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11/25/2014

Cause of Action Statement on White House and IRS Targeting

Cause of Action released the following statement Monday concerning White House and IRS targeting:

Monday the Treasury Inspector General for Tax Administration (TIGTA) informed Cause of Action that there exist nearly 2,500 potentially responsive documents relating to investigations of improper disclosures of confidential taxpayer information by the IRS to the White House.  This disclosure, coming only after Cause of Action sued TIGTA over its refusal to acknowledge whether such investigations took place, and after the Court ordered TIGTA to reveal whether or not documents existed, signals that the White House may have made significant efforts to obtain taxpayers’ personal information.  This disclosure, following on the heels of TIGTA’s admission that it recovered 30,000 “lost” Lois Lerner emails, renews Cause of Action’s concerns about the decaying professionalism of, and apparent slip into partisanship by, IRS’s senior leadership.

Cause of Action will continue to pursue the truth and to work for IRS accountability.

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11/24/2014

Cause of Action to Challenge Unlawful Efforts by Department of Labor in D.C. Circuit

FOR IMMEDIATE RELEASE                                                     CONTACT:      

November 24, 2014                                    Mary Beth Hutchins, 202-400-2721

Cause of Action to Challenge Unlawful Efforts by Department of Labor

in D.C. Circuit

Rhea Lana, Inc. Announces Plan to Appeal Lower Court’s Deference to Agency Overreach

WASHINGTON – 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.

In granting the Department of Labor’s (DOL) motion to dismiss the case brought by Rhea Lana’s, an Arkansas consignment company run by entrepreneur Rhea Lana Riner, the District Court stated that it “sympathizes with Rhea Lana’s predicament.” This “predicament,” as the Court described it, arose when DOL attempted to establish a rule that Americans cannot volunteer at for-profit entities. The DOL pursued this matter by sending a warning letter to Rhea Lana that, in the Court’s view, had a “coercive effect,” essentially telling the company that it could face severe fines for not classifying its consignor-volunteers as employees.

“As the District Court recognized, agencies should not be able avoid judicial review by hiding behind form letters that essentially demand the recipient comply or face stiff penalties ,” said Cause of Action’s Executive Director Dan Epstein. “That is why on behalf of Rhea Lana, Inc. Cause of Action is appealing this decision to the D.C. Circuit.”

“As a company that engages moms in the community to buy children’s clothes and toys at a deep discount and profit from selling their own children’s items, we have never faced complaints from our consignor-volunteers, and we just don’t think it’s fair for the Department of Labor to come after us like this,” said Rhea Lana Riner, founder and president of Rhea Lana, Inc. “The government is essentially telling you that you can’t have your friends help out at a garage sale without the fear that a federal agency will be looking over your shoulder waiting to fine you. That’s why we feel so strongly about fighting back: So that our freedom as entrepreneurs and neighbors can remain intact.”

About Cause of Action:

Cause of Action is a non-profit, nonpartisan government accountability organization that fights to protect economic opportunity when federal regulations, spending and cronyism threaten it.  For more information, visit www.causeofaction.org.

About Rhea Lana, Inc.:

Founded by Rhea Lana Riner in her living room 16 years ago and headquartered in Conway, Arkansas, Rhea Lana’s Children’s Consignment hosts semi-annual sales.  With Arkansas roots, Rhea Lana’s Franchise Systems, Inc. is rapidly growing with 69 locations in 23 states.  The company is the first consignment sale business in the country to offer on-line management and real time tracking of merchandise through a computerized inventory system and a convenient mobile application. For more information, visit www.rhealana.com.

To schedule an interview with Cause of Action’s Executive Director Dan Epstein, contact Mary Beth Hutchins, mary.beth.hutchins@causeofaction.org.

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11/20/2014

Cause of Action Statement on Senate Judiciary Approval of the FOIA Improvement Act of 2014

Following the approval by the Senate Judiciary Committee of the FOIA Improvement Act of 2014, Cause of Action released the following statement:

“The FOIA Improvement Act of 2014 sets limits on the ability of agencies to stonewall requesters, which is why the Senate Judiciary’s approval is a move in the right direction for all who have an interest in a more transparent federal government,”  said Dan Epstein, Executive Director of Cause of Action. “As a watchdog group working on behalf of taxpayers, we support steps to establish greater accountability for agencies that currently hinder government transparency through FOIA.”

