Medical Supply Chain Decries US Attorney General Alberto Gonzales' Investigation of General Electric

[MSC2007]

Source: Press Release 365

Kansas City, Mo 07/17/07 - Medical Supply Chain's founder Samuel Lipari learned today that General Electric (GE) had initiated the three actions required to resolve the parallel federal government investigation of GE's anticompetitive conduct which is the subject of Samuel Lipari's private civil litigation. GE announced on July 17th its intent to divest the commercial credit division GE Capital, a defendant in Samuel Lipari's lawsuit Lipari v General Electric, et al, Jackson County Missouri 16th Circuit Court Case # 0616-CV07421

The government initiated its investigation of General Electric because of GE Capital's underwriting of Novation LLC's sale of medical supply marketplace Neoforma, Inc. (NEOF) to GE's electronic marketplace GHX in an effort to conceal Neoforma's financials from an ongoing US Justice Department investigation of Novation LLC's monopolization of the hospital supply market reported in the London Times on July 31st 2006. Two assistant US Attorneys linked to the Novation investigation were found dead and three more were fired.

Evidence disclosed in Medical Supply Chain civil litigation discovery revealed GE's failure to comply with the Sarbanes-Oxley Act, anticompetitive conduct in the Aluminum market through GE Capital's underwriting of Alcoa in the takeover of McCook Metals, LLC and General Electric's pattern of extortion and obstruction to influence outcomes in state and federal courts that included GE Capital's efforts to influence the United Airlines (UAL) bankruptcy proceedings so that union workers would be deprived of pension health benefits.

The False Claims Act investigation of the McCook Metals take over was terminated by the USA Patriot Act appointed US Attorney for the Western District of Missouri, Bradley J. Schlozman.

General Electric satisfied the government investigation by canceling its planned purchase of Abbott Laboratories Inc. (ABT) for $8.3 billion dollars on July 12th 2007, abandoning plans to further the monopoly in key aluminum product segments by withdrawing underwriting for Alcoa, Inc. (AA) to purchase Alcan, Inc. (AL) against mining giant Rio Tinto's bid of $38.1 billion dollars on July 13th 2007. Finally, General Electric and its CEO Jeffrey Immelt on July 16th 2007 signaled their intent to sell off GE Capital, the General Electric unit most directly involved in the misconduct. GE Capital will retain liability for any conduct injuring United Airlines employees.

General Electric's alleged co-conspirator in Medical Supply Chain's civil litigation, US Bancorp (USB) was forced to divest its subsidiary US Bancorp Piper Jaffray February 19th 2003 when Lipari's civil litigation exposed Piper Jaffray's continuing role in extortion and monopolization of securities underwriting for healthcare technology companies allowed to enter the hospital supply market controlled by Novation LLC.

Samuel Lipari cautions that General Electric's bargain may satisfy US Attorney General Alberto Gonzales but does not stop Samuel Lipari's private civil litigation claims or Samuel Lipari's False Claims Act investigation of General Electric's role as a co-conspirator with Novation LLC and US Bancorp to artificially inflate healthcare costs paid by Medicare and Medicaid.

Novation LLC is a hospital supplier in Irving, Texas and was created in 1998 by two networks of non-profit hospitals, VHA Inc, of Irving, Texas, and University Health System Consortium of Oak Brook, Illinois. Between them they control more than 2,000 hospitals and health care facilities.

General Electric Company, General Electric Capital Business Asset Funding Corporation and GE Transportation System Global Signaling, LLC are represented by the St. Louis, Missouri law firm Husch & Eppenberger, LLC through their Kansas City, Missouri attorney John K. Power. John K. Power, Husch & Eppenberger, LLC 1200 Main Street Suite 2300 Kansas City, MO 64105, [phone].

###

About Samuel Lipari:
Samuel Lipari is the founder of Medical Supply Chain and is currently launching a consumer oriented discount medical supply business based in Independence, Missouri: http://MedicalSupplyLine.com

About Medical Supply Chain:
Medical Supply Chain (MSC) is a worldwide provider of web-based supply chain collaboration solutions with an electronic marketplace serving health care communities and their trading partners. Medical Supply Chain was founded in May of 2000 with a mission to deliver enabling supply chain technology in health care and reduce cost. To learn more visit: http://www.MedicalSupplyChain.com

Samuel Lipari
Medical Supply Chain
297 NE Bayview
Lee's Summit, MO 64064
Phone: [phone]
[e-mail]
www.MedicalSupplyChain.com

###



Read more: http://www.pressrelease365.com/pr/law-and-legal/alberto-gonzalez--general-electric-1621.htm

[MagickMuffin]

1. So, can you explain in layman's terms what this means???

I'm not good at legalize speak.

