|Fred Schulte||September 20th 2012|
Center for Public Integrity
Read more ..
Eleven years ago, Dr. Kathryn Locatell’s testimony at a U.S. Senate hearing on alleged Medicare billing abuses generated a rush of media coverage, but little lasting reform. Locatell, a California physician, helped expose medical billing consultants who made a living teaching doctors how to use the billing system to reel in higher fees. The techniques ranged from billing for medical treatments that weren’t needed to packing a patient’s file with irrelevant details as a means to justify higher, more lucrative, Medicare billing codes. “The information presented to us at the seminars did not include any method of … ensuring that the services billed for were medically necessary,” Locatell testified at the June 2001 Senate Finance Committee hearing.
|Fred Schulte and David Donald||September 16th 2012|
Center for Public Integrity
Read more ..
Thousands of doctors and other medical professionals have steadily billed higher rates for treating elderly patients on Medicare over the last decade — adding $11 billion or more to their fees and signaling a possible rise in medical billing abuse, an investigation has found.
Medical groups argue that the fee hikes are justified because treating seniors has grown more complex and time-consuming, both due to new technology and declining health status. The rise in fees may also be a reaction, they say, to years of under-charging, and reflect more accurate billing. The fees are based on a system of billing codes that is structured to make higher payments for treatments that take more time and effort.
But an analysis of Medicare claims from 2001 through 2010 shows that over time, thousands of providers turned to more expensive Medicare billing codes, while spurning use of cheaper ones. They did so despite little evidence that Medicare patients as a whole are older or sicker than in past years, or that the amount of time doctors spent treating them on average was rising.
While it’s impossible to know precisely why doctors and hospitals moved to better-paying codes in recent years, it’s likely that the trend in part reflects “upcoding,” — the practice of charging for more extensive and costly services than delivered, according to Medicare experts, analysis of the data and a review of government audits. And Medicare regulators worry that the coding levels may be accelerating in part because of increased use of electronic health records, which make it easy to create detailed patient files with just a few mouse clicks. Many health policy experts have long believed that billing errors and abuses, from confusion over how to pick proper payment codes to outright overcharges, are common in Medicare. But the Center’s year-long examination has outlined their scope in an unprecedented manner, uncovering a range of costly medical coding mistakes and abuses that have plagued the government-paid health care plan for years and are worsening amid lax federal oversight.
The Edge of Terrorism
|Aaron Mehta||September 15th 2012|
Center for Public Integrity
Since the September 11 terrorist attacks, Americans have been haunted by the idea that terrorist groups around the world could set off a “dirty bomb” — a simple explosive device that would scatter radioactive material to the winds, devastating a city.
Thankfully, that threat has never materialized. But the government’s watchdog is sounding alarms that terrorists looking to acquire the radioactive materials for such an attack could find them easily and unsecured at hundreds of hospitals around the country.
A report released Tuesday by General Accountability Office has found that only one out of every five hospitals that use high-risk nuclear isotopes for diagnosis and treatment have the recommended safeguards needed to secure the materials. Over 1,500 hospitals in the U.S. use radiological sources that could be turned into dirty bombs, according to the National Nuclear Security Administration (NNSA), which shares purview over nuclear technologies with the Nuclear Regulatory Commission. NNSA has spent $105 million to upgrade security at 321 hospitals, but the agency warns it will take until 2025 to upgrade all of the hospitals on their list. Read more ..
The Afganistan War
|Aaron Mehta||September 15th 2012|
Center for Public Integrity
What happened to almost $475 million worth of oil destined for the Afghan National Army – that’s what the Special Investigator General for Afghanistan Reconstruction (SIGAR) would like to know.
Unfortunately, the inspectors may never find out. According to the report released Monday, more than four years of financial records that the Department of Defense was supposed to keep to track this spending are either missing or so poorly kept that even gathering basic information, such as the location and size of fuel sites, was not possible.
The report concludes that the Department of Defense agency in charge of tracking the oil “does not have accurate or supportable information on how much U.S. funds are needed for [Army] fuel, where and how the fuel is actually used, or how much fuel has been lost or stolen.”
Inspectors found that records from October 2006 to March 2011 were shredded improperly, a violation of DOD policies that made it impossible for auditors to track what happened to the hundreds of millions of dollars’ worth of oil. DOD also “could not provide more than half” of the documents requested from March 2011 onward. Read more ..
The Weapon's Edge
|R. Jeffery Smith||September 15th 2012|
Center for Public Integrity
The hammering on the wall of America’s premier storage vault for nuclear-weapons grade uranium in pitch-darkness six weeks ago was loud enough to be heard by security guards. But they assumed incorrectly that workmen were making an after-hours repair, and blithely ignored it.
Minutes earlier, a perimeter camera had caught an image of intruders — not workmen — breaching an eight-foot high security fence around the sensitive facility outside Knoxville, Tenn. But the guard operating the camera had missed it. A different camera stationed over another fence — also breached by the intruders — was out of service, a defect the protective force had ignored for 6 months.
In theory, the pounding might have been the work of a squad of terrorists preparing to plant a powerful explosive in the wall of the Highly Enriched Uranium Materials Facility (HEUMF), a half-billion dollar vault that stores the makings of more than 10,000 nuclear bombs. Instead, it was a group of three peace activists, including an 82-year old nun, armed only with flashlights, binoculars, bolt cutters, bread, flowers, a Bible, and several hammers. Read more ..
