Month: April 2019

U.S. federal agents have smashed a worldwide medical care scheme that defrauded U.S. taxpayers of more than $1 billion.

The Justice Department said Tuesday 24 people have been charged, including doctors, telemarketers and the heads of companies that provide back, wrist and knee braces.

“This Department of Justice will not tolerate medical professionals and executives who look to line their pockets by cheating our health care programs,” U.S. Assistant Attorney General Brian Benczkowski said Tuesday.

The extensive and complex scheme stretched from the U.S. to call centers in the Philippines and across Latin America.

Telemarketers would phone patients offering them free medical braces. When call centers verified that the patients were covered by Medicare, they were transferred to telemedicine companies, where doctors — who never examined the patients — would prescribe the braces even if there was no medical reason to have one.

The medical equipment companies would bill the government and kickback a portion of the funds to the others in the scam.

The fraud was detected last year when a number of Medicare beneficiaries smelled what sounded like a scam and called a government hotline.

The FBI, Health and Human Services, and Internal Revenue Service investigated.

“The breadth of this nationwide conspiracy should be frightening to all who rely on some form of health care,” IRS investigations chief Don Fort said. “The conspiracy … details broad corruption, massive amounts of greed and systemic flaws in our health care system that were exploited by the defendants.”
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President Donald Trump will issue two executive orders in the heart of the Texas energy hub on Wednesday seeking to speed gas, coal and oil projects delayed by coastal states as he looks to build support ahead of next year’s election.

Trump’s orders will direct his Environmental Protection Agency to change a part of the U.S. clean water law that has allowed states, on the basis of environmental reasons, to delay projects such as pipelines to carry natural gas to New England and coal export terminals on the West Coast.

Trump will issue the orders at a training center for union members in the petroleum industry in Houston, an event sandwiched between fundraising events in Texas for the 2020 campaign.

“Outdated federal guidance and regulations issued by the EPA have caused confusion and uncertainty leading to project delays, lost jobs and reduced economic performance,” a senior administration official told reporters in a conference call. “We are not trying to take away power from the states, but we are trying to make sure that state actions comply with the statutory intent of the law.”

An environmentalist decried the planned orders. “Trump can try to rewrite regulations in favor of Big Oil, but he can’t stop people power and our movement,” said May Boeve, the head of 350.org.

The orders will direct the EPA to review and update guidance issued during the administration of President Barack Obama on the so-called 401 provision of the Clean Water Act. The measure required companies to get certifications from states before building interstate pipelines approved by the federal government.

New York state used it to block pipelines that would send natural gas to New England, forcing the region at times to import liquefied natural gas from countries including Russia.

In 2017, Washington state Governor Jay Inslee, a Democrat and 2020 candidate for president, denied a water permit for the Millennium Bulk Terminal, a coal export facility that would have expanded the ability of companies to send western coal to Asian markets.

‘Energy Dominance’

The executive orders are part of the Trump administration’s policy of “energy dominance” to increase oil, gas and coal production, but forcing the EPA changes will take time. The official said the agency would have to follow normal procedures, including a comment period, and that projects already tied up in litigation “are obviously a much longer-term issue.”

One of the orders will direct the transportation secretary to propose allowing liquefied natural gas, a liquid form of the fuel, to be shipped in approved rail cars, a change that could increase its flow between terminals and markets.

The executive orders could also speed projects in Texas.

Energy investors vying for permits to build oil export terminals along the Gulf Coast say they have worked closely with Trump officials in a bid to speed regulatory reviews of facilities capable of loading supertankers.

U.S. and state agencies overseeing permit applications have taken too long to approve projects, the investors said, adding they were worried their projects would miss the most profitable years of the U.S. crude export boom.

Four energy groups led by Trafigura AG, Carlyle Group, Enterprise Products Partners LP and Enbridge have applied to build terminals in Texas.
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Rob Garver contributed to this report

The top Senate Democrat says President Donald Trump’s picks to fill two vacant seats on the Federal Reserve Board are unqualified for the job.