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11/19/2014

Cause of Action Joins Over Seventy Organizations in Support of FOIA Reform

Cause of Action signed a a coalition letter to the Senate Judiciary Committee urging members to support FOIA reform.

Coalition Letter In Support of FOIA Reform by Cause of Action

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11/12/2014

DOE Follows the Rules After HARDI’s Strong Stand Against Overreach

FOR IMMEDIATE RELEASE                                                         CONTACT:      

November 12, 2014                                              Mary Beth Hutchins, 202-400-2721

DOE Follows the Rules After HARDI’s Strong Stand Against Overreach

COLUMBUS, OHIO – Because of a settlement between the Department of Energy (DOE), the Heating, Air-Conditioning & Refrigeration Distributors International (HARDI) and other stakeholders, DOE reissued a Request for Information (RFI) on energy efficiency standards for residential central air conditioners and gas furnaces on October 31, 2014.  DOE’s RFI, published in the Federal Register, seeks public comment on its authority to develop energy efficiency standards through a “Direct Final Rule.”

Thanks to the government oversight and accountability group Cause of Action, HARDI was able to effectively halt administrative abuse by forcing the DOE to reassess its rulemaking.  DOE arbitrarily attempted to set a rule driving up energy costs for consumers and businesses without following proper procedures to protect the public’s right to have input and comment. This settlement requires DOE to respect the rule of law and is a significant victory for consumers and businesses.

HARDI Executive Vice-President & Chief Operating Officer Talbot Gee said, “We have said from the start that we believed the processes which led to this rule, litigation and settlement were broken. We were pleased to have secured a commitment from DOE to assess this issue and are pleased that HARDI’s comments on the matter are a key component of the request and hopefully the basis for fixing this broken process.”

Cause of Action’s Executive Director Dan Epstein said, “When federal agencies substitute their own agendas for the rules protecting the public’s right to have notice and to comment on proposed regulatory action, then government accountability and transparency are lost. Therefore, this notice, the first step by the DOE since HARDI’s successful settlement, is a major victory for all Americans who value fair government. HARDI’s members took a firm stand, and it has paid off for both consumers and for businesses.”

About HARDI:

Heating, Air-Conditioning and Refrigeration Distributors International (HARDI) represents more than 460 wholesale companies and 300 manufacturing associates as well as nearly 140 manufacturer representatives. HARDI members represent an estimated 85 percent of the dollar value of the HVACR products sold through distribution.

About Cause of Action:

Cause of Action a nonprofit, nonpartisan government accountability organization that investigates, exposes, and fights job-killing federal government regulations, waste, fraud, and cronyism.  Cause of Action uses investigative, legal, and communications tools to educate the public on how transparency and accountability protects taxpayer interests and economic opportunity. For more information, visit www.causeofaction.org.

To schedule an interview with Cause of Action’s Executive Director Dan Epstein, contact Mary Beth Hutchins, mary.beth.hutchins@causeofaction.org

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10/29/2014

The Nancy Black Story: Video Explains Dangers of Overcriminalization

FOR IMMEDIATE RELEASE                                             CONTACT:      

October 29, 2014                                         Mary Beth Hutchins, 202-400-2721

The Nancy Black Story: Video Explains Dangers of Overcriminalization

WASHINGTON – Cause of Action (CoA), a government oversight organization, today released “The Nancy Black Story,” a video recounting how a federal government agency, the National Oceanographic and Atmospheric Administration (NOAA), disrupted a respected marine biologist’s work and threatened her freedom and her livelihood through overcriminalization.

