Public Awareness Can Create Honesty In Public Servants
I. INTRODUCTION: THE DOJ's THREE CARD MONTE
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 "We gotta take 'alternate remedies', not a 'cash recovery' in "whistle blower" suits. Our budget gets it back if we call it 'restitution' but all Congressional Hell will break loose if we call it 'fraud damages' and they discover what this agency didn't do! The public will discover that we neither prevented, identified, stopped, investigated nor litigated the fraud like we get paid to do. Courts, Congress and Treasury will probably insist on auditing the fraud recovery, investigate our agency and fire some of us."
In a few simple words he had summed up 18 years of my research and investigative work. Our government's "use-it or lose-it" budget mentality has taken an evil and very expensive, modern twist. It is the Holy Grail of stolen taxpayer dollars and Government fraud. The Ballew Syndrome!
SLIDE SHOW
II. BEST EVIDENCE: ONE EXAMPLE - PROOF ELIMINATING ANY QUESTION OF DOJ AND USCG GUILT.
A defendant's secret, internal report, which I personally obtained and delivered to the DOJ, lists by part number and description and defines the massive and recurring Top 50 failures in the U.S. Coast Guards main drug interdiction and short range recovery helicopter and its commercial equivalent helicopters in the production cycle before delivery to the U.S. Coast Guard.
This also raises the question about whether any of the failed modules were repaired or remanufactured and then delivered as new parts with no history of repair or remanufacturing defects. (Example: 96 helicopters but 66 Signal Data Converters (SDC) failed. Were these 66 delivered as remanufactured or misrepresented as new. Normally, only 1 SDC is manufactured for each helicopter with 25% additional units made for spare parts (96 x 125% = 120 SCD's). Using these numbers, were 66 out of 120 failures? This report shows 49 more items in this same situation. Were they new or remanufactured? I said they were not new, had been repaired and, therefore, were not contract compliant. The DOJ and USCG would not tell me what they did to cure this and then hid it from the fraud recovery.
Two very catastrophic, but secret, USCG reports also indicate that these defects were staggering FAA safety-of-flight matters and include everything from engines (which I personally rejected) to main gearboxes (which I personally rejected) to absolutely critical avionics ( which I identified to the DOJ and USCG).
These defects are, in every case, FAA "safety of flight" matters. The taxpayers paid for reliability at the time of original delivery and acceptance. The USCG and DOJ then agreed to pay the Defendants to fix their own defects.
I refused to cooperate with the DOJ's plan to focus only on the engines defects. The DOJ, as punishment to me, immediately eliminated any flow of information to me and began a severe campaign to reduce and eliminate as much of and any part of the recovered fraud proceeds that should be restored, by law, to the U.S. Treasury's Miscellaneous Receipts Account. I then identified the same pattern of behavior by the DOJ in many other "Whistle Blower" lawsuits.
Now, amazingly, the taxpayers are being asked to pay again to completely replace all of the the engines and replace all of the critical avionics, yes... at the taxpayers' expense, as if it wasn't the Defendants' defects or fault. Click here to read the text of the lawsuit I filed against the DOJ and USCG attorneys for Fraud on the Court by Officers of the Court under FRCP 60(b).
The DOJ and USCG did this knowingly and intentionally. The law about this kind of fraud is very clear. It even uses the mandatory term "shall" more than 36 times and cannot be misunderstood.
III. EXECUTIVE SUMMARY: DOJ MISDIRECTION, SLIGHT-OF-HAND AND REVERSE FALSE CLAIMS?
When the Department of Justice and a defrauded government agency play their street game in a False Claims Act, qui tam or "Whistle Blower's" lawsuit, the filing Plaintiff (cutely referred to by the DOJ as a "Whistle Blower" or qui tam relator) loses her or his 15%, but more importantly, the Public Fisc, in the form of the taxpayers' U.S. Treasury Department's General Fund, simultaneously loses a full 85% of the money discussed.
What is not said is often more important than what is said.