The Nuclear Edge
|Shaul Shay||September 14th 2012|
Begin-Sadat Center for Strategic Studies
Though Egypt does not currently have a nuclear energy program, that reality could soon change. Newly elected President Mohammed Mursi made clear that Egypt wishes to create a civilian nuclear energy program. Also of concern are statements made by leaders of Mursi’s party, the Muslim Brotherhood, who call for Egypt to pursue a nuclear weapons program. It is presently unclear whether the new president is sincere about his desire for peaceful nuclear energy or if he concurs with his ideological brethren.
Egypt does not currently possess a nuclear energy program, one that could potentially be diverted for weapons purposes. Several factors can be attributed for this reality, including previous leadership priorities, supplier-based constraints, financial difficulties, and safety concerns. Egypt is a member of the Treaty on the Non-Proliferation of Nuclear Weapons and is the leading proponent of establishing a nuclear weapons-free Middle East. This policy, however, may be changing. Egyptian President Mohammed Mursi recently told a group of Egyptian expatriates living in China that “Cairo is considering renewing the Egyptian nuclear program, which will be purely for civilian purposes, to provide clean energy to the citizens of Egypt.” During that trip, Mursi requested $3 billion from the Chinese to build “power plants.” Read more ..
|Ronnie Green||August 30th 2012|
Center for Public Integrity
|Fisherman Jumps in Water for Safety Drill|
Veteran fisherman Fred Mattera stands atop a fishing trawler at the Point Judith Harbor, seagulls squawking by and a fishy mist in the air, and instructs the seven mostly young, tattooed men standing before him to pull on life-safety immersion suits that cover them from foot to head, to zip up and plunge feet first into the water. Then two groups of fishermen interlock like centipedes and take turns paddling backward until they reach a life raft where, going smallest man first, they pull in one by one.
This is survival training, and the plunge-and-rescue dry run is meant to gird the fishermen for the real thing, which comes too often in an industry beset by a high death rate and fragile federal net of protection.
Commercial fishing is the deadliest vocation in the United States. Four years running, from 2007 to 2010, the Bureau of Labor Statistics ranked commercial fishing as the most dangerous occupation in the United States. From 2000 to 2010, the industry’s death rate was 31 times greater than the national workplace average. Read more ..
|Jim Walls||August 29th 2012|
The Center for Public Integrity
|Gov. Nathan Deal|
Perhaps no state illustrates the political perils of ethics enforcement better than Georgia, where the ethics commission has been the nexus of more infighting, vitriol and litigation than a Univision novella.
Keeping track of all the resignations, firings, accusations and countercharges there has challenged even the most knowledgeable observers of Peach State politics. Three executive directors have resigned or been fired since 2006. Two other employees collected $405,000 in damages for allegedly wrongful termination. Lawmakers stripped the agency of 40 percent of its funding, its power to make new rules, even its name.
Today, as public pressure builds for ethics reform in Georgia, the agency faces a host of other challenges: Two former top-ranking officials allege the commission fired them for investigating suspected campaign abuses by Gov. Nathan Deal. Thousands of candidate disclosures swamp the agency’s online filing system, paralyzing it at peak periods for many users. Violators continue to avoid stiffer penalties because the commission has not devoted the resources to formally notifying them. Thin staffing keeps the staff from reviewing even 10 percent of the tens of thousands of filings it receives each year. Much of this has come to pass, critics say, because the commission answers to the very politicians it’s supposed to regulate and investigate. Legislative leaders set its budget, control its powers and, along with the governor, decide who its five members will be. Read more ..
|Jim Morris||August 22nd 2012|
Center for Public Integrity
|L.V. and Tina Hall in 2006 (photo courtesy of L.V. Hall)|
Around midnight on June 1, 2007, Tina Hall was finishing her shift in a place she loathed: the mixing room at the Toyo Automotive Parts factory in Franklin, Ky., where flammable chemicals were kept in open containers. A spark ignited vapors given off by toluene, a solvent Hall was transferring from a 55-gallon drum to a hard plastic bin. A flash fire engulfed the 39-year-old team leader, causing third-degree burns over 90 percent of her body. She died 11 days later.
After investigating the accident, the Kentucky Labor Cabinet’s Department of Workplace Standards cited Toyo for 16 “serious” violations and proposed a $105,500 fine in November 2007.
“You’re disappointed because you think, that’s all they got fined?” Hall’s sister, Amy Harville, of Moulton, Ala., said in a telephone interview. “But then I thought, at least they got 16 violations. I was thinking they’d stick, as severely as she was burned.” Read more ..
|Abubakar Siddique||August 19th 2012|
Militants' storming of a Pakistani Air Force base where some nuclear warheads are reportedly stored has once again sounded the alarms about the security of the country's atomic weapons. Minhas air base, located just 40 kilometers west of Islamabad in the eastern Punjab Province, is considered a key military facility. It houses warplanes and some of Pakistan's most advanced weapons systems -- possibly including nuclear warheads. So the August 16 attack that left nine suspected Islamic radicals and one Pakistani soldier dead once again raised eyebrows over Islamabad's claims that its nuclear installations are under foolproof security. Much of the concern is predictable, but misdirected, according to experts.
The location of Pakistan's nuclear weapons are a highly guarded secret, but despite news reports to the contrary, most observers doubt that warheads are stored at Minhas. Retired General Talat Masood says the real concern is the increasing frequency of high-profile attacks on military facilities. "When defense installations are being targeted so easily -- and we have seen a series of events taking place, starting from the [military's General Headquarters] GHQ to the Mehran [Naval] base, and now this Air Force base -- it shows that these places are vulnerable and Pakistan will have to do a lot more," Masood said. Read more ..
