ATTORNEY GENERAL HOLDER TESTIFIES BEFORE HOUSE COMMITTEE

FROM: U.S. DEPARTMENT OF JUSTICE
Attorney General Eric Holder Testifies Before the House Committee on the Judiciary

~ Wednesday, May 15, 2013

Good afternoon, Chairman Goodlatte; Ranking Member Conyers. I appreciate this opportunity to appear before you today to discuss the Justice Department’s recent achievements and to provide an overview of our top priorities.

Particularly in recent years, the Department has taken critical steps to prevent and combat violent crime, to confront national security threats, to ensure the civil rights of everyone in this country, and to safeguard the most vulnerable members of our society. Thanks to the extraordinary efforts of my colleagues – the nearly 116,000 dedicated men and women who serve in Justice Department offices around the world – I’m pleased to report that we’ve established a remarkable record of progress in expanding our nation’s founding promise of equal justice under law, and ensuring the safety and security of our citizens.

The need to continue these efforts – and to remain vigilant against a range of evolving threats – was brought into sharp focus last month, in the most shocking of ways, when a horrific terrorist attack in Boston left three innocent people dead and hundreds injured. In the days that followed– thanks to the valor of state and local police, the dedication of federal law enforcement and intelligence officials, and the cooperation of members of the public – those suspected of carrying out this terrorist act were identified. One suspect died following a shootout with police and the other has been brought into custody and charged in federal court with using a weapon of mass destruction. Three others have been charged in connection with the investigation of this case, which is active and ongoing.

As we continue working to achieve justice on behalf of our fellow citizens and brave law enforcement officers who were injured or killed in connection with these tragic events – and to hold accountable, to the fullest extent of the law, all who were responsible for this heinous attack – I want to assure you that my colleagues and I are also committed to strengthening our broader national security efforts. Over the past four years, we’ve identified, investigated, and disrupted multiple potential plots involving foreign terrorist organizations as well as homegrown extremists. We’ve secured convictions – and tough sentences – against numerous individuals for terrorism-related offenses. We’ve utilized essential intelligence-gathering and surveillance capabilities in a manner that’s consistent with the rule of law, and with our most treasured values.

Beyond this work, my colleagues and I are enhancing our focus on a variety of emerging threats and persistent challenges – from drug trafficking and transnational organized crime, to cyber-threats and human trafficking. We’re moving to ensure robust enforcement of antitrust laws, to combat tax fraud schemes, and to safeguard the environment. We’re building on the significant progress that’s been made in identifying and thwarting financial and health care-related fraud crimes. For example, in FY 2012, our fraud detection and enforcement efforts resulted in the record-breaking recovery and return of roughly $4.2 billion.

Over the last three fiscal years alone – thanks to the President’s Financial Fraud Enforcement Task Force and its federal, state, and local partners – we have filed nearly 10,000 financial fraud cases against nearly 14,500 defendants, including more than 2,900 mortgage fraud defendants. As these actions prove, our resolve to protect consumers and seek justice against any who would take advantage of their fellow citizens has never been stronger.

The same can be said of the Department’s vigorous commitment to the enforcement of key civil rights protections. Since 2009, this commitment has led our Civil Rights Division to file more criminal civil rights cases than ever before – including record numbers of human trafficking cases. Using new tools and authorities, including the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act, we’ve improved our ability to safeguard our civil rights and pursue justice for those who are victimized because of their gender, sexual orientation, gender identity, or disability. We will continue working to guarantee that – in our workplaces and military bases; in our housing and lending markets; in our schools and places of worship; in our immigrant communities and our voting booths – the rights of all Americans are protected.

But all of this is only the beginning. As we look toward the future, my colleagues and I are also determined to work closely with Members of Congress to secure essential legislative changes – including commonsense steps to prevent and reduce gun violence, and comprehensive legislation to fix our nation’s broken immigration system.

It’s long past time to allow the estimated 11 million individuals who are here in an undocumented status to step out of the shadows, to guarantee that all are playing by the same rules, and to require responsibility from everyone – both undocumented workers and those who hire them. Like many of you, I am encouraged to see that these basic principles are reflected in the bipartisan reform proposal that is currently being considered by the Senate. The Department will do all it can to help strengthen that proposal, and to advance a constructive, responsible dialogue on this issue. I understand that this Committee and other Members are working on immigration reform proposals as well, and I look forward to working with you as those efforts move forward to enact comprehensive reforms.

However, I must note that our capacity to continue building upon the Department’s recent progress is threatened by the long-term consequences of budget sequestration and Joint Committee reductions, which will worsen in Fiscal Year 2014, unless Congress adopts a balanced deficit reduction plan. Should Congress fail to do so, I fear that these reductions will undermine our ability to deliver justice for millions of Americans, and to keep essential public safety professionals on the job.

We cannot allow this to happen. This afternoon, I ask for your support in preventing these cuts and ensuring that the Department has the resources it needs to fulfill its critical missions. I thank you, once again, for the chance to discuss our current efforts with you today. And I would be happy to answer any questions you may have.

ATTORNEY GENERAL HOLDER SPEAKS ON "INCREASING ACCESS TO JUSTICE"

FROM: U.S. DEPARTMENT OF JUSTICE
Attorney General Eric Holder Speaks at the White House Forum on Increasing Access to Justice

Washington, D.C. ~ Tuesday, April 16, 2013
Thank you, Dean [Martha] Minow, for those kind words; for your leadership as Vice Chair of the Legal Services Corporation’s Board of Directors; and for all that you and your colleagues do every day to promote equal access to justice for those who cannot afford it. It’s a privilege to stand with my good friends Jim Sandman and John Levi – and to take part in today’s important Forum. And it’s a pleasure to help welcome so many national leaders, passionate advocates, and dedicated jurists to the White House.

Even as we gather in a spirit of partnership this afternoon, I know we are all bound by shock and sorrow at yesterday’s tragic events in Boston. On behalf of my Justice Department colleagues, I’d like to express my deepest sympathies to the families of those who lost their lives in this brutal attack. They – and all of the innocent people who were injured yesterday – will be in my thoughts and prayers.

As we strive to make sense of this heinous and cowardly terrorist act, I also want to thank the brave law enforcement officials, firefighters, National Guardsmen, and other first responders who – upon hearing the explosions – put the safety of others above their own and raced toward the dangers from which others were fleeing. Their heroic actions undoubtedly saved lives.

Finally, I want to assure you that the full resources of the Justice Department and all of its components will be mobilized to investigate and respond to this incident. My colleagues and I are working around the clock to identify the individual or group responsible for this unspeakable act, to hold them accountable, and to ensure that they are punished to the fullest extent of the law and by any means available to us. We will not rest until justice has been done.

In the meantime – as these efforts continue to unfold – it’s an honor to join all of you in discussing the challenges we face in expanding civil legal assistance; building on the progress that’s underway in communities across the country; and seeking new ways to improve America’s legal system and move this nation closer to its founding principles: of equality, opportunity, and justice under the law.

Half a century ago, these principles drove Supreme Court Justice Hugo Black to write – in the Court’s unanimous opinion in Gideon v. Wainwright – that "any person haled into court, who is too poor to hire a lawyer, cannot be assured of a fair trial unless counsel is provided to him." In the years since this landmark case, Justice Black’s words have helped to shift the foundations of our criminal justice system. But they have also become a rallying cry – and a call to action – for advocates and legal aid providers in the civil arena.

This call was echoed just weeks after Gideon – when, in Birmingham, Alabama, a prominent civil rights leader was arrested for taking part in a non-violent protest to end segregation. As he sat in the Birmingham City Jail – exactly 50 years ago today – Dr. Martin Luther King, Jr. reflected on the same principles – and some of the same disparities – that guided Justice Black’s opinion. On scraps of newsprint, he drafted what some consider the most important document of the Civil Rights era.

In that "Letter from Birmingham Jail," Dr. King wrote that "all communities and states" are interrelated. He famously declared that "[i]njustice anywhere is a threat to justice everywhere." And he implored his fellow citizens to move with "a sense of great urgency" to help build the brighter future that everyone in this country deserves.

Five decades have passed since Dr. King laid down those immortal words. Yet, as we come together today, his work remains our common pursuit. And the struggle that animated his contemporaries – to fight against injustice, to secure the constitutional rights of all citizens, and to realize the promise articulated in Gideon – is as urgent as ever before.

As we speak, tens of millions of Americans cannot afford the assistance they need to avail themselves of their rights before our court system. Studies have shown that, for every eligible person seeking help from a legal aid program, another eligible person is turned away. And, for all the progress we’ve witnessed since Dr. King’s time – and the significant steps forward that organizations like the Legal Services Corporation have brought about – there’s no denying that a persistent "justice gap" remains.

Estimates suggest that more than 80 percent of civil legal needs faced by low-income individuals currently go unmet. More than 61 million Americans are eligible for civil legal aid – yet only a fraction of them can access it. And the human impact – and moral cost – of these systemic failures is compounded by every individual need that cannot be addressed – from matters involving the care and custody of minor children and dependent adults, to questions of personal finance, housing, employment, and even public safety.

