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Alleged Doctor Kickbacks Cost Cooper $12.6M

A Haddonfield doctor’s whistleblower lawsuit sparked an investigation that ended in a multimillion dollar settlement payment by Cooper Health System.

 

HADDONFIELD-HADDON TOWNSHIP, NJ -- Cooper Health System will pay $12.6 million to settle allegations the Camden hospital engaged in kickbacks to doctors as it built its cardiology program, state and federal officials said Thursday.

Cooper agreed to pay the federal government $10.2 million and the state $2.3 million in the joint settlement, plus attorney’s fees of $430,000 to a whistleblower, Haddonfield cardiologist Dr. Nicholas DePace. The hospital also already implemented, and agreed to maintain, corporate reforms for accountability, training and other aspects of compliance.

The settlement stems from a joint federal-state investigation into the financial ties between the Cooper Heart Institute in Camden, the Cooper Heart Institute Advisory Board and physicians who served on the advisory board. Investigators allege that doctors who served on the advisory board were seemingly paid for their advice, but actually were paid to refer patients to the Cooper Heart Institute.

The physicians were paid $18,000 annually to attend four meetings in a given year, investigators found. Federal and state officials say the payments were meant to encourage the doctors to refer patients to Cooper.

Cooper then sought and received reimbursements from Medicare and Medicaid to treat the inappropriately referred patients, in violation of state and federal laws, investigators charged.

“Payments to outside physicians by hospitals require heightened scrutiny because those payments may be improper if they are based on patient referrals,” said U.S. Attorney Paul Fishman. “Such kickback arrangements interfere with the physician-patient relationship, and can lead to problems of overutilization and increased costs. Federal health care participants, such as Cooper, who run afoul of the prohibitions against kickbacks must be held responsible.”

Cardiologist Dr. Nicholas DePace, of Haddonfield, was recruited to take part in the arrangement, but instead filed a whistleblower suit. Cooper agreed to pay $430,000 for DePace’s legal fees in the case. DePace will receive $2.3 million from the settlement as well—$1.95 million from the federal government and $442,890 from the state.

The allegedly improper payments occurred from October 2004 through December 2010, according to the settlement papers (click on the PDF, above, to view.)

Agreeing to the settlement isn’t an admission of liability from Cooper, the settlement states.

"After more than three years of extended discussions with government lawyers, we decided, in the best interests of Cooper, to settle our dispute without the admission of wrongdoing to avoid the burdens and uncertainties of a protracted litigation," John P. Sheridan Jr., president and CEO of Cooper University Hospital, said in a statement. "This allows us to focus our full energies on serving our community."

Cooper sent an email to its employees Thursday about settlement, echoing Sheridan's statement. The email, from Sheridan, also stated: "It is important to note that there is no contention that this program led to any unnecessary or inappropriate services at any time. Our quality of care has never been in question."

(Click the PDF, above, to read the email to the Cooper staff.)

"Cooper has taken responsibility for its past misconduct," John Hoffman, executive assistant New Jersey attorney general, said in a statement. "We commend Cooper for implementing substantial internal reforms and accountability measures designed to address the government's concerns and avoid any future transgressions."

Cooper has undergone aggressive expansion in recent years. In June 2004, hospital leadership announced plans for a $220 million expansion to its campus, which added a 10-floor “patient care pavilion” to the existing hospital. Cooper sought to become a regional health center, and now includes the hospital, the Cooper Medical School of Rowan University, a clinical research building and a cancer institute.

George Norcross, a South Jersey Democratic political power broker, chairs the board of trustees for Cooper Health System and Cooper University Hospital.

This story was updated at 10:10 p.m., Jan. 24 to include the statements from Cooper Hospital. 

Related Topics: Cooper Health System, Cooper lawsuit, Cooper settlement, New Jersey Attorney General's Office, Nicholas DePace, U.S. Attorney's Office, and whistleblower

Darren Gladden

8:18 pm on Thursday, January 24, 2013

No Worries Mate . Geogre will just get Rob Andrews to get a FED GRANT or someone other FED fund to pay for this a.....SMH hey Big Dem Power Broker time for you to go your leadership not wanted no more in Camden county you fraud

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agent itchy

7:20 am on Friday, January 25, 2013

some dishonest doctors are committing a crime and you feel the need to link them to the democratic party. i suppose today's cold temperatures were created by Norcross.

btw, i'll bet you $10,000 these doctors voted for Mitt Romney.

