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December 12th/For Immediate Release

LANSING, MI—Everett Stern, the whistleblower who uncovered major financial crimes at one of the world’s largest banks, today released a detailed report accusing the Michigan Department of Health & Human Services (MDHHS) of fraud. Using internal government emails obtained through the Freedom of Information Act (FOIA), Stern identifies three acts of fraud carried out by the MDHHS bureaucracy. In the 10-page Investigative Report, Stern alleges that MDHHS committed fraudulent acts that have jeopardized the health and safety of Michigan’s most vulnerable residents—its elderly, low-income and disabled population.

“This is a slow-motion human crisis unrecognized by most officials, medical professionals and residents,” Stern writes in the Investigative Report, posted here.

The new report states that MDHHS personnel disabled a federally approved computer program that was designed to monitor home health programs, to guide delivery of the proper services to the right patients while also preventing fraud. The program was intentionally disabled in 2010 by MDHHS insiders to “to ease the burden on claims processing staff,” according to internal documents obtained through a FOIA request. “The questionable, perhaps illegal act, went unnoticed for seven years,” the Report states.

Michigan’s multi-million-dollar home health program provides vital home health care services to Michigan’s most frail population. The computer software program, called Edit 1221, was designed to screen home health care services provided to the state’s poor and elderly. “Since many thousands of payments were made with the Edit 1221 review disabled, it is impossible to tell if patients were receiving appropriate services. It is also impossible to tell if the [coding error] … led families to send loved one to nursing homes prematurely,” the Report adds.

MDHHS has a deplorable record of keeping Michigan residents safe. MDHHS Director Nick Lyon’s cavalier response to the Flint Water Crisis was that “everyone has to die of something.” A District Court Judge recently called Lyon “corrupt” in his handling of the Flint-area Legionnaires’ disease outbreak, and ordered him to stand trial on involuntary manslaughter charges in the deaths of two men. Why should Lyon be trusted, now, when it comes to the elderly and disabled residents of Michigan, the Report asks.

Stern, a respected whistleblower and investigator, issued the report to prompt Governor-Elect Gretchen Whitmer and the U.S. Department of Health & Human Services IG to open a formal investigation. Stern will be in Detroit all week to lay out his findings to the media and interested parties.

Everett Stern

Everett Stern is the CEO and Intelligence Director of Tactical Rabbit, a private intelligence agency composed of former U.S. intelligence community officers and analysts. He has extensive expertise in identifying financial wrongdoing, and was the central whistleblower in the HSBC Bank money laundering scandal. In part as a result of his efforts, HSBC agreed to pay a record $1.9 billion fine to U.S. authorities, for the bank’s many misdeeds.

Stern is a former candidate for the United States Senate. He has been featured in dozens of news articles and broadcasts, and appeared in a Netflix documentary, “Dirty Money,” on Wall Street and corporate greed.

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