Let me be clear: this is both unacceptable and unsustainable. It is unworthy of a legal system that stands as a model for all the world. And it is incumbent on everyone here to help address these problems – and improve our ability to see that justice is done.

As jurists, government leaders, educators, and members of the private bar – each of the people in this room has an essential role to play in advancing this work. And all of us have a responsibility to serve as sound stewards of our justice system – and servants of those it protects and empowers. For nearly four decades, the Legal Services Corporation has led the way in meeting this responsibility – and assisting those who cannot afford or access quality representation. As this country’s single largest funder of civil legal aid for low-income individuals, LSC has made an important difference for millions who are in need. Every day, in more than 800 offices nationwide, LSC-supported providers offer assistance in matters ranging from foreclosure proceedings, to child custody battles, domestic violence disputes, and immigration and refugee cases. You’re calling for – and deploying – cutting-edge technologies that can help deliver new services. You’re fighting to reinvigorate pro bono cooperation. And you’re showing us all how to think more creatively – and act more collaboratively – than ever before.

Even more importantly, you’re proving that civil legal aid doesn’t just open doors to our justice system. It also improves judicial efficiency. And it provides critical reinvestments in underserved communities by saving precious taxpayer dollars, protecting patients’ health, expanding access to public benefits, keeping families together, and offering indigent citizens a pathway out of poverty.

Of course, especially in this time of budgetary uncertainty – when sequestration has imposed untenable cuts across the federal government, and funding for legal aid programs is increasingly hard to come by – I recognize that building support for these initiatives has, in many ways, never been more difficult. But I also know it’s never been more important.

That’s why – as Attorney General – I’ve made expanding access to legal services a major focus for today’s Department of Justice. I’ve been honored to work with Valerie Jarrett, Vice President [Joe] Biden, and others to ensure that this constitutes a priority for leaders across the Administration. And I am proud to report that – together, thanks to government and judicial leaders, members of the private bar, and organizations like LSC – we’re responding to this crisis not with despair, but with action.

Nowhere is this clearer than in the work of the Justice Department’s Access to Justice Initiative – an office I launched three years ago to help spearhead national efforts to ensure that basic legal services are available, affordable, and accessible to everyone in this country – regardless of status or income. Since then, the Access to Justice team has been working closely with state, local, tribal, and federal officials – as well as a variety of nonprofit and private sector partners – to expand access to quality representation and extend our outreach efforts.

While I’m extremely proud of what we’ve accomplished through this groundbreaking initiative, I’m pleased to report that this work is not relegated to a single office. And many others have stepped forward to answer this important call.

In 2010, our first Senior Counselor for Access to Justice – the incomparable Professor Larry Tribe – urged State Supreme Court officials to establish Access to Justice Commissions in every state. The Conference of Chief Justices responded to this challenge, and – since then – new Commissions have begun to spring up across the country. In addition, just last year – in cooperation with the White House Domestic Policy Council – the Justice Department helped launch an Interagency Roundtable, bringing together 17 agencies to raise awareness about the profound impact civil legal aid services can have in promoting access to health and housing, education and employment, family stability and community well-being. I’d like to thank the Roundtable’s co-chair, Tonya Robinson, for her leadership – along with the many Roundtable representatives from participating agencies who are here today.

Beyond this work, the Department’s Office of Justice Programs is providing critical support for partnerships that educate, train, and equip lawyers to provide civil legal assistance. Many of our United States Attorneys’ Offices are collaborating with the private bar to address the needs of the most vulnerable members of society. And, through the federal government’s own Pro Bono Program, we’re encouraging our agency partners to adopt policies – and help navigate internal restrictions – to make it easier for government lawyers to give back to their communities.

As we heard from our first panel, the importance of pro bono service in helping to close the "justice gap" can hardly be overstated. Every legal professional must use his or her skills and training not simply to make a living – but to make a difference. And it is essential for each of the leaders in this room to keep standing up – and speaking out – about the cause that unites us, and the principles of inclusion and equal justice that Dr. King wrote about 50 years ago today.

Although there can be no question that serious challenges remain before us – as I look around this crowd of committed partners, I can’t help but feel confident in our ability to keep moving forward, to rally additional allies to this cause, and to overcome longstanding deficiencies and disparities. As we recommit ourselves to these efforts this afternoon, know that I am proud to count you as colleagues. I am grateful for your continued leadership. And I look forward to all that we must – and surely will – achieve together in the years to come.

Thank you.

U.S. ATTORNEY GENERAL HOLDER COMMENTS ON BP-DEEPWATER HORIZON OIL SPILL SETTLEMENT

Photo:  Attorney General Eric Holder.  Credit:  U.S. DOJ.

FROM: U.S. DEPARTMENT OF JUSTICE

Attorney General Eric Holder Speaks at the BP Press Conference
New Orleans ~ Thursday, November 15, 2012

Good afternoon. I’m honored to join with Associate Attorney General Tony West; Assistant Attorney General Lanny Breuer, of the Justice Department’s Criminal Division; Director Robert Khuzami, of the Securities and Exchange Commission’s Division of Enforcement; John Buretta, head of the Deepwater Horizon Task Force; and many of the Task Force’s members – in announcing the latest steps forward in our ongoing efforts to achieve justice for those whose lives, and livelihoods, were impacted by the largest environmental disaster in our nation’s history – and to hold accountable those who bore responsibility for this tragedy.

Today, in U.S. District Court here in the Eastern District of Louisiana, the Department filed a 14-count information charging BP with 11 counts of felony manslaughter, one count of felony obstruction of Congress, and violations of the Clean Water and Migratory Bird Treaty Acts in connection with the Deepwater Horizon oil spill that began in April 2010. BP has agreed to plead guilty to all 14 criminal charges – admitting responsibility for the deaths of 11 people and the events that led to an unprecedented environmental catastrophe. The company also has agreed to pay $4 billion in fines and penalties.

This marks both the single largest criminal fine – more than $1.25 billion – and the single largest total criminal resolution – $4 billion – in the history of the United States. It stands as a testament to the hard work of countless investigators, attorneys, support staff members, and other personnel – from the Deepwater Horizon Task Force and a range of federal, state, and local agencies – who have worked tirelessly to advance a complex and wide-ranging investigation that began even before the oil well was capped. And it constitutes a major achievement toward fulfilling a promise that I made here in New Orleans, along with my colleagues, nearly two years ago: to engage with our partners and counterparts to determine the causes of this disaster; to respond to its consequences; to seek justice on behalf of its victims; and to enable Gulf Coast residents to continue to recover and rebuild.

To this end, under the terms of the agreement we announce today, about $2.4 billion of the criminal recovery funds will be dedicated to environmental restoration, preservation, and conservation efforts throughout this region – including barrier-island creation and river diversion projects right here in Louisiana. An additional $350 million will aid in the development of state-of-the art oil spill prevention and response technologies, education, research, and training. And more than $1 billion will go to the U.S. Coast Guard’s Oil Spill Liability Trust Fund, to be available for cleanup – and compensation for those affected by – oil spills in the Gulf and throughout the United States.

As part of its guilty plea, BP will retain a monitor – for four years – who will oversee safety, risk management and equipment maintenance in relation to deepwater drilling in the Gulf, as well as an independent auditor who will conduct annual reviews to ensure compliance with the terms of this agreement. The company will also hire an ethics monitor to improve its code of conduct and foster robust cooperation with the government.

There can be no question that this historic announcement represents a critical step forward – and underscores the Justice Department’s determination to stand with Gulf Coast communities. In February, this same commitment led the Department to reach a partial settlement – totaling $90 million – with MOEX Offshore, related to that company’s Clean Water Act liability for the Deepwater Horizon disaster. Approximately $45 million of this total will go directly to the Gulf, in the form of penalties or expedited environmental projects.

But our work is far from over. In the trips that my colleagues and I have made to the Gulf Coast since the Deepwater Horizon spill, we’ve seen the damage – to lives and businesses, as well as coastal areas and wetlands – that this tragedy has inflicted. We understand the tremendous costs, both economic and environmental, that have been associated with this disaster. And we’ve been inspired by the resilience displayed by each and every Gulf Coast resident who’s been affected.

That’s why I want to be absolutely clear that today’s resolution does not mark the end of our efforts. In fact, our criminal investigation remains ongoing – and we’ll continue to follow all credible leads and pursue any charges that are warranted.

In fact, in addition to the charges filed against BP, a federal grand jury returned an indictment charging the two highest-ranking BP supervisors who were on board the Deepwater Horizon on the day of the explosion with 23 criminal counts – including 11 counts of seaman’s manslaughter, 11 counts of involuntary manslaughter, and alleged violations of the Clean Water Act. The grand jury also charged a former BP executive – who served as a deputy incident commander and BP’s second-highest ranking representative at Unified Command during the spill response – with hiding information from Congress and allegedly lying to law enforcement officials.

These and other matters remain open, including a separate civil action that’s pending in federal court here in New Orleans. We’re looking forward to the trial – which is scheduled to begin in February of next year – in which we intend to prove that BP was grossly negligent in causing the oil spill. In that lawsuit, we are seeking civil penalties and a judgment that BP and others are liable for removal costs and natural resource damages – exposure that could amount to billions of dollars. Though we have been unable to date to resolve the civil case, we remain as determined as ever to hold those responsible accountable. In addition, my colleagues and I are firmly committed to combating oil-spill fraud by investigating and prosecuting those who attempt to reap criminal profits from such a terrible tragedy.

