Big Medicare fraud ring busted in Houston. How big? $142 million big.
The Office of the Attorney General’s (OAG) Medicaid Fraud Control Unit (MFCU) has made a series of arrests and seized assets related to a fraud case in Houston.
Lily Tran Daniel, Kenneth Reynolds, and Lillian Thai were all arrested on suspicion of their “involvement in a major healthcare fraud scheme” associated with ApolloMDx, a genetic testing company.
According to a release from the OAG, AplloMDx had involvement in a $142 million healthcare fraud scheme where they would offer illegal kickbacks in order to purchase recipient information form marketers and orders for genetic testing from doctors.
The statement from the OAG details how ApolloMDx would make alterations on the dates of service on testing orders, making it appear that they collected multiple DNA samples on different dates, so they could bill for multiple dates of service to increase their Medicare reimbursement on genetic testing claims.
Since the inception of the national Medicare Fraud Strike Force to crack down on Medicare fraud in 2007, Texas has been at the center of many investigations, including what was at the time the country’s largest-ever Medicare fraud takedown in Dallas.
Medicare and Medicaid are two U.S. government programs that were created in the 1960s to provide low-income citizens with a rudimentary form of health insurance coverage. While Medicare covers persons age 65 and older, Medicaid was established for persons under 65 years and those over that age who had exhausted their Medicare benefits. It is also funded jointly by the federal and state governments.
The Texas MFCU worked in conjunction with the Department of Health and Human Services’ (HHS) Office of Inspector General and the Federal Bureau of Investigation to investigate the ApolloMDx case. The prosecution will be carried out by the U.S. Department of Justice’s Health Care Fraud Strike Force. The U.S. Attorney’s Office for the Southern District of Texas is assisting with forfeiture.
In addition to uncovering the fraud scheme, the MFCU seized sports cars, a sailboat, and three properties for a total of $7.1 million, funded by the illegal proceeds accrued from the ApolloMDx operation.
Texas and the federal government jointly finance and administer Medicaid and the Children’s Health Insurance Program, which comes to a total of over $40 billion.
The more money that flows through public welfare systems, the more susceptible to fraud they are. And it wouldn’t surprise me to learn that all the additional money flooding the system has made it that much easier for people to commit fraud.
The Hunter Biden scandals refuse to go away, California continues to hemorrhage taxpayers, Texas teachers behaving very badly, more Flu Manchu heart attacks, and a golden new parking aid. It’s the Friday LinkSwarm!
Hunter Biden’s sweetheart plea deal collapsed. Here’s former federal prosecutor Will Scharf discussing how the DoJ’s trickery backfired:
Typically, if the Government is offering to a defendant that it will either drop charges or decline to bring new charges in return for the defendant’s guilty plea, the plea is structured under Federal Rule of Criminal Procedure 11(c)(1)(A). An agreement not to prosecute Hunter for FARA violations or other crimes in return for his pleading guilty to the tax misdemeanors, for example, would usually be a (c)(1)(A) plea. This is open, transparent, subject to judicial approval, etc.
In Hunter’s case, according to what folks in the courtroom have told me, Hunter’s plea was structured under Federal Rule of Criminal Procedure 11(c)(1)(B), which is usually just a plea in return for a joint sentencing recommendation only, and contained no information on its face about other potential charges, and contained no clear agreement by DOJ to forego prosecution of other charges.
Instead, DOJ and Hunter’s lawyers effectively hid that part of the agreement in what was publicly described as a pretrial diversion agreement relating to a § 922(g)(3) gun charge against Hunter for being a drug user in possession of a firearm.
That pretrial diversion agreement as written was actually MUCH broader than just the gun charge. If Hunter were to complete probation, the pretrial diversion agreement prevented DOJ from ever bringing charges against Hunter for any crimes relating to the offense conduct discussed in the plea agreement, which was purposely written to include his foreign influence peddling operations in China and elsewhere.
So they put the facts in the plea agreement, but put their non-prosecution agreement in the pretrial diversion agreement, effectively hiding the full scope of what DOJ was offering and Hunter was obtaining through these proceedings. Hunter’s upside from this deal was vast immunity from further prosecution if he finished a couple years of probation, and the public wouldn’t be any the wiser because none of this was clearly stated on the face of the plea agreement, as would normally be the case.
Judge Noreika smelled a rat. She understood that the lawyers were trying to paint her into a corner and hide the ball. Instead, she backed DOJ and Hunter’s lawyers into a corner by pulling all the details out into the open and then indicating that she wasn’t going to approve a deal as broad as what she had discovered.
DOJ, attempting to save face and save its case, then stated on the record that the investigation into Hunter was ongoing and that Hunter remained susceptible to prosecution under FARA. Hunter’s lawyers exploded. They clearly believed that FARA was covered under the deal, because as written, the pretrial diversion agreement language was broad enough to cover it. They blew up the deal, Hunter pled not guilty, and that’s the current state of play.
And so here we are. Hunter’s lawyers and DOJ are going to go off and try to pull together a new set of agreements, likely narrower, to satisfy Judge Noreika. Fortunately, I doubt if FARA or any charges related to Hunter’s foreign influence peddling will be included, which leaves open the possibility of further investigations leading to further prosecutions.