The Edge of Terrorism
|Jonathan D. Halevi||August 18th 2012|
After the Rafah attack, it was noticeable that the Egyptian government refrained from condemning the terrorists’ plan to carry out a mass-casualty attack in Israel. Indeed, senior Muslim Brotherhood figures pointed an accusing finger at Israel, claiming it was behind the attack in an attempt to create a rift between Egypt and Hamas.
Apart from the anti-Israel propaganda line, the investigation of the attack by Egyptian intelligence found tracks leading in the direction of Gaza. Security sources in Egypt told the Egyptian newspaper Al-Youm al-Saba that the Palestinian organization Army of Islam was responsible for the attack. They said that the day before it occurred, there was a meeting in one of the homes of the Army of Islam’s leader in Rafah; about 35 activists participated, and it was decided to carry out the attack. Read more ..
|Terrence Sterling||August 15th 2012|
|DHS Secretary Janet Napolitano|
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Suzanne Barr, chief of staff for Immigration and Customs Enforcement has been openly accused of cultivating a "frat-house"-style work environment. Barr "voluntarily placed herself on leave," the Department of Homeland Security has announced. The scandal has been referred for internal investigative review.
According to a Fox News report, which has led the reporting on the subject, "Two more ICE employees came forward this week to complain about "lewd" conduct inside the agency, submitting sworn affidavits that depict graphic comments made by two top officials working under DHS Secretary Janet Napolitano. The affidavits were given as part of a discrimination and retaliation suit filed earlier this year by James T. Hayes Jr., the head of the New York office for Immigration and Customs Enforcement." ICE Public Affairs Director Brian Hale confirmed in a statement, "ICE has referred these allegations to the DHS Office of Inspector General and the ICE Office of Professional Responsibility for review. Ms. Barr has voluntarily placed herself on leave pending the outcome of this review."
A pair of affidavits similarly described incidents in October 2009. In an impromtu discussion of Halloween plans, Barr alledged turned to a senior ICE employee declaring: "You a sexy" (expletive deleted). The affavadit reportedly continues, "She then looked at his crotch and asked, 'How long is it anyway?'" according to the affidavit. "Several employees laughed nervously," the affidavit said. The names of the workers making the claims have been redacted. Fox News reports: "The other account recalled a trip to Colombia in late 2009, attended by ICE Director John Morton, Barr and Ray Parmer, who is ICE special agent in charge for Homeland Security Investigations in New Orleans. The account said Parmer and Barr were "drinking heavily" at the house of the deputy chief of mission for the U.S. Embassy there. It said Parmer took the BlackBerry of another employee, Peter Vincent, and sent "lewd messages" to Barr. The affidavit went on to say: "During this party, Suzanne Barr approached me and offered to" perform oral sex."
The Edge of Defense
|Carlo Muñoz||August 12th 2012|
Unauthorized leaks of sensitive information regarding American-led counterterrorism operations have "absolutely" damaged U.S. national security, according to a top administration official. "There have been some devastating leaks," chief White House counterterrorism adviser John Brennan said Wednesday. "It's unconscionable what has gone out. And the president has made his displeasure abundantly clear to his senior team," he said during a speech at the Washington-based Council on Foreign Relations.
In recent months, a spate of information leaks detailing highly-classified U.S. counterterrorism operations have made their way into U.S. and international media reports. The leaked intelligence included information about a U.S. cyberattack on Iran, a terrorist “kill list” and a double agent operating in Yemen. While refusing to comment on any specific operation that may have been compromised as a result of the leaks, Brennan pointed out their disclosure has done irreparable damage to U.S. efforts to curb terror groups like al Qaeda and others. Read more ..
|Avi Jorish||August 10th 2012|
Following a two-year investigation, federal prosecutors have submitted a mindboggling 30,000 pages of documentation and 2,000 recorded phone calls that paint an extensive picture of how one of Mexico's most powerful drug-trafficking organizations raises, moves and eventually washes its illicit funds.
The indictment, issued by the Northern District of Texas, charges fifteen people with laundering millions of dollars in drug profits on a sleepy Oklahoma ranch on behalf of the Los Zetas cartel, the most powerful syndicate in Mexico today. In a trial scheduled for October in Austin, Texas, the IRS and other federal authorities will present findings based on thousands of financial records and recorded conversations and dozens of witness interviews that provide information on how the Zetas conduct their business.
The case became public in June when federal agents carried out a sweep of seven locations in several states and seized 200 boxes of evidence. Eight suspects have been arrested, and an additional seven remain at large. It is widely believed that some of the defendants will take plea bargains after providing federal authorities with intelligence. The most notable figure incarcerated is Jose Trevino Morales, the brother of two high-ranking Zetas, Miguel Angel Trevino Morales and Oscar Omar Trevino Morales. Read more ..
The Obama Edge
Records from the Homeland Security Department reveal that the scandal-ridden General Services Administration, with the authorization of President Barack Obama's White House, directed law enforcement officers to “stand down” and not arrest “Occupy Portland” protesters who were violating the law, according to a report by Fox News Channel's Steve Doocy Wednesday morning.
The records, obtained by the Inside-the-Beltway watchdog group Judicial Watch as a result of a November 11, 2011, Freedom of Information Act (FOIA) request, include internal Homeland Security Department correspondence, Doocy reported.