Once again, I want to thank each of the Task Force members, Justice Department leaders, local officials, critical agency partners, and Gulf Coast residents who have contributed to this work and made today’s historic announcement possible. And now, I’d like to turn things over to another key leader – Assistant Attorney General Lanny Breuer – who will provide additional details about today’s action.

U.S. ATTORNEY GENERAL HOLDER SPEAKS AT BALTIMORE UNIVERSITY SCHOOL OF LAW

U.S. Attorney General Eric Holder

FROM: U.S. JUSTICE DEPARTMENTAttorney General Eric Holder Speaks at the Baltimore University School of Law
Baltimore ~ Thursday, November 8, 2012

Thank you, Ron. I appreciate those kind words, and I want to thank you and President Bogomolny – along with all of the faculty members, administrators, and students who are here with us today – for welcoming me to this vibrant campus, with your dramatic new Law School building under construction. It’s a pleasure to be here. And, especially during this historic week, it’s a privilege to be joined by so many current – and future – leaders of our nation’s legal community – men and women who will help to shape America’s course and to bring Americans together.

As members of this law school community, you are well – and uniquely – suited for such endeavors. History proves this. For more than eight decades, the University of Baltimore School of Law has served as an important meeting ground – where issues of consequence are discussed and addressed. It’s also become known as a training ground for distinguished attorneys, jurists, advocates, policymakers, and public servants. The track record you’ve built, and the reputation you’ve established, are impressive. And, with students like all of you – and educators like the outstanding professors who are with us today, including your new Dean – it’s easy to see why.

As you just heard, I had the pleasure of working closely with Ron during his tenure at the Justice Department, where he served as Assistant Attorney General for Legislative Affairs – a role widely considered to be one of the hardest jobs in all of government. That was especially true over the last three years. But our roots – and shared experiences – run even deeper. Ron and I are both native New Yorkers. We attended rival high schools – and both went to Columbia University as undergraduates.

To anyone who knows Ron, it’s clear that he is deeply grateful for the first-rate education that he received – from the second-best high school in New York, from Columbia, and from Yale Law School. And he recognizes that these learning opportunities paved the way for the remarkable career he has built – in private practice; on Capitol Hill, as chief counsel to the late Senator Ted Kennedy, and as principal legal advisor to the U.S. Senate Majority Leader; at our nation’s Justice Department; and, now, in academia. He also understands that with these extraordinary opportunities come important obligations – to help others recognize and realize their potential. This is why Ron is here. And this is what motivates his efforts to support the kind of inclusive academic environment – and foster the robust discussion and debate – for which this University has become known. Although we miss him in Washington, I can think of no one better to help train the next generation of lawyers, leaders, advocates, and public servants – whose service, and contributions, will help to keep the great American experiment in motion – and ensure that our nation can continue to carry out, and live up to, its founding ideals.

T he country we have inherited has been defined by the hard work and tremendous courage of those who, throughout our history, have chosen not just to devote themselves to studying the law, but also to advancing the cause of justice. These brave individuals – armed with the same training that you’re receiving – have served on the front lines of national efforts to abolish slavery and segregation, to guarantee decent wages for our workers, and to secure fundamental civil rights protections for all – regardless of race, religion, gender, economic means, social status, or sexual orientation. They’ve helped to draft – and safeguard – our founding documents; to shape – and improve – the greatest legal system in the world; and to maintain the strength and integrity of our most sacred institutions by securing, and expanding, the most basic right of American citizenship – the right to vote.

These are the issues that must continue to unite our profession – and our nation. Despite the divisions we may have felt in recent months, and the fierceness with which this year’s campaigns were contested, I am convinced that that the American people will come together, as they always have in times of difficulty, to advance the aspirations, and to honor the values, we share. Starting this week, we face a uniquely democratic moment of both healing and renewal – a time when all Americans, and especially our elected leaders, are called upon to join forces once again; to meet common challenges with shared resolve; and to carry forward the critical work that has always driven our pursuit of a more perfect Union.

As aspiring stewards of the law – and servants of those whom it protects and empowers –the students in this room have made an important commitment, and taken on very serious responsibilities. Already, you’re putting your legal training to work in assisting vulnerable tenants, disabled students, disadvantaged patients, and victims of crime – as well as nonprofits and neighborhood organizations. And you’re striving to realize the vision that has always shaped this University’s unique culture, and defined it as an institution founded on community involvement, dedicated to serving the public interest, and determined to foster increased diversity.

Along the way, you’re learning to build relationships with your peers and to engage in respectful debates with one another. You’re identifying the best ways to right wrongs, to address disparities, and to formulate solutions for problems that span across regions and even around the globe. And soon – whether you choose to build a career in private practice, join a corporation, teach, serve in government, or even run for public office – all of you will be called upon to fulfill the ideal that has always been at the center of your legal education and the heart of your chosen profession: not merely to serve clients or win cases, but to do justice.

I realize that’s an intimidating thought. But the fact that you’re here today proves that you’re not only up to the challenges that lie ahead – you welcome the chance to confront them. And that’s why I urge you to make a habit of public service; to seek to improve the lives of those around you; and to do everything in your power to help make your communities, and your country, stronger.

Despite the tremendous advances that have been made over the course of our nation’s history – and even within my lifetime – the reality is that significant obstacles, persistent disparities, and evolving threats remain before us. And you don’t have to look far to find them.

Today, in too many American neighborhoods, including many here in Baltimore, young people – especially young men of color – are more likely to be murdered than to die by any other cause. A majority of our children – 60 percent of them – have been exposed to violence at some point in their lives, either as victims or as witnesses. In total, more than 50 million Americans are eligible for federally-funded legal aid – but most cannot access it. Nearly 80 percent of civil legal needs go unmet. Countless lives and communities are devastated each year by fraud targeting homeowners, investors, and those who rely on essential federal health care programs. And systemic threats – from terrorism to climate change – continue to challenge our society, to endanger our people, and to spark conflict and division around the world.

These are just a few of the challenges that America’s current and future leaders will be called upon to address and overcome. There’s no question that they are daunting. And the stakes could hardly be higher. But you’ve been given a rare opportunity – the chance to make a profound difference. And, here at the University of Baltimore, you’re gaining the tools you’ll need to do just that.

Armed with the skills and knowledge that only a world-class legal education can confer –I’m certain that each of you soon will find that, just as surely as you’re coming of age in a moment of great consequence, you stand poised to lead our nation’s legal profession, and justice system, at a time of extraordinary promise.

In these efforts, I am proud to count each of you as partners. And, as our nation looks toward a new chapter in its history, you make me feel optimistic about the days ahead. I look forward to all that you must – and surely will – achieve together. And I want you to know that I am counting on you all – and that includes you, Dean Weich.

ATTORNEY GENERAL HOLDER SPEAKS ON HUGE MEDICARE FRAUD TAKEDOWN

FROM: U.S. DEPARTMENT OF JUSTICE
Attorney General Eric Holder Speaks at the Health Care Fraud Takedown Press Conference

Washington, D.C. ~ Thursday, October 4, 2012

Good afternoon. Today I’m joined by Department of Health and Human Services Secretary, Kathleen Sebelius; Assistant Attorney General of the Justice Department’s Criminal Division, Lanny Breuer; FBI Associate Deputy Director, Kevin Perkins; HHS Inspector General for Investigations, Daniel R. Levinson; and Deputy Administrator for Program Integrity of the Centers for Medicare and Medicaid Services, Dr. Peter Budetti – to announce a critical step forward in our ongoing fight against health care fraud.

Over the last 24 hours, Medicare Fraud Strike Force operations in seven different cities have conducted one of the largest health care fraud takedowns on record. Through a series of coordinated, nationwide law enforcement actions, charges have been brought against 91 individuals – including doctors, nurses, and other licensed medical professionals – for their alleged participation in fraud schemes involving nearly $430 million in false billings. That total includes over $230 million in home health care fraud, more than $100 million in mental health care fraud, and approximately $49 million in ambulance transportation fraud. Thanks to the outstanding work of federal authorities – and the assistance of state and local partners – as of today, most of these individuals have been arrested or surrendered.

Charges against these defendants include health care fraud, conspiracy to commit health care fraud, wire fraud, violations of the anti-kickback statutes, aggravated identity theft, and money laundering. These charges are based on a variety of allegedly fraudulent activities involving treatments and services that were either medically unnecessary or, in some cases, never actually rendered – ranging from home health care and mental health services, to psychotherapy, physical and occupational therapy, durable medical equipment services, and the largest ambulance fraud scheme ever prosecuted by the Medicare Fraud Strike Force.

