Oversight, Judiciary Hold Hearing on Tom Perez’s Quid Pro Quo That Cost Taxpayers $200 million

May 3, 2013

WASHINGTON – The House Oversight and Government Reform Subcommittee on Economic Growth, Job Creation, and Regulatory Affairs, Chairman Jim Jordan (R-OH), and House Judiciary Subcommittee on Constitution and Civil Justice, Chairman Trent Franks (R-AZ), will hold a joint hearing Tuesday May 7th at 10 a.m. to examine a False Claims Act whistleblower case that was declined by the Department of Justice as a part of a quid pro quo with the City of St. Paul, Minnesota, orchestrated by Assistant Attorney General Thomas E. Perez.
 
Mr. Frederick Newell, the community activist and whistleblower at the center of the case, will testify Tuesday. Mr. Newell brought a qui tam lawsuit alleging that the City of St. Paul, had improperly received $60 to $80 million in federal HUD dollars. The case could have potentially returned over $200 million for federal taxpayers.
 
In addition to Mr. Newell, Senate Judiciary Committee Ranking Member Chuck Grassley (R-IA) and Senate HELP Subcommittee on Employment and Workplace Safety Ranking Member Johnny Isakson (R-GA) will testify. Senator Isakson’s subcommittee had been scheduled to hold a hearing at which Mr. Newell would testify before it was canceled by Senate HELP Committee Chairman Tom Harkin (D-IA).
 
The hearing, titled “DOJ’s Quid Pro Quo with St. Paul: A Whistleblower’s Perspective” will start at 10 a.m. on Tuesday May 7th in Rayburn 2154. Last month, House Oversight and Government Reform Committee Chairman Darrell Issa , House Judiciary Committee Chairman Bob Goodlatte and Senate Judiciary Committee Ranking Member Chuck Grassley released a joint staff report “Department of Justice’s (DOJ) Quid Pro Quo with St. Paul: How Assistant Attorney General Thomas Perez Manipulated Justice and Ignored the Rule of Law”.

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