I remember your other post concerning MSC a few months ago. Haven't heard much from you since then.

Does this mean MSC is still fighting for justice???

[xchrom]

2. gasp!!! gonzales not doing his job -- again?!?! -- GE using

the government and getting away with noncompetitive practise!!!???!!! --

boy if these two things don't perfectly describe a whole of ills that currently grips the country -- then i don't know what does.

[aquart]

3. While this might be pot calling kettle....

I can't help but be perfectly sure that the most dishonesty involved is on Gonzales's side.

[truthisfreedom]

4. Gonzales is capable of NOTHING but dishonesty.

[tabasco]

35. The country is being run by a criminal syndicate.

With 30% approval.

[burrowowl]

28. GE is a pretty black pot!

[MrPrax]

5. Found some background

Hijacking at the Hospital

by PABLO LASTRA

A Texas engineer designed a syringe with a needle that automatically retracts after one use, a design that could save so many lives among healthcare workers that a medical workers’ union was screaming for it. But the sales teams trying to sell the improved syringes to hospitals were routinely shown the door without even getting to make their pitch.

...

The common link in all these cases is Novation, a North Texas company that, while little known to the average person, has become the largest broker of hospital and medical supplies in the country, wielding enormous influence over the lives of patients, the safety of hospital workers, and the zooming costs of healthcare in this country. But it’s also a giant in trouble. Several small medical supply manufacturers that say they have been squeezed out of the market by Novation are lining up to sue, and the company has already paid out millions of dollars in settlements. Congress is in its third year of investigating Novation’s activities. At least one state attorney general is investigating the company. And now the company is a target of a Dallas-based investigation by the U.S. Attorney’s office into massive allegations of Medicare fraud — a probe that has been hampered by the deaths, within the last 18 months, of two of the prosecutors involved in it.

The irony is that Novation and other entities like it — called group purchasing organizations — were invented to help hospitals save money. But instead of saving patients money, many people charge, Novation, in effect, is working on behalf of manufacturers and suppliers, helping them — and Novation itself — to make as much money as possible, to the detriment of taxpayers and the healthcare-buying public. Moreover, a recent deal involving a publicly traded partner of Novation has raised more concerns about its position in the healthcare industry, which verges ever closer to a monopoly. All while prices for medical supplies — paid for by insurers, patients, and taxpayers — continue to escalate at a rate far outpacing inflation.

Much more at the link to a Fort Worth Weekly story from November, 2005


Texas assistant U.S. attorney deaths raise foul play questions

DOJ news reports, press releases scrubbed from web while autopsies and death certificates raise questions related to national Medicare fraud probe

Lee's Summit, Missouri—April 30, 2007—Tom Flocco.com—Samuel Lipari, president of Missouri's Medical Supply Chain, who is suing Novation LLC for anticompetitive practices in the market for hospital supplies, told TomFlocco.com, "I don't think it's a coincidence that Criminal Chief of the Dallas U.S. Attorney's office Shannon K. Ross who signed the subpoenas for my case was found dead September 11, 2004 in her home the day before Senate hearings on healthcare anti-trust just after her associate Thelma Colbert was also found dead."

The Senate was reacting to reports examining fraudulent overcharging by medical care providers like Novation, centered around what Lipari termed "their $80 billion per year product and service contracts" supplying thousands of U.S. hospitals, nursing homes and clinics, and alleged corruption involving Novation's Irving, Texas operation which includes member Tenet Healthcare where the President's brother Jeb Bush just joined former 9-11 Commission member and Nebraska Senator Bob Kerrey on Tenet's board of directors 18 days ago on April 12, 2007.

"The news blackout and lack of a public investigation regarding two dead senior assistant U.S. attorneys leads me to believe that foul play was involved—these two women were working on the same case. Two attorneys just don't turn up dead and three more in the same unit either resign or get fired all at once," Lipari told us, adding, "less than two months before Ms. Ross' death, Head of the Civil Enforcement Unit of the Fort Worth U.S. Attorney's office Thelma Quince Colbert also turned up dead in her swimming pool on July 20, 2004 after investigating Medicare fraud and money laundering cases involving Novation and others for one and a half years, resulting in subpoenas leading to prosecution."