More on how Hunter Biden’s sweetheart deal blew up.
The Hunter Biden defense and the Biden Justice Department hid the sweeping immunity term, shielding Hunter from all future prosecution, in a “diversion agreement” related to the gun offense on which Hunter was not pleading guilty and is anticipated not to be prosecuted. (See here, p. 7, para. 15.) The “diversion agreement” is separate from the plea agreement to the misdemeanor tax charges (see here) — i.e., the only charges to which Hunter actually planned to plead guilty. The plea agreement is where one would ordinarily find the all-important immunity term (since the immunity is given by the government in exchange for the guilty plea). Both the diversion agreement and the plea agreement incorporate an outrageous statement of facts (which is appended to the tax plea agreement, linked above). This fictitious presentation, which appears to have been drafted by Hunter’s lawyers, is nevertheless endorsed by the Biden Justice Department, even though it is utterly inconsistent with the prosecutors’ face-saving protestations, under pointed questioning Wednesday by Judge Maryellen Noreika, that they are conducting a continuing investigation in which Hunter is a subject and could be charged.
It could not be more obvious that, if the government were truly conducting a continuing investigation, prosecutors would never in a million years give one of the main subjects of that investigation a plea to minor tax charges — with the promise of a recommendation of no imprisonment — in the middle of that investigation.
This corrupt episode happened because this case is not a legitimate case — it’s a sham. In legitimate prosecutions, the defendant and the Justice Department are adversaries, with defense lawyers looking out for the defendant’s interest and the prosecutors vindicating the public interest in seeing that lawbreakers are held to account. The Hunter Biden case, to the contrary, is a travesty, in which the defense and the prosecution are on the same side.
That is why the prosecutors have never filed an indictment that lays out the case against Hunter in exacting, painful detail — the way the Justice Department typically does. To do that would be politically devastating for the president, who is implicated in his son’s conduct. Plus, if prosecutors fully describe the serious charges that appear to be supported by evidence already known, it would become politically impossible to settle the case on two trivial tax misdemeanors with no jail time, in addition to disappearing a gun felony carrying a potential ten-year prison sentence.
That is why the plea agreement could not be a normal plea agreement. The point of an agreement is to outline in detail the full extent of the immunity the defendant is getting in exchange for his plea. Because the Hunter Biden defense and the Biden Justice Department are on the same side, the collective objective was to give Hunter as much immunity as possible, with as little said as possible about why he needs it.
Biden family business associate and President Joe Biden’s son Hunter’s “best friend in business” has canceled his scheduled appearance on Monday to give testimony before the House Oversight Committee for a third time. Well, something seems to really have this guy spooked, wouldn’t you say? Why in the world would this guy cancel not once, not twice, but thrice, er, I mean three times? It doesn’t take someone with an IQ north of 180 to see this.
Rep. James Comer (R-Ky.), the chairman of the House Oversight Committee, spoke with Fox News and stated that Devon Archer canceled the deposition he was scheduled to participate in before the committee. Archer is currently under a subpoena from the committee but has now backed out three times, according to Breitbart News.
The Department of Justice (DOJ) has dropped campaign finance charges against alleged ‘crypto scammer’ Sam Bankman-Fried, who was accused of misusing customer deposits and who made $90 million in campaign contributions to around 300 predominantly left-wing political candidates or action committees (PACs).
Prosecutors argued the United States “mishandled” the process of extraditing Bankman-Fried from the Bahamas, writing a letter stating, “In keeping with its treaty obligations to the Bahamas, the government does not intend to proceed to trial on the campaign contributions count.”
Bankman-Fried, who had a net worth of around $26.5 billion at his peak, ranked behind only George Soros in donations to the Democrats last year.
Two Texas teachers accused in separate sex crimes against children were arrested on the same day and each charged with sexually assaulting a child and trafficking a child for sex.
Red Oak ISD teacher and coach Gershon Caston, 38, was arrested Thursday and charged with three first-degree felonies:
Aggravated sexual assault of a child
Trafficking a child to engage in sexual conduct
Compelling prostitution by a minor
Snip.
Former Nacogdoches ISD teacher Annaleigh Andrews, 24, was also arrested Thursday and charged with a dozen felonies:
Three counts of trafficking a child to engage in sexual
Three counts of sexual assault of a child
Three counts of improper relationship between student and educator
Three counts of enticing a child with intent to commit a felony
Senate Democrats on Thursday blocked a measure that would have stopped the Biden administration from discriminating against Jewish-made Israeli products.
The Democratic members of the Senate Commerce Committee rejected a measure from Sen. Ted Cruz (R., Texas) that would have blocked the Federal Trade Commission from penalizing products produced by Israelis living in contested territories, including the West Bank, Gaza Strip, and Golan Heights.
Speaking of unexpected heart attacks, LeBron James’ 18-year old son Bronny James suffered cardiac arrest during a basketball workout. He survived. You know, I never remember hearing about young athletes having heart attacks pre-Flu Manchu vaccines…
I suspect this Peter Zeihan video might count as trolling my readers: “Why Fiat Currencies Will Always Beat Gold.” I think it’s broadly true in the cases he articulates, but doesn’t take into account the possibility of hyperinflation and/or widespread social unrest.