The fraud recovery, or taxpayer's dollars, is covertly diverted back to the defrauded agency, by the DOJ, without Congressional review, oversight and reallocation and takes the form of a concealed, windfall budget increase. The Congressional intent of the False Claims Act is knowingly evaded and the Executive Branch has successfully evaded the Checks and Balances effecting an "Aggrandizement" of their powers and an "Impairment" of the duties of our Courts, as deciders of fact, and the U.S. Congress, as the framers of our laws.
When a "Whistle Blower" is bounced (or disqualified) the DOJ refiles the same facts as an "agency contract claim" and the Treasury Department, as the public fisc, never sees any of the recovered fraud proceeds restored to it.
Main Justices' Three Card Monte strikes again, over and over, all over the country.
This is the Ballew Syndrome©.
"Many of the problems I see with DOJ's FCA program can be traced back to (DOJ) careerists who lack a strategic vision as to how to fight fraud and who don't like whistleblowers and don't want to work in a partnership with whistleblowers - as I intended in 1986 when Congress revitalized the FCA."
Statement by Senator Charles Grassley, Committee on the Judiciary, Executive Business Meeting, January 27, 2005.
"These tax dollars were restored to the Treasury not because of any Justice Department prosecutorial zeal but in spite of the Department's efforts... the Justice Department has been consistently hostile to whistleblowers."
Senator Charles Grassley (R-Iowa) cited some $224 million recovered for the US Treasury by just three qui tam cases while commenting on the hostility of the DOJ to whistleblowers. New York Times, January 16, 1993.
"We also noted that despite the government's non-intervention, it "receives the larger share of any recovery," amounting to up to 70% of the proceeds of a lawsuit."(8) Id.; see also 31 U.S.C. § 3730 (d)(1) and (2). United States ex rel. Russell v. Epic Healthcare Mgmt. Group. (Webmaster's note: Add to government's total recovery - IRS taxes on filing plaintiff's award and IRS taxes on awarded lawyers' fees.)
Senator Charles Grassley (R-Iowa) questions Supreme Court Nomineee John Roberts on September 9, 2005. New York Times, January 16, 1993:
"Well, I hope, sitting in the marble palace, you'll remember that I have great pride in the success of the False Claims Act... (LAUGHTER) ... $8 billion coming back to the Federal Treasury."
Are Federal Judges Co-conspirators?
IV. MOTIVE: UNFETTERED BUDGETARY AND SPIN CONTROL
The defrauded agencies are fighting to prevent the (1) cash "fraud recovery proceeds" delivery to or restoration to Treasury and (2) their loss of their allocated budget funds for neither preventing, identifying, stopping, investigating nor litigating the fraud against their agency. The DOJ or Justice Department is the defrauded agencies' attorneys of record, the FBI is the DOJ's investigators and they all face the same Congressional oversite reviews, questions and possible sanctions or criticism.
 
V. MEANS AND OPPORTUNITY: "WHISTLE BLOWER" LAWSUITS
1. All "whistle blowers" that are not government employees must make a complete disclosure, including substantially all of the evidence they possess, to the FBI within 30 days of the first date of their recognition of the FCA fraud. The DOJ is the lead agency with the FBI as one of its investigative arms.
2. The case is sealed, the complaint is not served on the defendant(s) and the DOJ is allowed to investigate to confirm violations of the FCA and decide (1) whether these are allegations of fraud it is not already investigating and (2) whether the DOJ wants to allocate its assets to pursue the fraud recovery by asking the court for permission to intervene in the "whistle blower's" lawsuit.
3. The DOJ is the "whistle blower's" only legal source of contact for information, status, and material facts while the case is sealed. The DOJ's attitude is "Trust us. We always are right and always act within the law." The DOJ regularly extend the "sealed" period for years instead of the 60 days the Congressional framers stated as their intent.
4. "Whistle Blowers" are immediately eliminated if any one of the government agencies, the DOJ or the FBI unilaterally take any one of the following actions first regarding the fraud on the taxpayers' public fisc:
- Prevent,
- identify,
- stop,
- investigate, or
- litigate the fraud.
