayers Against Fraud website makes chillingly clear, some of America’s most best known and most trusted healthcare industry corporations are heading up the list of despicable cheaters whose conscienceless manipulation of federal health dollars has resulted in convictions or financial settlements with Uncle Sam.Some appalling examples from the TAF “Top 20” list:


No. 1 Fraud Offender: Pfizer -- $1 billion under the False Claims Act. Pfizer paid a total of $2.3 billion, of which $1.3 billion was a criminal fine for kickbacks and off-label marketing and $1 billion was paid under the False Claims Act.


No. 2 Fraud Offender: Tenet Heathcare -- $900,000,000 under the False Claims Act. In July 2006, Tenet Healthcare agreed to pay the Federal Government $900 million for billing violations that included manipulation of outlier payments to Medicare, as well as kickbacks, upcoding, and bill padding.


No. 3 Fraud Offender: HCA -- $731,400,000 under the False Claims Act.?In December 2000, HCA The Healthcare Company (formerly known as Columbia HCA), the largest for-profit hospital chain in the United States, pled guilty to criminal conduct and agreed to pay more than $840 million in criminal fines, civil penalties and damages for unlawful billing practices.


No. 4 Fraud Offender: Merck - $650,000 under the False Claims Act.?In January of 2008, Merck settled the very first nominal pricing fraud case in which the company was accused of taking kickbacks and violating Medicaid best price regulations for Vioxx (an arthritis drug), Zocor (a cholesterol drug), Pepcid (an acid-reflux drug), Cozaar (a hypertensive medication), Fosamax (a bone loss drug) Maxalt (a migraine medication) and Singulair (an asthma medication)


.****As you read through the “Top 20” list of fiscal malefactors who were either found guilty or agreed to settle in fraud cases against Uncle Sam, one fact stands out with startling clarity: 95 percent of these massively unprincipled cheaters were healthcare players . . . including some of the most venerated names in the pharmaceutical, hospital and health insurance industries.


Unfortunately, however, the taxpayers who are so frequently being bilked by these unscrupulous players haven’t been told that the record already shows how willing the U.S. healthcare industry is to stretch the rules and cheat the public in its ceaseless quest for grotesquely swollen profits.As a Ph.D. social worker who has spent much of the past 30 years counseling and defending whistleblowers who dare to speak out against fraud against the U.S. government, I learned a long time ago that the U.S. healthcare industry can’t be trusted to provide adequate medical care for the citizenry, or even to obey the laws and regulations that protect the taxpayers from being defrauded.


Make no mistake: That disturbing list of “Top 20” awards against healthcare insurers and the Pharmaceutical industry shows clearly that we cannot leave healthcare to the “profit-oriented” insurance companies and the hospital chains whose greed and willingness to short-change consumers on care is now common knowledge everywhere. The record shows clearly that allowing the insurers to dictate healthcare policy and healthcare costs can only produce disastrous results. A massive Harvard University study of treatment patterns among patients who were treated in hospital emergency rooms showed that “uninsured” patients were much more likely to die while in the hospital than those who were able to pay the sky-high premiums for adequate healthcare coverage. 


(To learn more about the study, click on:http://news.yahoo.com/s/hsn/uninsuredtraumapatientsmorelikelytodiestudy).


The first step on the road to getting healthcare reform right is to understand that we are not on a “level playing field,” and that the health industry will stop at nothing to protect its immense profits, regardless of the needless death and the needless suffering their behavior may cause the rest of us.


Donald R. Soeken, founder of the nonprofit Whistleblower Support Fund – a public service organization that supports whistleblowers – can be contacted at: helpline@tidalwave.net and by phone at 301-953-7353. All healthcare fraud cases can be researched on the International Whistleblower Archive.

Sunday, April 24, 2011

And then there are thugs at ... yup! Goldman Sachs

Senate panel rebukes Goldman, others over risky mortgage deals

McClatchy first raised the issue of Goldman's secret bets last year.

