Tag: trump lawsuits
Are There Frauds Worse Than That Minnesota Case? Let's Look Again At Donald Trump

Are There Frauds Worse Than That Minnesota Case? Let's Look Again At Donald Trump

The Trump administration has decided to make fraud in government programs in Minnesota into a national crisis requiring massive intervention by ICE and Border Patrol (don’t ask) because it was done in part by Black immigrants from Somalia. While Trump and his Republican minions have been hyperventilating over this fraud, it is worth using a little arithmetic to try to put in perspective.

Of course, arithmetic is not popular in elite circles. Even many liberals have yelled that we have to be very concerned about the Minnesota fraud, apparently because some of it was done by Black people and the Republicans are yelling about it. But I’ll confess to being an old-fashioned type who doesn’t think fraud by Black people is any worse than fraud by white people, even if Republicans yell about it. So, let’s do the numbers.

As best we can tell the amount of fraud in Minnesota in the federal pandemic-related programs the Trump gang is yelling about came to $250 million. (The ringleader was actually white.) There undoubtedly is additional fraud that will be found, but this is what we know about to date.

Trump has touted a figure of $20 billion, but there is no obvious basis in reality for this number. Remember, Trump has repeated boasted about $18 trillion in foreign investment coming into the country, that he won the 2020 election by millions of votes and that he will bring drug prices down by 1500 percent. Trump’s numbers often have nothing to do with the real world.

Let’s just ignore the Trump craziness and go with the $250 million figure of known fraud. By comparison, the inspector general of the Small Business Administration, Hannibal Ware, estimated fraud in the Paycheck Protection Program initiated in Trump’s first term was $200 billion. That would be equal to 800 Minnesota frauds.

In case you’re wondering how this fraud was dealt with, Trump didn’t send in ICE. Instead, Trump fired Mr. Ware, who is Black. He promoted the director of the Small Business Administration, Linda McMahon, to be education secretary in his current term.

There are other cases of much larger fraud that don’t seem to draw as much attention, much less the involvement of ICE, as the Minnesota fraud. For example, the Medicare Payments Advisory Commission estimates that Medicare loses about $40 billion a year to private insurers in the Medicare Advantage program because insurers exaggerate the severity of their patients’ healthcare conditions. This would be equal to 160 Minnesota frauds, also apparently without bringing the involvement of ICE.

We can also look to Donald Trump’s whack-job lawsuits. He has discovered that he can bring any lawsuit he wants against the government, for any amount, and then tell his lackeys to settle. He brought a $230 million case against the Justice Department because it prosecuted him for trying to overthrow the government and stealing classified government. He is apparently directing Attorney General Bondi to hand him the cash. This payment would be a bit more than 0.9 Minnesota frauds.

He is also suing the Internal Revenue Service for $10 billion because it allowed his tax returns for two years to leak. (Prior presidents have made their tax returns public, which Trump promised to do as well.) While it’s not clear what damages Trump could claim (a suit by another leak victim was settled with an apology), he apparently is ordering the IRS to also hand over the cash. While this settlement will have to be reviewed by a judge, it would be equal to 40 Minnesota frauds. (The Justice Department case is an administrative proceeding and requires no judicial review.)

One other item to throw into the mix, just so people can know where the money goes, is Trump’s plan to increase annual military spending by $500 billion. This would add more than $5 trillion to the debt over a decade, for those keeping score on such things. It seems the rationale is that we need more money to protect ourselves from the new enemies Trump has made. Anyhow, this increase in the military budget of 50 percent would be equal to 2000 Minnesota frauds.

To be clear, we absolutely should take seriously fraud in public social welfare programs, like what happened in Minnesota. This money is effectively being stolen from people who badly need it. Most of these programs are underfunded and the money going to fraudsters comes out of the pockets of the people standing in line who don’t get support they need.

However, we also need to keep the amount of fraud in context. Most of our tax dollars are not going to fraudsters from Somalia. In fact, if there had never been a penny of fraudulent payments to people from Somalia, it would not even be a rounding error in our budget data.

We know that Republicans, and especially Trump, exploit racism at every opportunity. Arithmetic may not be an adequate weapon to combat racism, but it can be a useful one. And decent people should use it.

