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When the people fear the government, there is tyranny; When the government fears the people, there is liberty.  ~ Thomas Jefferson

 

Entries Tagged as 'Fraud Alert'

Dead federal retirees are paid $120 million annually, report says

September 23rd, 2011 · Accountability, Corruption, Ethics, Federal Spending, Fraud Alert, Government, Tax Dollars

By Ed O’Keefe: September 22

The federal government pays out millions of dollars to dead people each year — including deceased retired federal workers, according to a new report.

In the past five years, the Office of Personnel Management has made more than $601 million in benefits payments to deceased federal annuitants, according to the agency’s inspector general. Total annual payouts range between $100 million and $150 million.

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Unions vs. the Right to Work: Collective bargaining:more similar to an antitrust violation than to a civil liberty.

February 28th, 2011 · Economy, Fraud Alert, Wisconsin

Collective bargaining on a broad scale is more similar to an antitrust violation than to a civil liberty.

By Robert Barro

How ironic that Wisconsin has become ground zero for the battle between taxpayers and public- employee labor unions. Wisconsin was the first state to allow collective bargaining for government workers (in 1959), following a tradition where it was the first to introduce a personal income tax (in 1911, before the introduction of the current form of individual income tax in 1913 by the federal government).

Labor unions like to portray collective bargaining as a basic civil liberty, akin to the freedoms of speech, press, assembly and religion. For a teachers union, collective bargaining means that suppliers of teacher services to all public school systems in a state—or even across states—can collude with regard to acceptable wages, benefits and working conditions. An analogy for business would be for all providers of airline transportation to assemble to fix ticket prices, capacity and so on. From this perspective, collective bargaining on a broad scale is more similar to an antitrust violation than to a civil liberty.

In fact, labor unions were subject to U.S. antitrust laws in the Sherman Antitrust Act of 1890, which was first applied in 1894 to the American Railway Union. However, organized labor managed to obtain exemption from federal antitrust laws in subsequent legislation, notably the Clayton Antitrust Act of 1914 and the National Labor Relations Act of 1935.

Remarkably, labor unions are not only immune from antitrust laws but can also negotiate a “union shop,” which requires nonunion employees to join the union or pay nearly equivalent dues. Somehow, despite many attempts, organized labor has lacked the political power to repeal the key portion of the 1947 Taft Hartley Act that allowed states to pass right-to-work laws, which now prohibit the union shop in 22 states. From the standpoint of civil liberties, the individual right to work—without being forced to join a union or pay dues—has a much better claim than collective bargaining. (Not to mention that “right to work” has a much more pleasant, liberal sound than “collective bargaining.”) The push for right-to-work laws, which haven’t been enacted anywhere but Oklahoma over the last 20 years, seems about to take off.

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Senate spending bill contains thousands of earmarks

December 15th, 2010 · Accountability, Congress, Corruption, Democrats, Dissention, Economy, Ethics, Federal Spending, Fraud Alert, Greed, Non-Transparency, Republicans, Selling Out the US, Tax Dollars, Taxes, Terrorism from Within

By Philip Rucker and Paul Kane Washington Post Staff Writers
Wednesday, December 15, 2010; 12:00 AM

Weeks after swearing off earmarks, many senators stand to gain tens of millions of dollars for pet projects in a massive spending bill that could be their last chance at the money before a more conservative Congress begins next month.

The $1.2 trillion bill, released on Tuesday, includes more than 6,000 earmarks totaling $8 billion, an amount that many lawmakers decried as an irresponsible binge following a midterm election in which many voters demanded that the government cut spending.

“The American people said just 42 days ago, ‘Enough!’ . . . Are we tone deaf? Are we stricken with amnesia?” Sen. John McCain (R-Ariz.), a leading earmark critic, said on the Senate floor, flipping through the 1,924-page bill as he pounded his desk.

The bill includes $18 million for two nonprofits associated with deceased Democrats, the late Sen. Edward M. Kennedy and Rep. John P. Murtha; $349,000 for swine waste management in North Carolina; and $6 million for a rural Iowa school program named after Sen. Tom Harkin (D-Iowa).

Senate Minority Leader Mitch McConnell (R-Ky.) epitomizes the conflicted nature of the debate. Formerly a member of the committee that doles out earmarks, McConnell reluctantly embraced a moratorium on the practice last month to send a signal that Republicans are serious about curbing spending.

Yet the legislation includes provisions requested this year by McConnell, including $650,000 for a genetic technology center at the University of Kentucky, according to an analysis of the bill by Taxpayers for Common Sense, a nonpartisan watchdog.

Saying he was now “vigorously in opposition” to the legislation, McConnell said Tuesday that rushed consideration of the bill “here on Christmas Eve” compelled him to try to block the bill through a filibuster. “I’m going to vote against things that arguably would benefit my state. I do not think this is the appropriate way to run the Senate,” he said.

