2009 Ohio Attorney General's Office Annual Report

8/9/2019 2009 Ohio Attorney General's Office Annual Report

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ANNUAL REPORT

2009

Ohio Attorney General

Richard Cordray


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Table of Contents


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While responding to an everincreasing list o

challenges in a trying year or Ohioans, my staf and

I committed ourselves to use the power o this o ceto stand up or the interests o ordinary citizens and

to battle the ills that weaken our society.

Ohioans ace threats rom a

multitude o individuals and

entities that can best be described

as predators. These are not just

violent criminals. Predators also

are unscrupulous businesses or

deceitul scammers who try toenrich themselves at the expense

o hardworking citizens.

In 2009, my o ce identied

predators and predatory practices

and then worked to combat them.

We ound them on Wall Street,

where wrongdoing by some has

contributed to misery or many

and where Ohioans who rely on

the health o their retirement

investments were harmed. They

were in our homes, masquerading

as a group that collects money

or veterans in need or as a

home improvement company

promising work it never intended

to complete. And they were in our

communities, testing our local law

enorcement agencies and puttingour amilies at risk.

This 2009 annual report describes

our eforts on multiple ronts

to conront those who threaten

Ohioans livelihoods. It also outlines

the vital work we do as the states

legal advocate.

As Attorney General, I believe in

applying the o ces resources so

we do well by those we represent

in court as well as by everyday

Ohioans who deserve to have

someone stand by their side

and ght to protect them. This

summary o our work i llustrates

what I see every day the

dedication and hard work o the

employees o an o ce that I am

honored to lead.

Sincerely,

Richard Cordray


From the Desk Of The


Dear Ohioans,


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Attorney General Cordray has made it a priority to use

his offices powers to fight for Ohio consumers, pensioners,

taxpayers and families. He has expanded the offices scope to

confront problems such as foreclosure and scams that target

small businesses while asser tively carrying out the offices

traditional role of protecting Ohioans by holding Wall Street

accountable for misdeeds that have harmed pensioners,

enforcing environmental laws and rooting out health

care fraud.


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PROSECUTING HEALTH CARE FRAUD

The Attorney Generals Health Care Fraud Section,

recognized as one of the most effect ive and productive in

the country, continued to set records in 2009. The section

provides legal and investigative expertise for local

prosecutors, law enforcement and multi-state and national

Medicaid fraud cases.

Among the multistate Medicaid raud cases settled in 2009 was the

nations largestever health care raud case, in which Pzer Inc. agreed to

pay $2.3 billion to settle allegations o kickbacks and oflabel marketing

o drugs. In another case, Eli Lilly and Co. agreed to pay more than $1.4

billion to settle allegations o illegal drug marketing. Ohios share o those

two settlements totaled more than $64 million. Funds recovered are used

to reimburse Ohios Medicaid program.

Overall, the Health Care Fraud Sec tion produced:

228 indictments, up rom 164 the year beore

216 convictions, up rom 187 in 2008

$91.4 million in recoveries, breaking the previous years record

o $65.2 million

O that $91.2 million, the Medicaid Fraud Control Unit, which investigates

and prosecutes health care providers who deraud the states Medicaid

program, produced $87.7 million in criminal restitution and civil

settlements/judgments.

The Medicaid Fraud Control Unit also enorces Ohio laws protectingmentally or physically disabled or elderly citizens rom neglect and abuse

in longterm care acilities. In 2009, investigations o alleged patient abuse

or neglect produced 20 indictments and 17 convictions.

FIGHTING

FOROHIOANS

A NATIONAL LEADER

Attorney General Cordrays Health

Care Fraud Section is recognized as

a leader among such units across

the country.

A recent statistical comparison o

the 50 state Medicaid raud control

units by the U.S. Department o

Health and Human Services, O ceo Inspector General, demonstrates

why thats so.


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FIGHTING

FOROHIOANS

WARNING CONSUMERS ABOUT FRAUD

In addition to using the power of the office to enforce Ohios

consumer laws, the Attorney General made it a priority in

2009 to warn consumers of scams they might encounter.

