Report: Obama’s Labor nominee cut a “quid pro quo” deal that cost taxpayers up to $200 million

posted at 3:21 pm on April 15, 2013 by Erika Johnsen

Congressional Republicans have been investigating an assistant AG for the DOJ’s Civil Rights Division and President Obama’s choice to replace Hilda Solis as secretary of Labor, Thomas Perez, for his involvement in the settlement of some civil rights cases against the city of St. Paul, Minnesota. Had the issue proceeded to the U.S. Supreme Court, the outcome threatened to undermine his discrimination enforcement theories — and a new joint report from the Senate Judiciary, House Judiciary, and House Oversight committees points to a “quid pro quo” deal orchestrated by Perez that might have cost taxpayers as much as $200 million. Read on for the details:

 The report, obtained in advance by Fox News, claimed Perez in February 2012 “manipulated” federal law as assistant attorney general and “pushed the limits of justice to make this deal happen.”

Both cases involved the city of St. Paul. The 67-page report states that the Justice Department’s decision to opt out of the whistleblower cases potentially cost taxpayers as much as $200 million — the amount the government could have won had it pursued damages in the case.

But, according to the report, the Justice Department stayed away from that case in order to get the city to drop an appeal to the Supreme Court on another matter. The department was allegedly concerned that the high court, in the course of reviewing that case, would strike down a major element of civil rights enforcement.

“Perez simply could not allow the Court to rule,” the report said. “Perez sought leverage to stop the city from pressing its appeal.” …

The Department of Justice maintains that “The litigation decisions made by the department were in the best interests of the United States and were consistent with the department’s legal, ethical, and professional responsibility obligations,” and Democrats are predictably accusing the Republicans of instigating a “political campaign to undermine the legal safeguards against discrimination that Mr. Perez was protecting,” but as House Oversight Chairman Darrell Issa explained on Fox News earlier, why exactly wouldn’t you want the U.S. Supreme Court to make a decision on a civil-rights claim? Vid from the WFB:

Perez’s confirmation hearing starts on Thursday — I’d guess that somebody’s in for some pretty serious grilling.


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Hey, what’s a couple of million in Taxpayer money between friends?

UltimateBob on April 15, 2013 at 3:28 PM

Par for the course for the most corrupt administration EVER!

With this bunch at the Ministry of Redistribution, it’d be MUCH bigger news if they were to nominate someone that ISN’T a tax cheat, an associate of known terrorists, suspected for fraud, self-avowed communist…etc, etc.

Meople on April 15, 2013 at 3:29 PM

Serious grilling to be followed immediately by serious capitulation…

Rufus on April 15, 2013 at 3:29 PM

Hey, what’s a couple of million in Taxpayer money between friends?

UltimateBob on April 15, 2013 at 3:28 PM

A couple of hundred million, even.

UltimateBob on April 15, 2013 at 3:29 PM

I’m sorry that your hard work on this story, Erika, is being stomped on by the brutality at the Boston Marathon.

But it is good reporting. And I hope this story will stick.

Vanceone on April 15, 2013 at 3:31 PM

Ah, c’mon its only taxpayer money…..other peoples money, free and flowing to squander.

hawkeye54 on April 15, 2013 at 3:33 PM

Eh, this guy is a piker compared to some on the demorat side. Just another criminal in an administration chock full of criminals.

Bishop on April 15, 2013 at 3:36 PM

It’s to the point that if any politician tells me 1+1=2 I’m not believing them.The country is being trashed rather quickly.

docflash on April 15, 2013 at 3:37 PM

Obama’s Labor nominee is a big tool.

RickB on April 15, 2013 at 3:43 PM

Of course, as usual, nobody will be blamed … nobody will go to jail

J_Crater on April 15, 2013 at 4:16 PM

I don’t understand, under this administration, what did they do that was wrong?

right2bright on April 15, 2013 at 4:23 PM

Stock Market down 265 points today.
Gold closed at $1346, down $131/oz today.
Silver closed at $22.75, down $3.04/oz today.

Good job Scooter. Nobody is buying your bullcrap anymore.

And it’s only going to get worse.

fogw on April 15, 2013 at 4:42 PM

So you gave them a 200 mil kickback on this deal; in order for them to drop another deal?

Idiots… you could have bribed them 40 million and gotten that done; you’re overpaying your bribes when bribing state officials to do what you want.

Do you really want a Dept. of Labor head who massively overpays bribes when bribing public officials?

Oh… you want me to quit calling your payoff to public officials for gain on another issue a “bribe”? Can you point to the differences between your bribe and any other bribe?

gekkobear on April 15, 2013 at 5:04 PM

as House Oversight Chairman Darrell Issa explained on Fox News earlier, why exactly wouldn’t you want the U.S. Supreme Court to make a decision on a civil-rights claim?

You wouldn’t want it when you know your side is likely to lose.

The “civil rights” law at issue is one of the racial grievance industry’s sacred cows. Can’t risk having the SCOTUS pull back the curtain on this multi-billion-dollar scam.

AZCoyote on April 15, 2013 at 5:22 PM

OT: how do update the video players on a Windows 8 phone? I’m seeing more blank space where video should be.

Kraken on April 15, 2013 at 5:30 PM

I’m sure our RINO’s from GA, Chambliss and Isaakson, will vote for him enthusiastically so they can claim they are bi-partisan.

ultracon on April 15, 2013 at 6:11 PM

Eh, this guy is a piker compared to some on the demorat side. Just another criminal in an administration chock full of criminals.

Bishop on April 15, 2013 at 3:36 PM

.
The gang bangers call this…… “Street Cred”

This commie is golden now.

FlaMurph on April 15, 2013 at 6:42 PM

There is already too much corruption in the administration. NEXT. He won’t make it. NEXT.

Amazingoly on April 15, 2013 at 8:37 PM

Crony anti-capitalism at work by an Obama crook.

profitsbeard on April 15, 2013 at 8:58 PM

Already too much corruption in the administration. Don’t need another. Next.

Amazingoly on April 16, 2013 at 12:30 PM