Officials at Judicial Watch reported that one November 6, 2011, e-mail exchange between DHS/National Protection and Programs Directorate Chief of Staff Caitlin Durkovich and GSA Public Buildings Service Commissioner Robert Peck (who has since been terminated from employment) is specifically related to Occupy Portland protests taking place on federal property in Portland: Read more ..
The 2012 Vote
|Robert Maguire||August 8th 2012|
Read more ..
As of today, spending reported to the Federal Election Commission by groups that aren't required to disclose the sources of their funding has nearly tripled over where it stood at the same point in the 2010 election cycle, according to research by the Center for Responsive Politics. By Aug. 6, 2010, groups registered as social welfare organizations, or 501(c)(4)s, as well as super PACs funded entirely by them, had reported spending $8.5 million. That figure has soared to $24.9 million in this cycle. In 2008, nondisclosing groups reported spending $8.3 million at this point in the campaign season.
In addition, the numbers show a clear break from those of previous cycles in that independent expenditures
(ads explicitly calling for the election or defeat of a particular candidate) make up the vast majority of the spending reported by nondisclosing groups. Spending for electioneering communications -- "issue ads" that name a federal candidate and are run within a 60-day window before a general election, or 30 days before a primary or a national party nominating convention -- has fallen as a share of the total.
The Weapon’s Edge
|Zach Toombs and Aaron Mehta||August 8th 2012|
The Pentagon has pumped billions of dollars into programs to counter the dangers of improvised explosive devices over the last decade but still lacks a way to track whether its initiatives are meeting their goals—a circumstance that a government watchdog warns could lead to overlap and wasted taxpayer funds. Poor recordkeeping has hindered the Defense Department’s ability to monitor more than 1,300 individual anti-IED projects, complicating any effort by outsiders to assess whether the funds have been well spent, an August report by the Government Accountability Office said.
“DOD has not determined, and does not have a ready means for determining,” just how many anti-IED projects it is currently funding, the report said. Although GAO accounted for $4.8 billion in Pentagon spending, it called that estimate “understated,” because many anti-IED initiatives weren’t properly recorded. “DOD has funded hundreds of C-IED initiatives but has not developed a comprehensive database of these initiatives or the organizations conducting them,” the report stated. The report is a follow up to a February 2012 GAO study that concluded DOD does not have “full visibility” over its anti-IED projects. Read more ..
The Defense Edge
|Zach Toombs||August 7th 2012|
A bill proposed by a bipartisan group of senators at the beginning of August would punish Pentagon agencies for failing to meet a series of deadlines for conducting proper internal audits, marking a major ratcheting up of congressional pressure about a good-government goal first set in legislation enacted 18 years ago. Sen. Tom Coburn (R-Okla.), a member of a subcommittee on federal financial management, is leading the effort to provide new incentives to the military services, which have moved slowly to comply with a target of completing successful audits of their expenditures by 2017. He was joined this week by five other Republicans and two Democrats.
Under their bill, military branches that don’t meet the 2017 deadline would see the development of weapons systems blocked before reaching the production and deployment stage.The bill would also reward agencies for meeting deadlines by conferring more control over their own budgets, including the ability to shift between $30 million and $60 million annually between accounts to pay for more weapons procurement, operations and maintenance, research or personnel, all without congressional approval. Read more ..
The Safety Edge
Sheri Sangji is on fire.
The 23-year-old research associate, a Pomona College graduate raised in Pakistan, has accidentally pulled the plunger out of a syringe while conducting an experiment in the Molecular Sciences Building at UCLA. The syringe contains a solution that combusts upon contact with air. The solution spills onto Sangji’s hands and torso, and she is instantly aflame. She isn’t wearing a lab coat; no one told her she has to. Her synthetic rubber gloves provide no protection as the fire burns through her hands to the tendons. She inhales toxic, superheated gases given off by her burning polyester sweater, a process that accelerates as she runs and screams.
It’s December 29, 2008, mid-afternoon. The UCLA campus is mostly quiet for the holidays, but chemistry professor Patrick Harran’s team is working. Harran is in his office, one floor up from Room 4221, where at his direction Sheharbano “Sheri” Sangji has been trying to produce a chemical that holds promise as an appetite suppressant. She is unsupervised. Read more ..
The RGA Right Direction PAC is a Washington, D.C.-based super PAC, registered with federal regulators to make independent expenditures supporting or opposing candidates. So what is it doing giving $1 million directly to the Republican running for governor of Indiana?
The donation to Mike Pence, the largest to his campaign, appears to be a way around state laws limiting corporate contributions to candidates. “In one way, it’s legal,” said Andrew Downs of the Center for Indiana Politics, at Indiana University-Purdue University Fort Wayne. “But if you say this is a way to give in excess of corporate limits, that’s also absolutely true.”
Right Direction is funded entirely by the Republican Governors Association, a so-called 527 organization dedicated to electing as many Republicans to governorships as possible—a mission fueled by contributions from some of the largest corporations in the country. In Indiana, candidates can accept unlimited donations from individuals and political action committees but only $5,000 from corporations and unions. Corporations and unions can also give to PACs, but only in small sums. Whether the check to Pence was drawn on a bank account that contained corporate money is not a matter of public record. Read more ..
Skin and Bone
|Kate Willson||July 21st 2012|
Mandi Eisenbeis stood over her dad. It was a Thursday in May 2011 when she said her private good-byes at a funeral parlor in Lodi, Calif. George “Randy” Eisenbeis had died young, felled at age 57 by a methamphetamine overdose.
