State Integrity Investigation

Afternoon view of Florida's Old Capitol in the foreground with the new Capitol in the background in Tallahassee, Fla.

Phil Coale/AP

Florida reforms targeted by 'good government' group

By Caitlin Ginley

Citing the Center for Public Integrity’s States of Disclosure project and State Integrity Investigation as a basis for reform, the nonpartisan research group Integrity Florida has issued a report calling for stronger financial disclosure requirements in the Sunshine State.

Among the report’s recommendations: requiring Florida state officials to fill out more detailed financial disclosure forms and making that information available online in a searchable database format.

Florida ranked 26th – a grade of D – on the 2009 release of States of Disclosure, a state-by-state comparison of legislative financial disclosure laws. To improve its standing, Integrity Florida calls for adopting requirements similar to Louisiana, which dramatically raised its ranking all the way to number one in the 2009 States of Disclosure analysis. The Bayou State required all lawmakers to disclose a wide range of financial assets, including outside income, investments, and real property holdings.  Louisiana had ranked 44th in a previous States of Disclosure analysis from 2006.   

State Integrity Investigation

House Chamber, Michigan State Capitol

 Wikimedia Commons

Michigan Dems cite Integrity Investigation in calling for probe

By Caitlin Ginley

Michigan House Democrats have cited the state’s failing grade from the State Integrity Investigation in a resolution calling for investigation of alleged election irregularities.

“A recent report by the State Integrity Investigation ranked Michigan’s government 43rd in the country in terms of accountability and risk of corruption,” stated the resolution, issued earlier this week. “The report card gave Michigan an ‘F’ grade in areas like campaign finance and legislative accountability among other areas.”

Michigan also received F’s in the categories of executive accountability, judicial accountability, civil service management, lobbying disclosure, pension fund management, ethics enforcement, insurance commission, and redistricting. It received a single A grade for internal auditing.

Overall, Michigan received an F and a score of 58 percent on the State Integrity Investigation.

Skin and Bone

When skin is meshed, it doubles its size and surface area as a surgical covering. The holes also help with evacuation of liquids during healing.

Mar Cabra/ICIJ

Traceability elusive in global trade of human parts

By Kate Willson and Mar Cabra

The Kentucky man died in an off-road vehicle accident last year. His liver and kidneys helped save three dying patients in his home state. Musculoskeletal grafts taken from his heart, skin and bones were used in medical products used to improve the lives of 15 people around the country.  

But soon after the transplants, the U.S. Centers for Disease Control and Prevention (CDC) learned the organ recipients had contracted hepatitis C. It turned out the Kentucky donor had a history of substance abuse and had served prison time. The tissue bank that recycled his remains, the CDC said, had screwed up the usual testing done to verify that tissues and organs were safe.

The CDC's Office of Blood, Organ, and Other Tissue Safety deployed a team of “shoe-leather epidemiologists” to track down the tissue before someone else got sick. Unlike hearts and other organs — or blood products that come with a unique barcode — there’s no easy way to track down tissue.

Instead the team found tissues one-by-one, calling hospitals and chasing down doctors. It took nearly a month to locate all the surgeons who had implanted tissue into 15 people. A child, later found to have hepatitis C, had received an infected heart vessel patch before the tissue recall began.

In some cases, inconsistent or non-existent recordkeeping prevents medical sleuths from ever finding potentially infected tissues. In one major case that played out in 2006, the U.S. Food and Drug Administration and five tissue companies moved to recall 25,000 tissues taken illegally from U.S. donors without proper consent or testing. Eight hundred of the tissues shipped overseas were never found. 

State Integrity Investigation

South Carolina Supreme Court

Wikimedia Commons

State Integrity supporter back on ballot in South Carolina

By Corey Hutchins

South Carolina State Sen. Mike Rose is a lucky man. The Republican lawmaker from Summerville known for championing ethics reform lost his primary bid, with his opponent winning 60 percent of the vote — but he can still stay in office. 

How is that possible? Rose is an incumbent in an election year that has seen roughly 250 non-incumbent candidates kicked off ballots all across South Carolina because of a controversial State Supreme Court decision and a filing technicality related to campaign paperwork.

It used to be that candidates had to file a business disclosure form, called a Statement of Economic Interest, to their party official along with their petition for candidacy. But in 2010, the law was changed to mandate they also file electronically with the state’s ethics agency.