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Inmates get fraudulent tax refunds behind bars, report says

December 2nd, 2010 · Economy, Fraud Alert, Taxes, Treasury

By Ed O’Keefe

Jail cells might keep inmates from escaping, but don’t appear to stop some from filing fraudulent tax returns.

More than 48,800 of the nation’s prisoners claimed $130 million in fraudulent tax refunds by March of this year, and the numbers are probably much higher, according to a new watchdog report. The IRS paid $112 million of the claims, a small fraction of the $326 billion in refunds so far this year.

But the number of fraudulent payments made to inmates has climbed 37 percent since 2004, said the report, which also acknowledged that the rise is partly a result of increased detection and enforcement by the IRS.

The IRS doesn’t screen most prisoners’ tax returns, according to the report by the Treasury Inspector General for Tax Administration (TIGTA), set for release Thursday. A review of tax records found that 88 percent of the 287,918 returns filed by prisoners by late March were not screened for potential fraud. Of those, about 48,800 returns lacked wage information reported to the IRS by employers, the report said.

“There is a major problem with returns being filed fraudulently by people who are incarcerated,” TIGTA Inspector General J. Russell George said in an interview. “What makes this even more problematic is that we identified this as a problem more than five years ago. The problem not only persists, it’s gotten even worse.”

In 2005, TIGTA found that 18,000 prisoners had filed fraudulent returns in 2004. The report prompted a 2008 law that now requires George’s office to file regular updates on prison-based tax fraud. The number of bad claims has climbed because the IRS has stepped up detection and enforcement, as well as because a higher number of prisoners are making fraudulent claims, TIGTA and IRS officials said Thursday.

The IRS “is making very good progress” in identifying cases of fraud, George said. Overall, in the general population, the agency stopped almost 250,000 fraudulent returns totaling $1.48 billion through March, double the number from the 2009 filing season.

“The IRS takes refund fraud seriously and has programs in place to aggressively combat it,” agency spokesman Terry Lemons said in a statement. Tracking prison fraud “is not a simple process, particularly considering the fact that some inmates and their families are legally entitled to tax refunds and that the prisoner population is constantly changing,” he said.

The agency is working with state and federal officials to ensure timely updates and last summer met with federal prison officials to improve detection and prevention of prisoner fraud, he said.

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Rental car company urged to fix recalled vehicles

November 3rd, 2010 · Corruption, Fraud Alert

By KEN THOMAS – The Associated Press
Monday, November 1, 2010; 1:00 PM

WASHINGTON — The Federal Trade Commission is being asked to explain why the rental car industry shouldn’t have to live by the same rule that requires auto dealers to fix vehicles under recall notice before they can be sold.

Two consumer groups have asked the FTC to force the country’s largest rental company, Enterprise Holdings Inc., to fix vehicles under recall before renting them out. Enterprise Holdings is the parent company of rental car companies Enterprise, National and Alamo.

Safety groups say most business travelers or those renting cars for long trips don’t know whether the vehicle they pick up at the rental lot has been the subject of a recall, posing a potential safety threat. The issue has taken on more significance this year following a series of safety recalls by Toyota Motor Co. and several large recalls involving other automakers.

Congress could get involved next year.

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Foreclosure freeze leads to uneasy politics for Democrats

October 19th, 2010 · Accountability, Banking Industry, Corruption, Deception, Democrats, Ethics, Federal Spending, Fraud Alert, Government Control, Greed, Housing Industry, Money Lost, Obama's Scheme, Selling Out the US, Tax Dollars, Taxes, Treasury

Another political factor: people struggling to keep paying their mortgages who are upset that deadbeat borrowers may get a break.

“I pay my mortgage every month; that was the deal I made,” Kevin McGrath, a Virginia realtor, wrote in an e-mail. “I know I am currently throwing money into a depreciating asset that every day feels more and more like the Black Hole of Calcutta, but that’s ok; I placed my bet, and I am willing to ride this pony until she breaks.

“But wait a minute; now I look over at my neighbor and I see he is in the same situation, upside down on his mortgage, except he has not made a payment in a year or so. He has multiple cars in his driveway, some of them newer than mine, he just got back from a trip to Best Buy, and he is still living in his house. There are all kinds of neat things to do with your money when your housing costs are zero. Where is my free rent?

By Steven Mufson Washington Post Staff Writer
Tuesday, October 19, 2010; 7:26 AM

The details of the foreclosure mess are ugly and complicated. The politics of it are even worse.

The calculus is clear for most Democratic incumbents, especially those in tight races like Senate Majority Leader Harry M. Reid: Nothing could be worse on the eve of elections than images of people being booted out of their homes by big banks that have relied on sloppy, if not fraudulent, paperwork.

But reviving the economy requires repairing the housing market, which won’t happen until foreclosed properties and delinquent mortgages are dealt with. So the White House, which is looking past the midterm elections, has been restrained. Housing and Urban Development Secretary Shaun Donovan wrote over the weekend that “a national, blanket moratorium on all foreclosure sales would do far more harm than good, hurting homeowners and home buyers alike.”

