Two former Planned Parenthood employees-turned-whistleblowers have made stunning allegations regarding the abortion provider’s accounting practices. In a case now pending in federal court P. Victor Gonzalez alleges that he saw millions in fraudulent overbilling to state and federal governments when he worked as Chief Financial Officer for Planned Parenthood of Los Angeles.
Gonzalez alleges that after he reported the problems internally he was fired. While Gonzalez was still working for PPLA the state of California launched audits of various Planned Parenthood affiliates, and uncovered more than $5.2 million in overbilling at a single affiliate based in San Diego. Gonzalez claims that Planned Parenthood lobbyists intervened to stop other audits that were still pending statewide.
In his court filings, Gonzalez has outlined several transactions he alleges show illegal activity. For example, in one year Gonzalez says PPLA paid $225,695.65 for Ortho Tri-Cyclen birth control pills, yet billed the government $918,084 – for a profit of $692,388.35.
[...]Planned Parenthood tried to have the Gonzalez whistleblower case dismissed on a technicality, but the Ninth Circuit Court of Appeals recently denied that motion. Walter Weber, who represents Gonzalez, says it could take years to actually get the case to trial. Weber asserts that the issues outlined by Gonzalez are so wide-spread that they are akin to “ACORN-like corruption” – and that federal agencies, like the U.S. Department of Health and Human Services, should consider de-funding Planned Parenthood of any government money.
[...]The most recent figures available show that the Planned Parenthood Federal of America and its affiliates received $349.6 million dollars in government grants and contracts for fiscal year 2008.
Government audits of Planned Parenthood affiliates in New Jersey and Washington state have uncovered similar billing discrepancies. In addition, a second California whistleblower claim alleging improper ties between Planned Parenthood and its political arm has reportedly launched an investigation by the criminal division of the Internal Revenue Service, according to the New York Times.
ACORN, Planned Parenthood and teacher unions are three of the Democrats’ biggest special interest groups.