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The 10 P.M. Phone Call: Clinton and Obama Discussed Benghazi. What Did They Say?

Photo Credit: National Review What would you be focusing on in the Benghazi investigation?” I spent many years in the investigation biz, so it’s only natural that I’ve been asked that question a lot lately.

I had the good fortune to be trained in Rudy Giuliani’s U.S. attorney’s office in Manhattan. Rudy famously made his mark by making law enforcement reflect what common sense knew: Enterprises take their cues from the top. Criminal enterprises are no different: The capos do not carry out the policy of the button-men — it’s the other way around.

So if I were investigating Benghazi, I’d be homing in on that 10 p.m. phone call. That’s the one between President Obama and Secretary of State Hillary Clinton — the one that’s gotten close to zero attention…

We do not have a recording of this call, and neither Clinton nor the White House has described it beyond noting that it happened. But we do know that, just a few minutes after Obama called Clinton, the Washington press began reporting that the State Department had issued a statement by Clinton regarding the Benghazi attack. In it, she asserted: “Some have sought to justify this vicious behavior as a response to inflammatory material posted on the Internet. The United States deplores any intentional effort to denigrate the religious beliefs of others. Our commitment to religious tolerance goes back to the very beginning of our nation.”

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New York State Senator and City Councilman Arrested in 'Bribery Plot' to Rig Mayor Race

Photo Credit: G.N. MIller

State Sen. Malcolm Smith and city Councilman Dan Halloran were arrested this morning on charges they were plotting to rig this year’s mayoral election through fraud and bribes.

The pols allegedly formed an alliance built on cash payments and fraud to get Smith — one of the state’s top Democrats — placed on the GOP mayoral ballot, sources said.

FBI agents arrested them both at their Queens homes shortly after 6 a.m. “I have no idea,” Halloran, in handcuffs, told a Post reporter when asked if he knew why he was being arrested.

“I’m sure the truth will come out once I have an opportunity to find out what’s going on.” Smith would not say anything as he was hauled off.

All six defendants were arraigned this afternoon, when they were ordered to surrender their passports and post $250,000 bond.

Read more from this story HERE.

Insecure Social Security: House Oversight Committee Investigating Fraud And Waste In Social Security Program

Photo Credit: AP

Fraud could be a major reason that the number of people enrolled in Social Security Disability Insurance (SSDI) has risen so dramatically over the past 10 years, according to two letters written by the House Oversight and Government Reform Committee.

The number of enrollees in the program grew by almost 60 percent between 2003 and 2012, from 5.58 million to 8.82 million people, the March 11 letter to acting commissioner of the Social Security Administration Carolyn Colvin says. This rate of growth is twice what the previous decade experienced.

The increase is likely not coming from people who actually need the care, the letter contends. Fraudulent enrollment and improper payments are pushing up the numbers.

The letter, signed by Committee Chairman Darrell Issa (R., Calif.) and two subcommittee chairmen, points out “significant management problems that lead to misspending within the program.”

The letter says many ineligible people are receiving benefits citing a 2010 Government Accountability Office report. For example, some people receive SSDI before receiving a Commercial Drivers License, which requires a rigorous physical exam—indicating that they are not disabled. And some people simply lie about their income to receive the benefits, according to the chairmen.

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CH2M Hill Confesses to Widespread Fraud, Settles with Feds for $18.5 Million; Received $1.3B Stimulus Contract

Photo Credit: AP

A politically connected engineering company that received massive stimulus contracts has admitted that workers committed widespread fraud under the encouragement of its executives while working on a major taxpayer-funded nuclear cleanup effort.

Employees of CH2M Hill routinely inflated hours worked on the cleanup effort at the Hanford nuclear waste site in Washington state between 1999 and 2008. Company executives sanctioned those violations in order to obtain bonuses that required certain performance benchmarks, according to an agreement between the company and the Justice Department filed in federal court on Friday.

Subsidiary CH2M Hanford Group Inc. (CHG) agreed to pay $18.5 million to resolve civil and criminal allegations brought by the federal government. The civil charges were initially filed by a company whistleblower.

According to a DOJ press release, CHG “routinely overstated the number of hours they worked, and CHG management condoned the practice and submitted inflated claims to the Department of Energy that included the fraudulently claimed hours.”

Members of CHG’s “upper management” facilitated and encouraged that fraud in order to preserve corporate bonuses that required the company meet certain performance measures, according to the court agreement. The timecard fraud took place between 1999 and 2008 when CH2M was servicing a Department of Energy contract worth $2.2 billion. A different CH2M subsidiary was awarded an additional $1.3 billion in 2009 for the Hanford cleanup.

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Will Climate Scamsters Be Jailed for Fraud?

Photo Credit: WNDIt’s official. What I was howled down and banned for telling the recent U.N. climate conference in Doha is true. There has been no global warming for 17 years.

Rajendra Pachauri, the railroad engineer who heads the U.N.’s accident-prone climate panel, the IPCC, recently admitted this fact here in Australia.

The Hadley/CRU temperature record shows no warming for 18 or 19 years. RSS satellites show none for 23 years. Not one computer model predicted that.

Pachauri said the zero trend would have to persist for 30-40 years before it mattered. Scientists disagree. In 2008 the modelers wrote that more than 14 years without global warming would indicate a “discrepancy” between their predictions and reality. By their own criterion, they have grossly, persistently, profitably exaggerated manmade warming.

