Grassley, Cornyn Seek Details on Obscure Third Party Litigation Financing Agreements

 

WASHINGTON - Senate Judiciary Committee Chairman Chuck Grassley and Senate Majority Whip John Cornyn are examining the impact third party litigation financing is having on civil litigation in the United States. In letters to Burford Capital, Bentham IMF and Juridica Investments Ltd., three of the largest commercial litigation financing firms, Grassley and Cornyn requested details regarding the cases they finance, the structure and terms of the agreements they've entered into and their returns on investment. The Senators also sought information on firms' general practices, such as whether the court or interested parties are made aware of any third-party agreement.

"Litigation speculation is expanding at an alarming rate.  And yet, because the existence and terms of these agreements lack transparency, the impact they are having on our civil justice system is not fully known.  The information we requested today will help us better understand this industry.  It's vitally important to our civil justice system that litigation decisions aren't unduly influenced by third parties," Grassley said.

"Third party litigation financing pumps millions of dollars into our justice system, and the current lack of oversight makes it difficult to track this money's influence on the actions of litigants and the outcomes of litigation. These letters will give us insight into where this money is going and will help us craft effective protection to keep the civil justice system honorable and fair," Cornyn said.

Commercial lenders finance the cost of civil litigation in return for a portion of any recovery, but typically, neither the existence nor the terms of such agreements are disclosed to the court or opposing party. Third party litigation financing is estimated to be a multi-billion dollar industry, but it is largely unregulated and is subject to little oversight, fueling concerns that such agreements distort the civil justice system.

Links to the signed letters can be found below:

Letter to Burford Capitol

Letter to Bentham IMF

Letter to Juridica Investments Ltd.

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Grassley Probes Record Lack of Confirmed Watchdog at State Department

WASHINGTON - Sen. Chuck Grassley today asked the State Department and a lead agency watchdog group to provide all records that would document how and why the State Department went more than five years without a permanent inspector general.  Grassley cited several examples in which a later, permanent inspector general found the lapse compromised agency oversight.  

"Every agency needs a permanent, independent inspector general," Grassley said. "The position is too important to assign to a placeholder.  An acting inspector general doesn't have the mandate to lead, and he or she might not be able to withstand pushback from an agency that doesn't want to cooperate with oversight."  

Grassley said going for more than five years without a permanent inspector general at the State Department is "egregious."  That covers the entire four-year tenure of Secretary Hillary Clinton, the only secretary of State to have served without a single permanent inspector general overseeing the department since the creation of that watchdog position in 1957.  

"The Obama Administration should answer for why it allowed that to happen," Grassley said.  "There's been no transparency on the reason for the lack of an appointment for so long.  We'll never know the extent of the damage to good governance caused by this lapse, but it's fair to say some of the problems exposed lately probably could have been prevented with a permanent inspector general in place."

The White House allowed the position to be "temporarily" filled by an individual with demonstrated close ties to the officials he was charged with overseeing.  The work of the subsequent, Senate-confirmed inspector general provides insight into some of the problems that arose from the previous unusual arrangement.  The permanent inspector general reported that aides to Clinton contributed to an "appearance of undue influence and favoritism" in departmental investigations of three allegations:  that the U.S. Ambassador to Belgium allegedly solicited a prostitute; that a department manager allegedly engaged in sexual misconduct and harassment; and that Cheryl Mills, then chief of staff and counselor to Clinton, allegedly unduly influenced an investigation of an unauthorized release of communications concerning a nominee for a U.S. ambassadorship.

Grassley cited an example in his own investigation where a permanent inspector general might have investigated thoroughly and shielded whistleblowers who alleged they were retaliated against for reporting to an acting inspector general sexual misconduct at the U.S. consulate in Naples.  Also, the permanent inspector general for the State Department and the permanent Inspector General for the Intelligence Community have recently uncovered problems in the way Clinton handled emails containing classified information, Grassley said.

Grassley sought correspondence and information from Michael E. Horowitz, chair of Council of the Inspectors General on Integrity and Efficiency, and Secretary of State John Kerry.  Grassley is a long-time advocate for agency inspectors general.

His letter is available here.

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Grassley Adds to State Department Questions Amid Newly Disclosed Emails

WASHINGTON -- Sen. Chuck Grassley is continuing his inquiry into State Department personnel practices amid newly disclosed emails showing the intersection of official actions and private business involving a top aide who was working for the State Department as a Special Government Employee, an outside firm, Teneo, and the Clinton Foundation at the same time.

