Tagged: fraud

Call for investigation of NRA fraud, political misuse of donations

sensible-gun-laws

Citizens for Responsibility and Ethics in Washington requested the Internal Revenue Service open an examination into the finances of the National Rifle Association after the group failed to disclose more than $33.5 million it spent on political activity over six years. CREW also called on the Federal Election Commission to audit the NRA’s campaign arm, the NRA Political Victory Fund (NRA-PVF), and its lobbying arm, the NRA Institute for Legislative Action (NRA-ILA), after the group apparently violated federal election law by soliciting donations for the NRA-ILA that went instead to the NRA-PVF.

Between 2008 and 2013, the NRA-ILA, an internal division of the NRA, reported to the FEC and in annual financial statements that it spent more than $33.5 million on political activity. However, for each of those years, the NRA stated on its Form 990 tax return that it did not engage in any political activity at all, and the group did not once file a Schedule C disclosing its political expenditures. This failure to disclose political activity appears to violate federal law and, if it was intentional, could violate several criminal statutes. The NRA blamed the failure to disclose its political activity on a “clerical error” but did not express any intention to amend its Form 990 returns or file Schedule Cs…

The NRA-ILA reported to the FEC nearly $11 million in independent expenditures and member communications expressly advocating election or defeat of candidates for federal office between 2008 and 2013, and disclosed on annual financial statements prepared by an independent auditor spending more than $22.5 million on fundraising and administrative expenses for its political action committee, NRA-PVF, during the same period. All of these expenditures were for political activities that needed to be reported on the organization’s tax filings but were not.

CREW also called on the FEC to audit the NRA-PVF and NRA-ILA because it appears these groups may have solicited donations in violation of federal election law by failing to disclose to donors that their money would be used for political purposes. The NRA also appears to have violated federal election law by soliciting donations from the general public, which it is prohibited from doing as a member organization, and by failing to disclose the employer and/or occupation of its contributors.

It’s always heartwarming to witness rightwing nutball organizations like the NRA ignoring essential transparency requirements while they blather about conspiracies against their pet demento issues. Perish the thought they actually live up to anything approaching ethical standards -0 like any normal business entity.

They set the standard for corruption even higher than Congressional Republicans.

Pic of the day

seppblatter moneyball

Fifa president Sepp Blatter is showered with cash by British comedian Lee Nelson, who interrupts a news conference in Zurich. Nelson, whose real name is Simon Brodkin, gained entry to the Fifa headquarters in Zurich and poured dozens of fake dollar bills over the stage, suggesting the money go towards a North Korea World Cup bid.

Har.

Scientist faked HIV breakthrough — sentenced to prison

A former Iowa State University scientist who altered blood samples to make it appear he had achieved a breakthrough toward a potential vaccine against HIV was sentenced on Wednesday to more than four and a half years in prison for making false statements in research reports.

Dong-Pyou Han, 58, also must pay $7.2m to a federal government agency that funded the research. He entered a plea agreement in February admitting guilt to two counts of making false statements.

Government prosecutors said Han’s misconduct dates to 2008 when he worked at Case Western Reserve University in Cleveland under Professor Michael Cho, who was leading a team testing an experimental HIV vaccine on rabbits. Cho’s team began receiving NIH funding, and he soon reported the vaccine was causing rabbits to develop antibodies to HIV, which was considered a major breakthrough. Han said he initially accidentally mixed human blood with rabbit blood, making the potential vaccine appear to increase an immune defense against HIV, the virus that can cause Aids. Han continued to spike the results to avoid disappointing Cho, his mentor, after the scientific community became excited that the team could be on the verge of a vaccine.

Iowa State recruited Cho in 2009, and his team – including Han – continued the research with NIH funding. A group of researchers at Harvard University found in January 2013 the promising results had been achieved with rabbit blood spiked with human antibodies…

Government prosecutors sought prison time to serve as a deterrent to Han and others who might consider research fraud.

Is this a positive sign – or window dressing? I’d like to believe it’s the former.

