Bob Ney

Mr. NEY

Mr. NEY. I applaud you and thank you.

Mr. NEY

Mr. NEY. Mr. Speaker, I want to talk today about the Regulatory Transition Act. This is a critical act for us and it is only a starting point, because over the past years we might as well clear out the floor of this Congress and let unelected bureaucrats come sit, take our places. They have been running the Government, lock, stock, and barrel. They have made laws. And the United States EPA, Mr. Speaker, might as well have come into the Ohio Valley and Youngstown, OH and Cleveland, OH and taken the food off the tables of people. They have over extended their arm. It is time to make normal, commonsense, rational ideas to protect people but not to have the mismatch that we have had that has strangled the ability of blue-collar working people to literally just survive in the Ohio Valley and industrial parts of the State of Ohio. So we want to protect people, but we have now the opportunity to correct the faults that have occurred of an overstretched bureaucratic arm.

Mr. NEY

Mr. NEY. Mr. Speaker, I commend the following article to my colleagues: 2Whereas, Murphy's Furniture & Carpet celebrate its 70th anniversary, founded in 1925 by Theodore T. Murphy; and, Whereas, the Murphy's Furniture & Carpet is one of Noble County's oldest and most progressive businesses and one of its valued institutions in the Caldwell community; and, Whereas, this establishment has achieved a praiseworthy record of service as evidenced by its many satisfied customers; and, Whereas, through enterprises such as Murphy's our country continues to grow and prosper; and, Whereas, the unwavering dedication to the founder, Theodore T. Murphy and owners Clair J. Murphy and J. Murphy, the employees of Murphy's have been a vital factor in the success of the business, and they are all well deserving of the respect of the community; and, Whereas, the city of Caldwell and all the surrounding areas of Ohio, with a real sense of pleasure commend Murphy Furniture & Carpet as an outstanding business and join in the celebration of their 70 year anniversary this twenty-third day of February in the year one thousand nine hundred ninety- five.