Watch Nancy Black’s story here:

Cause of Action defended Ms. Nancy Black, a highly-esteemed marine biologist who researches the lives and behavior of killer whales.  She was criminally charged with violating a Marine Mammal Protection Act (MMPA) regulation prohibiting feeding marine mammals in the wild.  Every other alleged violation of this regulation has resulted in relatively modest fines or, in a recent case with far more egregious facts, forfeiture of an old boat.  Here, however, the government’s original charges could have resulted in up to 27 years in prison, a $700,000 fine and forfeiture of her research vessel.  Ms. Black’s defense team was able to resolve the case through a no-jail plea agreement in which Ms. Black pled guilty to a single misdemeanor charge of “feeding” for which she received 3 years of probation, a $12,500 fine and 300 hours of community service.

According to CoA’s Executive Director, Dan Epstein, “When the government has excessive administrative discretion that lacks accountability and transparency, overreach and abuse are inevitably rampant. Overcriminalization of federal agency regulations undermines the rule of law, eroding the principles of intent and notice that protect the average citizen’s rights and freedoms.”

Reed Rubinstein, vice president for litigation at Cause of Action, said, “Americans need to know about the risks of overcriminalization and how their government is abusing its authority. Cause of Action is committed to taking steps to educate the public and push back against rogue agencies.”

On November 5, 2014, the United States Supreme Court will hear arguments on another overcriminalization case, Yates v. US, in which a commercial fisherman who threw overboard “undersized” fish was convicted of violating the Sarbanes-Oxley law, a corporate document destruction law prohibiting the shredding of documents. CoA’s amicus briefs in support of the petition for certiorari and in support of Mr. Yates may be found here and here.

About Cause of Action:

Cause of Action is a non-profit, nonpartisan government accountability organization that fights to protect economic opportunity when federal regulations, spending and cronyism threaten it. For more information, visit www.causeofaction.org.

To schedule an interview with Cause of Action’s Executive Director Dan Epstein, contact Mary Beth Hutchins, mary.beth.hutchins@causeofaction.org

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10/21/2014

Cause of Action Calls on Senate Ethics Committee to Answer for Failure to Respond to Ethics Complaint Against Sen. Harry Reid

FOR IMMEDIATE RELEASE                                                             CONTACT:      

October 21, 2014                                                    Mary Beth Hutchins, 202-400-2721

Cause of Action Calls on Senate Ethics Committee to Answer for Failure to Respond to Ethics Complaint Against Sen. Harry Reid

WASHINGTON – Cause of Action (CoA), a nonprofit government oversight group, today wrote to the U.S. Senate Select Committee on Ethics in follow up to a December 2013 ethics complaint CoA filed against Senate Majority Leader Harry Reid that has received no response from the Committee. CoA’s complaint highlighted Senator Reid’s use of his political clout to lobby U.S. Citizenship and Immigration Services to reconsider and approve EB-5 immigrant investor visa petitions where the principal entity receiving the foreign funding is a major contributor to the Democratic Party, and, at the time, was represented by the Senator’s son.

CoA’s letter highlights the need for the Committee to provide an explanation for why its 2013 complaint did not lead to a preliminary inquiry, despite CoA providing sufficient evidence.

CoA Executive Director Dan Epstein:

We rely on Congress to conduct oversight of bad government behavior, including investigating its own members to ensure that America’s elected officials are behaving ethically. For over 300 days to pass since our complaint was received with no reasoned notice of the Committee’s determination is unacceptable.  The Committee appears to have dismissed Cause of Action’s complaint without engaging in a preliminary inquiry and without explanation, where independent evidence unearthed by the media supports the allegations of misconduct.  The American public, who elected their Senators, deserve an ethics committee that takes its role seriously, and our hope is that the public receives an explanation for this delay in oversight.

On October 23, 2014, CoA sent a follow up letter after Senate Ethics claimed it did not receive the ethics complaint in 2013.

About Cause of Action:

Cause of Action is a non-profit, nonpartisan government accountability organization that fights to protect economic opportunity when federal regulations, spending and cronyism threaten it. For more information, visit www.causeofaction.org.

To schedule an interview with Cause of Action’s Executive Director Dan Epstein, contact Mary Beth Hutchins, mary.beth.hutchins@causeofaction.org

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