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11 September 2015


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Richard Sale

I was once U,S. Senate investigator assigned to dig up information on rampant health care fraud involving a major public official in California. This story is based on actual events. It deals with orgaqnized crime and betrayal.

I think it deserves attention, but then, I wrote it.




An interesting tale. I can only imagine the depth of such fraud in other states.

Mrs. Chang

Mr. Sale,
Your stories are always interesting but this is the most interesting of all. It was like reading a detective story, I had to keep rereading to figure out the loose ends. As a retiree on disability, I'm reminded to keep myself in good health so as not to end up in a retirement home. Or maybe I'll just return to the Philippines for more humane care. Thanks!
Mrs. Chang

William R. Cumming

Thanks Richard as this post reminds me of a long ago decision by me. I returned to IRS after 2 years, 10 months, 7 days, and 4 hours (but who was counting?) on active duty.

President Nixon under legal authority of the Economic Stabilization Act of 1970 orderd a wage, price, rent freeze nationwide with Phase I administered by OEP [Office of Emergency Preparedness, an office within the Executive Office of the WH]. IRS was chosen to head the compliance effort under Phase II.

Swept into Stabilization from the tax world I was one of several enforcement liasons to the Pay, Board, Price Commission, and Rent Board and even attended some Cost of Living Council assemblies. Ed Preston, a career GS-18 at IRS was named the Assistant Commissioner for Stabilization.

I basically could attend almost any meeting for IRS I wanted. The Price Commission had many subunits including a Health Care Panel with a woman named Dorcas Hardy heading it.

For some reason after Phase II ended a officer of a large health care company offered me employment. I declined. My experience had shown that the most ruthless and corrupt lobby in Washington was the health care business.

Medicare had become law about 1965.

Ed Preston tasked me to lead a group of senior audit staff to then HEW to try and find out what exactly HEW was doing on price enforcement in the health care business. To make a long story shorter one of the auditors accompanying me asked the HEW delegation the following question: HOW DO YOU DEVELOP AUDIT TRAILS FOR ORGANIZATIONS GETTING FUNDS FROM HEW? The answer was WHAT ARE AUDIT TRAILS?

The very first statutory IG [Inspector General] ever established in the Executive Branch was for HEW. Later the Inspector General Act of 1978 was enacted given many Executive Branch units an IG. I helped write that statute although I long ago realized the no one wanted JUNKYARD DOGS as IGs.

With the health care almost 25% of the GDP of the USA even today organizations like the HEALTH CARE FINANCING ADMINISTRATION are unable to determine how the dollars flow.

Interesting that both Donald Trump and Bernie Sanders have announced support for a SINGLE-PAYER SYSTEM.

In fact IMO the ACA [Obamacare] was an achievement of the great lobbying of both insurers and hospitals and may well increase costs by a large margin over the next decade. Could be wrong as always.

Thanks again for the post.

And BTW Don Rumsfeld was Chairman of CLC and Richard Cheney was Executive Director.

And John Connally was Secretary of the Treasury during STABILIZATION.

Richard Sale

fascinating. Thank you, William.


Richard Sale

thank you very much, Mrs. Chang.

Richard Sale

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