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Lee Stranahan

Lee Stranahan

Posted: December 20, 2010 01:24 PM

Candidate Obama ran on a platform of openness, transparency and accountability in government but when it comes to the Pigford scandal, the USDA and Secretary Tom Vilsack continue a pattern of deception. At issue are accusations of fraud that may amount to hundreds of millions of dollars in a settlement that was supposed to give money to black farmers who suffered years of discrimination from the USDA.

A couple of weeks ago, President Obama signed a multi-billion dollar extension to Pigford amid some criticism from conservatives that there was rampant fraud in Pigford. Vilsack's USDA office issued a press release in the days before Obama signed the extension claiming that the FBI has only found three cases worth prosecuting and giving the impression that there were only a small handul of fraud cases out of over 15,000 paid claims.

The USDA now knows better -- but is still sticking by their claims.

I'm out on the road doing interviews with key people involved in Pigford. The following clip is from a video interview I did with Othello Cross, an attorney for Pigford claimants with about fifteen years of experience on the case. Again, just to make it clear -- this is a attorney representing claimants. He's pro Pigford and has profited from it -- if anything you'd expect him to say he's not aware of any fraud.

He admits that he is personally aware of hundreds of cases of fraud in the state of Arkansas alone. Furthermore, he explains how easy it was to commit that fraud and receive a $50,000 check from the government; it's appropriate to deduce from Cross's revealing statement that the actual number of fraudulent claims is likely much higher than the hundreds he knows about especially since all the fraud he claims to know about was just in the state of Arkansas.

You're about to watch this clip for the first time, but the USDA watched it over a week ago -- I sent it to them for comment about 10 days ago.

After a number of phone calls to the USDA, I was given the response that Secretary Vilsack now acknowledges around ten cases of fraud, up from his original statement that there are only three known cases. If I were inclined to spin the government's response, I'd praise the USDA for finding 300% more instances of fraud in just a few days, but the reality is that the USDA can watch a video where a pro-Pigford claimant lawyer says in no uncertain terms that he knows about hundreds of cases of fraud -- over ten million dollars worth at bare minimum -- and still will only acknowledge ten cases.

There's a lot more to Pigford than just the claims of fraud. The black farmers who were discriminated against were treated unfairly in this case and in addition, there seem to be thousands of African-Americans who were defrauded themselves.by people attempting to profit from the Pigford settlement. I'll continue documenting those other aspects of the story but let's be clear about the fraud charges.

The fraud of Pigford is real. It's tens of millions of dollars, at least. The USDA knows about it. They aren't telling the truth and unfortunately, if we're going to get to the truth it's going to have to come from Republican-led hearings.

President Obama should have gone with Plan A. That transparency and openness thing would have been a lot better for everyone except the Republicans.

 
 
 

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HUFFPOST SUPER USER
edejan
01:08 PM on 12/29/2010
Ok, say this is true. Is there no one in the chain of check writing that investigates any of these claims? Is money just handed out willy-nilly? Well, let me get on that bandwagon....if it's true.
06:48 PM on 12/27/2010
I could feel a little more outrage if we hadn't piled billions of dollars and the banks, Wall St, insurance companies, fortune 500 companies and foreign corporations. In the world of fraud and deceit using taxpayers money once again we are outraged at what amounts to chump change
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muddywood
First the truth, then opinion.
01:18 PM on 12/23/2010
Prosecute anyone that made a fraudulent claim and STOLE from the government and the taxpayers.
We cannot afford to play little games like this anymore.
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HUFFPOST SUPER USER
Joseph Furtenbacher
No one you know...
05:39 PM on 12/21/2010
breitbartfan77 twitted,

No comments here until a Big Govt person comes over to read?

This is a big story. How is that possible.

Shouldn't this be a big story Huffpo readers?

No, the big story at the moment is how people make their first Huffpo comment, and less than 16 hours later have 18 Friends and 3 Followers, all of whom, strangely enough, are on Twitter...

Where's that Small Govt person when you need him, eh?
03:19 PM on 12/21/2010
I think most folks would be fine with handouts if they actually went to the people who need them.
Bear Left
so the hunters went home
01:59 PM on 12/21/2010
Stories like this are important, even essential (something the mainstream media seem to have forgotten somewhere around 9/11/01). However, slinging the written word does not exempt one from other basic rules. If you're gonna use arithmetic, get it right: Ten is indeed 300% (and change) OF three. But ten is not "300% more" than three. It's only about 233% more. Though (ab)used for a btw, subsidiary point, it diminishes the greater story. Cheers!
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11:14 AM on 12/21/2010
"MIKE ESPY (Alphonso Michael Espy) is the former Secretary of the United States Department of Agriculture, and a former U.S. Representative from the 2nd District of Mississippi. He currently works as a private sector attorney, counselor, and agricultural advisor, having his own law and consulting firms: Mike Espy, PLLC, and AE Agritrade, Inc.

What is most interesting about Espy is that his two-year tenure as the Secretary of Agriculture spanned from 1993-1994. Why? Because the Pigford lawsuit covers a period of discrimination within the agency from 1983-1997, over 13 percent of that period Espy was responsible for that agency, which puts Espy’s liability at about $366,665,750 (given that the total price tag for Pigford I and II is at $2.75 billion.)

So how does civilian Mike Espy spend his days now?


He owns a law firm that specializes in representing and rounding up Pigford litigants. In effect, he is suing the very agency he ran, with charges of discrimination, and making a bundle off it

“This is your 40 acres and a mule,” Espy said. “We’re already at 15,000 clients and we’re going to get more."
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11:11 AM on 12/21/2010
There are FBI files in Little Rock, Arkansas, which demonstrate instances of fraudulent claims. We’ve spoken with an FBI agent who say the files are there and available. Even black activist organizations that support Pigford have acknowledged that many of the people signing up and receiving Pigford checks never farmed. Eddie Slaughter, with the Black Farmers and Agriculturalists Association, has looked at the USDA numbers which show that there are far more claims than there were black farmers in America. He has said, “What that means is that most of these people were never farmers, because the farmers had loans.” Another organization, Concerned Black Farmers of Tennessee, tracked 70 individual Pigford claims in Tipton County and found that 63 percent of those that were approved had no records to establish that they had ever even farmed. Yet, each of those individuals received a check from the USDA for $50,000.
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11:08 AM on 12/21/2010
Census says there are about 33.000 b l a c k farmers in the US

PII pays off over 90,000

Must be that new math
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11:07 AM on 12/21/2010
Activists such as Black Farmers and Agriculturalists of America’s Gary Grant say it’s okay if non-farmers get checks. “If you are an African-American, you deserve $50,000 because your roots are in farming and your folks have already been cheated,” he says. “You are collecting what your grandparents didn’t have the opportunity to.”
01:45 AM on 12/21/2010
No comments here until a Big Govt person comes over to read?

This is a big story. How is that possible.

Shouldn't this be a big story Huffpo readers?
08:11 AM on 12/21/2010
I was thinking the same thing.
03:23 PM on 12/21/2010
This isn't the kind of story they want all over the main page. Evidence that a particular bloc of society is cheating taxpayers out of millions of dollars doesn't exatly help the narrative that plays out here every day.