Such activities not only siphon precious taxpayer resources, drive up health care costs, and jeopardize the strength of the Medicare program – they also disproportionately victimize the most vulnerable members of society, including elderly, disabled, and impoverished Americans. And, unfortunately, we allege that many of those charged today not only broke the law – but also violated their professional obligations, and sacred oaths, as medical practitioners. For example, in one case in Dallas, a doctor and two registered nurses are charged with writing more than 30,000 prescriptions for over 2,000 Medicare beneficiaries, resulting in roughly $100 million in fraud. These alleged actions represent an alarming, and unacceptable, nationwide trend – of individuals attempting to exploit federal health care programs – and, collectively, to steal billions in taxpayer dollars – for personal gain.

But we are fighting back. And today’s takedown underscores the fact that federal efforts to combat health care fraud have never been more strategic, more comprehensive, or more effective.

Since the creation of the Health Care Fraud Prevention and Enforcement Action Team – known as "HEAT" – in May of 2009, preventing and shutting down health care fraud schemes has become a top priority – for DOJ and HHS, for the entire Administration, and for our partners at every level of government and across both the public and private sectors. Today’s announcement represents the fifth significant enforcement action taken under HEAT. And there’s no question that this level of commitment is paying dividends.

Joint DOJ/HHS Medicare Fraud Strike Forces are now operating in 9 locations nationwide – in Miami, Los Angeles, Detroit, Houston, Brooklyn, Baton Rouge, Tampa, Chicago, and Dallas. Since the first Strike Force was launched in 2007, these teams have charged nearly 1,500 defendants for falsely billing the Medicare program more than $4.8 billion. And during the last fiscal year, those convicted in Strike Force cases received an average prison sentence of four years.

In addition to disrupting health care fraud schemes and advancing prosecutions, we’re also working to return precious funds to the public coffers – and, since 2009, have been able to recover more than $10.6 billion. Over the same period, for every dollar spent on combating health care fraud, we’ve returned more than seven dollars to the U.S. Treasury, the Medicare Trust Funds, and others.

However, as today’s announcement proves, we are not yet satisfied. And, in the fight against health care fraud, we will never be complacent.

Through HEAT, we’re taking this fight to a new level – by expanding engagement with state, local, and tribal partners; by streamlining federal investigations and prosecutions; and by leveraging resources and expertise. In each of our Strike Force locations, we’re moving aggressively to eradicate health care fraud in all its forms, to strengthen federal health care programs, and to bring the perpetrators of fraud crimes to justice.

I want to thank each of the dedicated investigators, prosecutors, law enforcement officers, and other agency partners whose tireless, collaborative work has made today’s announcement possible – and who stand on the front lines of our efforts to identify and shut down large-scale fraud schemes, like those detailed in the indictments handed down today.

Their actions prove that, despite the size of the challenge we face, progress is possible. And their dedication to this work is sending a clear message to those willing or attempting to commit health care fraud: that we will use every available tool and resource to find you, to stop you, and to punish you to the fullest extent of the law.

At this time, it is my privilege to turn things over to another critical leader in this work – my good friend, Secretary Kathleen Sebelius – who will provide additional information on today’s actions, as well as our efforts to build on this success and to carry this work into the future.

U.S. ATTORNEY GENERAL ERIC HOLDER SPEAKS AT DEFENDING CHILDHOOD INITITIVE PRESS CONFERENCE

FROM: U.S. DEPARTMENT OF JUSTICE
Attorney General Eric Holder Speaks at the Defending Childhood Initiative Press Conference

Cleveland ~ Friday, September 28, 2012

Thank you, Steve. It’s a pleasure to be back in Cleveland. And it’s a privilege to join with you, County Executive Fitzgerald – and so many dedicated partners – to discuss an exciting step forward in our ongoing fight to protect the safety, health, and potential of our young people.

This morning, I’m pleased to announce that the United Way’s 2-1-1 "call-for-service" line is now partnering with the Justice Department, and other key stakeholders, to more effectively identify – and assist – children who’ve been exposed to violence. The 2-1-1 community access line – which already operates 24 hours a day, 7 days a week – has proven to be a critical tool in enabling members of the public to access help with foreclosure prevention, as well as general health and human service needs. And, now, members of the community can also call 2-1-1 to access screening, assessment, and treatment services for children who have been victims of – or witnesses to – violence.

This new service is the result of strong leadership – by local officials, service providers, and advocates; and of strong support – from the Cleveland Foundation and the United Way of Greater Cleveland. And I’m confident that it will enhance the important work that’s now underway here in Cleveland – and in other cities currently working to reduce high rates of community violence – as part of the Justice Department’s landmark Defending Childhood Initiative.

All 2-1-1 staff have been trained to help determine whether the treatment services that are available here in Cleveland – as part of this city’s Defending Childhood Initiative – should be utilized. As a result, we expect community-based agencies and mental health organizations to be able to respond more effectively in screening, assessing, and treating the young people who need our help and – when necessary – engaging the appropriate authorities.

This marks yet another important step forward for the Defending Childhood Initiative – and for the children and communities we’re working to serve. Two years ago, the Department launched this initiative for one simple, unfortunate reason: we are facing a national crisis. In America today, the majority of children – more than 60 percent of them – have been exposed to violence at some point in their lives, often repeatedly. Here in Cuyahoga County, nearly two-thirds of at-risk children have seen someone beaten up in their own neighborhoods; and a quarter of these young people have experienced violence in their own homes. This is an alarming problem – with devastating, often long-term, consequences.

Research has shown that children who experience and witness violence are more likely than their peers to abuse drugs and alcohol. They are at a heightened risk – not only for depression, anxiety, and other post-traumatic disorders – but also for developing chronic diseases, having trouble forming emotional attachments, and committing acts of violence themselves. Fortunately, studies also have revealed that intervention and treatment can be highly effective, and that it is possible to counter the negative impact of violence – and to help our children heal, grow, and thrive.

That’s one reason why today’s announcement – and the effort to more effectively connect children in need with the assistance and support that can improve their lives and their communities – is so promising. I’m confident that it will build on the $2 million investment that the Justice Department awarded to Cuyahoga County last year, as part of the Defending Childhood Initiative. These resources have helped to bring more than 150 public and private sector experts from across the Cleveland area together in recent months – to analyze public safety strategies and diagnostic tools; to develop violence prevention plans; and to find the most effective ways to identify children who’ve been exposed to violence, assess their level of trauma, and map out a proper course of treatment.

This is precisely the type of broad-based engagement and local leadership that my colleagues and I had in mind when we launched the Defending Childhood Initiative – in order to make federal funding, resources, and experts available to relevant authorities in eight jurisdictions nationwide . Since last year – when I visited the Boys and Girls Club on Fleet Avenue, and heard about the challenges facing young people in this area – we’ve been actively engaged in driving this effort forward right here in Cleveland.

In fact, earlier today, I had the chance to meet with a number of the men and women who have been helping to guide our efforts here in Cuyahoga County – from policy experts like Elsie Day, to law enforcement leaders like U.S. Attorney Dettelbach and Cleveland Police Chief McGrath – and even public health professionals like Dr. Barksdale, Chief of Surgery at Rainbow Babies and Children’s Hospital. I also had the privilege of hearing from a few of the students who have been instrumental in guiding, informing, and raising awareness about our ongoing work – and our latest effort to identify, screen, and treat kids in need.

As a result of their extraordinary efforts, hundreds of area children have already undergone the initial screening process since it was implemented by local authorities in July. With today’s announcement – which opens this process to the general public, and which should allow approximately 1,000 children to be screened, assessed, and – if necessary – treated each month – I am confident that we can continue to extend the momentum that’s been established here in Cleveland.

This morning, as this work begins to enter a new phase, I’d like to thank all of the leaders, partners, and supporters gathered here – for your hard work, dedication, and steadfast commitment to protecting the young people who need, and deserve, our help. I look forward to the progress that we will continue to make – together.

ATTORNEY GENERAL HOLDER AT DETROIT NAACP CENTENNIAL CELEBRATION

FROM:  U.S. DEPARTMENT OF JUSTICE 
Attorney General Eric Holder Speaks at the Detroit NAACP Centennial Celebration 57th Annual Fight for Freedom DinnerDetroit ~ Sunday, May 6, 2012
Thank you, Reverend Anthony, for those kind words – and thank you all for the opportunity to take part in this momentous celebration.   It’s a pleasure to join Mayor Bing, along with Detroit’s hardworking Congressional delegation – Senator Levin, Senator Stabenow, Congressman Conyers, and Congressman Clarke – in marking the centennial of the largest – and one of the most accomplished – NAACP branches in the country.

I’d like to thank this branch’s leadership and membership – as well as tonight’s General Chairs and Co-Chairs – for all they’ve done to bring us together tonight.   And I’d particularly like to congratulate this year’s award recipients – Rhonda Walker, Nabih Ayad, Rachel Maddow, Maureen Taylor, and Reverend Dr. Julius Hope – on this prestigious, and well-deserved, recognition.

It’s a privilege to be back in the Motor City – and to bring greetings from President Obama.   This is an historic evening – an occasion to take pride in the legacy of achievement that has come to define and distinguish the work of the NAACP and, in particular, of its Detroit Branch.   But it’s also an important opportunity to take stock of what’s left to do – and to consider the challenges that lie before us.   So, as we come together to celebrate the power of individual voices, and the collective action – and nationwide progress – that a single person can help to inspire – let us also reflect on the responsibilities that each one of us shares – responsibilities to ourselves and each other, to our children, and to our predecessors – whose examples of courage – and commitment to collaboration – continue to show us the way forward.