So, many candidates filed online or in person, but not both. Some did neither. (Incumbents were exempt because they already had a copy on file.)

After a lawsuit was filed to determine the fate of those who hadn’t filed properly, the State Supreme Court ruled in May that any candidate who did not file both online and in person should be removed from the ballot.

The fallout was catastrophic and meant that roughly 250 non-incumbent candidates for local and state offices around the Palmetto State were struck from their ballots in a year when all 170 South Carolina House and Senate seats were up for grabs. 

Reverberations from the High Court’s ruling are still being felt.

Consider state Senate candidate Sean Bennett who beat incumbent Rose nearly a month ago by a large margin at the polls.

Skin and Bone

 

Michael Mastromarino

ICIJ

Body brokers leave trail of questions, corruption

In April 2003, Robert Ambrosino murdered his ex-fiancée — a 22-year-old aspiring actress — by shooting her in the face with a .45-caliber pistol. Then he turned the gun around and killed himself.

Soon after, Ambrosino’s corpse entered the United States’ vast tissue-donation system, his skin, bones and other body parts destined for use in the manufacture of cutting-edge medical products.

But before they entered the system, Michael Mastromarino, owner of a New Jersey-based tissue recovery firm, needed to solve a couple of problems. He didn’t want to have to report that Ambrosino had perished in a murder-suicide. And he didn’t want anyone to know that Ambrosino’s family hadn’t given permission for his body to be used for tissue donation.

Mastromarino solved both problems the same way: He lied.

Mastromarino was the leader of a now-infamous human tissue trafficking ring that fed an international trade in body parts. Along with tissues from Ambrosino’s corpse, he stole parts from grandmothers, electrical engineers, and factory workers, as well as from the remains of famed journalist Alistair Cooke.

The disgraced dental surgeon from Brooklyn supplied the raw material for products used for a host of surgical operations — from knee repair to plastic surgery and cosmetic implants. He was a ground-level player in an industry that makes its profits by harvesting human tissues mostly from the United States, but also from Slovakia, Estonia, Mexico, and other countries around the world. One of Mastromarino's top buyers was Florida-headquartered RTI Biologics, a processor of American, Canadian and Ukrainian body parts that trades among the high-tech companies on the NASDAQ stock exchange.

Accountability

Federal produce-testing program spared — for now

By The Associated Press

SAN FRANCISCO (AP) — The nation's largest produce-safety testing program narrowly escaped closure thanks to a last-minute grudging reprieve from the Agriculture Department, and finding a permanent solution to keep tainted fruits and vegetables from reaching consumers could take an even bigger effort.

Each year, the tiny program screens thousands of produce samples. It has found more than two dozen bacteria-laced examples that prompted recalls of lettuce, tomatoes and other foods from grocery stores.

It was at risk of being scrapped after President Barack Obama's proposed budget slashed the effort's funding earlier this year. But USDA spokesman Justin DeJong said late Monday that although the Microbiological Data Program "does not align with USDA's core mission," it will operate through December, using existing agreements with states to keep testing for salmonella, E. coli and listeria over the next six months.

Public health officials and food safety advocates have long argued that getting rid of the program would leave the country without a crucial tool to investigate outbreaks of deadly foodborne illnesses.

If samples test positive for bacteria, it can trigger nationwide recalls and keep contaminated produce from reaching the public.

Dr. Robert Tauxe, the U.S. Centers for Disease Control and Prevention's top food-germ investigator, has said the program's information can be key to pinpointing foods tied to outbreaks, and it could not easily be replaced by companies' internal tests or more modest federal sampling programs.

The CDC said contaminated fruits and vegetables caused nearly one-third of the major multistate foodborne illness outbreaks last year.

Skin and Bone

The trade in human body parts has flourished even as concerns grow about how tissues are obtained and how well grieving families and transplant patients are informed about the realities and risks of the business.

Human corpses are prize in global drive for profits

On Feb. 24, Ukrainian authorities made an alarming discovery: bones and other human tissues crammed into coolers in a grimy white minibus.

Investigators grew even more intrigued when they found, amid the body parts, envelopes stuffed with cash and autopsy results written in English.
 
What the security service had disrupted was not the work of a serial killer but part of an international pipeline of ingredients for medical and dental products that are routinely implanted into people around the world.
 
