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星期二, 2月 06, 2018

AG HEALEY’S FISCAL YEAR 2017 RECOVERIES AND SAVINGS EXCEED $800 MILLION FOR STATE, TAXPAYERS

AG HEALEY’S FISCAL YEAR 2017 RECOVERIES AND SAVINGS EXCEED $800 MILLION FOR STATE, TAXPAYERS
AG’s Office Recovered More Than $17 for Every Dollar Invested in the Office

BOSTON – Attorney General Maura Healey today announced that her office brought back more than $800 million in recoveries and savings for the state and taxpayers in fiscal year 2017, including more than $79 million to the General Fund. The AG’s Office recovered more than $17 for every dollar invested in its work in fiscal year 2017. 
“My office saves hundreds of millions of dollars each year for state agencies, cities and towns, businesses and residents,” said AG Healey. “We are deeply committed to putting money back in the pockets of Massachusetts families through our work. In the last year, we also recovered more than $79 million for the General Fund to support the state and our taxpayers.”

The AG’s Office is organized into various bureaus and divisions, each committed to advocating for the interests of Massachusetts and its residents. The following highlights some notable recoveries and savings from certain bureaus and divisions within the AG’s Office.
            Government
The AG’s Government Bureau represents the state, its agencies and officials in a broad range of civil litigation. Cases include employment disputes, eminent domain and land cases, constitutional challenges to state action and laws, and litigation involving key state policies and millions of dollars in taxpayer funds. For example, in fiscal year 2017 the Administrative Law Division successfully represented the Department of Mental Health in a health care case that resulted in an estimated $7 million in savings for the first year. The AG’s Trial Division saved Massachusetts $260 million in nationwide arbitration proceedings after tobacco manufacturers decided to drop their challenge to the state’s enforcement of its escrow statutes against non-settling tobacco companies.

Ratepayer Advocacy
Through the Energy and Telecommunications Division, the AG’s Office serves as the statutory Ratepayer Advocate in proceedings on behalf of consumers. In fiscal year 2017, the Division’s work yielded approximately $227 million in savings to ratepayers and customers.
Insurance & Financial Services
AG Healey’s Insurance & Financial Services Division represents consumers and the state in civil matters involving the insurance, securities and lending industries. In fiscal year 2017, the Division brought back more than $136 million in recoveries and savings to the state. The Division reached a first-in-the-nation settlement with Santander for $22 million, including relief for more than 2,000 affectedMassachusetts car buyers who were set up with unfair, high-rate auto loans. The Division houses the AG’s Student Loan Assistance Unit, which fielded more than 4,000 hotline calls, handled more than 1,000 requests for assistance, held 14 student loan workshops, and generated $2.4 million in savings and recoveries for student loan borrowers.

False Claims

Created in 2015 by AG Healey to expand upon the office’s existing false claims initiative, the False Claims Division investigates alleged false statements used to obtain government contracts or funds. In fiscal year 2017, the Division recovered more than $46 million for the state, its agencies and political subdivisions, including $5.5 million from CDM Smith Inc. to resolve allegations it failed in its obligations to adequately oversee construction of Plum Island’s water and sewer systems.
Consumer Advocacy

In fiscal year 2017, the AG’s Consumer Protection Division recovered more than $41 million, including $27 million in student loan debt relief for students taken advantage of by for-profit college America Career Institute as well as $3 million in refunds to students. The AG’s Consumer Advocacy and Response Division provided more than 8,000 consumers with mediation, consumer assistance services, or loan modification assistance.

Environment
In its work to enforce state environmental laws, the AG’s Environmental Protection Division recovered more than $21 million in civil penalties and other payments in fiscal year 2017. Volkswagen and related entities paid $20 million to Massachusetts, which is the largest civil penalty ever obtained in an environmental enforcement case brought by the state, for implementing engineering cheats designed to conceal the illegally high nitrogen oxide emissions of its passenger diesel vehicles. 

Medicaid Fraud

AG Healey’s Medicaid Fraud Division is responsible for the investigation and prosecution of fraud against the state’s Medicaid program, known as MassHealth. In their efforts to root out fraud and recover taxpayer dollars, the Division recovered more than $8 million to MassHealth in fiscal year 2017 as well as $700,000 towards the office’s Youth Opioid Prevention grant program from settlements with Walgreens and CVS over their opioid dispensing practices. Last week, AG Healey announced that the Division recovered more than $45 million for MassHealth in calendar year 2017.
Health Care
The AG’s Health Care Division recovered $4.6 million in its efforts to promote the interests of Massachusetts health care consumers in fiscal year 2017, including $930,000 from Johnson & Johnsonover its marketing of certain drugs and $400,000 from Bristol-Myers Squib for its unlawful marketing of Abilify, an anti-psychotic, to children and the elderly. The Division secured $2.8 million for Massachusetts policyholders of United Life Insurance who were unlawfully sold inadequate health insurance.

Fair Labor
The AG’s Fair Labor Division works to create a level playing field in Massachusetts by educating employers about our laws and protecting vulnerable workers from wage theft. In fiscal year 2017, the Division recovered nearly $3.5 million in restitution and penalties for violations of our state labor laws. In March 2017, for example, a Lowell reusable bag factory paid nearly $1.2 million to resolve numerous wage and hour law violations and for retaliating against employees. Since October 2016, the AG’s Office has also held free, monthly Wage Theft Clinics to provide legal assistance to workers in need. More than 230 workers have received assistance through those clinics and more than $65,000 in wages were recovered last fiscal year. 

            Criminal Enforcement

AG Healey’s Criminal Bureau recovered more than $4 million as a result of criminal forfeitures in fiscal year 2017. The Enterprise, Major and Cyber Crimes Division, which targets criminal enterprises using sophisticated investigative techniques, seized more than $1 million in cash and the Gaming Enforcement Division seized approximately $3 million in laundered proceeds. An additional nearly $250,000 was recovered by the Insurance and Unemployment Fraud Unit, which investigates and prosecutes cases of fraud against insurers and against the state unemployment insurance and workers’ compensation system. 

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