Trump has nominated former pizza chain boss Herman Cain and conservative economic commentator Stephen Moore for the Fed — posts that need Senate confirmation. Both are strong Trump supporters.

“I don’t see the qualifications of Cain or Moore fitting in with the mission of the Fed, which is to conduct monetary policy and not be political,” Sen. Chuck Schumer said Tuesday.

Cain is best known as the former CEO of the Godfather’s Pizza chain and a failed 2012 Republican presidential candidate.

He had several top positions at the Federal Reserve Bank of Kansas City. But local Fed boards do not set monetary policy and do not have the global impact that the main Federal Reserve has.

Stephen Moore was a Trump campaign economic adviser and is a TV commentator and columnist for The Wall Street Journal.

Opponents to their nominations say they could compromise the Fed’s credibility as an independent policymaking body that responds only to economic trends, not politics.

Chief White House economic adviser Larry Kudlow told CNN television that Cain and Moore are both “very smart people” and said Trump has “every right to put people on the Federal Reserve board … who share his philosophy.”

But Cain has faced charges of sexual harassment, which he denies, and Moore owes more than $75,000 in back taxes. He was once found in contempt of court for failing to pay $300,000 in alimony and child support.

Senate Republican Leader Mitch McConnell has not commented on the qualifications of either man, only saying “We’re going to look at whoever the president sends up.”
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China and the European Union agreed Tuesday to strengthen their trade relationship, pledging to work toward making it easier for foreign investors to get access to China, the world’s second biggest economy.

In a joint statement, the two sides said they committed to widening market access and eliminating discriminatory requirements for foreign companies and agreed that businesses should not be forced to transfer their technology — issues that foreign investors in China have long complained about.  

EU leaders Donald Tusk and Jean-Claude Juncker and Chinese Premier Li Keqiang discussed the issues at their summit before claiming a breakthrough in their trade relationship.

“Negotiations have been difficult but ultimately fruitful,” Tusk said.” We managed to agree a joint statement which sets the direction for our partnership based on reciprocity.”

The stakes at the annual summit were high, with two-way trade between the EU and China worth around 575 billion euros ($648 billion) annually. The EU is China’s biggest trading partner, while for the EU, only the United States is bigger.

The EU and China also said they reaffirmed the “rules based multilateral trading system” with the World Trade Organization at its core and plan to intensify discussions aimed at beefing up international rules on industrial subsidies.  

China wants a bigger role in the WTO and other international organizations like the United Nations and the International Monetary Fund. But China’s ample financial support for state-owned companies has been the target of Western trade officials. EU Trade Commissioner Cecilia Malmstrom has in the past called out China for “unfair trade practices” including government subsidies intended to give its companies a competitive advantage.

The summit statement shows “China is willing to make some concessions and that’s important,” said Mikko Huotari, deputy director of the Mercator Institute for China Studies, a Berlin-based think tank. The promises don’t mean China will quickly transform from a state-led economy into a market driven one, but “it’s about getting back on track with regard to reform promises and ambitions that the Chinese themselves have expressed,” he said.  

The leaders discussed China’s policy of forcing foreign companies to turn over intellectual property as a condition for access to its big and growing market — an issue that Washington has also made a centerpiece of its trade dispute with Beijing.

In their closing statement, they said: “Both sides agree that there should not be forced transfer of technology.”

The EU in December stepped up a WTO legal challenge filed in 2018 against China’s forced tech transfers, calling it a major issue affecting European companies.

Li strongly denied that Beijing is behind industrial espionage, saying the government has never called on Chinese companies to infringe intellectual property rights or steal trade secrets.

The EU’s executive Commission said last month in a strategy report that China was a “systemic rival” which preserves its domestic markets for national champions while placing “onerous requirements” on EU companies doing business there.

Li said after the summit that will change.

“We will not treat EU companies, especially those registered in China, with discriminatory policy, including solely foreign-owned companies in China,” he said. “And likewise Chinese companies should not be discriminated against in their operation in the European Union.”

The summit comes two weeks after Chinese President Xi Jinping agreed during a visit to Paris to work with European leaders to seek fairer trade rules.

