How Big Tobaccos Kansas City Law Firms Killed Healthcare Reform

Breaking News January 18, 2010

by Stew Webb

Federal Whistleblower

http://www.stewwebb.com

Exclusively for the Whistleblower Network News

www.stewwebb.com

On December 4th, Michael Gans, the Clerk of the U.S. Eighth Circuit Court of Appeals delivered a very special Christmas present for Greg Bentz the former president of the Kansas City Metropolitan Bar Association (KCMBA). Bentz is a partner in Polsinelli Shughart PC, a racketeering defendant in Lipari v. General Electric et al being appealed in Michael Gans’ court. Samuel Lipari is appealing a dismissal by U.S. District Court Chief Judge Fernando J. Gaitan Jr. who turned out to have been on the board of directors of one of the defendants in the Novation LLC hospital skimming conspiracy, St. Luke's Health System. Greg Bentz also happens to be on the St. Luke's Health System Board of Directors.

 

Lipari’s racketeering and RICO conspiracy claims had arisen out of misconduct by the KCMBA firms Polsinelli Shughart PC, Husch Blackwell Sanders LLP and Lathrop & Gage LLP during the course of antitrust litigation by Lipari’s business Medical Supply Chain over being prevented from entering the now 2 Trillion dollar market for hospital supplies controlled by the Novation LLC cartel.

 

The Novation LLC cartel is recently in the news again with US Attorneys in Massachusetts on January 15th charging Novation LLC cartel founding and controlling member Johnson & Johnson (NYSE: JNJ) with paying over $10 million in kickbacks to increase sales of a pharmaceutical while rewarding the healthcare administrators with bribery and ties to other J&J Novation LLC cartel controlled medical supplies. Per se Sherman Antitrust Act violations.

 

The prevention of competition in the markets for hospital supplies resulted in the recent loss of over 60,000 automotive related manufacturing jobs in the State of Kansas that had been above living wages and has left the state’s legislature facing 2010 with over $400 million dollars of revenue shortfalls, requiring a second year of drastic budget cuts. The revenue shortage is falling hard even on the Kansas Judicial Branch, which is being required to furlough all court personnel for six or more weeks this Spring.

 

In Missouri, the prevention of competition in the markets for hospital supplies has taken a much higher human toll. The former Missouri Republican Governor Matt Blunt was forced to cut back Medicaid eligibility, removing over 90,000 Missourians from healthcare coverage. The shortfalls in revenue and lost jobs from the un-competitiveness of Missouri businesses forced by the Novation LLC cartel to pay artificially inflated healthcare benefit costs is exponentially creating more state residents without health insurance. A crisis visible to the nation during MSNBC "Ed Show" from the Kansas City Convention Center on December 10th.[i]

 

The present to former KCMBA President Greg Bentz from Clerk Gans was supposed to have vindicated Bentz’s tenure over the KCMBA at the peak of its corporate defense attorney members’ power and opulence visible on the Kansas City skyline as the many law firm skyscrapers. The association’s greatest epoch was in the latter part of the roaring 2000’s when KCMBA firms defending Big Tobacco had created a “victory by any means” legal culture, complete with locked elevator floors and attorney employees avoiding cameras.

 

The big law firms did not change their business model as the ethical truth became more widely known through cracks in the façade like the September 2, 2005 Kansas City Business Journal article quoting the Notre Dame Law School professor G. Robert Blakey (on KCMBA member Shook Hardy & Bacon) who stated the government's many mentions of the lawyers in the tobacco racketeering case are "an indication they could have sued them" and the later revelations about Lathrop & Gage LLP’s former Chief Executive Tom Stewart’s involvement of the firm in Bush Administration political efforts to disenfranchise African Americans. Tom Stewart left as it became revealed that L&G star Mark F. “Thor” Hearne’s bad legal advice on fee office transactions to Governor Matt Blunt prevented Blunt from being able to run for reelection and precipitated the unlawful firings of US Attorneys to obstruct justice in the USDOJ criminal investigation. Despite this, the giant KCMBA members wanted to emphasize their economic advantage, doubling down on the skill sets used to destroy the careers of university medical researchers investigating the hazards of smoking or starve out the victims of smoking until their survivors accepted a few house payments.