There are new science review publications rolled out by hustlers just to give the appearance of peer-review – for a fee. There is no shortage of quacks ripping off the current generation of Luddites every week with junk science to reinforce – and profit from – fears of modern medicine.

Arrest warrant out for nuclear powerplant developer


“Don, honey, we can put the executive swimming pool over there”

Don Gillispie — who pitched a plan to build a nuclear power plant in Southwest Idaho until federal investigators accused his company of fraudulent activity — didn’t show up for two arraignment hearings this week in an ongoing criminal case.

The first time, on Tuesday, U.S. Magistrate Larry M. Boyle rescheduled the arraignment for Thursday, court documents state. When Gillispie also missed that hearing, prosecutors asked the judge to issue a warrant for Gillispie’s arrest, the U.S. Attorney’s Office confirmed.

Gillispie is accused of duping investors to buy stock in Alternate Energy Holdings Inc. (AEHI) at an artificially inflated price and then funnelling the money to himself and his company’s former vice president, Jennifer Ransom. Prosecutors could now charge him with failure to appear in the case. For one count, wire fraud, that could mean up to 10 additional years in prison if he is convicted…

Also, U.S. District Judge Edward J. Lodge reissued a judgment against Gillispie and AEHI in a several-year-old civil case brought by the U.S. Securities and Exchange Commission…

From the $14.6 million in investor money received, Gillispie and Ransom “received significant salaries and other compensation that they did not report as income to the Internal Revenue Service,” according to court files.

Do your due diligence, folks, before you invest a penny of your hard-earned income. If it sounds too good to be true, it probably ain’t.

Canada’s right-wing government is falling apart on its own

It’s a good thing for Canada’s Prime Minister Stephen Harper that he’s been out of the country.

Last weekend, in an apparent attempt to distance himself from whatever was about to emerge at the trial of disgraced Senator Mike Duffy, the Conservative leader took off for Iraq and Kuwait.

He ostensibly made the surprise trip to bolster the troops there who are training Kurdish fighters. However, to more cynical political observers, the visit was a blatant attempt to win back military support after last year’s brutal budget cuts to veterans services and benefits. But really? It was all about the photo ops, the stage-managed appearances before the red maple leaf blazing behind fighter jets carefully arranged nose-to-nose just so…

Then there was the case of Omar Khadr, the Canadian-born man captured at age 15 in Afghanistan and imprisoned for nearly half his life at Guantanamo Bay. In 2012, he was finally repatriated to Canada after pleading guilty in 2010 before a US military tribunal to five war crimes. Sentenced to eight years to be served in Canada, he won bail late last month in an Alberta court…

The Harper government, which trots out Khadr as the very scary model of a terrorist, going so far as to bar media access to him, did everything it could to fight his release – as expected. It announced an appeal of the bail decision and then, when it seemed that the proceedings couldn’t be stopped, tried for a stay.

But, on Thursday, Khadr won his freedom on strict conditions and emerged before a horde of reporters. Social media exploded with Canadians’ overwhelmingly favourable reactions to his charisma and humble demeanour, with many remarking on how Khadr’s appearance put the lie to the Harper government myth of the cut-throat, murderous terrorist, the political football they kick around as they play to their base in their terrorists-under-every-bed tactics…

The week grew worse still…Damaging evidence was being produced in the Ottawa courtroom where Senator Mike Duffy, a former Canadian TV star, is facing 31 charges of bribery, breach of trust and fraud related to his living and travel expenses.

Conservative MPs were called to testify that taxpayers were subsidising party fundraising efforts by flying Duffy around the country. Even more detrimental to the PMO were revelations of emails exchanged between Harper’s most trusted senate appointees and his top staffers documenting attempts to alter an audit report and conceal its findings.

