On the recordOctober 24, 2017
The Stop Settlement Slush Funds Act of 2017 prohibits settlements that provide for payments to nonvictim third parties. But what happens to leftover money if the settlement does not specifically provide for its disposition? It turns out that this situation is ripe for abuse. In 2013, a shocking New York Times expose revealed that the Obama administration bilked over a billion dollars from the taxpayer-funded Judgment Fund and handed it to special interests. The case, called Keepseagle, concerned claims against the Department of Agriculture. The settlement, spearheaded by then Assistant Attorney General Anthony West, vastly overstated the number of claims against the government. One result was a $60 million windfall for the plaintiff's lawyer, who was on President Obama's transition team the year before. The other result was $380 million in funds left over. This was taxpayer money. But instead of demanding it back, the Department of Justice agreed to direct it to nonvictim third parties to be selected by the same plaintiff's lawyer and member of President Obama's transition team. This, quite rightly, troubled the presiding judge. My amendment would close this loophole by requiring that money left over after all victims have been compensated must be returned to wherever it came from.…