Mr. NEY

Mr. NEY. Mr. Speaker, I commend the following top 10 list of insurance fraud to my colleagues. However, before I proceed, I would like to thank the Coalition Against Insurance Fraud for their hard work and unwavering dedication in bringing insurance fraud to the public's attention. As a State senator and cochair of the Ohio Insurance Fraud Task Force, I was active in fighting fraud in Ohio. Insurance fraud cost American consumers more than $68 billion last year. That's more than $800 a year out of each family's pockets in higher insurance premiums. In order to give my colleagues a better understanding of the scope and breadth of insurance fraud, I submit the following ``1994 Top Ten'' list of insurance fraud cases in the United States. 1994 Top 10 List of Insurance Fraud 1. Stable Slayings. Hired killers destroyed an unknown number of show horses. Owners collected on insurance policies which usually covered a horse for more than it was worth-- $25,000 and up. The scheme had been going on for decades, and some top names in the horse world are alleged to be involved. Twenty-three people were indicted in Chicago in July for their roles: 17 pled guilty, three were jailed and fined, and six await trial. 2. Minus One. Dr. John Rende, a 38 year-old Florida dentist, agreed to allow two brothers, Kenneth and Robert Alberton, to cut off a finger with an axe and claim it was an accident. He collected a $1.3 million lump sum settlement through one brother's homeowner policy. He also filed under his practice's disability policy. Rende used some of the money to buy a boat he named ``Minus One.'' Rende and the Albertons pled guilty. All are in jail and under orders to make restitution. Mary Rende, John's wife, is expected to plead guilty soon. 3. An Empire of Scams. William Loeb set up a phony labor union to sell health insurance from Empire Blue Cross/Blue Shield in 1988. When Empire terminated the insurance contract two years later, the union moved the policies to bogus insurers. More than 8,000 consumers lost $43 million in premiums on worthless policies. Total unpaid claims could be as much as $24 million. Insurers for more than 600 agents named as defendants in the case have agreed to pay out more than $8 million to settle unpaid claims. More settlements may come in March. Loeb is serving seven years in jail. 4. Coker's Coveted. Stephen D. Coker is on the run following his September indictment in Alabama on 35 fraud- related counts. He's accused of siphoning at least $30 million in premiums, passing them through a network of offshore insurers and reinsurers. Coker's accused of looting a British Virgin Islands insurer via a sham reinsurance agreement, filing false financial statements with regulators, selling policies on behalf of bogus insurance companies run by the late fraud artist Alan Teale, and reinsuring several of Teale's own sham operations, taking in at least another $4 million. 5. The Eye's on Him. Dr. Jeffrey J. Rutgard, a San Diego eye surgeon, was indicted in March on 217 counts alleging he bilked Medicare and private insurers out of millions of dollars. He allegedly performed unnecessary operations on mostly elderly patients who were often unable to give informed consent. He was paid $20.8 million over five years. 6. A Blue Bel-Aire. Arthur Blumeyer III was convicted of 27 counts of conspiracy, money laundering and fraud in February. Blumeyer was accused of using St. Louis based Bel-Aire Insurance Co. to bilk policy holders out of about $43.5 million over six years. He pocketed at least $4.9 million. Blumeyer's conviction was overturned on a technicality and he's currently in the insurance business awaiting a new trial. 7. Gypsy Truckers. Ronnie Lee Johnson of Fort Myers, Florida, pled guilty to two felonies for his role in a multi- state insurance fraud case involving the diversion of at least $7 million in premiums. The scammers obtained minimal insurance policies by misrepresenting the firms as small ones with only a handful of trucks. The operators then charged hundreds of unwary independent truckers as much as $5,000 a year to use fraudulently obtained liability insurance. term and cooperating with a expanded investigation. 8. Senior Swindlers. Retired Floridians William and Phyllis Lenahan were convicted of conning workers' compensation and physicians' malpractice insurance for $3 million. William claimed surgery for a work-related back injury was botched, leaving him totally dependent on his wife. In an investigation initiated and paid for by the surgeon, William was videotaped dancing, among other activities. The two each were sentenced to seven year prison terms and ordered in June to pay $1.6 million in restitution. 9. Chiropractic Couple. A Boston chiropractor, Dr. Alan Rosenthal, and his wife, Caterina, were charged with 36 counts as part of a scheme worth an estimated $2 million. They allegedly made false or inflated claims, subjected clients to unnecessary tests, required a minimum number of visits, and engaged in other conduct. Dr. Rosenthal and his wife's trial is scheduled for February 13 in federal court. 10. The Atlanta 57 and Counting. Georgia officials in September arrested 57 people in two counties on 258 counts of insurance fraud. Included in the arrests were two ``major runners'' (those who refer patients in staged accidents) and a chiropractor. At least 150 false or inflated claims were filed with 15 insurers and costs more than $1 million. Officials are continuing the investigation and more arrests are expected.

Mr. NEY

Mr. NEY. Mr. Chairman, I want to talk about reality and fact today versus uncertainty and doubt. And the uncertainty and doubt mentioned is budget estimates. The reality is it has been done. It has been done in many States. But Ohio sets an example, one of the larger budgets in the United States, and you have the executive budget, you have the legislative budget office. Sometimes their statistics do not agree. But you come to a middle point and you take the conservative end of it. Usually that tends to give us the basis to be able to operate on a balancing budget. The doubt, it has not all been set out over the course of the next 7 years. The reality, the State of Ohio, like many other States, has made it a reality that we set out a budget pattern. We accomplish a short- term goal, and it works. The doubt, this system will not work: The reality, it does. Last month I was chairman of the senate finance committee in Ohio. I guarantee you had we told the members magically there is no more cap on the Ohio budget, the end result is they would have crawled on glass to get there to spend money. It does work.

Mr. NEY

Mr. NEY. Mr. Speaker, I commend the following article to my colleagues: Whereas, the Steubenville Masonic Lodge #45 F. & A.M. has contributed untold volunteer hours in building character, citizenship, and leadership in this community; and, Whereas, the Steubenville Masonic Lodge #45 F. & A.M. is celebrating 175 years of service to the area's Masons and community; and, Whereas, members have made in kind contributions of service, financial contributions to the Steubenville area, contributions to the Special Olympics, and to other important needs of the community; and, Whereas, the local Masonic Lodge has extended the interest of the Masonic Order within this community; and, Whereas, the members of schools, churches, service clubs, union organizations, and others have been members of the Masonic Order; and, Whereas, the city of Steubenville and all the surrounding areas of Ohio are better places to live because of Steubenville's Masonic Lodge #45, we join in the celebration of their 175 year anniversary on the twentieth day of January in 1995.