5. If "whistle blowers" can be eliminated by the DOJ, in any way, the DOJ can then restructure and refile the case, control the listing and selection of what is identified as either "FCA proceeds" or "agency contract claims" or "alternate remedies" such as free additional work, forfeitures, etc. which removes their obligations to restore the recoveries to the taxpayers' Treasury general receipts account. This misconduct hides the definition and size of the fraud, agency mismanagement, supplies the agency with a windfall budget increase (from defendant forfeitures, free work, etc.) and, finally, rapes the U.S. Treasury.
6. The Federal Bureau of Investigation's (FBI) Law Enforcement Bulletin (July 1994, Page 17) clearly identifies the FBI's means, motive and opportunity while acting as the DOJ's formal investigative arm in FCA qui tam fraud lawsuits. The FBI trains their investigators to get the most out of the filing Plaintiff while silently recognizing that the filing Plaintiff very often openly and concretely suffers from an undiagnosed and untreated, classic case of "Delayed Stress Syndrome". They even say, "...his emotional response, including nervous distress caused by the retaliatory actions of his supervisor, closely parallels those of violent crime victims."
7. Justice Department Press Release # 03-613 clearly identifies the vast sums of money involved in this type of fraud against the government. This short-changing of the Treasury is simple when these lawsuits are sealed for years, exempt from the FOIA, unpublished by District judges and filed by a person the DOJ publicly degrades and labels as a snitch or "Whistle Blower." The DOJ repeatedly creates a villian to the media (that is, a greedy "whistle blower" and his or her 15% "snitch's bounty") to misdirect Congressional and public attention about the major and most important hidden loss. The public fisc (also known as Treasury's pool of taxpayers' after-tax dollars) lost 7 to 8 times as much money. They must prevent Treasury Department and Congressional investigations, exposure and sanctions.
VI. GENERAL DISCUSSIONS AND INFORMATION:
1. Recovery of "Whistle-Blower / Fraud Proceeds" - Must be delivered and "restored" to U.S. Treasury's "General Funds" Account.
2. "Conspiracy", "lying to a federal investigator or officer" and "delivering less than the amount due to the Treasury Department" are charges that can be brought individually against each of the following groups under federal law if they attempt to divert the "fraud-proceeds-recovery" from delivery (and restoration) to the U.S. Treasury. The FCA also provides for conspiracy claims, see 31 U.S.C. sec. 3729(a) (3), and general civil conspiracy principles apply. See, e.g., United States v. Murphy, 937 F.2d 1032, 1039 (6th Cir. 1991).
U.S. District Court Judges - Judges hide behind the False Claims Act's (FCA) exemption from FOIA disclosures and seemingly abuse their right to insist that District Court Clerks "Do Not Publish" the majority of the documents containing material facts and case dispositions about tax-dollar fraud against the U.S. taxpayers' public fisc and assets.
U.S. Department of Justice - The DOJ's documented actions and both covert and open opposition to the law (passed by the Congress to recover taxpayer-dollars lost to fraud) is well documented. Their attempts to openly manipulate the law has been rebuked by many federal District Court Judges. (See # 3 below.)
Federal Bureau of Investigation - The Dallas FBI admits destroying records in "Whistle Blower" investigations against the DOJ. The FBI is destroying the "Whistle Blower's" disclosure documents after three years while the statute of limitations under this law is six (6) and under some conditions, ten (10) years. This destroys the fairness, integrity and public reputation of judicial proceedings and threatens the Court's ability to recover the Public Fisc dollars allegedly lost to fraud.
Internal Revenue Service - The IRS knows that FCA "proceeds" are the recovery of dollars that have already been taxed and not the creation of new money under their questionable "new economic substance" doctrine. These are non-legislated tax increases. These IRS actions, as they presently enforce them, could be viewed as double taxation without legislation, and effectively reduce the filing plaintiffs' awards from an average of 15% down to an actual 8%. Sometimes a successful filing Plaintiff that recovered and "restored" millions to Treasury for the U.S. taxpayers owes the IRS more that they are awarded under the law. This was not what the framers of the law wanted and the Congressional authors of the law do not agree with this IRS interpretation of the law.