Dean Baker is a senior economist at the Center for Economic and Policy Research and the author of the 2016 book Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer. Please consider subscribing to his Substack.

Reprinted with permission from Dean Baker.

'Bring It On': Michael Wolff Snaps Back As Trump Threatens Lawsuit

'Bring It On': Michael Wolff Snaps Back As Trump Threatens Lawsuit

Journalist Michael Wolff, who says that he possesses more than 100 hours of recorded conversations with Jeffrey Epstein, fired back after President Donald Trump threatened to sue him for reporting on Trump’s relationship with Epstein.

Speaking to reporters on Air Force One Sunday, Trump said that he would “probably sue Wolff.”

“Wolff was conspiring with Epstein to do harm to me,” he said.

Trump’s threat appears to be an attempt to deflect from the Department of Justice’s clumsy attempts to obfuscate the release of the Epstein files.

“Bring it on,” Wolff said in a video response. “I believe that if the American public knew the real nature of Donald Trump's long relationship with Jeffrey Epstein, they would turn away in horror and revulsion.”

Wolff launched his own lawsuit against first lady Melania Trump in October, after she threatened to sue him for $1 billion. Wolff’s suit uses New York’s Strategic Lawsuit Against Public Participation laws, which are designed to protect journalists from intimidation by powerful people.

On Monday, Trump continued his attacks on Wolff on Truth Social.

“Not only wasn’t I friendly with Jeffrey Epstein but, based upon information that has just been released by the Department of Justice, Epstein and a SLEAZEBAG lying ‘author’ named Michael Wolff, conspired in order to damage me and/or my Presidency,” he wrote. “So much for the Radical Left’s hope against hope, some of whom I’ll be suing. Additionally, unlike so many people that like to ‘talk’ trash, I never went to the infested Epstein island but, almost all of these Crooked Democrats, and their Donors, did.”

It’s like Wolff said: “I have nothing to hide. But Mister President, you surely do.”

Reprinted with permission from Daily Kos

Trump Lawsuits: Of All His Grifts, They Are By Far The Most Efficient

Trump Lawsuits: Of All His Grifts, They Are By Far The Most Efficient

You have to give Donald Trump some credit. He was making plenty of money selling pardons, ripping off Venezuela’s oil, and selling seats on his “Board of Peace,” but all of these required something resembling work. In the case of Venezuelan oil, he even had to invade a country and kill 80 people.

But Trump’s latest grift is far simpler. He just sues the government and then orders Attorney General Pam Bondi to give him the money. He already did this several months back when he filed a $230 million suit because the government tried to prosecute him for the crimes he committed.

As a practical matter, Trump’s lawsuit was a total joke. Since he almost certainly would have been found guilty if he had allowed the prosecution to continue, there is not even the beginning of a case. Imagine Jeffrey Esptein, if he was still alive, suing the government for prosecuting him. I doubt the Justice Department would be handing over $230 million.

But the Trump case was even worse. Even when acquitted, a defendant can only under extraordinary circumstances, like a racially motivated prosecution, even get through the door with a suit against the government. And in such cases, the defendant’s attorney fees would be the bulk of the damages.

That might get Trump into the single-digit millions even if the facts had been completely different and he was totally innocent. That might come to two or three percent of the taxpayer dollars he told Bondi to give to him.

But now Trump has decided he needs more money, so he’s demanding more than 40 times as much, suing the Internal Revenue Service for $10 billion for releasing information from his tax returns. One of the ironies of this story is that the leak took place in Trump’s first term, so ostensibly, as president, he is responsible for the harm for which he is suing the government. No matter, this is Donald Trump’s America.

I often point out that the sums the right yells about are relatively trivial when put in any sort of context. Trump’s theft is moving into the not all together trivial category even in the context of the federal budget.

For some comparisons, the annual appropriation to support public broadcasting was around $550 million. Donald Trump is demanding almost 20 times as much because of his hurt feelings over some of his tax returns being made public.

The Africa AIDS program that Elon Musk nixed with his little chainsaw got $4.5 billion a year. This program has saved tens of millions of lives. Donald Trump wants taxpayers to give him more than twice as much because the I.R.S. embarrassed him by releasing his tax returns, something every president has done.