As she looked at him lying in the coffin, she noticed his hands were oozing blood. Eisenbeis didn’t know what had happened until later, when she learned the funeral director had sent a scathing complaint to the California Transplant Donor Network, the nonprofit organ and tissue bank that had stripped out Randy Eisenbeis’s usable parts. “To say this was simply a ‘hack job’ would be a compliment,” Lodi Funeral Home’s Michael Collins wrote in a letter accompanied by a series of graphic photos of the torn-apart corpse. “I guess we should consider ourselves lucky that you left his head and his hands for viewing, and yes, that is his severed foot in the photo to the bottom left of the embalming table.”
In March the family sued the California organ bank, accusing it of fraud, mutilation of a corpse, and infliction of emotional distress. Read more ..
Skin and Bone
|Kate Willson and Mar Cabra||July 21st 2012|
|Human skin, meshed for grafting (credit: Mar Cabra)|
The Kentucky man died in an off-road vehicle accident last year. His liver and kidneys helped save three dying patients in his home state. Musculoskeletal grafts taken from his heart, skin and bones were used in medical products used to improve the lives of 15 people around the country.
But soon after the transplants, the U.S. Centers for Disease Control and Prevention (CDC) learned the organ recipients had contracted hepatitis C. It turned out the Kentucky donor had a history of substance abuse and had served prison time. The tissue bank that recycled his remains, the CDC said, had screwed up the usual testing done to verify that tissues and organs were safe.
The CDC’s Office of Blood, Organ, and Other Tissue Safety deployed a team of “shoe-leather epidemiologists” to track down the tissue before someone else got sick. Unlike hearts and other organs—or blood products that come with a unique barcode—there’s no easy way to track tissue. Read more ..
Skin and Bone
|Kate Willson, Vlad Lavrov, Martina Keller, and Michael Hudson||July 20th 2012|
|Transplanted cornea (credit: David Robinson)|
In April 2003, Robert Ambrosino murdered his ex-fiancée—a 22-year-old aspiring actress—by shooting her in the face with a .45-caliber pistol. Then Ambrosino turned the gun around and killed himself. Soon after, Ambrosino’s corpse entered the United States’s vast tissue-donation system, his skin, bones, and other body parts destined for use in the manufacture of cutting-edge medical products.
But before they entered the system, Michael Mastromarino, owner of a New Jersey-based tissue recovery firm, needed to solve a couple of problems. He didn’t want to have to report that Ambrosino had perished in a murder-suicide. And he didn’t want anyone to know that Ambrosino’s family hadn’t given permission for his body to be used for tissue donation. Mastromarino solved both problems the same way: He lied.
He claimed Ambrosino died in a car accident. And he claimed that Ambrosino’s family had agreed to donate his tissue before the rest of his remains were cremated. Read more ..
Skin and Bone
|Kate Willson, Vlad Lavrov, Martina Keller, Thomas Maier, and Gerard Ryle||July 19th 2012|
On Feb. 24, Ukrainian authorities made an alarming discovery: bones and other human tissues crammed into coolers in a grimy white minibus.
Investigators grew even more intrigued when they found, amid the body parts, envelopes stuffed with cash and autopsy results written in English.
What the security service had disrupted was not the work of a serial killer but part of an international pipeline of ingredients for medical and dental products that are routinely implanted into people around the world. The seized documents suggested that the remains of dead Ukrainians were destined for a factory in Germany belonging to the subsidiary of a U.S. medical products company, Florida-based RTI Biologics—one of a growing industry of companies that make profits by turning mortal remains into everything from dental implants to bladder slings to wrinkle cures.
The industry has flourished even as its practices have roused concerns about how tissues are obtained and how well grieving families and transplant patients are informed about the realities and risks of the business. In the U.S. alone, the biggest market and the biggest supplier, an estimated two million products derived from human tissue are sold each year, a figure that has doubled over the past decade. Read more ..
The Defense Edge
The Canadian arm of the aircraft engine manufacturer Pratt & Whitney closed a six-year U.S. government probe last week by admitting that the lure of up to $2 billion in helicopter sales to China had caused it to export computer software illegally that helped China create its first modern attack helicopter.
“This case is a clear example of how the illegal export of sensitive technology reduces the advantages our military currently possesses,” Immigration and Customs Enforcement Director John Morton said in a statement released on June 28. That’s when the government disclosed that Pratt & Whitney and two related companies agreed to pay a total of $75 million in fines for multiple violations of export rules policed by the State Department.
The software probe and the heavy financial sanction appear to have had no punishing impact on Pratt & Whitney’s extensive and continuing contract work for the Defense Department, however. That’s the same department that in an ironic twist announced this spring that it was reorienting its forces to deal with what its officials regard as a rising Chinese military threat against U.S. allies in the region. Read more ..
The Afghanistan War
|Zach Toombs||June 16th 2012|
As the U.S. military heads for the door in Afghanistan, one of its most important tasks is to train Afghan police to take control of the nation’s security. But a billion-dollar Afghan police training contract, now being administered by the Army, has encountered some troubles, according to a new report by the Defense Department’s Inspector General’s office.
In just the first four months after the contract was signed in December 2010, its cost shot up $145 million, or 14 percent. A series of late revisions has slowed the training process for Afghan police, the IG report said, and the contract has been written in a way that allows new costs to accumulate without penalty.
The IG blamed the Army for the early cost hike, asserting that those overseeing the work by the lead contractor, DynCorp International, should have anticipated that its scope would be greater than initially estimated. Read more ..