Members of the Armed Services - Can members of the Armed Forces face a "Court Marshal" for theft of fraud-recovery proceeds owed to the U.S. Treasury Department?
Government Lawyers and Employees - Laws against Government employee misrepresentation and tricks.
All Officials and Agents of the Government. - The law seems to say they can take the government employee's job, house, car, and personal property and throw you in jail... and then still make you pay all of the money back... yourself.
3. Casulty Theft From Treasury and the Public Fisc - DOJ and defrauded-government-agency conspiracies, misconduct and attempts to fraudulently conceal and divert FCA fraud recovery "proceeds" from the U.S. Treasury's General Receipts Account, Congressional oversight and the Public Fisc are well documented.
Click Here for a Documented, Partial History of DOJ FCA Misconduct.
More Examples:
- - - ex rel Covington, Sidicane
- - - ex rel Peter Jensen Thornton
- - - ex rel Neher, as Personal Representative of the Estate of Arthur P. Williams
- - - ex rel Robert J. Merena
- - - ex rel Saklad v. Vantage Travel Services
- - - - - - Possible DOJ and USPO misconduct and diverted proceeds from U.S. Treasury.
- - - - - - FOIA Request for Big 10 FCA Settlements' DOJ Intervention Approval Documents.
- - - ex rel Albert Campbell
- - - - - - DOJ Press Release # 03-475, dated 08/27/03.
- - - - - - Example of "Proceeds" allegedly converted to "Alternate Remedies / Forfeitures."
- - - ex rel Robert C. Ballew
- - - - - - A Congressional and Treasury Department audit should be required:
- - - - - - Which is it (one, the other, or both?):
- - - - - - - - - List # 1 of "Proceeds" allegedly converted to "Alternate Remedies" / FOIA - MOU.
- - - - - - - - - List # 2 of "Proceeds" allegedly converted to "Alternate Remedies" / FOIA - Letter.
- - - - - - - - - - - - FOIA Document # 1 - USCG's & DOJ's premeditated plan.
- - - - - - - - - - - - FOIA Document # 2 - USCG misrepresents "proceeds" as "alternate remedies".
- - - - - - - - - - - - - - - DOJ and USCG secret forfeitures from AHC for "tainted claims for payment".
- - - - - - - - - - - - - - - AHC secret list of undisclosed recurring critical system and parts failures.
- - - - - - - - - - - - - - - - - - DOJ and USCG did not cure avionics and engine defects.
- - - - - - - - - - - - - - - - - - GAO history of simular USCG mismanagement and illegal actions.
- - - - - - Follow The Hijacked Money, © 2002.
- - - - - - The Ballew Syndrome, © 2004.
- - - - - - Counterfeit Cornerstones, © 2005.
4. Penalties get personal without immunity - Government Employees and Defendents personal liability. They could have personal liability for fraudulent misrepresentation, concealment and conversion of public fisc assets.
5. "Distress Warrants" - How to get it all back under U.S. Treasury Department rules.
6. "Writ of Mandamus" - This is how we shall attempt to force the Department of Treasury to do its job and get every one of our taxdollars back into the U.S. Treasury.
VII. CONCLUSION:
If you are a government lawyer, employee or member of the armed forces that was involved in fraudulently misrepresenting, fraudulently concealing and fraudulently diverting any amount of "Whistle Blower" fraud-recovery-proceeds from the U.S. Treasury Department as "Alternate Remedies" (i.e. - waived claims against your agency, agency contract claims or adjustments, free present or future work for the agency, forfeitures to the agency, present or future discounts, etc.)... you had better beat your co-conspirators to the Treasury Department investigators and lawyers and ask for either "Use Immunity" and "Transactional Immunity" and immediately tell everything you know.
Of course, if you trust your co-conspirators, there is probably no reason to worry if they are going to beat you there.
Hear the clock ticking? The only questions you must worry about are "Will someone beat you to Treasury?" and "When will Treasury Agents act?"
Sleep Well.
Updated: Sunday, July 18, 2005, 1:25 P.M. CST
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