Scammers are shameless, and they will tr y anything to seduce consumers

into giving them money. They used buzz words such as stimulus

package, Cash or Clunkers and H1N1 to get peoples attention and

make themselves appear credible.

To combat these scammers, the o ce alerted the statewide media and

launched www.SpeakOutOhio.gov, an interactive Web site eaturing

consumer tips, details about scams and other inormation. It also

established a presence on Twitter www.Twitter.com/OhioAG

to quickly issue scam warnings.

The Attorney Generals O ce introduced several Spanishlanguage

publications and a consumer complaint orm. Part o the o ces Web site

now includes descriptions o important services to help residents resolve

problems, gain inormation and le consumer complaints in Spanish at

www.OhioAttorneyGeneral.gov/Queja.

MARIE LOPEZ OF THE ATTORNEY GENERALS HELP CENTER

FIELDS A CALL FROM AN OHIO CONSUMER.


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The Ohio Attorney Generals Office is a force multiplier for

the states 980 local law enforcement agencies and 88 county

prosecutors offices, assisting them in training officers

and investigating, solving and prosecuting crimes. This

partnership provides crime-fighting resources and training

that helps keep Ohioans safe.


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The Attorney Generals Office represents the interests of Ohio

in court th e U.S. Supreme Court, the Ohio Supreme Court

or other courts throughout the state. In recent cases, the

offices attorneys defended the constitutionality of Ohios sex

offender registration laws, preserved an important tool in

the fight against drunken driving, saved the states schools

millions of dollars and helped protect Ohioans civil rights.


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ADVOCATING

FOROHIO


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FOROHIO

SOLICITOR GENERAL BEN MIZER AND DEPUTY SOLICITOR

EMILY SCHLESINGER RESEARCH A CASE.

PROTECTING THE BOTTOM LINE

The Attorney Generals O ce provides advice and counsel to all state

government entities. When matters are disputed, whether in court or

some other legal orum, the o ce serves as the exclusive representative

or the state.

Saving schools millions: The Education Sections successul work in court

saved the states education system more than $5.8 million. Included in

that sum was a $2.6 million jury verdict in State ex rel. Ohio Department o

Education v. Ministerial Day Care Association to recover Head Start unds

misappropriated by a day care service provider.

The Franklin County Court o Common Pleas granted a summary

judgment in Walker v. The Ohio State University, rejecting oreiture

claims totaling $4.7 million. And in Cincinnati City School District Board

o Education v. State Board o Education, an Ohio Supreme Court decision

reversed a ee award that would have cost the states schools more

than $490,000.

Preserving state revenue:The Ohio Board o Tax Appeals decided that

interstate pipeline companies doing business in the state since 2001should be exempt rom personal property tax a ruling that, i allowed

to stand, would have cost school districts and local governments more

than $300 mil lion. The Attorney Generals O ce appealed the decision to

the Ohio Supreme Court and won in Columbia Gas Transmission v. Levin.

The Ohio Tax Commissioner denied a personal property tax reund o

$300,000 to HealthSouth, a national healthcare services company, based

on its acknowledgement that it had overstated the value o its property in

order to cover up an intentional overcapitalization o assets on its nancial

statement. HealthSouth appealed the decision to the Ohio Board o Tax

Appeals, which granted the reund. The Attorney General appealed tothe Ohio Supreme Court, arguing that the board had not provided an

adequate legal review o the claim, and the court agreed.

Helping utility customers: In Illinois Commerce Commission v. Federal

Regulatory Commission, Ohio energy consumers were spared at least

$295 million in utility rate increases. The hikes would have paid or

projects in other states that would not have beneted Ohioans.


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Richard Cordray

30 E. Broad St., Floor 17Columbus, OH 43215

(800) 282-0515www.OhioAttorneyGeneral.gov

Documents

2009 Ohio Attorney General's Office Annual Report