The enhanced subsidies in the Obamacare exchanges, that the Republicans let expire at the start of this year, would cost about $30 billion a year to extend. These subsidies would benefit around 22 million people. This means that Donald Trump is asking taxpayers to hand him one-third of the money needed to make healthcare affordable to 22 million people.

Here’s the picture.

As bad as it is to steal $10 billion from the taxpayers, the worse part is that Trump now realizes that the federal Treasury is an open piggy bank for him. He can file a lawsuit about literally anything, no matter how crazy, for any amount, and then tell Attorney General Bondi or the relevant agency head to hand him the cash.

Who knows, maybe he’ll direct some lackey to misspell his name on the Trump Gold Visa or any of the other crazy things he puts his name on. Then he can sue for $50 billion for emotional harm. Maybe he’ll tell Bondi to drive a hard bargain and only settle $40 billion.

This is a patently absurd clown show, but that is where we are as a country. Trump can steal as much as he wants from the taxpayers and the Republicans in Congress will do some mixture of “I don’t know anything about it” and “Trump deserves it.”

The majority in the country are clearly disgusted by Trump’s corruption, his incompetence, his contempt for democracy, and his vicious attacks on American cities. The real question is whether we still have enough of a democracy that the majority opinion matters.

Dean Baker is a senior economist at the Center for Economic and Policy Research and the author of the 2016 book Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer. Please consider subscribing to his Substack.

Reprinted with permission from Dean Baker.

'New York Times' Has Done Too Much For Trump And GOP -- But Still Never Enough

'New York Times' Has Done Too Much For Trump And GOP -- But Still Never Enough

Following months of mainstream media capitulation toward President Donald Trump and his administration, Trump filed a $15 billion lawsuit on Monday night against The New York Times.

In his suit, which absurdly cites his Electoral College victory and his status as a bestselling “author,” Trump accuses the Times of “smears” by accurately reporting on his statements and actions.

“The Times is a full throated mouthpiece of the Democrat Party,” Trump falsely alleges. The statement ignores decades of the Times furthering right-wing propaganda and elevating attacks on the Democratic Party and the left.

In a statement the Times said Trump’s suit “has no merit” and “is an attempt to stifle and discourage independent reporting.”

Trump’s suit against the Times shows that even when the paper bends over backward for him, he will still be resentful of accurate reporting. Since he was sworn in for a second term, there have been several instances of obsequious and downright false reporting from the Times in Trump’s favor.

The paper referred to the current era as “the age of Trump” in June, a month after taking his claim—which went against his entire history as a political figure—that he would pull back support for tax increases on the wealthy as an honest statement.

In perhaps the most dishonest moment for the “paper of record” in Trump’s second term, the Times in February portrayed a Black voter supporting Trump as merely an “artificial intelligence start-up worker,” without informing readers that the supporter also happens to be the communications director for the Houston Young Republicans.

To be sure, the Times has reported accurately on numerous Trump scandals, corruption, and bigotry, but the paper’s coverage—led by star reporter Maggie Haberman—has been friendly to Trump and often regurgitated his falsehoods without calling him out. In her reporting on Trump, Haberman has shied away from noting to readers when he has clearly lied, such as this 2018 report that instead said Trump “repeatedly refused to accept a number of seemingly agreed-upon facts.” In a 2020 story, instead of directly addressing Trump’s racism, Haberman’s reporting mentioned that he was merely “stoking white fear and resentment.”

Trump’s suit is just the latest in a barrage of legal action against media outlets. He sued the Des Moines Register for conducting polls, he sued Facebook parent Meta for banning his account after he incited violence, and he is suing Fox owner Rupert Murdoch and the Wall Street Journal for reporting on his ties to convicted sex offender Jeffrey Epstein, among others.

Many of these outlets have settled with Trump, even after legal experts have made clear the suits lack merit and have been vehicles for extortion and bribery-style payments. CBS News’ parent Paramount is under investigation by congressional Democrats after the Trump administration approved a merger soon after Paramount decided to settle his suit. ABC News parent Disney also cut a big check to Trump over a specious claim.

Reprinted with permission from Daily Kos.

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