Coke and Confiscation
For 15 years, Egyptian-Jewish businessman Refael Bigio has been battling a goliath corporate adversary, The Coca-Cola Company. Bigio charges that Coke has been profiting from his family’s stolen property just outside Cairo. The Bigio family’s property was expropriated by Egyptian President Gamel Abdel Nasser in the mid-1960s during one of Egypt’s anti-Jewish purges. Over the course of a decade and a half, the Coca-Cola Company has steadfastly refused to bargain in good faith or to negotiate any fair compensation for the expropriated property, according to Bigio’s lawyers. In the company’s defense, Coke’s attorneys have defended Egypt’s anti-Jewish seizures and even those of Hitler’s Germany as confiscations that “did not violate international law.”
Coca-Cola’s stony refusal to even place a fair offer on the table, Bigio’s attorneys charge, stands in bitter contrast to hundreds of millions of dollars in profits derived since 1965 from the operations of “Coca-Cola Egypt.” Coke has always known that its multimillion dollar windfall in Egypt has been and is now being generated by property unlawfully stolen from its Jewish owners by Nasser’s regime in a Nazi-style property seizure. In other words, the company is in possession of stolen property—and knows it. Coke’s only defense is that the theft Bigio suffered, for no reason other that he was Jewish, actually did not violate international law and was perfectly legal. By Coke’s long-standing legal rationale, the property of every Jew in the world could be seized without violating international law.
After 15 years, Bigio believes he is now locked in a mortal struggle—not with a beverage company, not with its powerful million-dollar attorneys, King and Spalding—but with the only man who has the authority to resolve the conflict: Muhtar Kent, Chairman of the Board and Chief Executive Officer of The Coca-Cola Company.
“The Coca-Cola Company had clearly mistreated our family in a shameless way,” says Bigio from his current home in Montreal. With exasperation, he adds, “Enough with the multiple excuses invented by the Coca-Cola legal team.” Bigio continues, “Today the ultimate responsibility lies on its chairman, Muhtar Kent. Kent needs to look at the acquisition of the El Nasr Bottling Company [ENBC], an entity which gobbled up and was merged with the industrial complex of the Bigio family property in Cairo, two bottling factories—all seized by Nasser for no other reason than we were Jews.” Read more ..
The Edge of Health
Small fires were a part of the job at the Hoeganaes Corp. metal powder plant 30 miles northeast of Nashville. By early 2011, some workers later told investigators, they had become practiced in beating down the flames with gloved hands or a fire extinguisher. The company’s own product fueled the fires. Scrap metal rolls into the rust-colored plant on the town’s industrial periphery and is melted, atomized and dried into a fine iron powder sold to makers of car parts. Sometimes, powder leaked from equipment and coated ledges and rafters. Under the right conditions, it smoldered.
Wiley Sherburne, a 42-year-old plant electrician, sometimes told his wife how this dust piled up everywhere, she recalled. On quieter weekend shifts, he said he could hear the telltale popping sound of dust sparking when it touched live electricity. Read more ..
Media on Edge
|Jude Freeman||May 26th 2012|
Cutting Edge Correspondent
A co-owner of a pentagon propaganda contractor has admitted responsibility for a number of websites involved in a ‘mis-information’ campaign that sought to cast doubts over the character of two USA TODAY journalists. USA TODAY reported that Camille Chidiac, former president of Leonie Industries, claims he personally funded the websites he used to discredit Tom Vanden Brook and Ray Locker, who had reported on the Pentagon's "information operations" program, which came under fire for appropriating millions of dollars to marketing campaigns in Afghanistan and Iraq that were said to be poorly monitored.
Using proxy services to conceal his identity, Chidiac, whose presidency of Leonie Industries ended in 2008, mounted what online reputation expert, Andy Beal, described as a “sophisticated reputation attack.” Twitter and Facebook accounts were registered in Tom Vanden Brook’s name before the stories were published and a Wikipedia entry and group postings included a misrepresentation of his report on the West Virginia Mine Disater. Stating that he made clear that the websites were “fan sites” of editor Ray Locker and reporter Vanden Brook, Chidiac admitted that comments “quickly degenerated from legitimate criticism to immature and irrelevant rhetoric by unknown users." Chidicac’s attorney stated that the entries on Wikipedia and Twitter came from someone with "absolutely no relationship or connection with Leonie Industries." Read more ..
|Alexandra Duszak||May 26th 2012|
It’s challenging enough to knock off an entrenched member of Congress in a primary contest. But California State Sen. Bob Dutton probably didn’t count on the fact that he would also be picking a fight with nearly a million Realtors.
The Rancho Cucamonga Republican is running against Rep. Gary Miller, a 14-year GOP incumbent in the June 5 open primary. The National Association of Realtors political action committee and a super PAC funded by the trade association have spent more than $709,000 on advertising and direct mail supporting Miller. "The amount of money being funneled into this primary from Washington, D.C., special interests on behalf of Miller is mind boggling,” said Clint Lorimore, Dutton’s campaign manager, in an email.
Actually, the super PAC is based in Chicago, as is the trade association. But the NAR has an office in the capital and plenty of money to spend on Washington politics. The association spent more than $22 million on lobbying last year, according to the Center for Responsive Politics (CRP). Read more ..
