INDIANAPOLIS - Investigating a recession-fueled spike in complaints about consumer fraud, identity theft and foreclosure-rescue scams while combating public corruption have been top priorities for Indiana Attorney General Greg Zoeller during his first 12 months in office.
In his second year as Indiana's top consumer advocate, Zoeller plans an even more vigorous outreach to Hoosier consumers to help them protect themselves against scams and frauds. Zoeller's office will focus new attention on stopping fraud against Medicaid and other thefts of public funds. As the lawyer for state government, Zoeller plans to continue to build on his working relationship with criminal-justice system professionals to better protect Hoosiers from being victimized and to uphold convictions.
"When I was sworn into office one year ago, the recession had started to claw its way into Hoosiers' financial security. Fraudsters, telephone scammers and identity thieves have tried to exploit the desperation of the unemployed, low-income seniors and distressed homeowners facing foreclosure," Zoeller said. "Although many of these schemes directed at Hoosiers don't originate in Indiana, it takes constant vigilance by our office to stay ahead of the increasingly clever scam artists."
Zoeller was inaugurated as Indiana's 42nd attorney general on January 12, 2009, succeeding former Attorney General Steve Carter, for whom Zoeller had worked for eight years as chief deputy attorney general. Today, Zoeller recapped his first-year accomplishments in office and outlined his goals for the Attorney General's Office and its 150 lawyers for the year ahead.
GOALS FOR THE ATTORNEY GENERAL'S OFFICE IN 2010
1. Expose Fraud Against Medicaid: To encourage whistleblowers to come forward and expose unlawful conduct, Zoeller plans to make greater use of the federal False Claims Act. Insiders with knowledge of Medicaid fraud or illegal pharmaceutical-marketing practices might not come forward unless they know they can receive a portion of any financial settlement the State recoups through a Qui Tam (pronounced "key tam") lawsuit. The Attorney General's Office will get the word out to those who work in the pharmaceutical and healthcare industries that the Medicaid Fraud Control Unit will investigate their complaints and enforce the law against violators.
"The federal Medicaid system is not well suited to protect against fraud; a certain percentage of the billables the Medicaid program pays are suspected to be fraudulent," Zoeller said. "The best way to discover fraud is to urge people who work for companies that bill Medicaid to come forward if they see illegal practices taking place."
2. Combat Public Corruption: In the RICO lawsuit the Attorney General's Office brought, a federal court in June found that the former East Chicago city administration was a corrupt organization under federal racketeering laws, and entered a judgment against former Mayor Robert Pastrick and aide James Fife III on every count the Attorney General alleged in the $24 million "sidewalks-for-votes" fraud. The Attorney General will continue to vigorously litigate various other lawsuits involving the local development entities that reaped funds from the casino in East Chicago. Advocating a change in state law, Zoeller has asked the 2010 Legislature to pass a bill requiring all Local Development Agreement (LDA) companies or LDA nonprofits to open their books and disclose how they spent casino revenue they received.
Armed with the new public accountability law passed in 2009, Zoeller plans to file civil suits against public employees who embezzle tax dollars, in order to freeze their assets. Now that the new law, HEA 1514, brings the Attorney General's Office into the probe earlier when the State Board of Accounts discovers a possible theft, Zoeller wants to explore ways to make the collections process more effective and understandable to the public.
3. Strengthen Working Relationship with Criminal Justice System: The Attorney General's Office strongly supports the efforts of county sheriffs and the Department of Correction (DOC) as they enforce the Indiana Sex Offender Registry (under Zachary's Law) and provide parents with information to protect children from predators residing in their neighborhoods. Recent Indiana Supreme Court rulings in the Wallace v. State and Jensen v. State cases unfortunately have muddied the waters, making it unclear to sheriffs, probation officers and the DOC which offenders must register or are barred from living in certain areas -- resulting in confusion and inconsistent enforcement. Because of the uncertainty, the Attorney General's Office will work with sheriffs and the DOC to provide clearer guidance on the registry and residency requirements on offenders, and explore ways of cleaning up the registry.
The Attorney General's Office will work closely with sheriffs and prosecutors in other ways, by seeking to augment and train the Internet Crimes Against Children (ICAC) task forces across the state that detect cyber crimes, such as child pornography distribution.
4. Increase the Consumer Awareness of Scams: Identity theft, foreclosure rescue schemes and a variety of telephone scams affected thousands of Hoosiers last year. The Attorney General's Office will continue to connect the state's most vulnerable populations with resources to protect themselves. Top consumer protection areas include:
- Do Not Call registration: Although the Do Not Call law protects people from potential scams, one-third of Hoosier households are not registered. This does not mean consumers want to receive calls from telemarketers and scammers, rather they are likely unaware the program is available.
- Security Freeze: Identity theft is one of the fastest growing crimes in Indiana. Under state law, Hoosiers have access to a free security freeze through the Attorney General's Office. When a freeze is placed on a credit report with the three credit bureaus, the consumer is in complete control of who can access the credit record and who can't.
- Foreclosure Prevention: In 2009, the Attorney General's Homeowner Protection Unit (HPU) saw a 243-percent increase in complaints related to illegal foreclosure-rescue consultants. The HPU is aggressively investigating, and numerous legal actions to shut down the illegal consultants are expected in 2010. To help homeowners avoid foreclosure-consultant scams, the Attorney General's Office promotes the Indiana Foreclosure Prevention Network (IFPN), the homeowner's right to a settlement conference and the availability of trained pro-bono attorneys to advise them.
5. Save Legal Costs Through Mediation: To reduce the caseload of suits brought by local government entities or private plaintiffs against state agencies, the Attorney General's Office in 2010 plans to make greater use of alternative dispute resolution (ADR). Whenever possible, the office will try to mediate disputes through binding arbitration. Several deputy attorneys general are certified mediators; and mediation will reduce caseload and litigation expenses to the State.
Attached is a list of 10 areas of accomplishment by the Attorney General's Office during Zoeller's first year in office.
"After I was elected, I took it as a challenge to elevate the visibility of the Attorney General's numerous statutory duties - many of which the public was not familiar with. In 2009, Hoosiers saw their Attorney General's Office prosecute sales-tax evasion for the first time in three decades, as we sought to hold accountable those individuals who don't pay their fair share. Hoosiers saw the Attorney General's Office use our little-known authority to enforce environmental laws, and in so doing provide an economic-development boost to two communities creating jobs. We started a new consumer-alert program and have partnered with federal VISTA volunteers to bring consumer-protection services to the state's underserved populations," Zoeller said.
"We do not merely react after Hoosiers have been defrauded, scammed or victimized; we proactively educate Hoosiers on how to protect themselves from becoming victims in the first place," Zoeller added.
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