Just over a century ago – at a time when segregation was the law of the land, and too many communities across our nation were gripped by fear and shattered by violence – a group of visionaries came together – driven by concern and frustration – to put forward a dream of hope for their own communities – and for all of their fellow citizens.

Since then, the NAACP has stood on the front lines of our nation’s fight to ensure security, opportunity, and justice – and equal treatment.   In a direct sense, this organization enabled many of the sweeping, transformative changes that shifted the course of the twentieth century – and paved the way for remarkable, once-unimaginable progress.   And since 1912 – when the Detroit Branch received its charter – there’s no question that this community has been at the center of these historic efforts.

When housing discrimination rocked the state of Michigan, it was the NAACP that stepped up and provided the funding to take this struggle to the court system – winning a major legal victory in 1925.

When the indignities of the unjust “separate but equal” doctrine could be tolerated no longer, it was the NAACP that shepherded a legal challenge all the way to the Supreme Court – and in 1954 helped secure the landmark Brown ruling.   That same year, the Detroit Branch obtained a decision in federal court that ended segregation in this city’s public housing system.

When pioneers like W.E.B. DuBois, Walter White, James Weldon Johnson, Rosa Parks, Medgar Evers – and a young Montgomery preacher named Martin Luther King, Jr. – raised their voices, and even risked their lives, in pursuit of a more perfect union, each of them found a position of leadership – and a community of committed partners – in the NAACP.

And when a bright young woman named Vivian Malone – who would later become my sister-in-law – set her sights on a quality college education, but was barred from enrolling in her state’s university because of her race, she came to the NAACP for advice as she mounted a legal challenge.   And in 1963 – with the support of the courts; with the help of my predecessor, Attorney General Robert Kennedy; and with the eyes of the nation upon her – she stepped past Governor George Wallace to integrate the University of Alabama.

Long before I married her sister, Vivian became that University’s first African-American graduate.   For the rest of her life, she fought for equal opportunity as a member of the Justice Department’s Civil Rights Division, and as an activist with the National Council of Negro Women and the NAACP.   Although she passed away several years ago – much too soon – her courage has inspired me since I was a young man, seeing the iconic news images of that infamous “Stand in the Schoolhouse Door” for the very first time.   And her example continues to guide me even today.

In fact, stories like Vivian’s – and landmark achievements like the ones this Branch has helped to bring about – were what drove me, as an aspiring attorney, to spend my first summer in law school working for the NAACP’s Legal Defense and Educational Fund – where I had the chance to be part of a tradition of service that was established by legendary attorneys like Charles Hamilton Houston and Thurgood Marshall, and later strengthened by brilliant, dedicated leaders like my good friend John Payton.   Not long after, I launched my career in public service at the Department of Justice.

Today, I am humbled to be a direct beneficiary of the progress that the NAACP has made possible over the years.   And I’m honored to serve in the Administration of President Barack Obama, another direct beneficiary of this work.

Yet, despite the significant, once-unimaginable advances that have marked the century since this group convened its first meetings – not far from where we gather tonight, at St. Matthew’s Episcopal Church – the unfortunate fact is that, in 2012, our nation’s long struggle to overcome injustice, to eliminate disparities, to bridge long-standing divisions, and to eradicate violence has not yet ended.

On the contrary – this work remains as important – and as urgent – as ever before.

Of course, you already know this.   You know that, in far too many American cities, there are neighborhoods where too many kids go to prison and too few go to college; where the doors to education and opportunity seem to be firmly closed; and where, for many young people, funerals are more common than weddings.   There are school districts where suspensions are disproportionately likely to be imposed on black students, Hispanic students, poor students, and students with special needs – increasing the chances that they’ll be involved with the juvenile justice system.

Fortunately, on each of these fronts, the Detroit NAACP has responded not with despair, but with resolve.   You are carrying on – and continuing to strengthen – the tradition of advocacy and empowerment that has become your hallmark.   You’re calling forth – and bringing out – the very best in this city’s residents.   You’re fighting to safeguard civil rights, to ensure embattled voting rights, and to expand learning and employment opportunities in every community.   And you’re working – on the streets as well as in the courts – to strengthen our criminal justice system, to achieve fairness in our immigration and sentencing policies, and to prevent and combat violence and crime – especially among our young people.

This is an issue that has – rightly – garnered significant national attention in recent months – as our nation has struggled to make sense of the tragic shooting death of a Florida teenager named Trayvon Martin.   As this case moves through the legal system, Justice Department officials will continue to communicate closely with state and local authorities to ensure that community concerns are heard, tensions are alleviated, and – as with every investigation at every level – appropriate actions are guided by the facts and the law.

But – as we all know – the reality is that certain aspects of this case are far from unique.   And incidents of violence involving young people are anything but rare.

Nationwide, homicide is the leading cause of death for black men between the ages of 15 and 24.  More than 60 percent of all young people are exposed to violence at some point in their lives, either as victims or as witnesses.   And one report even showed that – here in Detroit – an average of two young black men are killed every week – a murder rate nearly seven times higher than the population at large.

I’m sure I don’t need to tell you that this is shocking.   It is unacceptable.   And it’s why the leadership of organizations like the NAACP – and the engagement of activists throughout Detroit and across the country – remains as vital as ever.

It’s also why, under the Obama Administration, the Justice Department has made an unprecedented commitment to protecting the safety – and potential – of our children.   For the first time in history, we are directing significant resources for the express purpose of addressing childhood exposure to violence, raising awareness of its ramifications, and advancing scientific inquiry on its causes and characteristics.   Through our landmark Defending Childhood Initiative, which I launched in 2010 – and our National Forum on Youth Violence Prevention, which is implementing an action plan right here in Detroit – we’re developing strategies for reducing violence and countering its negative impact.   And in six cities – including this one – an innovative pilot initiative known as “Strong Cities, Strong Communities” is allowing local leaders to leverage federal, state, local, business, and non-profit partnerships in order to enhance cooperation on a host of community-based efforts – including violence prevention.

I believe there’s good reason for optimism about where this work will lead us – and the progress that this type of collaboration has made possible.   And I’m pleased to report that a similar spirit of partnership – and a robust, Department-wide commitment to protecting the most vulnerable among us, confronting longstanding divisions, and overcoming persistent disparities – has infused the Administration’s endeavors on a range of critical areas.

Nowhere is this more clear than in the determined efforts of our Civil Rights Division.   As Attorney General, I have the great privilege – and the solemn duty – of enforcing many of the laws and reforms that the NAACP and other groups have fought, over the past century, to enact.  For the Department and our allies across the country, this work is among our highest priorities.  And I’m proud to say that our approach has never been more effective.

Over the past three years, the Department’s Civil Rights Division has filed more criminal civil rights cases than ever before, including record numbers of police misconduct, hate crimes, and human trafficking cases.   We’ve moved aggressively to combat continuing racial segregation in schools – and to eliminate discriminatory practices in our housing and lending markets.   We’ve taken decisive action to vigorously enforce the 1965 Voting Rights Act – our nation’s most important civil rights statute – by challenging attempts to disenfranchise many of our fellow citizens.    And we’ve reinvigorated sweeping efforts to ensure that, in our workplaces and military bases; in our housing and lending markets; in our schools and places of worship; in our immigrant communities and our voting booths – the rights of all Americans are protected.

Across the Administration, we’re working in a range of other innovative ways to achieve fairness and expand opportunity – from successfully advocating for the reduction of the unfair and unjust 100-to-1 sentencing disparity between crack and powder cocaine offenses – to launching a new, Department-wide Diversity Management Initiative.   And our determination to build on these efforts has, quite simply, never been stronger.

Of course, I cannot pretend that the road ahead will be an easy one.   And I recognize – and have seen firsthand – that doing what’s right may not always be the same as doing what’s popular.

But I firmly believe that each of us has the power – and the responsibility – to take up the unfinished struggle for equal opportunity and justice.   To rise to this moment of possibility – and seize our chance to protect and empower those who need our help most.

After all – if, as they say, what’s past is prologue – tonight’s celebration of your first 100 years should inspire a great deal of confidence about where the NAACP’s Detroit Branch will lead us over the next 100.

And, as we look toward the future we seek – and, together, must build – know that my colleagues and I at every level of the Justice Department are privileged to count you as partners.   Know that I am hopeful about all that we can – and will – achieve together.   And finally, know that I am honored to stand with you – tonight and always – in living out the spirit that inspired the creation of the NAACP – and that must always drive our pursuit of a more inclusive, more just, and more perfect union.  The creation of that better America is within our grasp.   If we commit ourselves, if we work together, if we remember the sacrifices of those who envisioned a better world – not for them, but for us – there is nothing we cannot accomplish.   So let us leave tonight secure in the knowledge that our destiny – our nation's destiny – will be determined primarily by the resolve and the vigor that we bring to this endeavor.   I look forward to working with all of you.

Thank you.