The Edge of Terrorism
|J.J. Barrow and Trevor Aaronson||May 14th 2012|
Paz Oquendo, a worker at the U.S. Postal Service’s Orlando sorting facility, smelled the noxious odor first. It was Feb. 4, 2011, and the foul stench was coming from one of the large mailbags hanging near the package-conveyor belts. She ran over to Jeffrey A. Lill, the 44-year-old shift supervisor who was monitoring the sorting from a platform, and reported the smell. “I can’t breathe,” Oquendo told Lill.
Lill headed toward the center of the sorting floor—an area workers call “the belly”—to investigate the odor.
Then he smelled it—a strong chemical stench he couldn’t identify. It was coming from a bag wet with a brown viscous substance. Lill looked in the wet sack and saw a broken package with tubes and wires sticking out. He remembers reading the return address with surprise: Yemen. Four months earlier, two bombs from Yemen had been sent through FedEx and UPS, and the U.S. Postal Service had alerted everyone to be on the lookout for packages coming from the southern end of the Arabian Peninsula. Read more ..
|Fred Schulte||May 10th 2012|
|Health and Human Services Washington DC|
Thousands of doctors across the country are billing Medicare for routine medical care at rates far above their peers, potentially costing taxpayers tens of millions of dollars in overcharges, according to a new government report. The audit released today by the U.S. Department of Health and Human Services Office of Inspector General stopped short of accusing the high-billing doctors of ripping off the government health plan for the elderly. But it stated that Medicare’s payment scales for doctors have been “vulnerable to fraud and abuse” in recent years.
The doctor payment scales are known as “Evaluation and Management” or E/M codes. Doctors choose from five escalating payment levels for treating patients based on the “amount of skill, effort, time responsibility and medical knowledge required for the service.” In 2010, almost 370 million E/M services were provided by about 442,000 doctors nationwide. The code the doctor chooses can make a big difference to the bottom line. For instance, the Medicare fee for treating a new patient in 2010 ranged from $36.62 to $190.56, depending on the level of service provided by the doctor, and the code chosen for billing. Read more ..
The Justice Department has been increasingly eager to prosecute officials for leaks of classified information, charging six individuals with disclosures that violate the Espionage Act just since the start of 2009. But at the same time, the government itself has lost track of hundreds of boxes filled with classified documents at its main records storage site, the Washington National Records Center .
According to a new report from the National Archives and Records Administration (NARA) Office of Inspector General, more than 1,500 boxes of classified documents have gone missing at the site, located in Suitland, Maryland. While some are “still occasionally being located,” the Archives’ office of records services has stopped its internal searching, the report said, and the affected agencies have been notified.
Among the missing records are 81 boxes with documents labeled Top Secret, Secret, and Restricted Data, among the highest classification categories. They were from the Office of the Secretary of Defense, the Navy, the National Imagery and Mapping Agency, the Energy Department, and other agencies. Restricted Data is a special category for data pertinent to nuclear weapons. Each box contains between 2,000 and 2,500 pieces of paper, states the IG’s report, which was first disclosed by The Washington Times.
These records weren’t stolen in an act of espionage. The IG places the blame for the loss of the boxes squarely on mismanagement by the records center, which is controlled by the Archives, an issue described in the report as “systemic.” That conclusion seems beyond dispute. The new report, which is itself labeled “Official Use Only,” discloses that in two previous inventories there, in 1998 and 2004, boxes of classified materials were found missing. But the results were never written up in a report and “minimal corrective actions” were taken, it states. Read more ..
The 2012 Vote
|Michael Beckel||May 4th 2012|
|Aaron Shock and Mens Health|
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Two $25,000 donations during the final days of a hotly contested Illinois primary are raising more questions about whether super PACs — the political committees that have seen a flood of money from millionaires and billionaires — are being used to circumvent campaign contribution limits. Back in March, sophomore Rep. Aaron Schock (R-Ill.) wanted to help his friend and fellow Illinois Republican Rep. Adam Kinzinger survive a rare incumbent-on-incumbent primary by sending some money his way.
Many members of Congress have “leadership PACs” set up for just this purpose — they direct funds from the PACs to their fellow representatives in hopes of earning support for senior leadership positions. Thanks to redistricting, Kinzinger, rather than face an easy primary, found himself facing 10-term Rep. Don Manzullo. Schock’s leadership PAC gave Kinzinger’s campaign $5,000 for the primary fight — the maximum allowed contribution. But Schock also managed to direct 10 times that much toward efforts aiding his buddy with help from the super PAC, earning the ire of campaign finance watchdogs.
|Jim Morris||April 29th 2012|
The Department of Labor reported this week that 4,690 U.S. workers suffered fatal injuries in 2010, a 3 percent increase from 2009. The higher number in part reflects a string of high-profile disasters in 2010: An explosion at the Upper Big Branch coal mine in West Virginia that killed 29; BP’s Deepwater Horizon blowout in the Gulf of Mexico, which killed 11; and a blast at the Tesoro Corp.’s oil refinery in Washington State that killed seven. Even discounting the 47 deaths from those three events, the toll rose in 2010. In 2009, 4,551 workers died, according to Bureau of Labor Statistics data.
The fatality rate rose slightly as well, from 3.5 fatal injuries per 100,000 full-time equivalent workers to 3.6. The number of workers killed in fires or explosions jumped from 113 in 2009 to 191 in 2010. Work-related transportation deaths increased from 1,795 to 1,857, suicides from 263 to 270. The number of construction-related deaths fell from 834 to 774—a probable reflection of a weak housing market and a generally rotten economy in 2010. Read more ..
|Paul Abowd||April 16th 2012|
Some of America’s best known brands are dropping their membership in the American Legislative Exchange Council at least partly in response to controversy over the group’s backing of voter ID laws. Coca-Cola quit on April 4 and Pepsi, Kraft Foods, Intuit, McDonalds and the Bill and Melinda Gates Foundation followed them out after a coalition of left-wing groups launched pressure campaigns. Nine states have passed strict voter ID requirements just since 2011, which opponents say could result in millions being unable to cast ballots in November.