After months of caterwauling and posturing, the Texas Legislature’s property tax plan ended up about where it began, with additional rate compression, an increased homestead exemption, and an appraisal cap.
The Texas House and Senate put the final bow on their recently announced deal on property tax relief to put to bed the months-long standoff — after which the pair adjourned sine die for the third time this year. The plan is expected to be signed quickly by Gov. Greg Abbott.
The toplines of the $13 billion deal are:
More than $7 billion to compress school district Maintenance & Operations rates
An increase of the standard homestead exemption to $100,000
A three-year trial run for a 20 percent appraisal cap on commercial and non-homestead residential properties valued at or below $5 million
A $1.47 million increase to the state’s franchise tax exception
The creation of three elected positions on Appraisal Review Boards in counties above 75,000 population
That compression is on top of the $5.3 billion already passed in the 2024-2025 state budget to continue the 2019 reform.
The new compression and the homestead exemption — should it be approved by voters in November — will be effective this tax year. The appraisal cap will begin next year and run through the end of 2026 unless continued by the Legislature.
Estimates project the reform will provide a $1,200 “savings” for the average homeowner in Texas — meaning a reduction from what tax bills would yield without the reform, not a reduction from the previous year’s tax bill.
Good news, if long in coming.
You know the “incident” Austin City Council used as an excuse to end DPS patrols? It never happened.
The City of Austin canceled its recently-resumed partnership with the Texas Department of Public Safety (DPS) on Tuesday after allegations were made that officers pointed a gun at a child during a traffic stop — but DPS has now released body camera footage disputing that claim.
The patrol partnership that deployed DPS officers throughout the capital city to assist the ailing Austin Police Department was set to resume this month after a May pause to bolster enforcement at the border as Title 42 expired. But city officials — Mayor Kirk Watson and Interim City Manager Jesús Garza — abruptly canceled the partnership on Tuesday.
The onus for that decision was an allegation made by Carlos Meza and his son Angel that during a Sunday evening traffic stop, DPS officers pointed their sidearms at the child.
DPS said that did not happen. The agency released three angles of footage of the incident.
The Texas Department of Transportation is attempting to withhold documents concerning the agency’s use of materials related to diversity, equity, and inclusion (DEI) and environmental, social, and governance (ESG).
Responding to a tip from a whistleblower, Texas Scorecard sought agency records that would either confirm or debunk allegations that the agency has been pushing a “woke” agenda on its 12,861 employees.
Texas Scorecard sent an open records request to TxDOT under the Texas Public Information Act (PIA). This request sought to unveil whether or not TxDOT employees are being paid to discuss such issues.
Specifically requested were communications referring to DEI and ESG in the possession of the Texas Department of Transportation commissioner, chief of staff, director of human resources, and/or the director of the DEI section.
Obviously TxDoT must be hiding considerable social justice subversion.
A northeast Texas school district has adopted new policies related to the continued hot-button topics of restroom accommodations for transgender students and pronoun usage by school employees.
On June 28, the Keller ISD board of trustees voted 5 to 0 with one abstention to establish a new pronoun policy wherein “district staff, educators, and other district employees shall not promote, encourage, or require the use of pronouns that are inconsistent with a student’s or other person’s biological sex as it appears on the individual’s birth certificate or other government issued record.”
Additionally, the school district shall not compel any employee or “other students to address or refer to students in any manner that would violate the speaker’s constitutionally protected rights.”
Prior to the vote, the board engaged in back-and-forth discussion of hypotheticals, such as if a teacher is asked by a student to be referred to by a pronoun that does not correspond with their biological sex.
“The policy is pretty clear,” board President Charles Randklev said of the hypotheticals. When asked if the trustees will support teachers who might come to them with concerns following the passage of the pronoun policy, he said that “this board has always supported teachers.”
Randklev added that the new policies “lay the groundwork for protecting kids and educators.”
“I also think they basically help us get off to a good start for the upcoming school year.”
The board did pass an additional bathroom policy that will “maintain separate restrooms” based on biological sex, but will make accommodations for students who are “seeking privacy” such as in a single-use bathroom.
This move by Keller ISD comes on the heels of a federal judge’s ruling in 2022 that Texas had the ability to vacate the Biden administration’s guidance on allowing people to use restrooms based on their gender identity that do not correspond to their biological sex.
A small public school district in the Rio Grande Valley is the latest to face a state takeover under Texas law, but district officials have vowed to fight the Texas Education Agency (TEA) in court.
Located on the U.S.- Mexico border west of McAllen, the La Joya Independent School District (LJISD) operates 38 schools and serves 24,804 students. However, enrollment has steadily declined over the past decade and the district has been embroiled in multiple scandals.
After an FBI investigation into corruption in Hidalgo County, five LJISD officials pled guilty last year to federal charges that included theft, bribery, money laundering, extortion, and wire fraud.
In January 2022, Trustee Armin Garza admitted to participating in a kickback scheme regarding a district energy-saving plan under which he received more than $234,000. Later, central office administrators Luis Morin and Alex Guajardo would both also plead guilty for their part in the conspiracy.