 

Under Greg Bentz the KCMBA promised to secure the revenue of the city’s largest firms in a time when newly minted law school graduates representing plaintiff’s against Kansas City area corporate defense firms could research electronic databases for the freshest case law controlling arguments and one hundred year old KCMBA big firms with the paper brief banks and endless exploitable junior associates that were a competitive advantage in an earlier time were instead forced to compete on a level playing field. The big firms appeared on the covers of local big business and upscale living magazines. Big was good. A principal in Shook Hardy & Bacon described the number of attorneys planned for the firm's new headquarters in “acres.”  Greg Bentz represented the KCMBA’s largest members and the commodity they were really selling. Influence.

 

Publicly a champion of the Missouri Plan, the nation’s gold standard in solutions to prevent judicial corruption, Greg Bentz advocated strongly in public venues that any further efforts to reform the selection of judges in Missouri should be vigorously opposed. Partisan political influence over the judiciary would be against public policy. However, the KCMBA under Bentz concealed its member firms’ involvement with the Republican Party and its coveted political power and influence in both State and federal governments until the beginning of 2009.

 

Being on the other end of the Bush White House emails laundered through the Republican National Committee servers gave the big KCMBA law firms the commodity Greg Bentz, Bentz’s firm Polsinelli Shughart PC, and the KCMBA firms Husch Blackwell Sanders LLP and

Lathrop & Gage LLP were selling. Neither the state’s governor Matt Blunt or the President’s right hand political advisor Karl Rove called kids just out of KU or MU law schools leasing a room in some suburban “law office” in the middle of the night. These “wannabe” attorneys would never be able to call in favors and deliver outcomes for their clients.

 

Worse yet, some of the “favors” called in would be disciplinary actions against new attorneys precisely for acting ethically and in the public interest. In Missouri state officials violating every law would obtain a suspension of Scott Eckersley, a graduate of Brigham Young University and a devout Mormon. In the latest outrage in Kansas, state women’s prison officials themselves involved in prostitution and drug rings would start the process against un- corruptible civil rights attorney Keen Umbehr for exposing their crimes.

 

In the spirit of Greg Bentz, Kansas state officials will at least ensure Umbehr will forever be ineligible to practice before the US Supreme Court. Favors matter.

 

Greg Bentz’s KCMBA was silent on member’s participation in attempting to usurp the Missouri Chief Supreme Court’s role on the judicial nominee selection committee to give the Republican governor more control.

 

Bentz’s KCMBA was also silent on the need of the Republican Party under Karl Rove to utilize networks of friendly Republican judges for politically motivated prosecutions. It is still under reported in the media about how Rove’s plan to target promising lower level Democrat office holders across the nation started in Kansas City, Missouri.[ii] A pioneer of this new harder right view of justice was Judge Fernando J. Gaitan Jr. Bentz’s former fellow defendant St. Luke’s Health System director.

 

Most troubling of all, the KCMBA under Greg Bentz was silent on the Republican Party turning the Missouri US Attorney’s office into a protection racket, furthering the GOP’s interest in subverting voting civil rights protections, firing the very competent Moderate Republican US Attorney Todd Graves and replacing him with the more Kansas and GOP acceptable Bradley J. Schlozman.

 

The Patriot Act was in full swing during Greg Bentz’s KCMBA tenure, including the repeatedly abused “letters of inquiry.” The Johnson County, Kansas telecommunications giant Sprint was the backbone of the FBI’s repackaging and distribution of the NSA warrantless wiretapping Stellar Wind product to GOP friendly state’s attorneys general and even Karl Rove’s political operatives. To KCMBA corporate defense attorneys many of whom are also and long suffering KC Chiefs fans this was like being with a winning football team for a change.

 

Big Tobacco defense techniques like obstructing justice through retaliation against an opponent’s witnesses outside of court became celebrated among members of the Kansas City Metropolitan Bar Association in informal gatherings. When the Missouri farmer Dustin Sherwood was having 9 million dollars in property and bank accounts extorted from him[iii] in a Western District of Missouri US Bankruptcy Court proceeding by Polsinelli Shughart PC, Husch Blackwell Sanders LLP and Lathrop & Gage LLP and every Missouri licensed attorney he contacted refused to represent him, Greg Bentz as president of the KCMBA refused to help Sherwood.

 

Michael E. Gans released the Polsinelli Shughart PC decision at 10 am on December 4th without realizing that 30 minutes earlier, additional Kansas City Metropolitan Bar Association member law firms and attorneys had received a detailed complaint fully supported with complete evidentiary documents exposing they had joined the racketeering conspiracy during 2008 and 2009, committing felonies of mail and wire fraud taking additional tangible property from Lipari’s Lee’s Summit medical supply business trying to enter the market to reduce hospital costs.

