close X
01/29/2015

Cause of Action Calls on DOJ IG to Audit Forfeiture Programs

Attorney General Eric Holder’s asset forfeiture order applies to civil and criminal forfeiture. It does not, however, apply to administrative forfeiture, which generally allows law enforcement authorities to claim uncontested property without any judicial involvement. Such property can include currency of unlimited value, vehicles of unlimited value or other property with a value of up to $500,000.

After Cause of Action filed a FOIA request back in 2012, the Department of Justice notified us that administrative forfeitures are increasing exponentially, and are the most popular form of seizure by a wide margin. Following up on that, we found that from 2001-2011, 70 percent of all seized assets were processed as administrative forfeitures. That, according to a report done by a Justice Department IG. There is little reason to think the numbers for the last two years are any different.

In addition, Holder’s order is limited to adoptions, but public records show that these are the least-used method of asset forfeiture in DoJ’s asset forfeiture program. According to GAO, adoptions made up only about 17 percent of all equitable sharing payments as recently as 2010.

Our findings show that if this administration is serious about attempting such reform, the recently announced policy changes fall far short of the mark. The bottom line is that any serious effort to limit or end the practice of federal adoption of state and local seizures must include administrative forfeitures, which constitute the vast majority of such seizures.

Cause of Action Calls on DOJ IG to Audit Forfeiture Programs by Cause of Action

Press Release Learn More
01/20/2015

Cause of Action Appeals Ruling In Case Of Government Overreach Against Arkansas Small Business Owner

Cause of Action (CoA), a government accountability organization, today appealed a District Court ruling in the case of Rhea Lana, Inc. v. U.S. Department of Labor.

For a brief history of the case, please click here.

As we announced back in November:

The U.S. District Court for the District of Columbia, though it ruled to dismiss Rhea Lana, Inc. v. U.S. Department of Labor, invited the D.C. Circuit to determine whether the Department of Labor (DOL) may lawfully destroy a small business by finding “violations” and soliciting others to sue using notice letters that evade judicial review.

Cause of Action Executive Director Dan Epstein issued the following statement:

The Department of Labor is hiding behind a false characterization of volunteers as employees, which has the practical effect of preventing the use of volunteers and will shut down successful franchise owners like Rhea Lana.  As the District Court recognized, agencies cannot avoid judicial review by hiding behind such administrative tactics, which essentially demand the recipient to comply or face stiff penalties.

Rhea Lana Riner issued the following statement:

I’m happy to see this appeal filed because it shows that we won’t stop fighting back against unfair government meddling. This case isn’t just about protecting my business – it’s about protecting the rights of mothers everywhere to use their personal time for their own benefit, and the consignment event industry at large. On an even bigger level, it’s about protecting small business owners who find themselves being threatened by big government overreach and overregulation.

Media, Press Release Learn More
01/13/2015

Cause of Action Challenges FTC in Court for Obstructing Transparency

FOR IMMEDIATE RELEASE

CONTACT: Geoff Holtzman, 703-405-3511, geoff.holtzman@causeofaction.org

Cause of Action Challenges FTC in Court for Obstructing Transparency

Agency Threatens the Integrity of FOIA, Conduct Part of a Larger Pattern

WASHINGTON – Cause of Action (CoA), a government oversight group, today will argue before the United States Circuit Court for the District of Columbia that the Federal Trade Commission (FTC) improperly denied CoA’s request to be treated as a news media organization and for fee waivers under the Freedom of Information Act (FOIA). The Reporters Committee for Freedom of the Press, the Washington Post, National Public Radio, and the Daily Caller News Foundation, among others, filed a “friend of court” brief in support of CoA.

Cause of Action’s Executive Director Dan Epstein said: “This Administration pledged openness and transparency, yet FTC has done the reverse. President Obama has said regarding FOIA that ‘democracy requires accountability and accountability requires transparency.’ But by obstructing FOIA disclosure and by playing games with media status and fee waivers to reward friends and to punish critics, FTC has crippled transparency and obstructed accountability.”

“FTC’s desire to chill criticism appears to explain what occurred here. Upholding FTC’s ‘weaponization’ of FOIA will empower agencies to selectively define what is and isn’t ‘media’, thereby blocking transparency and significantly reducing the federal government’s accountability to all Americans.”

CoA filed three separate FOIA requests between 2011 and 2012 for information on FTC regulation of social media authors and bloggers. CoA advised FTC this information was for an article and investigative report because blogger regulations “justify close scrutiny.” FTC denied CoA information access, news media requestor status and fee waivers. At the same time, FTC granted fee waivers to the AFL-CIO, the Environmental Defense Fund and the Marin Institute. According to Mr. Epstein, “FTC’s desire to chill criticism appears to explain what occurred here.”