In a separate case, trustee Oscar Salinas pled guilty to federal extortion charges related to kickback payments he received from contracted vendor L&G Engineering. After discovering that L&G Engineering’s chief operating officer supported a political opponent, Hidalgo County Commissioner Everardo Villarreal, Salinas demanded additional funds and threatened to cancel a contract with Villareal’s wife. When the CEO refused, Salinas voted to terminate the contract.
Another LJISD administrator, Rodrigo Lopez, pled guilty to federal charges of theft and bribery in August 2022 in relation to contracts for athletic equipment. Lopez also served as the mayor of Penitas, Texas.
Earlier this year, TEA officials notified La Joya ISD Board President Alex Cantu and interim Superintendent Beto Gonzales that investigators had substantiated allegations related to fraud and violations of conflict of interest and contract procurement laws.
Those who have been following the blog for a while know that fraud in border school districts and Hidalgo County (still Democratic Party strongholds) has been a recurring theme.
By approving a new wealth tax last year, Massachusetts voters might have dented the Boston Celtics’ chances of chasing down a National Basketball Association (NBA) championship.
Grant Williams, a talented power forward drafted by the Celtics in the first round just four years ago, declined to re-sign with Boston this summer. Instead, he’ll be playing next season in Dallas, where his new contract won’t be subject to Massachusetts’ so-called “millionaire’s tax.”
Williams told The Athletic that his decision to sign a $54 million deal with Dallas over a $48 million offer from Boston was “a little strategic” and that the gap between the two offers was larger than it might seem.
“In Boston, it’s…$48 million with the millionaire’s tax, so $54 million in Dallas is really like $58 million in Boston,” Williams said.
In Texas, which has no state income tax, Williams can keep more of his earnings, though it is worth noting that professional athletes unfortunately owe taxes in states where they play road games. His new state’s tax situation gives Williams a nice incentive to move, considering Massachusetts would have taken 9 percent of those earnings—thanks to its 5 percent flat income tax and newly created 4 percent tax on income in excess of $1 million.
Independent journalist Wayne Dolcefino alleges that Lina Hidalgo’s hand-picked election coordinator Clifford Tatum deliberately shorted paper ballots to Republican precincts.
“If you’re a Democrat, you didn’t like the KHOU investigation that cites more than 120 locations that were under supplied with ballot paper, while millions of ballot sheets were available in a warehouse.”
Lots of precinct judges, of both parties, testified that locations ran out.
“It’s not just ballot paper problems. Election judges reported 119 polls, nearly 15%, that didn’t open up on time on election morning. Late in the day, a district judge ordered that polls stay open until 8 PM, but a lot of election judges either didn’t get the message, or didn’t care when they did. 64 polls closed at 7 PM even after the judge’s order.”
“It should force judge Hidalgo to release all remaining public records.”
Of course, she’s waging a lawsuit to prevent just that…
If you want to look at a big story the mainstream media continues to suppress, the entire contents of Hunter Biden’s infamous “Laptop from Hell” are now online.
And not only his laptop, but stuff from his iPhone as well.
There are the salacious photos you would expect (pics of his dick and what appear to be naked, under-aged girls, pics of a woman giving him a blowjob in-between puffs on her cigarette, etc., all censored).
Some of it is suggestive of Biden Family corruption, like the famous “Big Guy” memo.
Some of it is innocuous: Map snaps, pics of food, pics of sunsets, vacation photos, pictures of kids (presumably some his own, and presumably ones he’s not having sex with), etc.
Some of it is just weird. There seem to be dozens of pictures of a flashlight beam shining through what I assume are crack pipe fumes in a darkened room.
Arty
There’s no doubt this is a rich treasure trove for bloggers and investigative reporters with some free time to dig through. (Alas, that’s not me right now, because books.)
And those are just the ones with over 100 employees. There are much more with fewer (including Gordon Ramsay North America, which has a chain of restaurants, which has moved its headquarters to Irving, despite having no restaurants in Texas). (Hat tip: Ed Driscoll at Instapundit.)
For the past few years, Atlanta has been roiled by corruption scandals centering on the city’s decades-old program to favor minority-owned businesses in government contracting. The troubles started when Elvin “E. R.” Mitchell, Jr., a black contractor, began paying what became more than $1 million in bribes to city official and friend of the mayor Reverend Mitzi Bickers. Mitchell and his associates wanted to ensure that they could keep winning city-favored contracts and subcontracts for minorities, despite submitting bids higher than their competitors’. Mitchell also helped Bickers bribe officials in Jackson, Mississippi, so that she could secure minority-favored contracts on some of that city’s projects. Meantime, Larry Scott, head of Atlanta’s Office of Contract Compliance, which ensures that minority firms win contracts, started a side gig to help such businesses get favorable deals with the city—receiving over $220,000 in unreported income and partnering with the mayor’s brother and sister-in-law in the scheme. Mitchell, Bickers, Scott, and several other city officials have been sentenced on federal charges ranging from bribery to wire fraud.
Affirmative-action plans in schools or workplaces get the headlines, but the practice of favoring minorities in government contracts is almost as old, and even more far-reaching. Such favoritism—in the form of Disadvantaged Business Enterprises (DBE), or Minority and Women Owned Business Enterprises (MWBE) programs—exists across all levels of government and in states and cities of every political hue.