The 17-year flatline gives Australia’s $180,000-a-year, part-time climate kommissar, Tim Flannery, a problem. In January he crowed that extreme weather like Sydney’s recent heatwave had been predicted for decades.

Read more from this story HERE.

New York Fires Auditor Who Found Misuse of Sandy Recovery Funds

No good deed goes unpunished in New York: the state has abruptly cut off a contract with the independent auditor who found that the state had been wasting federal money meant to be spent on Hurricane Sandy recovery efforts.

Thomas Sadowski, the fired consultant, told the Times Union that he was escorted out of the building when he visited the New York Office of Emergency Management shortly after he filed his report on November 17.

The state hired Sadowski for his extensive experience in emergency procurement management with the federal government. The certified public accountant also did similar work for 10 years at the U.S. Department of Interior’s Inspector General’s office. Sadowski also trained the U.S. Forest Service, Alaska Fire Service, National Interagency Fire Center, Colorado Wildfire Academy, and other government agencies.

“I didn’t believe I did anything to be escorted off the premises,” Sadowski told the Times Union. “I wasn’t trying to get back at anybody or get anybody in trouble.” But Sadowski said he believed he was fired for finding the waste. “I was relieved of my duties because I identified these problems,” he said.

In his report, Sadowski found that the state was buying equipment it didn’t need but had wanted for other purposes, had bought equipment that cannot be tracked, and even lost some equipment bought.

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Don’t Place Scientists on a Moral Pedestal, They’re People Too

In our culture, we idolize scientists. Often John Q. Public fails to question what scientists are doing or the money they ask for because there is the assumption that scientists are altruistic. Even more often, anyone who does question the ethics of the research or the public policy that provides money to ethically-suspect research is labeled “anti-science.”

We have no problem believing that CEOs or bankers would commit fraud, but put on a white coat and that becomes a difficult sell. Venerating scientists like they are rock stars, doesn’t help.

And yet fraud in the scientific community is a problem. The Scientist outlines the “Top Science Scandals of 2012.” A fascinating read filled with made-up data and fictional patients. One Japanese scientist fabricated data in 172 papers over his career. A particularly clever fraud perpetrated by scientists, was to refer journal editors back to themselves for reviews of their papers:

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Former Postal Employees Plead Guilty to Stealing Millions in Treasury Checks

While billions of pieces of mail safely reached their destinations this year, postal employees in Georgia pocketed over 1,300 federal checks, pleading this month to stealing nearly $3 million in Treasury checks — including veterans checks, Social Security checks, and tax refunds.

Gerald Easton of Stockbridge, Georgia plead guilty to the theft in early December, which occurred while he was working as a supervisor at an Atlanta mail distribution center and to conspiring with another employee at the facility. Four other non-postal workers have plead guilty to their roles in the conspiracy.

Paul Bowman, Special Agent in Charge of the United States Postal Service in the Office of Inspector General, noted that Easton and his co-conspirator Deborah Fambro-Echols (who plead guilty in late November) are a few bad eggs among a group that is largely committed to fulfilling their mission.

“We take these cases very serious and investigate them to the fullest extent of the law. The majority of Postal Service employees are honest, hardworking, and committed to providing the timely and reliable service that customers expect and deserve,” Bowman said in a statement.

The Washington Guardian which first reported the theft Wednesday, added that between April and September 2012, 171 Postal Service employees were arrested for “theft, willful delay or destruction of mail.” Last year the service delivered 167.9 billion pieces of mail. The service employs 546,000 employees, The Guardian added.

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Report: Solar Firms Under Investigation for Stimulus Swindle

photo credit: mountain/ash

The nation’s three most productive solar installation firms are under investigation for allegedly exaggerating business costs to get larger cash payments through a federal stimulus program.

The Treasury Department’s inspector general is asking SolarCity, SunRun and Sungevity to justify the more than $500 million in federal grants and tax credits they got for their work, according to The Washington Post.

The companies in question received payments through Treasury’s 1603 program, which was designed to increase renewable energy use.

The cash grant program pays installers up to 30 percent of the project cost. So by inflating business expenses, the firms would be eligible for a larger payout.

The firms might have to repay the government if found to have abused the program and could face other penalties.

Read more from this story HERE.

GAO Report Confirms Pigford Designed for Undetectable Fraud

An official government report released Friday admits that the Pigford “Black Farmers” Settlement was designed with no mechanism for objectively determining fraud but hid that shocking conclusion under pages of bureaucratic doublespeak.

“Burying the lede” is a journalistic term used to describe the act of hiding essential information by putting non-essentials in front of it. On December 7, 2012, the United States Government Accountability Office released report number GAO-13-69R, also known as “Civil Rights: Additional Actions in Pigford II Claims Process Could Reduce Risk of Improper Determinations.”

Just based on the title, you can already tell the report is needlessly wordy. This helps bury what should be the bigger story—that the Pigford settlement isn’t the mere victim of a few fraudsters but was, in fact, set up to make fraud not just rampant but also totally undetectable.

Breitbart News has been reporting for years now that the Pigford settlement allowed people to collect $50,000 just for claiming that they “attempted to farm” and that no other proof was needed. As a result, many claim that billions of dollars in fraudulent “attempted to farm” claims were paid out by the federal government. The new GAO report actually confirms what the late Andrew Breitbart pointed out time and again: the Pigford settlement is a massive swindle on the U.S. taxpayer, and it was designed that way from the start.

Read more from this story HERE.