FTC’s conduct reflects a larger pattern of government games with FOIA. For example, in 2009, the White House Counsel required all government agencies to submit FOIA disclosures involving “White House equities” for political pre-review. In 2013, a study by the Competitive Enterprise Institute revealed that the Environmental Protection Agency granted fee waivers to politically favored groups in 75 out of 82 cases, but denied 14 of 15 requests for fee waivers by Agency critics during the same period of time. In 2014, AP’s Washington Bureau Chief said FOIA “is under siege” and that “Requests are now routinely forwarded to political appointees.”

To learn more about Cause of Action’s work on this case, please click here.

WHAT: Arguments in Cause of Action v. Federal Trade Commission

WHERE: United States Circuit Court for the District of Columbia

WHEN: TODAY, January 13, 2015 at 9:30 am 

To schedule an interview with Cause of Action’s Executive Director Dan Epstein, contact Geoff Holtzman at geoff.holtzman@causeofaction.org

###

Press Release Learn More
01/6/2015

Cause of Action Statement on Announcement of DOJ IG Michael Horowitz as Chairman of CIGIE

Cause of Action released the following statement today following the announcement of DOJ Inspector General Michael Horowitz as Chairman of the Council of the Inspectors General on Integrity and Efficiency:

Cause of Action congratulates Michael Horowitz on his chairmanship of the Council of the Inspectors General on Integrity and Efficiency (CIGIE). Chairman Horowitz brings the gravitas and investigative prowess necessary to bring true accountability to the executive branch, as he has demonstrated in his work as the Inspector General for the Department of Justice on matters ranging from Fast and Furious to nepotism in the nation’s immigration courts. In the past, CIGIE has failed in its oversight of such recent matters as the GSA spending scandal and the investigation of former DHS IG Charles Edwards, making the choice of Horowitz a welcome change and an encouraging sign for Americans concerned about government accountability. Cause of Action looks forward to the leadership Chairman Horowitz will provide and anticipates that CIGIE will help pave the way for more empowered and accountable Inspectors General to shine a light on what is happening in our federal agencies.

Press Release Learn More
01/5/2015

Cause of Action Signs Letter of Support for Amending Rule on Judiciary Committee Jurisdiction

Cause of Action joined ten organizations in support of the proposed amendment to the Rules of the House of Representatives that would clarify the jurisdiction of the Committee on the Judiciary by adding “criminalization” to the Committee’s legislative jurisdiction.

Bipartisan Support for Amending Rule on Judiciary Committee Jurisdiction by Cause of Action

Press Release Learn More
12/16/2014

The IRS Strikes Back: Cause of Action Prepares for Its Next Battle on White House Access to Tax Information

Cause of Action’s battle continues against the IRS’s chief auditor (TIGTA) to publicize unauthorized disclosures to the White House.  Yesterday, TIGTA released 31 pages, 27 of which are already publicly available. In sum, TIGTA has produced only about one percent of the documents responsive to CoA’s request despite the court’s ruling mandating disclosure.

The records released show that TIGTA was concerned about inquiries from “external stakeholders,” including the White House and the Department of the Treasury, following media reports that TIGTA had opened an investigation into whether Koch Industries’ tax information was illegally disclosed to Austan Goolsbee.  See the full production here.

After Cause of Action’s 2012 public records (FOIA) request concerning investigations into unauthorized disclosures of taxpayer information to the White House, TIGTA refused to confirm the existence of any records, so we took them to court. The Court ruled in CoA’s favor in September and TIGTA claimed that it was reviewing 2509 pages of documents to comply with a court order.  On December 1, 2014, TIGTA indicated that after review, 2043 pages were responsive to Cause of Action’s request, but it refused to produce actual records. TIGTA claimed the records were protected under Section 6103, a provision in the tax code requiring the confidentiality of tax returns or return information relating to a taxpayer’s actual or potential tax liability.

The IRS’s auditor (TIGTA) indicated that it would address the remaining 466 pages within two weeks.  On December 15, 2014, TIGTA withheld 435 pages and released 27 pages in full and 4 pages in part, again citing Section 6103 as the basis for protecting nearly all of the records.  In other words: the records showing White House and IRS employees may have violated Americans’ privacy is being protected under . . . privacy laws.

Looking Ahead:

CoA will file a motion claiming TIGTA’s failure to produce all responsive documents is in violation of the law.  The Court has scheduled a briefing schedule to begin on January 30, 2015.  In the meantime, CoA will aggressively file additional FOIA requests to determine the extent of the White House’s review of taxpayer information, even outside of the context of Section 6103.   Stay tuned.

Press Release Learn More
12/8/2014

Cause of Action Statement On Senate Passage of the FOIA Improvement Act

Cause of Action, which was a key supporter of the FOIA Improvement Act, released the following statement in response from Executive Director Dan Epstein:

Despite resistance from some in the bureaucracy and political gamesmanship in the Senate, the American public’s desire for greater transparency allowed our Senators to cross the aisle to pass historic FOIA reform.  Cause of Action celebrates the passage of the FOIA Improvement Act because it will make our government more accountable and transparent for the public it serves.

Press Release Learn More