The subject of government contracting, or procurement, may not seem exciting, but its importance can’t be overstated. Nearly 10 percent of the U.S. economy goes through government contracts. The federal government spends over $600 billion yearly on contracts, making it the largest buyer of goods and services on the planet. State- and local-government spending on contracts totals about $1.3 trillion annually. Government contracts and purchases range from aircraft carriers and highway construction projects to office supplies and human-resources software. Favoritism to minority-owned companies pervades this vast universe.
Minority contracting was never a coherent way to make amends for the nation’s long, lamentable history of racism. Instead of righting historical wrongs, the policy has enriched a small subset of already-wealthy businesses, bred corruption and fraud, deepened racial divisions, and cost taxpayers countless billions of dollars—while doing nothing to help the truly disadvantaged. Indeed, minority residents of urban areas pay the highest price for lackluster and expensive services caused by such programs. One underappreciated reason for the unparalleled costs of American urban and infrastructure projects is that the government too often picks contractors based on their sex or race, not the quality or cost of their bids.
Snip.
Today, governments use several methods to favor minority contractors. At the federal level, Congress has stated that “not less than 5 percent” of all contracts should go to “disadvantaged” businesses. Regulations clarify a “presumption” that “Black Americans; Hispanic Americans; Native Americans,” and “Asian Americans” are disadvantaged. Government treats the goal as a floor, not a ceiling: in recent years, the true share of contracts going to disadvantaged firms has been around 10 percent, and politicians have urged the bureaucracy to push the total higher. The SBA then sets goals for individual agencies—recently demanding, for example, that the Department of Transportation offer 21 percent of all contracts to disadvantaged enterprises. It also requires that federal “prime contractors” (the lead contractor on a project) create subcontracting plans to maximize minority participation.
State and local governments set even higher goals for minority procurement but usually focus on encouraging large businesses to subcontract out to minorities. Chicago insists that 26 percent of all construction dollars go to minority companies and 6 percent to women-owned businesses. But a city-funded report noted that “almost all City funded construction projects require M/WBE” goals for subcontractors and that “project goals should exceed the ‘baseline’ goal.” Maryland has a target of 29 percent of contract dollars to minority firms. New York City and State have set a goal of 30 percent of all contracts going to MWBE, and the city itself goes into more detail, setting precise contracting goals for each race and business category (for instance, black-owned businesses should get 11.81 percent of all city professional-service contracts).
Agencies have various ways of meeting these benchmarks. Federal agencies can directly award contracts to minority firms, without a normal bidding process and through a no-bid deal, if they cost less than $5 million. This arrangement, of course, has caused abuse. After 9/11, the federal government, hoping to accelerate security purchases, expanded awards to “Alaska Native Corporations,” which had a special exemption that allowed them to get no-bid minority contracts of unlimited amounts. Federal contracts to these corporations increased 20-fold in the decade ending in 2009, when spending totaled almost $6 billion. The army’s infectious-disease center at Fort Detrick, in a no-bid deal, shifted the management of all its contracts to an Alaskan Native Corporation, whose most significant former venture was a failed cruise-ship line. Another such corporation won a port-scanning deal and then subcontracted it out to traditional defense companies; only 33 of the corporation’s 2,300 employees were Alaskan Natives. Though Native Americans are the smallest “disadvantaged” group assisted by the federal government, they get 2.7 percent of all federal contracts—more than twice the proportion of any other group.
Snip.
The City of Austin Disparity Study for 2022, conducted by Colette Holt & Associates, a large disparity-study firm started by a lawyer who had previously worked for Chicago’s city government, is typical. It approaches 300 pages and contains a recitation of every supposed ill that has befallen a minority business in the Texas capital. The report uses only anonymous quotes that make accusations against unnamed individuals about racism or sexism. “There is no requirement that anecdotal testimony be ‘verified’ or corroborated,” the report notes.
Try as they might, these studies have had little success proving racism or sexism in contracting. They typically use a “disparity ratio” to show the difference between the number of available minority firms and the number of government contracts going to these firms, though these ratios rarely account for the ability of different firms to perform government jobs. Yet studies conducted by Austin and Washington State found that MWBE firms were more likely to get contracts than were those owned by white men. A Missouri disparity study found that minority firms were more likely to get contracts than nonminority firms. A Chicago disparity study found that black and Hispanic firms were about twice as likely to get construction contracts, and Asian firms four times as likely, relative to their availability.
These reports’ surveys of minority firms find that most aren’t worried about discrimination. Of those MWBEs responding to a survey in Austin, 75 percent said that they had not experienced barriers to contracting based on race or gender. Over 85 percent agreed that they did not get different prices or terms because of their race or gender. Disparity studies ignore such data and argue that the minority of minorities who report unspecified discrimination need assistance.
When studies admit that there is no discrimination in contracting, politicians refuse to abide by them. Miami-Dade County made the mistake of employing a legitimate accounting firm, KPMG, for a disparity study, which determined that companies owned by blacks and Hispanics were not underused. The Miami mayor rejected the study. Los Angeles’s city council rejected a study that found that black firms did not suffer discrimination in contracting. The occasional lawsuit will surface, challenging these disparity studies when they provide no evidence of discrimination. But in such cases, governments will simply look for another minority contractor to conduct another study calling for more minority contracting.