"How can the taxpayer know who exactly SGEs are working for at any given moment? How can the ethics officer at the State Department know?" Grassley wrote to Secretary of State John Kerry and similarly, in a letter to the top aide, Huma Abedin.

Grassley pointed out that in a letter to the Department of State on July 5, 2013, in response to a Grassley inquiry, Abedin wrote: "I was not asked, nor did I undertake, any work on Teneo's behalf before the Department (and I should note that it is my understanding that Teneo does not conduct business with the Department of State). I was also not asked, nor did I provide, insights about the Department, my work with the Secretary, or any government information to which I may have had access."

Grassley wrote that emails newly disclosed through a Freedom of Information of Act lawsuit regarding a trip to Ireland by Clinton include State Department, Teneo and Clinton Foundation employees and so "raise a number of questions about the intersection of official State Department actions, private Teneo business, and Secretary Clinton's personal interest in fundraising for the Clinton Foundation and related entities."

Grassley asked a series of questions to try to shed light on the State Department business that intersected with Teneo and Clinton Foundation business.

"The bottom line has always been and still is whether the taxpayers are well-served by agency practices and spending," Grassley said.  "No one will know for sure until the State Department is more transparent about how it operates."

Grassley's letters are available here and here.

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Des Moines, IA - August 27, 2015 - A paving contractor scam from Hannibal, MO is operating in Iowa. As of yesterday, the company Chip & Seal Construction Co. has targeted at least one Iowa homeowner in Buchanan County.

On August 26, a rural homeowner was outside mowing his lawn when he was approached by David Watkins stating he had extra material left over from a DOT job and they could repave their driveway for a couple hundred dollars. The homeowner agreed but ultimately ended up paying the company $6,500 after being pressured to do so.

After paying the company, the homeowner went online to research information found on their receipt. What the couple learned was shocking. A photo of who they knew as "David Watkins" revealed his real name is Basil Failor.  Failor has a lengthy history of problems with property owners and law enforcement authorities across Missouri and Illinois. In January of this year he was arrested by the Missouri State Highway Patrol for a felony warrant for financial exploitation of the elderly and violation of unlawful merchandising practices.

His company, Chip & Seal Construction from Hannibal, MO, has been the focus of previous consumer allegations of overcharging for low-quality driveway work. The St. Louis BBB has been investigating this company and discovered several potential connections to other companies with a similar pattern of complaints. This company may be traveling around to different neighborhoods and communities possibly changing their name and using different aliases to elude unwanted attention. St. Louis BBB's press release can be accessed with the following link: http://www.bbb.org/stlouis/news-events/bbb-warnings/2015/04/bbb-warning-on-itinerant-driveway-contractors/

BBB offers the following tips to consumers approached by contractors:

• Do not be tricked by businesses claiming to offer onetime-only savings. Often this is a way to convince a homeowner to agree to a job without researching the company.
• Get at least three bids when considering a contracting project. Consider all aspects of the proposal and remember that the lowest bid may not always be the best.
• Read any contract carefully before agreeing to work. Make sure you get any verbal promises in writing before signing an agreement.
• Make sure a company is insured and bonded. Get the name of the insurance company and check it out before agreeing to work.
• Get lien waivers showing that suppliers and subcontractors have been paid.
• Do not pay all money in advance. Do not make a final payment until all work is completed and you are satisfied with the job.
• Pay by credit card whenever possible in case you need to challenge the charge.
• Research the company. Find a BBB Business Review by calling 515-243-8137, or checking our website at www.bbb.org. Do an online search to find reviews, news reports or other mentions of the company.

About Better Business Bureau: Better Business Bureau is committed to marketplace trust. For more than 100 years, BBB has been creating a community in which businesses and consumers can trust each other through programs that encourage best practices, create marketplace role models, and denounce substandard business behaviors. People turned to BBB more than 132 million times last year, and BBB reviewed more than 4.5 million businesses and charities. BBB Serving Greater Iowa, Quad Cities and Siouxland Area, founded in 1940 and is one of 112 local, independent BBBs across North America. You can reach us at 515-243-8137 or online at bbb.org/iowa.

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State sells remaining surplus aircraft for over $2.5 million  

$3.5 million net for taxpayers  

   

SPRINGFIELD - The State of Illinois successfully sold the State's five remaining surplus aircraft for more than $2.5 million as part of continued efforts to reduce the State's aircraft fleet, the administration of Governor Bruce Rauner announced today.

