I reported last week on the recently unsealed lawsuit charging 9 CA Planned Parenthoods with bilking the state out of $180 million by overcharging for contraceptives.
This allegedly occurred from the late 1990s to 2004 when the CA legislature incredibly changed refund rules to let PP overcharge the state legally.
I attached an email to the bottom of my post providing what I thought was an unrelated example showing how PP cuts deals with pharmaceuticals and then charges an outrageous mark-up to consumers….
In that email, a PP VP outlined how PP had made a deal with Barr to buy Plan B for the next 5 years for $4.25-$4.50. I showed how PP sells Plan B for $25-32, a 400-600% mark-up.
I received this email document from a source who got it from another court case.
It turns out this document was part of a wrongful termination case filed by the same PP financial exec who filed this newly revealed federal whistleblower lawsuit, Victor Gonzalez.
In fact, Gonzalez emailed me twice late last week demanding I remove the email, which I refused to do.
Between the 2 lawsuits Gonzalez makes serious allegations….
California Catholic Daily has reported more, quoting a statement by Jack Schuler, attorney for the plaintiff in this case, Victor Gonzalez. These are:
PP used money and at least 1 facility for electioneering, in violation of charitable organization laws. PP is supposed to follow the same anti-politicking rules as churches. PP LA employees misused their corporate credit card, to be used solely for nonprofit purposes, for “Victoria’s Secret and private video purchases.” More than overbilling, PP allegedly double billed, “purchas[ing] [contraceptives] at substantial discounts under a special government-subsidized program,” and then massively overcharging the state for those same contraceptives, “12 or more times their purchase price,” according to Schuler. PP LA falsified its financial status and providing “rosy financial projections” to get a state loan.
Here’s pure speculation on my part.
The Los Angeles Times, which broke but downplayed the story (“The case involves the arcane reimbursement rules,” etc.) March 8, stated:
Officials at the state Department of Health Care Services say they do not believe Planned Parenthood needs to repay any money already reimbursed by the state.
… which I thought was so bizarre.
CCD added why the case was sealed in the 1st place:
The [federal] suit was unsealed earlier this week following a prolonged review by the U.S. attorney’s office.
and quoted this from Schuler’s statement:
“A previously buried and ignored California Department of Health Services 2004 Audit….”
Could it be the feds are investigating not just PP but also CA state officials and agencies? They should. This looks like collusion on several levels.
[HT: Pete LaBarbera of Americans for Truth and reader John H.; portion of graphic courtesy of the New York Public Library]