The seized documents suggested that the remains of dead Ukrainians were destined for a factory in Germany belonging to the subsidiary of a U.S. medical products company, Florida-based RTI Biologics.
 
RTI is one of a growing industry of companies that make profits by turning mortal remains into everything from dental implants to bladder slings to wrinkle cures.
 
The industry has flourished even as its practices have roused concerns about how tissues are obtained and how well grieving families and transplant patients are informed about the realities and risks of the business.
 
In the U.S. alone, the biggest market and the biggest supplier, an estimated two million products derived from human tissue are sold each year, a figure that has doubled over the past decade.
 
It is an industry that promotes treatments and products that literally allow the blind to see (through cornea transplants) and the lame to walk (by recycling tendons and ligaments for use in knee repairs).  It's also an industry fueled by powerful appetites for bottom-line profits and fresh human bodies.
 
Read this ICIJ investigation.

Accountability

FILE - This Sept. 5, 2007, file photo shows credit card decals on a store window in the Hollywood section of Los Angeles. isa, MasterCard and major banks agreed to pay retailers at least $6 billion to settle a long-running lawsuit that alleged the card issuers conspired to fix the fees that stores pay to accept credit cards. As part of the settlement, announced late Friday, July 13 stores from Rite Aid to Kroger will be allowed to charge customers more if they pay using a credit card. (AP Photo/Nick Ut, File)

Visa, MasterCard in $6B settlement over card fees

By The Associated Press

NEW YORK (AP) — Visa, MasterCard and major banks agreed to pay retailers at least $6 billion to settle a long-running lawsuit that alleged the card issuers conspired to fix the fees that stores pay to accept credit cards. As part of the settlement, announced late Friday, stores from Rite Aid to Kroger will be allowed to charge customers more if they pay using a credit card.

The pact, which is being called by lawyers involved in the case the largest antitrust settlement in U.S. history, is seen as a major victory for merchants that have long complained about the billions of dollars in so-called "swipe" or "interchange" fees that they pay to banks for purchases made using plastic. But at a time when shoppers increasingly are using credit and debit cards, merchants will face a dilemma: Whether to charge shoppers extra for using plastic, and if so, how to do so without angering them.

Marilyn Landis, who was last year's chairman of the National Small Business Association, said that the settlement is a victory for small businesses across the country because it could ultimately lead to banks lowering the fees they charge stores for customers' credit card purchases.

Landis, who owns Pittsburgh-based financial services firm Basic Business Concepts, said that would be a big relief. She's now paying 3.75 percent each time a customer pays with a credit card. If bank card companies reduce the fees they charge her to 2.75 percent, she would save a dollar on every $100 in sales.

"That's huge," she said.

According to the National Retail Federation, the nation's largest retail group, swipe fees costs for stores total about $30 billion per year. Mallory Duncan, senior vice president and general counsel for the group, said the settlement is a step in the right direction.

Accountability

2 plead guilty in Miss. chemotherapy fraud case

By The Associated Press

JACKSON, Miss. (AP) — A cancer doctor and her former billing agent pleaded guilty Friday for their parts in a multimillion-dollar health care fraud case in which prosecutors said old needles were reused, chemotherapy drugs were diluted and public and private insurance was overbilled millions.

Dr. Meera Sachdeva, who founded the Rose Cancer Center in the south Mississippi town of Summit in 2005, pleaded guilty in U.S. District Court in Jackson to one count of health care fraud and two counts of making false statements.

Standing before the judge wearing black-framed glasses and shackles with her long black hair draped over an orange prison jumpsuit, the 50-year-old doctor looked straight ahead while her lawyer denied the most serious allegations that she diluted chemotherapy drugs.

One of her patients, 76-year-old Wayne Spring, watched intently and left the court disappointed. He told The Associated Press that he contracted two bacterial infections from the clinic and now has regular tests for HIV and hepatitis. He beat cancer, but the ordeal left him shaken.

"She liked to have killed me," Spring said. "I'm disappointed in the whole thing."

Sachdeva faces up to 20 years in prison. If convicted on all counts she could have faced up to 165 years in prison and more than $3.2 million in fines.

Spring's son, Kirk, wanted Sachdeva to admit to the more serious allegations and was disappointed most of the charges were dropped.

"She's going to pay her due. No matter what happens in here, she will pay her due one day," he said just outside the courtroom.

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