Minority-contracting programs are a magnet for fraud. No-bid contracts represent an obvious avenue, but the most common kind of MWBE fraud is simple: contractors with subpar bids either lie about being run by minorities or lie about involving other minority businesses in the contract. The Wedtech scandal in the 1980s involved such fraud; though John Mariotta, a Puerto Rican immigrant, had started the company, it was partially run by Fred Neuberger, a Romanian Jew who escaped the Holocaust in Europe but did not count as “disadvantaged” for the purposes of the 8(a) program. Similar issues arose with the recent Atlanta scandals: while contractor Charles Richards was white and won many “prime” contracts, he promised to subcontract work to Mitchell’s minority firm, and then paid Mitchell without asking his firm to do any work. A 2016 Department of Transportation presentation stated that more than one-third of its contracting-fraud cases involved minority contracting and that, over the preceding five years, cases involving minority-contracting fraud had led to $245 million in financial penalties and 425 months of incarceration for offenders.
These cases tend to follow a certain playbook. A minority-owned front company wins the government contract, takes a small cut, and issues a pass-through contract to a white-owned firm. The largest such case in American history involved Schuylkill Products, a Pennsylvania firm that manufactured concrete bridge beams but had used a Filipino-owned front company for 15 years to win more than $130 million in contracts. The federal investigation led to several prison sentences in 2014. Front-company and pass-through fraud has dogged construction work at Chicago’s O’Hare airport and New York casinos. According to the New York State inspector general, the minority firms in the casino-fraud case did little more than submit invoices. A former Dallas councilman, meantime, went to prison for his role in setting up minority front companies for government contracts. Sometimes, the fraud is even more direct: in Seattle, the owner of a company that was paid to clean up homeless camps falsely identified as black on city forms. She also happened to be a city employee.
Target has repeatedly boasted about efforts to support the Gay, Lesbian, and Straight Education Network, also known as GLSEN, an entity which helps teachers place LGBTQ books in school libraries and hide their students’ so-called gender transitions from parents.
Conservatives have launched a boycott against Target after the retail behemoth marketed a female swimsuit as “tuck-friendly” and with “extra crotch coverage,” as well as hired an artist who creates Satanic items to make various designs for the company. Links between the company and GLSEN, which supports “affirming learning environments for LGBTQ youth” and activates “supportive educators,” resurfaced amid the backlash against Target.
The retail behemoth boasted last year about donating more than $2.1 million to GLSEN over the past decade, lauding the group’s mission to create “affirming, accessible, and antiracist spaces for LGBTQIA+ students.” Target also actively promotes GLSEN on its online store.
Strangely enough, having a DA who will prosecute criminal and not lawful citizens defending themselves makes a difference. “San Francisco District Attorney Brooke Jenkins follows the law and the evidence and does not make decisions based on what may be politically expedient.”
Speaking of Soros-plagued cities: “Citywide Youth Curfew Begins In Baltimore As Mayor Strives To Restore Law And Order.”I doubt Mayor Brandon Scott’s policy will make that much of a difference, though maybe with Soros-tool Marilyn Mosby out of office and awaiting trial on federal perjury charges, maybe there’s a chance of Baltimore improving. But remember:
Of course. “Just Stop Oil’s Hollywood Patron Has Holiday Home in Ireland That he Jets Off to ‘When the Going Gets Tough.'” “Oscar winner Adam McKay, whose films include The Big Short and Don’t Look Up, is one of a group of multi-millionaires behind the Climate Emergency Fund. The Beverly Hills-based fund raises cash from its mega rich supporters and distributes it to ‘disruptive’ activists, including handing almost £1million to help Just Stop Oil wreak havoc in the U.K.” Being a Democrat means never having to apologize for your hypocrisy.
The Georgia Bureau of Investigation (GBI) and the Atlanta Police Department (APD) arrested Marlon Scott Kautz, age 39, of Atlanta, Savannah D. Patterson, age 30, of Savannah, Ga., and Adele Maclean, age 42, of Atlanta, on Wednesday on charges of money laundering and charity fraud in association with fundraising efforts for the domestic terrorists who are currently in jail.
“The GBI, along with the Atlanta Police Department, have arrested three people on charges stemming from the ongoing investigation of individuals responsible for numerous criminal acts at the future site of the Atlanta Public Safety Training Center and other metro Atlanta locations,” reads the GBI’s press release.
The trio ran a non-profit called Network for Strong Communities, which worked with another group called the Atlanta Solidarity Fund, which, at least on paper, was a bail fund for the thugs who attacked the training center property and other areas in Atlanta.
Given that, it might be time to take a look at Worth It or Woke for honest movie reviews.
Dwight has a good look at the Battleship Texas, and (for Memorial Day) seaman Christen Christensen, who was killed in combat during the bombardment of a German shore battery off Cherbourg.
Don’t let JinJin eat poop off San Francisco’s street, or they may end up tripping balls.
Remember Austin’s scheme to hand millions to the homeless industrial complex to clean up the mess they created, and the shady, recently-created “P Squared Services, LLC” they picked to give $1.7 million to?
