Whistleblower News: Mark Zuckerberg, Dodd-Frank, 1MDB
'Are You Telling The Truth?' European Parliament Questions Mark Zuckerberg
Among the lawmakers' concerns: How Facebook might make up possible abuses to its users — and whether Zuckerberg himself is telling the truth when he promises to obey Europe's privacy laws.
Facebook CEO Mark Zuckerberg took questions from members of the European Union Parliament on Tuesday about allegations that personal data of European Facebook users was misused. The testy session ended with several members of Parliament complaining that Zuckerberg had failed to address their most pressing questions.
Zuckerberg conceded that Facebook had not been ready fight off fake news that spread quickly on its site. And he apologized for the improper use of millions of users' data to help political campaigns, after an analytics company gained information that had been collected by a quiz app. read more »
How Dodd-Frank Rollback Bill Could Come Back to Haunt Us
Three ways in which the new banking bill could come back to haunt us
Congress on Tuesday passed legislation that frees banks from a variety of regulations that were imposed after the financial crisis of 2008.
Small- and medium-sized banks stand to get the most relief from the Economic Growth, Regulatory Relief and Consumer Protection Act, though it also makes significant concessions to the largest lenders. Some elements of the bill, which had bipartisan support, make sense. The legislation, for instance, makes life easier for small banks in ways that most likely won’t endanger the wider financial system. But it also rolls back innovative measures that were introduced after the crisis to strengthen larger banks.
The new bill, sponsored by Senator Mike Crapo, Republican of Idaho, was passed as United States banks are reporting record results. But then Congress often chooses to loosen the rules in good times. Some relaxation is possible now because the banks are much stronger than they were a decade ago. Still, the bill could come back to haunt us when the next financial storm hits. Here are three ways in which it potentially leaves the system and taxpayers exposed.
Less stressful tests. The Dodd-Frank Act of 2010, which did much to overhaul the United States financial system, required that banks undergo regular tests to assess whether they have the strength to weather large losses. Banks have complained that the stress tests were burdensome. But the tests raised awareness about the risks lurking on the banks’ balance sheets – and forced regulators and banks to try and quantify potential losses. Under the new legislation, banks with under $100 billion in assets would no longer be subject to the tests. For banks with between $100 billion and $250 billion in assets, the bill allows regulators to stop testing every year, and instead, do so “on a periodic basis.” read more »
Insolvent 1MDB Unable to Repay Billions of Dollars of Debt
The directors of 1MDB have confirmed that the state investment company is "insolvent" and unable to repay debts that could amount to almost $7 billion over the next five years, said Malaysian Finance Minister Lim Guan Eng.
The company’s former Chief Financial Officer Azmi Tahir wrote to the finance ministry in March, stating that 1MDB wouldn’t be able to service interest payments due in April and May, Lim said in a statement on Wednesday, following meetings with 1MDB’s president, board of directors and other senior officials.
"I have instructed that the Ministry of Finance take steps to appoint PwC to conduct a special position audit and review of 1MDB so that Malaysians would know the true financial state of affairs in 1MDB," Lim said in the statement. "We would then be able to determine the cost of the shenanigans to the taxpayers."
The new revelations come after the finance minister said on Tuesday that Malaysia’s government debt has been inflated by 1MDB’s borrowing and exceeds 1 trillion ringgit ($251 billion). That was higher than previously disclosed by the administration of former Prime Minister Najib Razak, as it was masked by the way the accounts were reported, he said.
Newly-installed Lim instructed the finance ministry’s legal advisers on Wednesday to review Arul Kanda’s position as the president of 1MDB. On Tuesday, he ordered Kanda to clarify whether 1MDB is able to make 143.75 million ringgit of interest payments due May 30. Lim revealed that the ministry has made 6.98 billion ringgit of payments for 1MDB to date, including 5.05 billion ringgit that was part of a settlement with International Petroleum Investment Co., Abu Dhabi’s sovereign wealth fund. read more »
Michigan Home Health Agency Owner Pleads Guilty to Charges for Role in Medicare Kickback Scheme
The owner of a Michigan home health agency pleaded guilty today to charges for his role in a scheme involving Medicare claims for home health services that were procured through the payment of illegal kickbacks.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Matthew J. Schneider of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Atheir Amarrah, 43, of West Bloomfield, Michigan, the owner of Prompt Care Home Health Services Inc. of Bloomfield Hills, Michigan, pleaded guilty to one count of conspiracy to pay and receive health care kickbacks in connection with Medicare beneficiaries and to four substantive counts of paying health care kickbacks before U.S. District Judge Judith E. Levy of the Eastern District of Michigan. Sentencing is scheduled for Sept. 25, before Judge Levy.
As part of his guilty plea, Amarrah admitted that he paid illegal kickbacks to recruiters in exchange for Medicare beneficiary referrals and billed Medicare for claims procured through these illegal kickbacks. The scheme is alleged to have resulted a loss of up to $1.8 million to the Medicare program by submitting claims to Medicare from 2013 through 2017 related to Medicare beneficiary information that he obtained by paying illegal kickbacks. The loss amount will be determined by the court at sentencing.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. Trial Attorneys Jacob Foster and Howard Locker of the Fraud Section are prosecuting the case. read more »