Tom Flocco

Link to George Oilwellian's Excellent Archived DU thread that is 'as you guessed' just chocked full of related research.

Doubleplusgood, by George

Lipari might be right -- there does seem to be a noticeable dearth of refs to this on the net.

[aquart]

6. So the ones they couldn't murder, Gonzales got rid of?

And is still pretending he's prosecuting a case?

I do not for one tiny second believe Novation was uninvolved in the prosecutor murders.

[RUMMYisFROSTED]

54. *cough*Mafia*cough*

But instead of saving patients money, many people charge, Novation, in effect, is working on behalf of manufacturers and suppliers, helping them — and Novation itself — to make as much money as possible, to the detriment of taxpayers and the healthcare-buying public.

[bobthedrummer]

7. "A DU collaborative investigation:Thelma Colbert, Shannon Ross and other deaths at DoJ"

(started 5-8-2007)
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x847120

:hi:

[bobthedrummer]

52. !!!

IMPEACH CHENEY FIRST

[MSC2007]

8. Censorship At It's Best !!!

If you go to Google and find this Press Release you will find the article link is missing "-1621.htm" and you will get an "Object not found page" Why!!!

Isn't this called censorship? Who has the power to stop the news and our freedom of speech in its tracks?

I have ask PressRelease365 to fix it and I have had no reply nor is the link fixed. In fact, the link on their web site does not work either. You can get a print copy but that does nothing for Google rankings and getting the word out.

I guess GE, GHX, Novation, UHC, VHA, US Bank and the others don't want this one getting out or running up the rankings on Google.

Again, who has this kind of power??? Unbelievable!!!

[0007]

11. Did you ever see this Press release?

Don't we know that big corporations rule and have power of the media they own?

Doesn't G.E. own NBC?

[Lochloosa]

48. Welcome to DU MSC2007

:toast:

[hootinholler]

9. This is tied to the US Atty firings: Todd Graves

Medical Kickback investigation...
Disappointed with the continuing US Department of Justice cover up, on April 9, 2007 Samuel Lipari publicly disclosed Medical Supply discovery revealing the US Attorneys targeted by Karl Rove and Attorney General Alberto Gonzales that resulted in Todd Graves being replaced by Bradley J. Schlozman a year earlier. John Wood was finally sworn in as the US Attorney for the Western District of Missouri on April 11, 2007.

I got that from the same site, but my link is no longer valid.

-Hoot

[unionhillguy]

10. Gonzales is all about corporate syndicalism

Job number one in fascism is to protect the big corporations. General Electric is the biggest of the big neocon companies. GE former CEO Jack Welch was a featured speaker in the Republican National Convention. GE news media maintains the big lie with Murdoch. All they need to do is take over Dow Jones and then manipulate stock prices like electronic votes and they will rule for a thousand years.

[hootinholler]

13. Welcome to DU...

I'm also concerned about the WSJ going into the hands of Murdoch.

-Hoot

[Lone_Star_Dem]

43. Welcome to DU!

:hi:

[bobthedrummer]

12. What we have are powerful politically connected criminals, all sitting as Board members

(themselves or via proxies) in what 19th and 20th century corruption chroniclers called interlocking directorates.

Today we see (and are affected by) unrestrained global corporatism, hostile takeovers, vulture funds, private equity groups and the privatization of government functions-including private military companies and private central banks (GE is the largest defense contractor of all) with access to the assets and money of the world's black budget networks.

The consolidation of this corruption has been shielded by the national security community, which was pragmatically abused.

We were consistently warned of the dangers facing US, what President Eisenhower called "the military industrial complex", what Senator Frank Church described as "an abyss", etc.

These warnings were overcome by any and all means available to those that shared extreme ideological visions of controlling our planet, its resources and the people inhabiting it-an empire, what some of US call the Bush Family Evil Empire/BFEE and what the criminals in this administration openly call the shadow government.

That ends my editorializing in this post-here are some more relevant facts and links to consider.

John Ellis Bush became a Board member of Tenet Health after leaving the office of Governor of Florida.

The Frist family owns Hospital Corporation of America/HCA-the recess appointed DoJ Criminal Division official Alice S. Fisher was a HCA lobbyist-despite objections she was given the lead in the prosecution of Jack Abramoff, she was also given responsibility for the DoJ's Procurement Fraud Task Force
"Alice S. Fisher is still hanging in the Gonzales DoJ Criminal Division"
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=132x3294810#3294851

"In 2000 Samuel Lipari of Kansas City, Missouri started the company Medical Supply Chain.