That attracted so much attention that that particular piece of graft is now off the table:
Kudos to blogger Teddy Brosevelt (I’m going to go out on a limb and guess that’s a pseudonym) and Austin City Council member Mackenzie Kelly for killing this giant bucket of graft.
It’s good to be a member of the Austin Homeless Industrial Complex. Not only do you get to rake off graft for luring drug-addicted transients to town, you also get to rake off graft to clean up the resulting mess.
Item #23 on this week’s Austin City Council agenda allocates another $20 million to the Homeless Industrial-Complex to clean up dozens of dangerous homeless encampments around the city.
Item 23 (link) says it’s critical for these camps to get cleaned up, since they pose “a great degree of health, safety, and fire risks.”
Austin Water also needs cleanup services on “environmentally sensitive areas of the wildlands” due to toxic waste and debris contaminating the watershed.
Snip.
One of the three companies who won this big fat $20 million contract – P Squared Services, LLC – is the most suspicious, sketchy and (almost certainly) fraudulent company I’ve encountered during my three years of reading through these absurd Austin City Council agenda items.
Just look at the 11 bids and financial docs for Item 23 (link).
You will shake your head in anger and disbelief, asking yourself:
How could Austin Finance be so incompetent, lazy and irresponsible?
Is something more sinister going on?
Is this a case of internal corruption or criminal behavior?
No sane person would make these decisions.
Nah. Austin City Council. Corrupt and incompetent is the default setting.
Meet P Squared Services, LLC
Major red flags pop up across the galaxy when you investigate this highly suspicious, brand new company called P Squared Services.
P Squared Services has:
No internet presence
No website
No clients
No experience
There’s overwhelming evidence that P Squared Services, LLC is almost certainly up to something nefarious and possibly illegal.
The major question is whether it’s an inside job and who made the final decision to funnel money to these frauds.
P Squared Services is a Texas Domestic Limited-Liability Company that was formed in Smithville on November 4, 2022.
The business address for P Squared Services is an exact match for the residential address of the two married co-owners:
Brandon Keith Pietsch
Kristina Dawn Pietsch
So the married co-owners of P Squared Services are running this mysterious business out of their HOUSE.
And this “business address” is actually a residential, single family home with zero visible equipment, tools or supplies for cleaning up industrial waste.
P Squared Services, LLC
607 Ash Street
Smithville, TX 78957
Let’s look at the google street view photos of their business headquarters / house.
See if you can notice:
Empty beer cans on front lawn
Tipped-over cooler by porch
Unfinished projects like doors and window screens that were never installed.
So they’re hiring someone to clean up a homeless camp whose house looks like a homeless camp.
The conclusion: “I’m almost positive that P Squared Services LLC is a fake, phony, money laundering scam.”
Indeed.
That seems to be the driving purpose behind all Austin homeless policies…
Remember Democratic County Judge and de-facto Queen of Harris County Lina Hidalgo, she of the numerous staff corruption charges? There have been a lot of Freedom of Information Act requests coming her way over all the alleged crooked dealings, so she went to her legal counsel to thwart transparency.
With the state’s largest county already facing at least one lawsuit over refusal to comply with public records requests, a leaked memo from Harris County officials appears to outline a strategy for avoiding the release of documents related to County Judge Lina Hidalgo’s travel and taxpayer-funded expenses.
Investigative reporter Wayne Dolcefino reported this week on a leaked chain of emails that began with a January 25, 2023 open records request from Houston Chronicle reporter Jen Rice seeking travel records for Hidalgo and “her entourage” between January 2019 and January 2023.
After requesting clarification, Hidalgo’s legal counsel Kathryn Kase forwarded the request and instructions for handling it to several Hidalgo staffers and Glenn Smith of Affinity Dynamics. The county auditor’s office lists payments totaling $35,000 to Smith’s company in 2020, but none this year.
“The law does not require us to create documents in response to this PIA request and I ask that you not create such documents,” wrote Kase. “For example, if we do not have a list of the Judge’s trips outside Harris County that the County paid for in whole or part between 1/1/ 2019 and 1/25/2023, then the law does not require us to create such a list, nor do I want you to create one.”
Kase also stated that staffers do not have to ask other departments for documents responsive to the request.
“If, for example, the Auditor or the Treasurer have copies of reimbursements to Judge Hidalgo, do not ask the Auditor or the Treasurer to provide them to you.”
Rice’s request likely stems from reports of Hidalgo taking private security, paid for by Harris County taxpayers, on her personal vacations to Mexico, Columbia, and according to sources familiar with the matter, Thailand, earlier this year.
Until last April, the Precinct 1 constable’s office provided security for Hidalgo, but in a 3 to 2 vote the commissioners court approved a no-bid contract to private security company XMi Protection at a price of $121,524 for three months. The commissioners later approved a budget of up to $500,000 for XMi, although reportedly Hidalgo’s security is now provided by the Harris County Fire Marshal’s Office while XMi continues to cover other employees.
Remember that Queen Lina’s previous legal troubles stemmed from handing out contracts to connected Democrat firms and not wanting public scrutiny for that either.