 
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The first woman to head one of Bangladesh’s biggest garment associations said on Tuesday she would boost female leadership as most factory workers were women, amid scrutiny over safety.

Rubana Huq, 55, is managing director of Mohammadi Group, which owns a string of factories supplying brands like H&M and Primark in Bangladesh, the world’s second largest garment exporter, employing 4 million people.

“I believe that in an industry where more than 80 percent of the workers are women, they should be given a greater chance to voice their interests,” said Huq, the new president of the Bangladesh Garment Manufacturers and Exporters Association.

“Today, the workforce is largely women but people in the managerial levels are mostly men. That needs to change.”

In Bangladesh’s 4,500 factories, women have traditionally had to negotiate with male managers over pay, workplace safety and respect on the job, a fact Huq wants to change.

Her election comes at a time when Bangladesh’s Supreme Court is deciding whether to shut down a factory inspection mechanism which was set up by European fashion labels after the Rana Plaza factory collapsed in 2013, killing 1,100 people.

Huq said that manufacturers needed to strengthen their own monitoring mechanisms to help the government take over from the Bangladesh Accord – signed by about 200 major brands.

The textile magnate, who was elected unopposed, said her decision to represent manufacturers and exporters was a natural extension of her two-decade career in the industry, where she is one of a handful of senior female executives.

“As a woman there is always a hiccup and always a mindset to change,” she told the Thomson Reuters Foundation from Dhaka.

“But I’m here now and, being a woman, I believe my attitude towards the challenges faced by women workers will be different and more empathetic.”

Huq said she planned to educate women workers to secure their futures and step up to mid-managerial levels in factories.

“I would like to have a gender-based leadership program that ensures more women are empowered to take on these roles,” said Huq, who is also an award-winning poet and columnist.

She dismissed allegations of labor abuse in the industry as “isolated, negative practices”.

“The fact that 80 percent of our women are freely working and contributing to the economy is a much bigger narrative,” she said.

Labor rights campaigners said that while Huq had broken through the glass ceiling for women, her loyalties – as head of Mohammadi Group – were more to businesses than workers.

“Her election is good but I am not sure how much impact she will have in an organization that is still dominated by men,” said Nazma Akter, a former child worker and founder of Awaj Foundation, which campaigns for labor rights.

“I wish she would look at issues of living wages, health of workers, maternity benefits and violence in factories.”
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The International Monetary Fund is downgrading its outlook for growth in the United States, Europe, Japan and the overall global economy and points to heightened trade tensions as a key reason.

The IMF expects the world economy to grow 3.3 percent this year, down from 3.6 percent in 2018. That would match 2016 for the weakest year since 2009. In its previous forecast in January, the IMF had predicted that international growth would reach 3.5 percent this year.

For the United States, IMF economists downgraded their growth forecast for this year to 2.3 percent from 2.9 percent in 2018.

The IMF’s “World Economic Outlook” comes on the eve of meetings in Washington this week of the fund and its sister lending organization, the World Bank.

In Europe, the IMF expects the 19 countries that use the euro currency to expand 1.3 percent collectively in 2019, weaker than last year’s 1.8 percent growth or in any year since 2013.

Japan is expected to eke out 1 percent growth this year, up from 0.8% in 2018 but slightly down from the fund’s earlier forecast.

The IMF foresees the Chinese economy growing 6.3 percent this year, down from 6.6 percent in 2018. But the fund’s latest 2019 outlook was a slight upgrade from the 6.2 percent growth it had forecast for China in January.

China’s prospects brightened, the fund said, after President Donald Trump decided to suspend a planned increase in tariffs on $200 billion worth of U.S.-bound Chinese exports.

Still, the fund is expressing worries about tensions between the world’s two biggest economies, which have traded tariffs on hundreds of billions of dollars’ worth of products in a fight over China’s aggressive push to supplant American technological supremacy. The prospect of Britain’s messy departure from the European Union also weighs on the global economy.

The IMF expects growth in world trade to drop to 3.4 percent this year — a sharp slowdown from the 4 percent it had expected in January and from 3.8 percent trade growth in 2018.

 
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