Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous materials on H.R. 732. Mr. Chairman, I yield myself such time as I may consume. Last…
Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous materials on H.R. 732.
Mr. Chairman, I yield myself such time as I may consume.
Last Congress, the House Judiciary Committee commenced an investigation into the Obama Justice Department's pattern or practice of requiring settling defendants to donate money to third-party groups. In its final 2 years, the Obama DOJ directed nearly $1 billion to third parties entirely outside of Congress' spending and oversight authority.
All along, the Obama Justice Department strained to deny the obvious problem: that mandatory donation provisions create opportunities to play favorites. Deputy Associate Attorney General Geoffrey Graber testified that the Department was not ``in the business of picking and choosing which organization may or may not receive any funding under the agreement.''
But internal DOJ documents tell a different story. They show that, contrary to Graber's sworn testimony, the donation provisions were structured to aid the Obama administration's political friends and exclude conservative groups.
From the outset, Graber's boss, Associate Attorney General Tony West, was keenly interested in choosing the organizations that would receive settlement money. In the lead-up to the first troubling settlement, West's deputy emailed the Office of Legal Counsel asking: ``Can you explain to Tony the best way to allocate some money toward an organization of our choosing?''
Explaining the final settlement to the press team, West's deputy wrote that the donation provisions require banks to ``make donations to categories of entities we have specified, as opposed to what the bank might normally choose to donate to.''
Sure enough, Congress received testimony, in 2016, that the donation beneficiaries were Obama administration allies. These include the Neighborhood Assistance Corporation of America, whose director calls himself a bank terrorist.
But aiding their political allies was only the half of it. The evidence of the Obama DOJ's abuse of power shows that Tony West's team went out of its way to exclude conservative groups.
On July 8, 2014, 6 days before DOJ finalized its settlement with Citi, Tony West's top deputy circulated a draft of the agreement's mandatory donation terms. A senior official from the Office of Access to Justice, who had been working closely with Tony West to direct settlement money to legal aid organizations, responded, requesting a word change.
She explained that the rewording would achieve the aim of ``not allowing Citi to pick a statewide intermediary like the Pacific Legal Foundation,'' which she explained, ``does conservative property-rights free legal services.'' The change was made.
It is not every day in congressional investigations that we find a smoking gun. Here we have it.
Unfortunately, the chief architect of this outrage was lauded, not punished. The recipients of the donations, from which PLF was excluded, circulated an email seeking ways to recognize ``Tony West who, by all accounts, was the one person most responsible for including the donation provisions.''
One organization replied: ``Frankly, I would be willing to have us build a Tony West statue and then we could bow down to this statue each day after we get our $200,000-plus.''
Mr. West's abuse of power stands in stark contrast to the reassertion of integrity by the current Attorney General Jeff Sessions. Attorney General Sessions shut down the use of mandatory donations to benefit outside groups, barring the practice through a policy directive issued earlier this year.
This legislation, however, remains necessary because history shows that we cannot rely on the current DOJ policy remaining in place. In point of fact, in 2009, the incoming Obama administration reversed course from previous DOJ guidance that had started imposing limits on settlement payments to nonvictims. This reversal led to the abuses I highlighted.
H.R. 732 is a bipartisan bill that would make the ban on settlement payments to nonvictim third parties binding on future administrations. The bill makes clear that payments to provide restitution for actual harm directly caused, including harm to the environment, are permitted.
It was obvious, from the outset, that mandatory donation provisions create opportunities for abuse; that such abuses actually occurred is now proven.
Mr. Chairman, I call on my colleagues from both sides of the aisle to support this good governance measure, and I reserve the balance of my time.
Mr. Chairman, I have an amendment at the desk.
Mr. Chairman, I yield myself such time as I may consume.
The Stop Settlement Slush Funds Act of 2017 prohibits settlements that provide for payments to nonvictim third parties. But what happens to leftover money if the settlement does not specifically provide for its disposition?
It turns out that this situation is ripe for abuse.
In 2013, a shocking New York Times expose revealed that the Obama administration bilked over a billion dollars from the taxpayer-funded Judgment Fund and handed it to special interests. The case, called Keepseagle, concerned claims against the Department of Agriculture.
The settlement, spearheaded by then Assistant Attorney General Anthony West, vastly overstated the number of claims against the government. One result was a $60 million windfall for the plaintiff's lawyer, who was on President Obama's transition team the year before.
The other result was $380 million in funds left over. This was taxpayer money. But instead of demanding it back, the Department of Justice agreed to direct it to nonvictim third parties to be selected by the same plaintiff's lawyer and member of President Obama's transition team. This, quite rightly, troubled the presiding judge.
My amendment would close this loophole by requiring that money left over after all victims have been compensated must be returned to wherever it came from.
This amendment also clarifies that permitted remedial payments must go to victims who suffered the injuries on which plaintiffs' claims are based. This prevents situations in which a payment is classified as remedial but is directed to an intermediary.
The abuses of power that I outlined today in the settlement context are truly disturbing. This is our opportunity to stop the abuse. We should be as comprehensive as possible.
I urge my colleagues to support this amendment, and I reserve the balance of my time.
Mr. Chairman, I urge my colleagues to support this important amendment which strengthens the legislation, and I yield back the balance of my time.