Probably the week’s most stinging blow came from Harper’s home province of Alberta where, on Tuesday, in a stunning election upset, the provincial NDP won a majority, toppling a 44-year reign by the Conservatives…

Resource sector shares immediately dropped. Newly elected premier Rachel Notley had promised to terminate government support for the Northern Gateway pipeline to the British Columbia coast, and the Keystone XL pipeline to the Texas Gulf coast, two projects that have been the centrepiece of the Harper government’s economic strategy. She also discussed raising the royalties that resource companies pay to the public treasury, royalties that are reportedly the lowest in the world.

When the prime minister returns from his travels, he may find that the political chickens have come home to roost.

Best quote? Opposition leader Tom Mulcair of the New Democratic Party charged, “This is pure Richard Nixon”.

How to win friends & buy influence in Washington DC — Google edition

The Wall Street Journal recently published a report based on accidentally released documents about FTC’s two-year investigation into Google. The 160-page document concluded that Google’s “conduct has resulted—and will result—in real harm to consumers and to innovation in the online search and advertising markets.” I am sure Yelp and others would agree with that conclusion, and are contemplating further action.

The search results manipulation by Google has resulted in complaints that are far worse than anything FTC could have done — people have complained of declining quality and user experience. The emergence of social and mobile environments have taken some zing out of Google. Nevertheless, the WSJ report and reading through the excerpts made me wonder if there is a correlation between FTC investigation and Google’s lobbying efforts…

And after Om’s intro to the topic – we might look back at this:

Google News buries news of Google’s FTC investigation

After the embarrassing leak of a U.S. Federal Trade Commission investigation that described how Google shifted around its search results to harm competition, Google News has shifted its search results to harm journalism, promoting instead a fluff piece glorifying Google…

The exposé of Google’s “strategy of demoting or refusing to display, links to certain vertical websites in highly commercial categories,” as described in the FTC’s 2012 investigation, which concluded that “Google’s conduct has resulted – and will result – in real harm to consumers and to innovation,” was essentially erased from existence in 2013 when Google agreed to make a few minor changes to avoid a federal antitrust lawsuit.

The Wall Street Journal noted that the FTC Commission watered down its public conclusions issued about Google before letting the company off the hook, leaving the findings of the staff investigation secret for two years.

Daniel Lyons reply is included in the AppleInsider article as an update.

Read it – and judge for yourself.

Dumb crook of the day

Joey Patterson

An Idaho fugitive was caught Saturday after he made a post on Facebook inviting friends to join him at batting practice in Boise.

KTVB TV station in Boise says…that Caldwell police officers showed up at the softball field after seeing the post on social media and arrested 22-year-old Joey Patterson.

He was wanted on a felony warrant for violating his probation on a fraud case out of Twin Falls. Patterson was booked into Canyon County Jail, where he is being held without bond.

Caldwell Police Sgt. Joey Hoadley says police often use social media to track down a fugitive. Hoadley says “even fugitives can’t keep from updating their Facebook status, and it leads to some great arrests.”

Har!

I’ve said it before, I’ll say it again. You don’t become a petty crook because you’re extra smart.

Snuggies — as seen on TV — came with hidden charges and fraud

A marketing company known for its Snuggie infomercials settled state and federal claims that it stuck consumers with hidden charges that almost doubled the cost of the product, a blanket with sleeves…

The company lured consumers with attractive “buy one, get one free” offers but didn’t adequately disclose that additional fees and handling charges almost erased the promise of the “free” item, New York Attorney General Eric Schneiderman said. Through confusing ordering processes, consumers sometimes were sold additional items which they didn’t intend to buy, Schneiderman said…

Hawthorne, New York-based Allstar Marketing Group LLC, which also sells the Perfect Brownie Pan and Magic Mesh screen, agreed to pay $8 million to settle Federal Trade Commission and New York state probes, Schneiderman said. The company also agreed to change the ordering process and make it clearer…

There was no finding that the company broke any laws, Allstar said in a statement. The company said it will provide “multiple opportunities for customers to confirm their orders before placing them” and will “clarify ordering and return procedures…”

Marketers must clearly disclose all costs, including processing and handling fees, said Jessica Rich, director of the FTC’s Bureau of Consumer Protection.