It's purpose was to allow hospitals to buy supplies directly from manufacturers, thereby bypassing the huge health care Group Purchasing Organizations (GPO's) primarily Novation and Neoforma, and saving health care consumers, by his estimate, $80 billion a year." more in George Oilwellian's parent thread below

"The Motherlode-Down a dark hole in the US Attorney purge scandal" started by George Oilwellian 4-26-2007
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x758013

"There are some members of US Bancorp's Board and Committees" posted 5-8-2007
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x847120#849292

fair use cited on all links

Btw, the Huffington Post picked up on the "disappeared" OP yesterday shortly after you started this thread-that kind of stuff has been happening quite a bit in the past few years MSC2007, it isn't merely censorship it's called information warfare.

Hope to hear more from you and others following this aspect of the crimes of this administration soon.

[bobthedrummer]

14. .

[bobthedrummer]

15. Any updates on this? kick.

[bobthedrummer]

16. ?

[bobthedrummer]

17. Cross-post of a related thread about HCA/Bill Frist 2 year investigation "settlement"

from spanone 8-16-2007
"HCA & Bill Frist fork over 20 million to get Insider Trading charges dropped"
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x1598625

For the umpteenth time, Gonzales DoJ Criminal Division's recess appointed Alice S. Fisher (who was "assigned" lead role in Abramoff investigation among other things) was a HCA lobbyist and part of the social network of the Frist family, in addition to being mentored by Chertoff.

Alice S. Fisher profile from Source Watch
http://www.sourcewatch.org/index.php?title=Alice_S._Fisher

Any updates on MSC?

[donkeyotay]

18. Another story too big to appear on our news

A lot of money involved here. Found a story in the New Haven Register from 2005 about subpoenas issued to hospitals there re: overcharging Medicare, from the state's AG, Blumenthal.

Blumenthal expanded his investigation to include HRDI (Healthcare Research Development Institute) located in Florida.

The article mentions that "Two audits this year by the inspector general of the federal Dept. of Health & Human Services found that health institution failed to report more than $60 million in rebates and revenues distributed to them by the GPOs."

This was a kickback scheme. No wonder health care costs are going up so fast. It's another scam.

Later, an update on hcrenewal.blogspot reported that Blumenthal had settled with HRDI - they paid $150K and disbanded... oh, that'll learn them.

http://www.nhregister.com/site/news.cfm?newsid=15040282&BRD=1281&PAG=461&dep

[bobthedrummer]

19. Thanks, donkeyotay! Kick.

[donkeyotay]

20. Think about this in conjuction with universal health insurance

instead of universal care. The gorporations game the system ala Enron - taking about $80 Billion a year from us just in this one scheme, and the insurance racket hits us from the other side making us buy their crappy product. GOPer twofer. Who said crime doesn't pay?

[bobthedrummer]

21. When you get some time check out this cross-post (and perhaps the parent thread)

this isn't OT-it documents the conceptual framework of these criminals, much of it pioneered in Wisconsin--i.e. Tommy Thompson's privatization gang and "welfare reform" including medical coverage and "providers".

" 'Neoconservatism' and how Wisconsinites worked alliances " (posted 8-16-2007)
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=186x21683#21874

[bobthedrummer]

24. .

[bobthedrummer]

22. .

[bobthedrummer]

23. American Medical Security/AMS was started by Wallace J. Hilliard

Fwiw, a cross-post from an informative parent thread.

"University of Wisconsin-Madison alumnus Wallace J. Hilliard, his associates & family merit a post" (posted 8-18-2007)
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=186x21683#21906

Btw, in the linked post I incorrectly called AMS American Medical Service- too late to edit that and I apologize for the error.

[bobthedrummer]

25. DoJ official Bradley J. Schlozman quit today (in OP) eom

[Auntie Bush]

26. A kick for this complicated issue.

This subject requires some real thinking, concentration, time and study. It isn't your everyday political post.

From what I understand...to sum it all up...it's just more proof of the existence of the BFEE and why Gonzo and the whole cabal has got to go!

If we get rid of them...do you think our medical costs will go down? I think not as the evil Bush family has roots in all government functions. If we knew the whole truth we'd all be scared shirtless.

Sorry for the lame reply...but it's good for a kick.

[bobthedrummer]

27. That's the gen, the BFEE is quite real Auntie Bush, and Medical Supply Chain's

experiences are one more case study of the historical overarching corruption.

