Tuesday, April 9, 2019

AG Mike Hunter's Mysterious Opioid Settlement?


 Hundreds of Millions, Perhaps Billions, for Glen Coffee's Firm
and a Job for Terri White
Why the Opioid Settlement Happened 
(by a guest commentator)
Besides the Ethics Commission turning a blind eye on Hunter's permanent residency in multiple places at the same time conundrum Hunter has stepped into a real scandal this past week.
The settlement he's reached with Purdue Pharma is astounding. Nondoc covered quite a bit but let's talk the politics of it.
First, Hunter quick closed in favor of Purdue and tangible cash:
His dear friend Glenn Coffee and Co. walked out with $60M cash for nary a finger lifted under the quick close settlement. When the AG became derelict in his duty to pursue justice for his actual clients (The State of Oklahoma and it's technical nine million medicaid reimbursements), he felt that he would not be able to deliver the funds quick enough by waiting for a bankruptcy court and the normal course of creditor filings. Short changing the public and the law through unethical means via an immediate path that was easiest for Purdue (not the state!) allowed him to look like a hero for a few minutes and get his cronies sorely needed millions in cash.
Second, Hunter ignored his only client, the State of Oklahoma:
He used the nine million claims reimbursed as his basis to go after Big Pharma so naturally, one would think that since State of Oklahoma appropriated dollars were tied to the reimbursements, the state would recover some money. Nope, Hunter effectively said "send money to my alma mater, an we can make this go away real fast for you." Purdue in their filings and in public complained about how they didn't want states to set precedence by being aggressive. Hunter listened to Purdue and gave them an easy way out. Many people don't realize that when a company goes bankrupt, assets unlawfully moved prior to can be recovered, and that there is a rigorous list of who gets priority of funds. It's not pretty, but it is the law, it's meant to dole out justice. In this case, the State of Oklahoma... teachers, taxpayers, patients, citizens, got the shaft of having honest justice. Hunter effectively turned this case into making his outside counsel and Big Pharma his clients.
Third, skip the Treasury, the cash goes straight to his alma mater:
Hunter claims that this settlement is funds for the State of Oklahoma. Oklahoma State University, his alma mater, does not have the Treasury in it's chart of accounts. In fact according to Title 74, Ch 2, section 18b, sub A10 it says Hunter is supposed to recover the funds for the state. While Hunter might have been well meaning we know from corrupt sheriff investigations that embezzlement statutes in the state of Oklahoma do not exempt "well meaning expenditures." OSU and it's new center does not mean it's the Oklahoma Treasury. In fact the money is inside the Higher Ed system, a creature that is fiercely independent. The yet-to-be created addiction center will be administered and overseen by Higher Ed.
Fourth, this appears to be a backdoor bailout for Terri White:
Chatter in the chambers at the capitol say that Hunter arranged to have Terri White become director of this future ivory tower. Just think about how she would benefit if this is true, a higher salary and being untouchable by the lawmakers, able to be in the news whenever she feels like, and the ability to demand more appropriated dollars without anything in return for the citizens! Talk about a dream job for a bureaucrat!
Fifth, Hunter's arrogance before the lawmakers:
When Junter came before the caucus's to explain himself, he was extremely adversarial. He deflected blame, skirted questions, and pawned off responsibility to DA's to investigate his behavior. On that last point, he forgot that it is the job of the Legislature to hold the Executive Branch accountable. So in the House, when repeatedly asked why he should not be impeached, he played dumb, then got defensive, then blatantly dared the lawmakers. Not done pissing off lawmakers, the Senate is quite irked he's giving a job to Terri White.
The takeaway:
Willful dereliction of duty is an easy case to make, embezzlement requires just a bit more effort. Lawmakers must show a strong spine and make an example or this WILL happen again. Bad actors in government will repeat the same actions until they are forced out. Remember, Hunter nearly lost the day of election because he was viewed as a slime ball by the public (appointed by Mary Fallin to fill the vacant AG seat). Any House member that waffles on impeachment would be well reminded that filing days are in a year, and this is a no-brainer election issue for primaries. Legislators should do your duty, step up to the plate and do the hard thing, it is what you were elected to.  Meanwhile Glen Coffee and company stand to rake in hundreds of millions if not billions of dollars on the other opioid lawsuits unless this outside counsel deal is struck down.
Or if there is little stomach for a public fight, simply withhold funding to OSU (Higher Ed) for a commensurate amount. That's the easiest solution.
A tip for the new freshmen and an anecdote from years gone by: Sometimes you can see magical things happen when you call down to Sue Ann Derr and say the following: "I want House Legal to begin drafting a resolution of Impeachment against Attorney General Mike Hunter." When Articles of Impeachment were drawn up against the majority of Oklahoma Supreme Court Justices a few years ago, these justices immediately reversed their self-professed unconstitutional decision and apologized for overstepping their roles into the Court of Criminal Appeals.