As far as I can tell, XMi Protection seems to employee exactly one person: Cortez Emilio Richardson. (Maybe he hires temps to round out his team?) Also strange: The listed address for XMi protection is 9900 Spectrum Drive, Austin, TX, 78717, which is the address of Integreon, a “global outsourcing partner” that doesn’t list “executive protection” among its services, as well as LegalZoom, which seems to be a “one stop set-up-your-business” shop. (Maybe he set up his LLC through them?) However, Richardson’s LinkedIn profile says that he’s in Houston, and XMi Protection is based in nearby Spring. Two other LinkedIn accounts that show XMi Protection entries are a Paquita Bailey who lives in Detroit and is evidently working four different jobs at the same time (lot of sidehustle they’ve got going on there), and the following private listing:
Which is for a pharmacy technician from Anna, Texas (which is north of Dallas), both of whom would seem to be deeply unlikely to be working a protection detail in Houston.
$40,000 a month is an awful lot of cheddar for one guy.
Jim “Mattress Mack” McIngvale and Dolcefino have also filed a lawsuit against the county, seeking access to public election records that the county has refused to release on the grounds that they are related to litigation and a criminal investigation of Tatum and the elections department.
In response to multiple complaints over delay and evasion tactics employed by government agencies across the state, Sen. Paul Bettencourt (R-Houston) has pushed legislation that would punish those using the appeals process to delay compliance. His Senate Bill 1579 has been approved in committee, but it has not yet been scheduled for a vote on the Senate floor.
According to attorney Bill Aleshire, public information requests must be carefully tailored so as not to offer any loopholes. Aleshire opined that instead of asking for a “list,” Rice should have requested specific documents and included multiple departments in her original demand.
“Having said that, a public office devoted to transparency would not quibble with a requestor seeking travel records; it would just provide the records they’ve got, in good faith,” Aleshire told The Texan.
Snip.
In another leaked internal Harris County memo, legal fees approved by the Harris County Commissioners Court last March totaling $671,383 are described as covering legal costs for Kase, [County Commissioner Rodney] Ellis, and other county employees related to the investigation of a since-canceled $11 million COVID-19 vaccine outreach contract and allegations that Ellis had stored an African art collection at taxpayer expense.
The memo also includes “talking points” from “GS” that former Justice Administration Director Jim Bethke and other county officials, including Tatum, have been harassed by District Attorney Kim Ogg.
Payments for legal expenses appear to have been approved for McClees Law Firm, PLLC; Rusty Hardin and Associates, LLP; and Khalil Law PLLC. In addition to Ellis, Hidalgo, and other employees, the memo notes expenses were also covered for Commissioner Adrian Garcia (D-Pct. 2).
Something stinks in Harris County government, and there are a whole lot of questions about how Lina Hidalgo is spreading around taxpayer money that she really doesn’t want to answer…
Here’s a video where Ex-LA Sheriff Alex Villanueva discusses how the Homeless Industrial Complex racket works there.
Five people a day die on the streets of LA in the gutter like a dog. Five a day. Like, five on drugs from overdosing overdosing on drugs, from illnesses that are treatable. But if you’re not being treated, like, for example, you’re insulin dependent type one [diabetes]. Without insulin you die. That’s what happens, because these are people are not in a state of mind to actually accept and seek medical care for a problem, so it goes untreated they die, or they overdose and they die, or they do both and they die. I think in 2020-2021, they registered, I think, over 1,800 deaths of that type on the street, which is mind-boggling, but it’s consistent.
“If you don’t pay attention, people are going to die. So the people, the activists, they want to get in the way. ‘Don’t touch them, you’re criminalizing poverty!’ or this or that. Yet they have no answer. And their solution is just to let people die on the street. That’s not a solution.”
“The [homeless] count is getting bigger, not smaller.”
“There’s a perception in the entire nation that, if you’re homeless and you like to use drugs, go to LA. Until that train stops, it doesn’t matter what you do locally in LA. You can’t defeat 49 other states sending all their homeless their derelicts their drug addicts to LA.” I don’t know, a lot still seem to be going to San Francisco. And we need to do more to spread the word to Austin’s drug addicted transients in hopes they move there.
When he started trying to clean things up, he got immediate pushback from the Los Angeles County Board of Supervisors. They had “no desire whatsoever” to work with him.
“They’re not doing anything about it because the homeless industrial complex is alive and well. Look at the career arc of Holly Mitchell, supervisor. Karen Bass, mayor. Community organizers. Now they’re running non-profits. Now they’re receiving contracts from the county, from the city. Now they’re in public office. Those two in particular prime example of it, and that’s the wave of the future.”
“You’ve got a whole community of people that are in the 501c3s, the non-profits, and uh Boards of Directors, CEOs. The amount of money is pouring into the nonprofits is just incredible. There’s no governance, there’s no oversigh, there’s no accountability on the results. They just keep shoveling money at them, and the problem keeps getting worse and worse.”
“This has become a system for people to to get in and get involved, and actually build a career and build a path to politics. The top 10 CEOs of non-profits eight hundred thousand dollar a year. They were making more than twice what I was making as sheriff, and the size of my operation dwarfed all of them probably combined. But that tells you the influence the money involved.”
“From 2011 to 2021, L.A. County spent 6.5 billion dollars on homeless initiatives. The homeless count went from 39,000 to over 80,000. it doubled in size.”
“It’s engulfing every corner of life in L.A County.”
