Sunday, June 16, 2013

Congress to Investigate IRS Scandal Number 3

I posted on this case when the story first broke. The story involves a California health insurance company that was raided by the IRS and the health files of 10,000,000 Americans were unlawfully seized. This includes, according to the complaint which you may read here, "the medical records of every state
judge in California, every state court employee in California, leading and politically controversial members of the Screen Actors Guild and the Directors Guild, and prominent citizens in the world of entertainment, business and government, from all walks of life."
This case has not drawn much national media attention but perhaps that is about to change. Leaders of the House Energy and Commerce Committee have sent a letter to Internal Revenue Service acting chief Daniel Werfel requesting information about the seizure. The committee leaders asked Werfel to respond to the letter by Tuesday, June 25. This will bring to 3 the number of House committees investigating the IRS in addition to the Senate Finance Committee.
Reading the details of the case in the complaint engenders, aside from outrage, real and genuine embarrassment that the government would hire individuals so overbearingly arrogant and incredibly stupid. Did anyone in the IRS think the company was just going to forget the 10 million personal medical records it needs to do business? Why were 15 armed agents sent? Why did the IRS take medical records which are protected from seizure by federal law? The IRS was investigating a former employee of the company and the medical records were not germane to the investigation. Quoting from the complaint;
No search warrant authorized the seizure of these records; no subpoena authorized the
seizure of these records; none of the 10,000,000 Americans were under any kind of known
criminal or civil investigation and their medical records had no relevance whatsoever to the IRS
search. IT personnel at the scene, a HIPPA facility warning on the building and the IT portion of
the searched premises, and the company executives each warned the IRS agents of these
privileged records. The IRS agents ignored and discarded each of these warnings, ignored their
own published and public-reliant rules and governing ethical requirements, and ignored the
limitations of the court’s search warrant authorization, seizing the records under threat of
destroying company property.
Regarding the honest, hard working, and dedicated public servants of the IRS we have heard so much about from Democratic Senators and Representatives but have yet to see for ourselves these sections of the complaint paint a different picture.
Adding insult to injury, after unlawfully seizing the records and searching their intimate
parts, Defendants decided to use John Doe Company’s media system to watch basketball,
ordering pizza and Coca-Cola, to take in part of the NCAA tournament, illustrating their complete disregard of the court’s order and the Plaintiffs’ Fourth Amendment rights.
Then there is the employee of the month described here:
A special agent involved in the matter has a known and legally documented history of
misconduct, ethical breaches, and criminal activity, including, but not limited to, making
false statements to a grand jury, making false statements to prospective witnesses in his
investigations, misleading prospective witnesses about their rights in his investigations,
obstructing independent investigations into his conduct or the matter at hand, disclosing
  without authorization grand jury secret material in violation and contempt of federal court orders, invading and abusing search warrants and subpoenas for privileged information, including patient privileged information, attorney-client privileged records, and marital privileged information. 
The irony of this case is that under Obamacare the IRS will be responsible for maintaining confidential insurance medical records. What could possibly go wrong?

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