It’s a recipe for legislative inaction, especially with lawmakers busy campaigning. For a White House seen by Wall Street as too populist, and by many liberals as too close to Wall Street, that might not be a bad outcome. Democratic candidates can strike a populist note, letting the Obama administration take the economic high road while pressing banks to define the scope of the latest financial mess.

“There’s a problem here,” said one veteran Democratic political consultant, who spoke on the condition of anonymity because of the issue’s sensitivity. “The politics are very attractive to say, ‘Let’s have a moratorium.’ But shutting down foreclosures has the potential of shutting down the whole housing market, which isn’t helpful to anybody.”

For now, most of the biggest banks, sensitive to political winds, have voluntarily frozen foreclosure sales. Some analysts believe the freeze could last until January. That gives banks until the end of the quarter to figure out the extent of their problems, and it delays foreclosures until after the election as well as the Thanksgiving and Christmas holidays.

“I think that they’re trying to see how this is playing,” said one political consultant working for the financial services industry. “They’re trying to gauge the political intensity around the issue.”

Democratic pollster Peter Hart says intensity runs high. “There are two things of critical importance to American households,” he said. “One is their job and two is their house.”

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SBA suspends major contractor GTSI from government work

October 3rd, 2010 · Accountability, Economy, Federal Spending, Fraud Alert, Non-Transparency

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Democrat Mud Slinging Underway! Ask not what I can do for you but what my opponent did.

July 7th, 2010 · Accountability, Congress, Corruption, Deception, Democrats, Ethics, Fraud Alert, Selling Out the US, Treason

Democrats digging harder than ever for dirt on Republicans dispite own coruption over the past 2 years

By Philip Rucker Washington Post Staff Writer
Wednesday, July 7, 2010

The Democratic Party is moving faster and more aggressively than in previous election years to dig up unflattering details about Republican challengers. In House races from New Jersey to Ohio to California, Democratic operatives are seizing on evidence of GOP candidates’ unpaid income taxes, property tax breaks and ties to financial firms that received taxpayer bailout money.

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Democrats easily passes new financial regulations in House

June 30th, 2010 · Banking Industry, Congress, Corruption, Deception, Democrats, Ethics, Federal Spending, Finance, Fraud Alert, Government, Government Control, Greed, House, Non-Transparency, Obama's Scheme, Selling Out the US, Tax Dollars, Taxes, Terrorism from Within, Terrorist Attack, Treason, Treasury

By Brady Dennis and Jia Lynn Yang Washington Post Staff Writer
Wednesday, June 30, 2010; 7:08 PM

The House on Wednesday easily approved far-reaching new financial regulations, but Senate leaders postponed a similar vote on the bill, preventing the landmark legislation from reaching President Obama’s desk until at least mid-July.

House members voted 237-192 just before 7 p.m. to approve the sweeping 2,300-page bill, which among other things would create an independent consumer bureau within the Federal Reserve to protect borrowers from lending abuses, establish oversight of the vast derivatives market and enable the government to wind down large, failing firms.

Republicans continued to insist that the new rules would perpetuates the potential for federal bailouts and hinder access to credit.

“The bad and the ugly far outweigh” the good elements of the bill, said Rep. Spencer Bachus (R-Ala). “In total, this bill is a massive intrusion of the federal government into the lives of every American.”

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Report shows close ties between rig inspectors, oil industry & money

May 25th, 2010 · Accountability, Corruption, Deception, Democrats, Economy, Ethics, Fraud Alert, Government, Greed, Non-Transparency, Obama Nominees, Obama's Scheme, Selling Out the US, Tax Dollars, Taxes, Terrorism from Within

By David A. Fahrenthold  – Wednesday, May 26, 2010

Inspectors with the Minerals Management Service — charged with enforcing safety and environmental rules on offshore rigs — routinely took gifts from the companies they were supposed to be policing, including hunting trips, college football tickets and meals, according to a new report.

The report, released Tuesday by the Interior Department’s inspector general, does not directly relate to the Deepwater Horizon oil rig, which sank after an explosion April 20 and set off a massive spill in the Gulf of Mexico. It details misconduct in the service’s Lake Charles, La., office, which oversaw a different region of the gulf, and covers up to 2008, before the problem well was approved.

But the report adds to a growing portrait of the Minerals Management Service as corrupted by industry: Many inspectors, the inspector general found, were already friends with industry officials. Some had worked in the oil and gas business before their stint in government, and would again. One official inspected four platforms owned by one company at the same time he was negotiating for a job at that firm.

The result, the report found, was regulation that often looked less than rigorous. One confidential source, it said, told investigators that service inspectors let the oil and gas companies fill out their own inspection forms — in pencil. Then an inspector would trace over their writing in ink.

“Of greatest concern to me is the environment in which these inspectors operate — particularly the ease with which they move between industry and government,” Mary L. Kendall, the Interior Department’s acting inspector general, said in a cover letter to Interior Secretary Ken Salazar.

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