Mr. NEY

Mr. NEY. Mr. Speaker, for the information of my colleagues I am entering into the Record the following letter to Mr. Leach, chairman of the House Banking and Financial Services Committee regarding the Mazaika v. Bank One Columbus, N.A., No. 00231 (PA Superior Court 1994) decision: House of Representatives, January 10, 1995. Congressman Jim Leach, Chairman, House Banking and Financial Services Committee, Rayburn House Office Building, Washington, DC. Dear Jim: Last month, the Pennsylvania Superior Court issued a decision interpreting important provisions of the Riegle-Neal Interstate Banking and Branching Act of 1994-- provisions that our colleagues worked on together during the 103rd Congress. The case that we are referring to, as you know, is the Mazaika v. Bank One Columbus, N.A. No. 00231 (PA Superior Court 1994) decision. In a 6 to 3 decision, the Pennsylvania Superior Court determined that a national bank located in Ohio was not authorized by Section 85 of the National Bank Act to collect certain credit-card charges from Pennsylvania residents. This holding conflicts with the conclusions reached by many other courts across the country and the clear legislative intent. These other courts have held, based on decisions of the United States Supreme Court and other authorities (including opinions by the federal bank regulators), that a national bank may collect credit card charges from borrowers, no matter where they live, as long as the charges are legal in the national bank's home state. We believe that the Mazaika court made two fundamental errors in its interpretation of the Riegle-Neal Interstate Banking and Branching Act of 1994. The court found that the ``applicable law'' provision in the interstate law applied, even though that provision is applicable only when a bank actually has branches in a second state. This provision has no bearing on or relevance to the facts in the Mazaika case because, in that case, no branching by the Ohio bank into Pennsylvania is involved. The Mazaika court also ignored the provision in the interstate law that actually is relevant, the ``savings clause'' in Section 111 of the Interstate law. The savings clause ensured that a bank's ability to collect all lending charges was not affected by other provisions of the interstate law (such as the applicable law provision). The savings clause preserves the pre-existing lending authority of banks to collect all lending charges in accordance with home state law, without regard to the changes in branching authority made by the interstate law. It is always frustrating when courts fail to interpret correctly the plain meaning of the laws we enact. This is particularly troubling in this case. We therefore would appreciate your assistance in clarifying the legislative intent regarding this matter. Very truly yours, Deborah Pryce. Robert Ney.

Mr. NEY

Mr. NEY. Mr. Speaker, we surely all learned during our campaigns that the American people, whether they are Republican, Democrat, or Independent, have the willingness to become involved in the energetic give and take of public debate. We saw that same energy on this floor for 13 hours yesterday come forth from both sides of the aisle. But when we looked at the final tally on that scoreboard up there, we had the support of our Democrat colleagues for our contract with the people of this country. Let me say, you can pick apart what we could not do yesterday. We can pick apart what you did not do when you had ample time over a period of years. However, that is not the direction that the people of this country want. There is time left to do other good things for the citizens of our country. We extend to this side of the aisle not a right hand, but both hands, for you to involve yourself with us for a partnership down the road to make other necessary changes for a better way of life for the people of this great country.

Mr. NEY

Mr. NEY. Madam Speaker, I appreciate my colleague from Ohio and neighboring Congressional District for yielding time to me. Madam Speaker, I want to stay to the subject matter, because obviously from this side tonight it has strayed I believe from the original intent of what we are talking about, which is sunshine. And with our good parliamentarian Bob Walker, I don't want to have him rule me out of order, so I am not going to talk about Ralph Nader and his hidden monies, and some of the labor unions and how they have monies, and I come from a labor area that may not necessarily have to be right out in the open sunshine. I want to stick to the subject matter, which I think we have to do, and that is the fact of talking about the influence of the lobbyists. The lobbyists are there to present people's points of view that they represent back in our districts, but it should be done out in the open. I was a participant in a closed conference committee when I chaired the Senate Finance Committee in Ohio. We finally came into the 21st Century and our colleagues opened the process up in the State. All the States have, and it is time we come into the 21st Century. I believe what we are trying to do here everybody does agree with, and urge support.