But there’s been little attention paid to one major ALEC-affiliated sector behind several state legislators pushing these measures: the beer and wine industry.
Major players in beer and wine sit on an ALEC task force that crafted and approved voter ID model legislation in 2009. The industry’s major trade associations — the National Beer Wholesalers Association and Wine and Spirits Wholesalers of America — are among them. Since 2007, the wholesalers have also pumped substantial cash into the campaigns of several ALEC politicians who have been authors or primary sponsors of voter ID bills in their states. Read more ..
|David Heath||April 3rd 2012|
|Scott Tucker (credit: Level 5 Motorsports)|
The Federal Trade Commission today took up a case that had thwarted state authorities for years, accusing an Internet payday lender with ties to Indian tribes of illegally deceiving borrowers.
The agency is asking a federal judge in Nevada to order AMG Services of Overland Park., Kan., to stop the deceptive practices and pay back borrowers who its says got cheated.
“The defendants have deceived consumers about the cost of their loans and charged more than they said they would, said Malini Mithal, the FTC’s assistant director of financial practices. “The FTC is trying to stop this deception and get refunds for consumers.”
While the company has won arguments in state courts that it has tribal sovereign immunity, allowing it to make loans even in states that restrict or forbid payday loans, that protection doesn’t apply to the federal courts. Court records suggest the business has made more than $165 million, charging interest rates as high as 800 percent on small loans. Borrowers have complained in droves about the lender’s tactics. Law enforcement authorities have received more than 7,500 complaints about the business, the FTC says. Read more ..
The Toxic Edge
|Ronnie Greene||March 31st 2012|
|Coast Guard Inspection|
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When a U.S. Coast Guard inspector boarded the M/T Chem Faros, a 21,145-gross-ton cargo ship that pulled into port in Morehead City, N.C., an oiler with the engine crew quietly handed him a note.
"GOOD MORNING SIR, I WOULD LIKE TO LET YOU KNOW THIS SHIP DISCHARGING BILGE ILEGALLY USING BY MAGIC PIPE,” the note said. “IF YOU WANT TO KNOW ILLEGAL PIPE THERE IN WORKSHOP FIVE METERS LONG WITH RUBBER.”
The crewman’s hand-scrawled note, passed that March day two years ago, triggered an inquiry that unmasked a wave of high-seas pollution and phony recordkeeping as the ship ferried cargo in Asia and the U.S. The crew had used the so-called magic pipe to divert oily waste overboard at least 10 times in six months. Eleven days before the inspection, the chief engineer ordered 13,200 gallons of oil-contaminated waste dumped into the ocean.
The ship’s owner, Cooperative Success Maritime S.A., was fined $850,000 and sentenced to five years’ probation after its guilty plea. And the chief engineer — after cooperating with authorities — was sentenced to one year of probation. “The oceans must be protected from being used as dump sites for waste oil or other hazardous substances,” said Maureen O’Mara, special agent-in-charge of the Environmental Protection Agency’s criminal enforcement program in Atlanta, in June 2010. A company attorney declined comment.
Broken Energy Policy
|Ronnie Greene||March 29th 2012|
|President Obama meeting with Solyndra officials|
On August 20, 2009, an Energy Department staffer examining a pending loan to a California clean energy start-up came to a startling conclusion: The company would run out of money by September 2011.
As part of the 2009 job-creating stimulus, the government has committed nearly $40 billion to clean energy projects. The first loan guarantee went to Solyndra Inc., a California solar firm backed by an Obama fundraiser. But instead of picking a winner, the government backed a loser. The firm failed, putting more than 1,000 people out of work and taxpayers on the hook for $535 million. Among questions now: Did the White House unduly influence the process? Did the Energy Department rush its first commitment, ignoring warning signs about the company's viability? Will this failed project cost Obama?
The Department of Energy was fully aware of the risks in backing Solyndra Inc., a start-up company that pocketed a half-billion dollar DOE loan but never turned a penny in profit before shutting its doors, concludes a former FBI agent hired to examine the company’s books. Read more ..
South Carolina on Edge
|Caitlin Ginley||March 23rd 2012|
|South Carolina State Capitol|
In response to South Carolina’s failing grade from the State Integrity Investigation, House Democrats there have proposed historic ethics reforms. South Carolina was ranked 45th out of 50 states, with a score of 57 percent. “It is time for South Carolina to get serious about ethics reform,” said Rep. Boyd Brown, (D-Winnsboro), in a press release that cited the investigation’s “scathing” assessment of South Carolina. “Corruption is plaguing our great state and it’s high time we do something about it. South Carolina is ripe for another ‘Operation Lost Trust’ and I refuse to stand idly by while that happens again.” Operation Lost Trust, a vote buying scandal that involved more than two dozen lobbyists and lawmakers, sparked a major ethics overall in South Carolina in the early 1990s, severely restricting gifts and campaign contributions from lobbyists.The new proposal includes term limits, a revamping of the State Ethics Commissions and a two-year ban on the revolving door between legislating and lobbying. Read more ..
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