 

The KCMBA law firms had never even counseled their hospital supply monopolist clients to not commit further crimes against the plaintiff suing them.

 

The December 4th Christmas present was supposed to be the vindication of Greg Bentz’s Big is Good tenure as president of the KCMBA. The period described in Lipari’s RICO lawsuit when Polsinelli Shughart PC attorneys committed repeated frauds on the Kansas and Missouri federal courts and Blackwell Sanders LLP attorneys even falsified their client’s participation in 16th Circuit of Missouri State Court ordered mediation and had conspired with City of Blue Springs officials to misrepresent transactions over a 10 Million dollar office building on I-70.

 

No one at Polsinelli Shughart PC bothered to tell Eighth Circuit Clerk Michael E. Gans that as a consequence of repeated rulings contradicting federal statutes, controlling case law and even the rules of civil procedure, the Tenth Circuit Chief Clerk Patrick Fisher Patrick J. Fisher and then later Judge Michael W. McConnell had to resign from that federal appeals court. Seven days after Gans issued the decision purporting to uphold Kansas City Judge Gaitan, the Tenth Circuit Court of Appeals Chief Judge made the surprise announcement he is leaving the bench.

 

The Chief Clerk of the Eighth Circuit US Court of Appeals Michael E. Gans was probably in the dark about the ring of judges participating in protecting General Electric a founding and controlling member of the Novation LLC cartel during the Bush administration. Included in the ring was the Northern District of Illinois US District Court Judge Mark Filip, also figuring in Lipari’s lawsuit. But in Michael E. Gans’ defense everyone outside a judicial corruption investigation acting on information provided by the Kansas Private citizen David Martin Price and former Chief Judge Eugene R. Wedoff was kept from having knowledge that would have prevented Mark Filip from being approved as the Deputy Attorney General of the United States, let alone serving as Acting Attorney General from January 20 to February 3, 2009.

 

Judicial review of trial court decisions is the practical way the nation’s federal bench is policed against misconduct. The December 4th Per Curium decision upholding a dismissal of all of Lipari’s RICO claims by U.S. District Court Chief Judge Fernando J. Gaitan Jr. in direct contradiction to a unanimous holding by the US Supreme Court as controlling law in a timely Rule 59 reconsideration filed by Lipari with Judge Gaitan and the Eighth Circuit’s contradiction of its own controlling case law on the ineligibility of Judge Gaitan to preside over a case where he had failed to disclose he was on the board of directors of a defendant raised eyebrows among attorneys around the nation trying to increase healthcare access in the face of the Novation LLC cartel’s stranglehold.

 

Now questions have been raised about whether any judicial review had even taken place. Lipari filed a timely request for En Banc review of the three judge screening panel that had upheld Judge Fernando J. Gaitan Jr. Calls were made confirming the en banc motion had been received by fax and by mail, but still no notation was recorded on the Eighth Circuit online appearance docket. Favors matter.

 

Why look gift horses in the mouth? Greg Bentz’s big is good philosophy  during his presidency of the KCMBA was effective. The Novation LLC cartel defendants including General Electric never even had to answer discovery requests in Kansas or Missouri.

Healthcare insurance companies spent over a Billion dollars fighting healthcare reform, largely with Washington D.C. “K Street” law firms. News stations around the country broadcast hours of testimony against healthcare insurers even though they were not responsible for a decade of double digit increases in the costs of providing healthcare.

The nation will probably remove Democrats from the majority in the US House and even Roy Blunt briefly pulled ahead of Robin Carnahan in the Missouri US Senate race polling over widespread dissatisfaction with healthcare reform. But, for those fortunate Novation LLC cartel corporations that were clients of Kansas City Metropolitan Bar Association law firms, the people’s elected representatives never knew the Novation LLC cartel’s role in pricing healthcare out the public’s reach. Even when it was as visible as the difference in care between Novation LLC’s St. Luke’s Health System and the publicly funded Truman Memorial Hospitals. Power and influence is worth every penny.

 



[i] http://www.huffingtonpost.com/ed-schultz/senators-should-visit-a-f_b_389228.html

[ii] www.politicalprosecutions.org

[iii] http://www.themilkweed.com/MW%20Aug-Sep%2008%20Sherwood%20Story.pdf