More on this Story

WASHINGTON — Goldman Sachs, which paid $550 million last summer to settle federal fraud charges from an offshore mortgage deal, failed to tell investors in a second, $2 billion bundle of risky mortgage securities that it was secretly betting on their default, a Senate panel charged Wednesday.
When the securities' value plunged, Goldman reaped a $1.35 billion profit at the expense of its investors, the Permanent Investigations Subcommittee said in a scathing summary of a two-year investigation into the chain of deceit and greed that caused the nation's financial crisis.
Democratic Sen. Carl Levin of Michigan, the subcommittee chairman, accused the Wall Street giant of deep conflicts of interest, "abusive practices" toward its investors and "disgraceful" tactics in exiting the subprime home loan market.
At a marathon hearing last year, Levin charged that Goldman's top brass secretly encouraged the firm's traders to make huge "short" bets against the housing market before it began to crash in 2007. Goldman Chief Executive Officer Lloyd Blankfein denied Levin's assertion that the firm was "massively short."
Levin said that the subcommittee would refer to the Justice Department and the Securities and Exchange Commission, for possible enforcement action, the testimony of witnesses at four sets of hearings into the financial meltdown last year, including that of Blankfein and half a dozen other Goldman executives.
Levin also indicated that he'd recommend other, more specific referrals to prosecutors, but neither he nor his aides would describe them.
Goldman spokesman Michael DuVally said the company's executives gave "truthful and accurate" testimony, but also issued a statement suggesting the world's leading investment bank had been chastened.
"While we disagree with many of the conclusions of the report, we take seriously the issues explored by the subcommittee," he said.
While Goldman was the centerpiece of the 639-page report and 700 newly disclosed documents, the panel's investigators laid out a tableau of abuses, malfeasance and profiteering, focusing on a few major financial industry players, unlike the recent sweeping report of the Financial Crisis Inquiry Commission.
"Using emails, memos and other internal documents," Levin said, "this report tells the inside story of an economic assault that cost millions of Americans their jobs and homes, while wiping out investors, good businesses and markets."
Detailing four case studies pieced together from millions of subpoenaed documents, the report assailed leaders of Washington Mutual, the Seattle thrift that collapsed in the biggest bank failure in U.S. history; federal regulators who neglected to rein it in, and Wall Street credit ratings agencies that buckled to pressure and big bucks from investment banks, blessing their risky mortgage securities with Triple-A ratings.
In addition, it took the Germany's Deutsche Bank to task for peddling mortgage securities scorned as "crap" and "pigs" by one of its senior executives, Gregg Lippmann, who referred to the broad market for risky mortgages as a "Ponzi scheme." Lippmann secretly bet as much as $5 billion of the company's money on a sharp drop in the value of mortgage securities, reaping $1.5 billion in profits to offset some of the bank's heavy mortgage losses.
Unlike the crisis inquiry commission, which fractured in partisan disputes, the Senate subcommittee report was presented as fully bipartisan. Republican Sen. Tom Coburn of Oklahoma, the ranking minority member, joined Levin at a news conference, decrying the expenditure of over $8 million on the independent commission "that didn't report anything of significance."
Coburn also assailed Congress for failing to police the financial industry.
"We can prevent the next one of these from happening if Congress does its job," Coburn said.
How regulators treat the report will determine whether Goldman's legal troubles stemming from its hasty exit from the subprime mortgage market in late 2006 and 2007 could reach a new crescendo or are now behind it.
The SEC sued Goldman in April 2010, accusing the firm and one of its young executives, Fabrice Tourre, of helping a hedge fund client dupe foreign investors in an exotic $1 billion deal that amounted to a bet on the performance of a package of home mortgage securities.
Upon settling the case in July for $550 million, Goldman said that SEC officials had completed reviews of its other deals and saw no need for further enforcement action.
The subcommittee report, however, accuses Goldman of conflicts of interest in three other deals in which it allegedly withheld key information from clients, the most serious known as Hudson Mezzanine-2006-1.
According to the report, Goldman executives selected the securities that would be included in the $2 billion deal with no input from investors, which included the Wall Street investment bank Morgan Stanley. Goldman didn't disclose that it would be holding the "short" position — betting on the default of the securities, even when a representative of one investor, the National Australia Bank, directly asked, it said.
Goldman used the deal "to transfer the risks" of $1.2 billion in risky home loans to investors, the report said. Goldman not only rid itself of risky assets, but also wound up with net profits of $1.35 billion, the report said.
A spokeswoman for Morgan Stanley, which lost most of its $1.5 billion investment, declined comment.
The report specifies Goldman's legal duties to sell investors only "suitable" products and to disclose "material information that a reasonable investor would want to know." Levin acknowledged, however, that federal law enforcement agencies have yet to successfully prosecute a single person on Wall Street as a result of the economic meltdown.
But, he said, "There's still time. Hope springs eternal."
The report added new flesh to the litany of tales of greed and neglect fueling the housing bubble whose bursting sank the economy. For example:
_ Two Washington Mutual loan offices in Los Angeles were writing subprime loans with such soaring default rates that company officials reported their failures to higher-ups. Not only was no disciplinary action taken, but also the loan officers were rewarded with trips to Hawaii for setting sales records.
_ Internal Washington Mutual documents lifted any mystery about the reason the firm plunged into the subprime market. According to the company's data, upon sale of a subprime mortgage to investors or Wall Street, the firm booked a 1.5 percent gain on sale, more than seven times the 0.19 percent gain from selling a conventional, fixed-rate mortgage.
_ Mass ratings downgrades by Moody's Investors Service and Standard & Poor's in July 2007 exposed the risky nature of mortgage investments that the same ratings agencies considered to be as safe as Treasury bills a few months earlier. But internal emails show that the credit rating agencies knew their ratings wouldn't "hold," yet delayed taking action "to preserve market share."
_ Goldman was net "short" by more than $10 billion at times, but when the price of short bets rose in the spring of 2007, its traders tried to engineer a new version of a "short squeeze," which occurs when people betting against a security are forced to buy it back because it's gaining value. In this case, Goldman sought to mark down the value of bets against the housing market, allegedly to scare some players into selling so the firm could more cheaply enlarge its bets on, and its profits from, a housing slump.

MORE FROM MCCLATCHY