The legal counsel of Governor Dannel Malloy (D-CT) has reported that “many” Connecticut state employees may be involved in food stamp fraud, and is urging heads of state departments to cooperate with investigators and prosecutors on both the state and federal levels.

During a rather abruptly organized press conference last Sunday, Gov. Malloy revealed that 800 of the 23,000 people who obtained federal disaster aid, following Tropical Storm Irene, were state employees, some of whom may actually qualify for the assistance. Thus far, 24 state employees appear to have fraudulently qualified for the disaster aid.

Andrew McDonald, the governor’s chief counsel, said, “We have credible information to suspect that many state employees who received the benefits did so by materially misrepresenting important information included in their applications” for food stamp benefits.”

Those who applied for the disaster funds, known as D-SNAP, received debit cards for as much as $1200, to replace food that had reportedly spoiled due to lack of electrical power during the period following the storm.

As was reported here on September 29, 2011, thousands of people waited in lines for days in the wake of Tropical Storm Irene, in front of Connecticut’s DSS buildings, some of them obtaining emergency funds even though they lived in areas, such as the capital city of Hartford, which had not lost power as a result of the storm. The state administered the $12.4 million in disaster aid funded by the federal government.

The ease with which many were able to obtain D-SNAP funds was discussed anecdotally on local radio talk shows. The chaotic hordes of people lining up to receive D-SNAP funds led conservative Republican state Sen. Joseph Markley to approach the state auditors and ask them to look into the situation. On a talk radio program, Sen. Markley said, “I think, during the course of their investigation, they started turning over some rocks, and it became obvious that there was wrongdoing involved, and some embarrassment. And I believe that’s what led the governor to get out ahead of the story, holding this extraordinary press conference on a Sunday afternoon.”

(more…)

It is not uncommon to hear of lawsuits being filed against the Environmental Protection Agency (EPA).

Citizens and states might sue the EPA for overregulation of an industry that could lead to lost jobs and revenues.  Green groups might sue the EPA because they feel it hasn’t done enough to over-regulate businesses or to expand enforcement of current environmental laws.

But it is important to note that in many cases the EPA and Treasury Department are required to award attorney’s fees to those plaintiffs that successfully dispute the EPA.  And because the Justice Department is what defends the EPA in court cases, your tax dollars are what are used to pay the opposing sides’ attorneys.

Facts on just how much taxpayer money is spent on these environmental court cases and who benefits wasn’t well known until Senators Jim Inhofe, R-Okla., and David Vitter, R-La., and a report from the Government Accountability Office (GAO), shed some light on the subject.

The GAO report found that in addition to attorney’s fees awarded, the Justice Department spent at least $43 million in taxpayer dollars defending EPA in court from 1998 to 2010.  That doesn’t include the fact that Treasury paid about $14.2 million from fiscal year 2003 through 2010 and the EPA paid approximately $1.4 million from fiscal year 2006 through 2010.

Because most people don’t have millions of dollars on hand to sue the EPA if need be, these statutes were put into place so citizens and industries could afford to bring charges against the federal government.  However, less than 20 percent of awarded money has been given to private industries, citizens, state agencies and associations combined.  This begs the question, what were the largest beneficiaries of these payouts?

The three primary beneficiaries from 1998 to 2010 were: Sierra Club, Earthjustice and Natural Resources Defense Council (NRDC).  Total amounts these organizations received from all attorney fees paid to EPA litigants combined was at least 41 percent of the total payouts.  Earthjustice alone received 32 percent, as indicated by this report.

Go figure that the primary beneficiaries of statutes set to protect citizens and private industries would instead be awarded to environmental groups that want nothing more than to extend the power and grasp of the federal government’s EPA.

(more…)

News coverage of Government Motors over the past few weeks has painted an increasingly glowing picture, but here’s a dose of reality:  GM still has not repaid taxpayers for the bailout and it’s looking less and less like taxpayers will ever be made whole.

Unlike much of the media, we actually spent a considerable amount of time looking behind the press releases to see what GM’s numbers really say about the health of a company taxpayers now own.

This week, we will be sharing with readers a more realistic picture of the company’s health.  The bottom line:  The picture is far less rosy than GM would like you to believe.

1. GM’s Share Price:  Will taxpayers ever be made whole?

Remember these promises?