107 INDIVIDUALS CHARGED IN $452 MILLION MEDICARE FALSE BILLING SCHEMES

FROM:  U.S. DEPARTMENT OF JUSTICE
Wednesday, May 2, 2012
Medicare Fraud Strike Force Charges 107 Individuals for Approximately $452 Million in False Billing

Attorney General Eric Holder and Health and Human Services (HHS) Secretary Kathleen Sebelius announced today that a nationwide takedown by Medicare Fraud Strike Force operations in seven cities has resulted in charges against 107 individuals, including doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $452 million in false billing.

Attorney General Holder and Secretary Sebelius were joined in the announcement by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, FBI Deputy Director Sean Joyce, Deputy Inspector General for Investigations Gary Cantrell of the HHS Office of Inspector General (HHS-OIG) and Dr. Peter Budetti, Deputy Administrator for Program Integrity of the Centers for Medicare and Medicaid Services (CMS).

This coordinated takedown involved the highest amount of false Medicare billings in a single takedown in strike force history.

HHS also suspended or took other administrative action against 52 providers following a data-driven analysis and credible allegations of fraud.  The new health care law, the Affordable Care Act, significantly increased HHS’s ability to suspend payments until an investigation is complete.

The joint Department of Justice and HHS Medicare Fraud Strike Force is a multi-agency team of federal, state and local investigators designed to combat Medicare fraud through the use of Medicare data analysis techniques.   More than 500 law enforcement agents from the FBI, HHS-Office of Inspector General (HHS-OIG), multiple Medicaid Fraud Control Units, and other state and local law enforcement agencies participated in the takedown.   In addition to making arrests, agents also executed 20 search warrants in connection with ongoing strike force investigations.

“The results we are announcing today are at the heart of an Administration-wide commitment to protecting American taxpayers from health care fraud, which can drive up costs and threaten the strength and integrity of our health care system,” said Attorney General Holder.   “We are determined to bring to justice those who violate our laws and defraud the Medicare program for personal gain.   As today’s takedown reflects, our ongoing fight against health care fraud has never been more coordinated and effective.”
“Today’s arrests send a strong message to criminals that the consequences of committing Medicare fraud are serious,” said HHS Secretary Sebelius.  “In addition to these arrests, we used new authority from the health care law to stop all future payments to 52 health care providers suspected of fraud before they are ever made.  Today’s actions are another example of how the Affordable Care Act is helping the Obama Administration fight fraud and strengthen the Medicare program.”

The defendants charged are accused of various health care fraud-related crimes, including conspiracy to commit health care fraud, health care fraud, violations of the anti-kickback statutes and money laundering.   The charges are based on a variety of alleged fraud schemes involving various medical treatments and services such as home health care, mental health services, psychotherapy, physical and occupational therapy, durable medical equipment (DME) and ambulance services.

According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare for treatments that were medically unnecessary and oftentimes never provided.   In many cases, court documents allege that patient recruiters, Medicare beneficiaries and other co-conspirators were paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could submit fraudulent billing to Medicare for services that were medically unnecessary or never provided.  Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of conspiring to submit a total of approximately $452 million in fraudulent billing.

“As charged in the indictments, these fraud schemes were committed by people up and down the chain of healthcare providers,” said Assistant Attorney General Breuer.   “Today’s operations mark the fourth in a series of historic Medicare fraud takedowns over the past two years.   These indictments remind us that Medicare is an attractive target for criminals.   But it should also remind those criminals that they risk prosecution and prison time every time they submit a false claim.”

“Health care fraud is not a victimless crime,” said FBI Deputy Director Joyce.  “Every person who pays for health care benefits, every business that pays higher insurance costs to cover their employees, every taxpayer who funds Medicare—all are victims.  The FBI will continue to work closely with our federal, state and local law enforcement partners to address health care vulnerabilities, fraud and abuse.  We will use every tool we have to ensure our health care dollars are used to care for the sick—not to line the pockets of criminals.”

“Today over 200 OIG Special Agents, Forensic Examiners and Analysts have deployed throughout the country to ensure that those responsible for committing Medicare fraud are held accountable,” said HHS-OIG Deputy Inspector General Cantrell.  “OIG is committed to the strike force model and will continue to use advanced data analytics along with traditional investigative methods to root out those who steal from our Medicare program.”

In Miami, a total of 59 defendants, including three nurses and two therapists, were charged today and yesterday for their participation in various fraud schemes involving a total of $137 million in false billings for home health care, mental health services, occupational and physical therapy, DME and HIV infusion.   Two of these 59 defendants were originally charged in April 2012 but were indicted on additional charges today.   In one case, 10 defendants were charged for participating in a fraud scheme at Health Care Solutions Network, which led to approximately $63 million in fraudulent billing for community mental health center (CMHC) services.   Court documents allege that therapists at Health Care Solutions Network were instructed to alter notes and other medical documents to justify CMHC services for beneficiaries who did not need the services.

Seven individuals were charged today in Baton Rouge, La., for participating in a fraud scheme involving $225 million in false claims for CMHC services.   The case represents the largest CMHC-related scheme ever prosecuted by the Medicare Fraud Strike Force.   According to court documents, the defendants recruited beneficiaries from nursing homes and homeless shelters, some of whom were drug addicted or mentally ill, and provided them with no services or medically inappropriate services.

In Houston, nine individuals, including one doctor and one nurse, were charged today with fraud schemes involving a total of $16.4 million in false billings for home health care and ambulance services.   According to court documents, the owners and operators of four different ambulance companies billed Medicare for ambulance rides that were medically unnecessary.

Eight defendants, including two doctors, were charged in Los Angeles for their roles in schemes to defraud Medicare of approximately $14 million.  In one case, two individuals allegedly billed Medicare for more than $8 million in fraudulent billing for DME.
In Detroit, 22 defendants, including four licensed social workers, were charged for their roles in fraud schemes involving approximately $58 million in false claims for medically unnecessary services, including home health, psychotherapy and infusion therapy.
In Tampa, Fla., a pharmacist was charged with illegal diversion of controlled substances.   One defendant was charged last week in Chicago for his alleged role in a scheme to submit approximately $1 million in false billing to Medicare for psychotherapy services.

The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.

Since their inception in March 2007, strike force operations in nine locations have charged more than 1,330 defendants who collectively have falsely billed the Medicare program for more than $4 billion.

In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

The cases announced today are being prosecuted and investigated by Medicare Fraud Strike Force teams comprised of attorneys from the Fraud Section of the Justice Department’s Criminal Division and from the U.S. Attorneys’ Offices for the Southern District of Florida, the Eastern District of Michigan, the Southern District of Texas, the Central District of California, the Middle District of Louisiana, the Northern District of Illinois, and the Middle District of Florida, and agents from the FBI, HHS-OIG and state Medicaid Fraud Control Units.

An indictment is merely a charge and defendants are presumed innocent until proven guilty.

ATTORNEY GENERAL ERIC HOLDER'S TASK FORCE ON CHILDREN EXPOSED TO VIOLENCE PUBLIC HEARING

FROM:  U.S. DEPARTMENT OF JUSTICE
Tuesday, April 24, 2012
Attorney General Eric Holder’s Task Force on Children Exposed to Violence Holds Final Public Hearing in Detroit New DOJ Study Reveals School Officials More Likely to Learn of Child Victimization than Police or Medical Authorities
At the final hearing of Attorney General Eric Holder’s National Task Force on Children Exposed to Violence in Detroit, officials from the Justice Department and the city of Detroit underscored efforts to keep kids safe and prevent youth violence. The task force is a key part of Attorney General Holder’s Defending Childhood Initiative to prevent and reduce children’s exposure to violence.

At the hearing, Acting Associate Attorney General Tony West announced the release of a new Justice Department research bulletin showing that 46 percent of victimized children were known to school, police or medical authorities. The bulletin, Child and Youth Victimization Known to Police, School, and Medical Authorities draws from the National Survey of Children’s Exposure to Violence sponsored by the Office of Justice Programs’ Office of Juvenile Justice and Delinquency Prevention with support from the Centers for Disease Control and Prevention.

“While more children are reporting violence to authorities, many continue to endure the pain of victimization in silence,” said Acting Associate Attorney General West.  “Through the work of the Attorney General’s task force, we hope to find more ways to identify those children in need and make sure they have access to effective prevention and treatment options.”

The task force is co-chaired by Joe Torre, chairman of the board of the Joe Torre Safe At Home Foundation, and Robert Listenbee, Jr., chief of the Juvenile Unit of the Defender Association of Philadelphia.  Co-chair Listenbee, a Detroit-area native, highlighted the urgency and opportunity of the task force’s work.

“I grew up just 20 miles outside of Detroit in Mt. Clemens, Michigan. During my high school years, violence was commonplace,” said Listenbee. “Similar violence still occurs in cities and towns across the country, but today we know so much more about how to address it.   The resounding message this task force has heard is that we can – and must – change the norm of violence in children’s lives.”

During the opening session, Detroit Police Chief Ralph Godbee discussed the police department’s work with youth.   He was joined by Lawnya Sherrod, a former Detroit gang member turned community organizer, who highlighted her work to get youth out of gangs and to help them graduate from high school and become productive, successful members of the community.

