GOP legislators criticize President Obama's nominee for Labor Secretary over role in qui tam suits' declination

by Ben Vernia | April 16th, 2013

On April 15, the House Committee on Oversight and Government Reform, along with House Judiciary Chairman Bob Goodlatte and Senate Judiciary Committee Ranking Member Charles Grassley, released a 68-page report alleging that DOJ Civil Rights Division Assistant Attorney General Thomas Perez – now President Obama’s nominee to be Secretary of Labor – brokered a quid pro quo deal in which the City of St. Paul dropped a Supreme Court case in exchange for DOJ’s declination of two False Claims Act qui tam cases alleging the City’s violation of HUD rules.

The report recites documents in reaching its conclusions that, in addition to the agreement to decline the qui tam cases, AAG Perez offered DOJ’s assistance to the City in motions to dismiss the cases (though the Civil Division and the U.S. Attorney’s Office refused to cooperate) and attempted to conceal the arrangement from the public.

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