• “Recent progress at GM gives reason for optimism that it may be possible for taxpayers to get every penny back.” – Steve Rattner, Presidential Task Force on the Auto Industry (11/18/2010)
• “American taxpayers are now positioned to recover more than my administration invested in GM.” – President Barack Obama (11/18/2010)
• “The government’s investment is well placed, and I think they’ll make a lot of money.” – Former GM CEO Ed Whitacre (11/18/2010)

GM’s share price closed below its $33 IPO price for the first time on March 1st.  The company has underperformed the S&P 500 by 15% since the beginning of the year.  The Middle East is in turmoil and gas prices are skyrocketing.  Not a good harbinger for GM’s share price.

Now the Feds say that they want to get out of their GM position as soon as possible. Their first opportunity to do so will be when the government’s “lockup period” ends in May.

But according to the House Oversight Panel’s January update on TARP and the auto industry, for U.S. taxpayers just to break even on the government’s historic $50 billion “investment”, GM shares will need to trade at $54.28 — a whopping 65% premium over GM’s March 1^st closing price.

(more…)

Carla Main wrote an outstanding book called Bulldozed.  A veteran journalist, she brought to life a heart-wrenching, true-life tale of eminent domain abuse in a Texas fishing town.  She told the truth.  And for that, she’s being sued.

Today, Carla is fighting back.

This morning, Carla asked a Texas appeals court to dismiss a defamation lawsuit filed against here by a developer involved in the Texas case.

Some background:

The Texas developer behind this abuse project is H. Walker Royall.  As the video makes clear, millions of taxpayer dollars later, the project is now an epic debacle.

(more…)

As the nation confronts a debilitating national deficit of $1.3 trillion – the second highest of all time – the Federal government must dedicate itself to spend money more responsibly and thoughtfully instead of rewarding special interests and abusing taxpayer dollars in the area of national security.  Austerity must be the goal; however, government cannot shed its responsibility to perform essential functions that keep us safe – but when it does so, it must do so in a way that is above reproach given these difficult financial times.

The latest, most recent example of the careful balance that appears to be falling toward padding special interests over responsibility is the recently-issued draft Request for Proposals (RFP) from the Department of Health and Human Services (HHS) entitled, “Establishing Centers of Innovation for Advanced Development and Manufacturing (ADM) as Public – Private Partnerships.”

Capitol Confidential has learned that this draft RFP is the first step by the Obama Administration to develop and build a national vaccine center with a projected cost of at least one billion dollars.

After the influenza pandemic last year it is fair to question whether the Federal government should take on more responsibility in the area of vaccine production and distribution particularly since there is a vibrant and competitive industry in the private sector, but the real questions here are why is this happening now and who stands to benefit?

We must recall during the presidential campaign, Candidate Obama told voters over and over again that he would change the way business is done in the nation’s capital.  His administration would end the pay to play, special favors, cut off the special interests and shutter the revolving door.  It was a central part of his argument: lobbyists and special interests have corrupted the process and they would have no place in an Obama Administration.

Fast forward almost two years, and we find ourselves in a situation where lobbyists, former and current administration officials, special interests and the corrupting influences have positioned themselves to haul in nearly one billion in taxpayer dollars in what could be one of the most lucrative government payoffs in history and, most disgracefully, they are doing it in a critical area of national and public health security.

(more…)

More than three-quarters of the $2 billion in federal stimulus funds intended to create green-energy jobs in the U.S. has gone to foreign-owned companies

Despite millions in federal tax credits, wind-equipment manufacturers cut thousands of jobs in the U.S. last year

Las Vegas receives $4.5 million federal grant to build the neon museum

Alaska Senators fight to restore funding for earmark that both President Bush and Obama have tried to eliminate

New Jersey Senator prodded the Federal Reserve to aid a struggling bank whose chairman and vice chairman were big campaign contributors

Media critics agree the U.S. Census Bureau’s $2.5 million Super Bowl ad was one of the worst

$501,940 of federal stimulus aid will help finance an animal shelter, which will include pet bathing areas and a kitten nursery

(more…)

Last night, 83 members of the United States Senate went on record to prohibit ACORN from collecting any federal funds. Tonight, over 130 members of the House of Representatives sent a letter to President Obama, asking him to disclose and terminate all federal funding to ACORN.

That leaves 305 members of the House who are silent. If you want to find out whether your Congressman has taken a stand against an organization whose employees are eager to facilitate a child prostitution ring, call the House switchboard at 202-224-3121.

As James O’Keefe noted in his latest post, “Keep on the pressure. Never let up.”

2009-09-15_ACORN_Letter_to_President_Obama-1 –