In a panel discussion about successful programs, Wayne County Child and Family Services Director Tadarial Sturdivant described his agency’s efforts to reform the juvenile justice system through a program called First Contact.

“[The program] creates an opportunity to collaborate with the Detroit Police Department and offer services at the street level to support the patrol officer who has first contact with the juvenile,” said Sturdivant. “As an alternative to arrest and detention, [the department] will convey youth to the Juvenile Assessment Center for stabilization, parental contact, brief assessment, transportation home, and referral for voluntary services.”

In a panel about public-private partnerships, Dr. William Bell, President and CEO of Casey Family Programs, discussed the need to meet the “overwhelming circumstances” of violence against children “with deliberate and intentional action.” Bell outlined concrete steps that every city in America could take to build “communities of hope” to reverse these violent trends.

Mary Lee, Deputy Director of PolicyLink, described how place influences many child outcomes. “ Just by knowing his or her zip code, a young person’s health, life expectancy, success in school, adult income¯all of these can be predicted,” noted Lee in her testimony, which described ways to improve the places children live to improve long-term outcomes.

The task force is composed of 13 leading experts, including practitioners, child and family advocates, academic experts and licensed clinicians, who will identify promising practices, programming and community strategies to prevent and respond to children’s exposure to violence.   Their findings will inform their final report to the Attorney General in late 2012, which will present policy recommendations and serve as a blueprint for preventing and reducing the negative effects of such violence across the United States.

U.S. ATTORNEY GENERAL HOLDER'S TASK FORCE ON CHILDREN EXPOSED TO VIOLENCE

FROM:  U.S. DEPARTMENT OF JUSTICE
Tuesday, April 24, 2012
Attorney General Eric Holder’s Task Force on Children Exposed to Violence Holds Final Public Hearing in Detroit New DOJ Study Reveals School Officials More Likely to Learn of Child Victimization than Police or Medical Authorities

At the final hearing of Attorney General Eric Holder’s National Task Force on Children Exposed to Violence in Detroit, officials from the Justice Department and the city of Detroit underscored efforts to keep kids safe and prevent youth violence. The task force is a key part of Attorney General Holder’s Defending Childhood Initiative to prevent and reduce children’s exposure to violence.

At the hearing, Acting Associate Attorney General Tony West announced the release of a new Justice Department research bulletin showing that 46 percent of victimized children were known to school, police or medical authorities. The bulletin, Child and Youth Victimization Known to Police, School, and Medical Authorities draws from the National Survey of Children’s Exposure to Violence sponsored by the Office of Justice Programs’ Office of Juvenile Justice and Delinquency Prevention with support from the Centers for Disease Control and Prevention.

“While more children are reporting violence to authorities, many continue to endure the pain of victimization in silence,” said Acting Associate Attorney General West.  “Through the work of the Attorney General’s task force, we hope to find more ways to identify those children in need and make sure they have access to effective prevention and treatment options.”

The task force is co-chaired by Joe Torre, chairman of the board of the Joe Torre Safe At Home Foundation, and Robert Listenbee, Jr., chief of the Juvenile Unit of the Defender Association of Philadelphia.  Co-chair Listenbee, a Detroit-area native, highlighted the urgency and opportunity of the task force’s work.

“I grew up just 20 miles outside of Detroit in Mt. Clemens, Michigan. During my high school years, violence was commonplace,” said Listenbee. “Similar violence still occurs in cities and towns across the country, but today we know so much more about how to address it.   The resounding message this task force has heard is that we can – and must – change the norm of violence in children’s lives.”

During the opening session, Detroit Police Chief Ralph Godbee discussed the police department’s work with youth.   He was joined by Lawnya Sherrod, a former Detroit gang member turned community organizer, who highlighted her work to get youth out of gangs and to help them graduate from high school and become productive, successful members of the community.

In a panel discussion about successful programs, Wayne County Child and Family Services Director Tadarial Sturdivant described his agency’s efforts to reform the juvenile justice system through a program called First Contact.

“[The program] creates an opportunity to collaborate with the Detroit Police Department and offer services at the street level to support the patrol officer who has first contact with the juvenile,” said Sturdivant. “As an alternative to arrest and detention, [the department] will convey youth to the Juvenile Assessment Center for stabilization, parental contact, brief assessment, transportation home, and referral for voluntary services.”

In a panel about public-private partnerships, Dr. William Bell, President and CEO of Casey Family Programs, discussed the need to meet the “overwhelming circumstances” of violence against children “with deliberate and intentional action.” Bell outlined concrete steps that every city in America could take to build “communities of hope” to reverse these violent trends.

Mary Lee, Deputy Director of PolicyLink, described how place influences many child outcomes. “ Just by knowing his or her zip code, a young person’s health, life expectancy, success in school, adult income¯all of these can be predicted,” noted Lee in her testimony, which described ways to improve the places children live to improve long-term outcomes.

The task force is composed of 13 leading experts, including practitioners, child and family advocates, academic experts and licensed clinicians, who will identify promising practices, programming and community strategies to prevent and respond to children’s exposure to violence.   Their findings will inform their final report to the Attorney General in late 2012, which will present policy recommendations and serve as a blueprint for preventing and reducing the negative effects of such violence across the United States.

ATTORNEY GENERAL HOLDER'S SPEECH AT POLICE CHIEF MICHAEL MALONEY HAMPTON'S MEMORIAL SERVICE

FROM:  U.S. DEPARTMENT OF JUSTICE
Attorney General Eric Holder Speaks at the Memorial Service for Police Chief Michael Maloney Hampton, N.H. ~ Thursday, April 19, 2012
I am honored to be with you today.   And I am grateful for the opportunity to pay tribute – on behalf of our nation’s Department of Justice, and America’s law enforcement community – to the enduring contributions, and extraordinary courage, that defined and distinguished the life of Chief Michael Maloney.

I want to thank the entire Maloney family, especially Chief Maloney’s wife, Peg – and his children, parents, and stepparents – for affording me the privilege of standing with you, and with the members of the Greenland Police Department – including Chief Tara Laurent, whose steady leadership has been a comfort to us all during this difficult time.   It’s also a special honor to salute four outstanding members of the New Hampshire Attorney General’s Drug Task Force, whose actions in the face of grave danger – and whose ongoing recoveries – are an inspiration to us all.   Detectives Turner, Kulberg, Kukesh, and Murphy, I know how hard each of you has worked to be here today – and we’re so very grateful that you’re with us.   Please know that you, and your families, will remain in our thoughts and prayers as you continue to heal – and to mourn this heartbreaking, and tragic, loss.   You four are true heroes.

Here at Michael Maloney’s beloved alma mater, on the field where he once played football, and among his closest colleagues and oldest friends – we bid farewell to a proud native son, a dedicated public servant, a loving husband, father, and grandfather – and also a hero in every sense of the word.

From the time he walked this gridiron, Michael Maloney was a leader.   Shortly after he graduated from high school, he discovered a passion for public service that came to shape his life – and improved so many others.   Although he could have chosen an easier path – or a safer one – he wanted to use his skills and many talents to help people and communities in need.   He wanted to make a difference.   And, by any measure, he succeeded.

There’s no question that the pain we feel – and the shock and sorrow that have gripped this community – are all the more acute because this was supposed to be a time of celebration.  After a distinguished law enforcement career spanning more than a quarter century – including several years as Chief of the North Hampton Police Department and a dozen as Greenland’s Police Chief – Michael Maloney was just days away from a well-deserved retirement.   He was looking forward to new opportunities, and was eager to spend more time with his beloved family – especially its newest addition, his grandson “MJ.”

But just as surely as Chief Maloney was devoted to his family, he also was deeply committed to the citizens he served – and deeply proud to be a part of this community.

Over the past week, Chief Maloney has been hailed, throughout our great country, as a “true patriot,” a “cop’s cop,” and a “working police chief” – who would never ask anything of his fellow officers that he wouldn’t do himself.   To those who served with Chief Maloney – and for his law enforcement colleagues nationwide – he is a role model.   And his fearlessness, selflessness, and willingness to put his own life on the line to protect those around him will never be forgotten.

Throughout his career, these qualities were evident – but perhaps never more so than on his last day of service.

That evening, not far from here – in the jurisdiction Chief Maloney had sworn to protect – he and his colleagues were preparing to confront a dangerous criminal with a history of violence.  Despite the risks, Chief Maloney chose not only to be involved – but to help lead this operation.  Tragically, when he and his team moved in, these five brave officers were met with gunfire.

But even when his comrades were wounded, Chief Maloney did not fall back.   He stood his ground and stayed with his team – working to help the others to safety.

This act of valor – this ultimate sacrifice, made so that others might survive – exemplified the life that Michael Maloney led, and the career of service that he built.    Today, let us remember not only how he died but, more importantly, how he lived.

Although we can never hope to repay the debt that we owe him – or to understand his senseless murder – let it never be said that he died in vain.

In the efforts of every law enforcement officer in – and far beyond – this crowd, Chief Maloney’s work will go on.   In the thanks of a grateful nation – and the embrace of the community he gave his life to protect – his legacy will live on.   And in each one of us – and all those who have been inspired by his example – his work to make a difference, and to help those in need, will continue.