[bobthedrummer]

29. Call out to MSC2007 kick-any further news, and any remarks re Schlozman "retirement"?

[bobthedrummer]

30. .

[bobthedrummer]

31. .

[bobthedrummer]

49. And yet another...

IMPEACH CHENEY FIRST

[bobthedrummer]

32. Start of weekend kick

[bobthedrummer]

33. .

[bobthedrummer]

34. AGAG resigns, yet the DoJ Criminal Division's Chertoff mentored

Frist family friend and former HCA lobbyist, recess appointed Alice S. Fisher (who, despite objections, was given the lead role in the Abramoff "investigation" and also entrusted with heading the National Procurement Fraud Task Force-along with Paul McNulty) is still there, in the Criminal Division.

She's got to go too, and they all must be held accountable under the law.

Another Alice S. Fisher linked archived post (from 5-9-2007)

"The Alice S. Fisher DoJ connection" post#25, if the link doesn't center
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x847120#853059

IMPEACH CHENEY FIRST

[bobthedrummer]

36. "BREAKING: AGAG's interim replacement-Cedarburg's own Paul D. Clement"

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=186x21683#21964

IMPEACH CHENEY FIRST!

[bobthedrummer]

37. Another kick and an update on the RW background of Solicitor General

and AG interim replacement Paul Drew Clement-who makes an analogy of his position as the "10th Supreme Court justice"

"Native subs for Gonzales" by Katherine M. Skiba and Tom Kertscher (8-28-2007 Milwaukee Journal-Sentinel)
http://www.jsonline.com/story/index.aspx?id=652824

fair use cited

IMPEACH CHENEY FIRST.

[bobthedrummer]

38. Another callout to MSC2007-any updates?

And yet another DoJ Criminal Division Alice S. Fisher link-this one from June 20, 2007--from GE to BAE to Abramoff it's often her "decision" when it comes to criminal cases

"Alice S. Fisher is a criminal heading the Gonzales DoJ Criminal Division"
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x1110367#1145941

[bobthedrummer]

39. Any further developments with Medical Supply Chain or others mentioned?

Congress should be indicting.

[bobthedrummer]

40. ?

[bobthedrummer]

41. This is such a vital story in regards to the crimes of this administration

and the corruption.

Hoping to get an update or see other posts.

IMPEACH CHENEY FIRST

[bobthedrummer]

42. ...

IMPEACH CHENEY FIRST

[donkeyotay]

44. Hello, bobthedrummer.

I haven't had time to do any new research on this, but I came across an old (2002) story about Miller & Schroeder, a Minneapolis investment firm that places bonds with investors. Seems they sold $144 million in bonds from a Heritage Healthcare. They were running nursing homes for Alzheimer patients. The whole bond issue defaulted.

Heritage had a Fort Worth facility. The president was Paul T. Shaw. Al Eads was the VP. They had both worked for some previous (unnamed) success story in healthcare. The Capital Corporation advised Heritage.

I don't know if any of these names ring any bells with you on this scandal, but it seemed possible. I have the Forbes article more for the company's Indian casino financing angle than the healthcare. Anyway, I thought I'd give this a kick and a hello. (story in Forbes, 6/10/02, Tough Luck by Seth Lubove.)
:hi:

[bobthedrummer]

45. Thanks! Today is AGAG's "last day" as AG. He should be arrested.

IMPEACH CHENEY FIRST

[bobthedrummer]

46. Call out kick to MSC2007-any news?

IMPEACH CHENEY FIRST

[bobthedrummer]

47. Again, John Ellis Bush is part of Tenet Health's management-kick

http://www.tenethealth.com/TenetHealth/OurCompany/John+Ellis+Bush.htm

IMPEACH CHENEY FIRST

[bobthedrummer]

50. .

IMPEACH CHENEY FIRST

[bobthedrummer]

51. .

IMPEACH CHENEY FIRST

[bobthedrummer]

53. Any more info about the Just US Dept??

[bobthedrummer]

55. The networked corruption and serious issues of this thread need to be kicked

into every adult US citizen's awareness-then justice, not JUST US, applied
IMPEACH CHENEY FIRST

[bobthedrummer]

56. KICK

[bobthedrummer]

57. .

[laylah]

58. WTF is with the hit and run? n/t

[bobthedrummer]

59. The complex issues raised in this thread continue-the FBI raided Well Care in Tampa Fl today, kick

and another call-out for any updates

[bobthedrummer]

60. .

[bobthedrummer]

61. Any further developments in this or related matters?