IMHO, what these scumbags are guilty of is behavior pretty the norm for a lot of the crap I see being sold to folks as “exclusive” and “seen only on TV”. When you’re not being hustled by hidden charges, you often run the risk of outright lies and myths worthy of a SuperPAC campaign commercial.

Copper busted for using stolen license plate — ignored 500+ tickets

oliu

A police detective faces felony charges for using stolen license plates to avoid tolls on Florida’s Turnpike.

Sweetwater police detective Octavio Oliu surrendered Thursday, more than a year after he was suspended from the tiny, scandal-ridden department in Miami-Dade County…

Sweetwater Mayor Jose Diaz said 42-year-old Oliu had been on unpaid leave…

The investigation began in August 2013 when a highway patrol trooper stopped Oliu’s SUV. The trooper ran a computer check of the Michigan license plate and found it had been reported stolen.

Oliu is accused of racking up over 500 SunPass toll violations and red-light camera citations.

He’s charged with official misconduct and organized scheme to defraud.

What’s his claim for innocence? He was working undercover? He didn’t notice he had a Michigan plate on his car?

Har!

Hospitals could face penalties for missing electronic health record deadline

More than half of U.S. hospitals were on the hook to meet a new set of “meaningful use” of electronic health records criteria — known as the stage 2 criteria — by the end of the fiscal year that ended in July. The new study’s data, which was gathered in late 2013, suggests that many may have missed the milestone. At the time, only 5.8 percent of those hospitals were on track to adopt all 16 of the stage 2 meaningful use goals.

Hospitals that bill the Medicare program and didn’t meet the criteria in fiscal year 2014 will be subject to financial penalties in fiscal year 2015…

The criteria, set forth by the Centers for Medicare and Medicaid, include relatively easy items such as using electronic health records to enter orders for medication as well as lab and radiology tests, to chart patients’ vital signs and to record patient demographics. More difficult activities include sharing electronic health record data with patients online, sharing electronic data with other providers who care for the same patients and submitting electronic data to vaccine registries…

The criteria are the second tier of compliance with the 2009 Health Information Technology for Economic and Clinical Health Act, also known as HITECH. The act requires hospitals to move from paper to electronic recordkeeping. At first, only a basic set of criteria is required, but once a hospital starts down the path, it must meet higher benchmarks at scheduled dates. The more than half of hospitals that were scheduled to meet the stage 2 meaningful use criteria in 2014 were the first wave to begin adopting digital medical records.

The study determined that the number of hospitals adopting electronic health records continues to rise steeply. Nearly 60 percent of hospitals now have at least a basic system. And 90 percent of those were on track to achieve many of the 16 core criteria.

The study suggests that, where hospitals are not able to meet criteria, they aren’t always to blame. Vendors must upgrade their products to make necessary functions available to meet the criteria. These challenges, however, appear to be concentrated in specific types of hospitals.

“Policymakers may want to consider new targeted strategies to ensure that all hospitals move toward meaningful use of electronic health records,” Adler-Milstein said. “We found that rural and small hospitals lag behind, suggesting a need to expand federal efforts to help these institutions select, purchase, implement and successfully use electronic health records in ways that earn them incentive payments and enable them to engage in new care delivery and payment models.”

Overdue. Way overdue. One of the best things we can thank Obama for – at two levels.

I really enjoy being able to access my medical records, diagnoses and communications – and love seeing them available between my physicians. Two of the four physicians on my Medicare chart are there: my GP and my eye doctor. Mostly just annual checkups; but, I’m glad they can see other’s work. The other two have just as perfunctory a relationship – and I’m confident they’ll soon be on board.

The best reason in the world to get hospitals into the mix makes me feel great – as a cynical geek. Because computational analysis is turning up crooked hospitals, administrators and healthcare conglomerates all over the country. And I love it.

When a hospital’s billing practices distort general rules of practice – it shows up. When a hospital is requesting ten times the national/regional average of one kind of profit center test – it shows up. Etc.

Like I said. Overdue.