So this afternoon, and in the days ahead, let us honor his memory – and profound sacrifice – with our own deeds.   Let us rally around the family he loved so dearly – as well as the department, and community, he served so well.  And let us take comfort in the fact that – although Michael Maloney left this world far too suddenly and far too soon – there can never be any doubt that – through all he contributed, achieved, and inspired in his life – he left it a better place.

ATTORNEY GENERAL HOLDER SPEAKS AT E-BOOKS PRESS CONFERENCE

FROM:  U.S. JUSTICE DEPARTMENT
Attorney General Eric Holder Speaks at the E-books Press Conference Washington, D.C. ~ Wednesday, April 11, 2012
Good afternoon.   Today I’m joined by Acting Assistant Attorney General for the Antitrust Division Sharis Pozen, and Connecticut Attorney General George Jepsen, to announce the Justice Department’s latest progress in protecting American consumers from anticompetitive harm, ensuring fairness in the marketplace, and making certain that cutting-edge technologies are available at the lowest possible price.
                                             
In recent years, we have seen the rapid growth – and the many benefits – of electronic books.  E-books are transforming our daily lives, and improving how information and content is shared.  For the growing number of Americans who want to take advantage of this new technology, the Department of Justice is committed to ensuring that e-books are as affordable as possible.
         
As part of this commitment, the Department has reached a settlement with three of the nation’s largest book publishers – and will continue to litigate against Apple, and two additional leading publishers – for conspiring to increase the prices that consumers pay for e-books.

Earlier today, we filed a lawsuit in U.S. District Court for the Southern District of New York, against Apple and five different book publishers – Hachette, HarperCollins, Macmillan, Penguin and Simon & Schuster.   In response to our allegations, three of these publishers – Hachette, HarperCollins and Simon & Schuster – agreed to a proposed settlement.   If approved by the court, this settlement would resolve the Department’s antitrust concerns with these companies, and would require them to grant retailers – such as Amazon and Barnes & Noble – the freedom to reduce the prices of their e-book titles.   The settlement also requires the companies to terminate their anticompetitive most-favored-nation agreements with Apple and other e-books retailers.

In addition, the companies will be prohibited for two years from placing constraints on retailers’ ability to offer discounts to consumers.   They will also be prohibited from conspiring or sharing competitively sensitive information with their competitors for five years.   And each is required to implement a strong antitrust compliance program.   These steps are appropriate – and essential in ensuring a competitive marketplace.  

Beginning in the summer of 2009, we allege that executives at the highest levels of the companies included in today’s lawsuit – concerned that e-book sellers had reduced prices – worked together to eliminate competition among stores selling e-books, ultimately increasing prices for consumers.   As a result of this alleged conspiracy, we believe that consumers paid millions of dollars more for some of the most popular titles.

During regular, near-quarterly meetings, we allege that publishing company executives discussed confidential business and competitive matters – including Amazon’s e-book retailing practices – as part of a conspiracy to raise, fix, and stabilize retail prices.   In addition, we allege that these publishers agreed to impose a new model which would enable them to seize pricing authority from bookstores; that they entered into agreements to pay Apple a 30 percent commission on books sold through its iBookstore; and that they promised – through contracts including most-favored-nation provisions – that no other e-book retailer would set a lower price.   Our investigation even revealed that one CEO allegedly went so far as to encourage an e-book retailer to punish another publisher for not engaging in these illegal practices.

In advancing this critical investigation, I’d like to thank Attorney General Jepsen and Texas Attorney General Greg Abbott – along with our partners at the European Commission – for their hard work and close cooperation.   Today’s action sends a clear message that the Department’s Antitrust Division continues to be open for business – and that we will not hesitate to do what is necessary to protect American consumers.

I am grateful for the outstanding leadership that Acting Assistant Attorney General Sharis Pozen has provided in this matter.   Not only has she ensured a seamless transition in the Division’s senior leadership, she has proven that vigorous enforcement will remain its hallmark.   I also want to commend her dedicated team, and thank each of the attorneys and investigators who worked so hard to make today’s announcement possible.   Although this matter remains in its initial stages, it’s clear that, in all of you, the Department – and the American people – could have no stronger team of advocates.

At this time, I’d like to turn things over to Sharis, who will provide additional details on today’s action.

ATTORNEY GENERAL HOLDER SPEAKS AT SHERMAN ACT AWARD CEREMONY

FROM:  DEPARTMENT OF JUSTICE
Attorney General Eric Holder Speaks at the Sherman Act Award Ceremony Washington, D.C. ~ Tuesday, April 10, 2012
Thank you, Sharis [Pozen].   I appreciate your kind words – and your outstanding leadership as Acting Assistant Attorney General for the Antitrust Division.   Every day, your work strengthens the protections, and the great progress, that we’ve gathered to celebrate – and, especially during this period of transition, I am deeply grateful for your stewardship, your commitment to fair and aggressive antitrust enforcement, and the many contributions that you and your team continue to make.

It’s an honor to be with you all, and a pleasure to join Sharis in welcoming so many Division leaders – past and present – distinguished guests, and great champions of sound economic policy and strong consumer protection.   I would particularly like to thank the U.S. Marine Band, the Joint Armed Forces Color Guard, and Shawnee Ball for opening today’s ceremony.   And I’d like to recognize Judge [Michael] Boudin– along with Doug Melamed and Tim Muris – for their participation this afternoon.   Thank you for taking the time to be join our celebration.

Finally, I’d like to extend a special welcome to today’s guest of honor – one of our nation’s leading experts in the field of antitrust law and one of the most effective advocates ever to stand on the side of American consumers – Jim Rill.   Jim, it’s a pleasure to have you – and so many of your family members – back at the Department.

Those of you who’ve had the privilege – and great benefit – of working with Jim know that he is a fearless and tireless advocate for fairness and justice.   For decades, he has worked to protect the American people from anticompetitive conduct – and has stood out as an effective and innovative leader in this field.   During his tenure here at the Department, where he served as Assistant Attorney General for the Antitrust Division, he updated and enhanced the handling of antitrust matters, helped to shape sweeping policy guidelines, and negotiated critical international agreements.   He served as a mentor – and an excellent role model – for a generation of public interest lawyers, including some of the people in this room.   And he helped build the Antitrust Division into the dynamic component it is today.

In 1997, when my predecessor, Attorney General Janet Reno, asked him to Co-Chair the Justice Department’s International Competition Policy Advisory Committee, Jim did not hesitate to answer the call of duty.   The recommendations that he helped to develop continue to serve as guideposts.   And it’s no exaggeration to say that he, his colleagues, and the partners they brought to the table from around the world helped to usher in a new era of global antitrust enforcement.

But government service is only one of the ways in which Jim has given back – to his country as well as his profession – over the course of his remarkable career.   As a past Chairman of the ABA’s Section of Antitrust Law, he lent his considerable experience and expertise to a host of policy questions affecting the entire bar – work he continues today as a member of the Section’s International Task Force.   And as an attorney in private practice, he regularly provides counsel to major corporations in both domestic and international matters.

In many ways, Jim’s career has been built on the same commitment that inspired John Sherman’s landmark effort, more than a century ago, to provide legal mechanisms for protecting America’s economic freedom, growth, and opportunity.

A decade before the dawn of the 20th century, Senator Sherman stood before his colleagues in Congress and declared that “Monopolies [are] inconsistent with our form of government. . . . If we will not endure a king as a political power, we should not endure a king over the production, transportation, and sale of any of the necessaries of life.   If we would not submit to an emperor, we should not submit to an autocrat of trade."

Today, the Justice Department’s Antitrust Division continues to live up to Senator Sherman's words – and regularly employs the tools and authorities provided under one of our nation’s most important and enduring laws, the Sherman Antitrust Act, to keep the American economy free from the grip of anticompetitive practices and entities.

Now, as much as ever before, we are committed to smart, fair, and aggressive antitrust enforcement across all sectors of our economy.   And there are few who understand or appreciate the importance of this work better than today’s awardee.

As an antitrust lawyer, Jim has remained steadfast in his commitment, not to any ideology, but to a basic overriding principle – enshrined in law 122 years ago – of a free but fair American marketplace.

As we carry on this essential work, I know everyone in this room is – and, for more than two decades, has been – proud to call Jim Rill a partner, a friend, and a valued member of the Justice Department family.   The American people have been privileged to have him as a strong ally and a fierce advocate.   And the legal profession has benefitted immensely from the leadership of a man upon whom the United States will today bestow an honor reserved for those defined by their “substantial contributions to the protection of American consumers and the preservation of economic liberty.”

Jim, on behalf of the Department of Justice, it’s my pleasure to present you with this year’s Sherman Act Award, which – as the inscriptions reads – is: Presented to James F. Rill, in recognition of his significant lifetime contributions to the development and enforcement of antitrust law and the advancement of antitrust policy internationally. With thanks from a grateful nation.

Jim, your example is an inspiration to us all.   Your indelible contributions – to this Department, and to our nation – are beyond measure.   And your service to the American people has set a standard to which we all should aspire.

Thank you, and congratulations on this well-deserved honor.