"The successful sale of the state's surplus aircraft is some much needed good news for taxpayers," Governor Bruce Rauner said. "In addition to earning $2.5 million on the sale of the aircraft, the State of Illinois achieved significant savings by avoiding more than $1 million in State resources on upcoming inspections and repairs for unneeded aircraft."

The sale comes after three previous attempts by the Department of Central Management Services to sell the aircraft failed to sell all the aircraft. In April of 2014, nine of the State of Illinois' 21 aircraft were ordered to be sold. Following three consecutive auctions, spanning six months and two weeks, 5 of the State's 9 surplus aircraft remained to be sold, including the 3 most expensive aircraft.

After consulting with internal and external aviation experts to generate ideas on the best approach to selling the aircraft, several new ideas emerged: better promotion of any future aircraft auctions, factor in costs associated with upcoming repair and inspection requirements, and re-evaluate pricing recommendations. Upcoming inspections and repairs, estimated at more than $1 million, weighed into the new recommendations.

With a new sales plan in place, the aircraft sale was launched on July 2, 2015, and ran through August 3, 2015. When the auction closed, each of the five aircraft received multiple bids, including the following high bids: 2000 Beechcraft King Air for $1,785,050.00; 1991 Sikorsky Helicopter for $515,161.00; 1979 Cessna C337H for $56,000.00; 1986 Cessna C182R for $54,161.00; and the 1985 Cessna C421C for $181,140.00. All highest bidders were requested to submit a best and final offer. As a result the bid proposal, the 1979 Cessna C337H increased by nearly $1,000. After the auction closed, the high bid for the 2000 Beechcraft King Air was withdrawn, and the aircraft was awarded to the next highest bidder for $1,700,000.00. CMS benchmarked all bid proposals against industry standard pricing references to ensure maximized returns. 

The new sales plan helped maximize the return on investment for Illinois taxpayers, pushing total revenues from the sales of the aircraft to more than 90% of the estimated average value, for a total value of more than $2.5 million. 

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Mount Prospect, IL - As college students return to campuses across the nation, the nonprofit Illinois Fire Safety Alliance (IFSA) recommends parents discuss the importance of fire safety with their children for the time they are away from home.

"Whether your child is living on campus, off campus or in Greek housing, it is best to not make any assumptions about his or her fire safety," states Philip Zaleski, Executive Director of the IFSA. "Give yourself peach of mind by being proactive. Find out which fire safety features are present in his or her building and establish fire prevention measures and a plan of action in case of a fire."

September is designated as national "Campus Fire Safety Month" since the beginning of the school year is typically the worst time for campus-related fires. For each of the last 10 years, Illinois governors have issued proclamations to recognize the importance of "Campus Fire Safety Month."

According to The Center for Campus Fire Safety, from 2000 to 2015, 89 fires killed 126 people on college campuses, in Greek housing, or in off-campus housing within three miles of campuses. The National Fire Protection Association reports that U.S. fire departments responded to an estimated annual average of 3,870 structure fires in dormitories and Greek housing from 2009 to 2013. Fires are most common in the evening hours and on weekends. Cooking equipment accounts for 86 percent of those structure fires.

The IFSA offers the following fire prevention and safety tips to students and parents:

• Check for working smoke alarms and fire sprinklers. They should be in living spaces, as well as community areas (lobbies, hallways, bathrooms, etc.). If you are not sure if they are present, ask a school official to point them out.

• Determine a fire escape plan. Find out where one is posted and review it. If no plan is posted, create one. There should be two routes of escape.

• Practice fire drills twice per year. On-campus already should require drills, but a plan also should be established for off-campus and Greek housing.

• Keep exits clear. Make sure there is a safe path of escape.

• Practice kitchen fire safety. Do not cook when tired or leave cooking unattended. Unplug appliances in case of a fire. Do not use water to put out grease fires.

• Do not use candles. Battery-operated flameless candles are better alternatives.

• Do not overload electrical outlets/extension cords. Circuits can overheat and catch fire.

• Turn off electronics and appliances. When leaving a room, hit the "off" switch on devices.

• Clean clothes dryer lint. Before and after using a clothes dryer, be sure lint trap is clear.

Keep smoking outside. Also, dispose of smoking materials in ashtrays, not garbage receptacles.