Members Probe Justice Dept on Lawsuit Quid Pro Quo Arrangement

Members Probe Justice Dept on Lawsuit Quid Pro Quo Arrangement

Washington, D.C. – In a letter to Attorney General Eric Holder, House Judiciary Committee Chairman Lamar Smith (R-Texas), Oversight and Government Reform Committee Chairman Darrell Issa (R-Calif.), Senate Judiciary Ranking Member Chuck Grassley (R-Iowa), and House Oversight Financial Services Subcommittee Chairman Patrick McHenry (R-NC), questioned the Justice Department regarding revelations that a political appointee at the Department arranged a quid pro quo for the City of St. Paul, Minnesota to drop a Supreme Court lawsuit, Magner v. Gallagher. 

Documents and a staff briefing show that in exchange for St. Paul dropping its case before the high court, the Justice Department declined to intervene in an unrelated False Claims Act (FCA) case that had the potential to return over $180 million in damages to the U.S. treasury. 

“We were shocked to learn during this briefing and in subsequent document examination that Assistant Attorney General Tom Perez, over the objections of career Justice Department attorneys, enticed the City to drop its lawsuit that Mr. Perez did not want decided by the Supreme Court,” wrote Smith, Issa, Grassley and McHenry.  “This quid pro quo arrangement potentially cost U.S. taxpayers over $180 million.”

Background: At a briefing for Committee staff, Department officials conceded that the quid pro quo is unprecedented.  In sacrificing a valid claim of fraud against the federal government, the Department ignored its commitment to the rule of law and to fair and impartial justice for all.

A copy of the letter can be found here.