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Darren Gladden

8:56 am on Friday, January 25, 2013

Is Master Geogre not HEAD of the board go itch that itch ....Agent ichy

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Darren Gladden

9:03 am on Friday, January 25, 2013

PS .........SO were does the buck stop there Agent Itchy and please do tell me why so much fed money goes thru cooper.......SMH ..........I bet you are sitting on Geogre lap as u read this ...Out with da old ,Geogre Nocross and his rag tag LEADERSHIP must go . THEY HAVE COST CAMDEN COUNY millions of dollars . Him and that Banker Veron Hill should both ROOT in a two by two cell ......

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Mel

9:20 am on Friday, January 25, 2013

Itchy maybe because Cooper is a patronage dumping ground for former political operatives and a place for their spouces to ensure their loyality. If you think people link Cooper to the Democrats just to insult either group you need to wake up to reality.

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agent itchy

11:14 am on Saturday, January 26, 2013

so any crime committed at Cooper must a Norcross scheme. a janitor steals a case of pepsi and it's a Norcross scheme. yeah, i get it. you don't like democrats and Norcross is an easy target.

how 'bout placing your anger at the doctors who actually committed the crimes Darren Gladden (if that's your real name, lmao)!

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Big Daddy 1

11:27 am on Saturday, January 26, 2013

Who is paying the doctors and driving up healthcare costs? Cooper, and that is right up the alley of its CEO, Norcross.

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Darren Gladden

12:38 am on Sunday, January 27, 2013

Yes , Yes it is do we have a problem with that itchy ......SMH http://youtu.be/l0CQ8iaK5s8 Now go take care of that Itch

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agent itchy

8:00 am on Sunday, January 27, 2013

so you have basically admitted that your comments have no merit. you're a republican hell bent on throwing Norcross under some bus because some doctors stole some money.

then you attach an old song to the thread as a sign you have no argument of logic and reason. you have shown yourself to be a biased windbag.

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agent itchy

8:05 am on Sunday, January 27, 2013

...and honestly, learn to use punctuation. reading your posts are painful

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Darren Gladden

10:36 am on Sunday, January 27, 2013

You are a Joke behind a fake screen name who cares what you have to say ......Go itch that itch you WInbag and I will learn what I want to learn by the way .

Paul J. DiBartolo

8:28 pm on Thursday, January 24, 2013

So why shouldn't the doctors who received $4500 per meeting, where they agreed to refer patients to Cooper, receive fines? A bunch of crooks from top to bottom.

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Pundit

9:53 pm on Thursday, January 24, 2013

Twice, in the last five years I had family members who were scheduled for cardiac surgery at Cooper - Camden. The day before my father’s surgery, Cooper told him he was inoperable. That is when I took him to University of Penn’s Hospital where he had the surgery and it was successful. Several years later my brother was also referred to Cooper by his cardiac doctor at BMA - which is affiliated with Cooper.
Because of our father’s successful surgery, my brother elected to have the cardiac surgery instead at Univ. of Penn's Hospital. He had more confidence in the doctors there. After my brother was released after his surgery we found it almost impossible to schedule follow up appointments with his cardiac doctor at BMA-Cooper. He finally switched to another medical practice for follow up care.
It was even a nightmare getting BMA to fax his medical records to U of P hospital prior to surgery. We ended picking them up.
There is no way I will ever use the medical services of a facility connected with George Norcross’s Cooper. This scandal does not surprise me.

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Jeremiah Wright

9:56 pm on Thursday, January 24, 2013

"DePace will receive $2.3 million from settlement as well—$1.95 million from the federal government and $442,890 from the state."

Seems like a helluva lot of money for simply blowing a whistle. What is the point exactly of these exhorbitant rewards?

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Big Daddy 1

12:40 pm on Friday, January 25, 2013

Potential and current employers take a dim view of whistleblowers. They may be giving up a lot to do the right thing.

Susan Hoch MD

11:40 pm on Thursday, January 24, 2013

Whistelblower Laws - They date from Lincoln, the first Republican President.
One of the first laws that protected whistleblowers was the 1863 United States False Claims Act (revised in 1986), which tried to combat fraud by suppliers of the United States government during the Civil War. The act encourages whistleblowers by promising them a percentage of the money recovered or damages won by the government and protects them from wrongful dismissal. Good for Dr DePace. I hope he enjoys his money. They tried to corrupt him and he turned the pages on them.

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telepathy

1:57 am on Friday, January 25, 2013

Now, if only someone would out the truth about how much they are paying these doctors not to save any lives of the victims of crime in the City of Camden. The death rate is high but why is that? Is it because you have to pay for parking? It should be renamed the Cooper Hotel and Health System.

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Maryann Campling

7:33 am on Friday, January 25, 2013

Thanks Dr.DePace. It takes guts to stand up to the big guys! A few months ago, I saw on Dateline (or one of those shows) a story about a hospital in the mid-west; seems that a group of staff physicians came forward to expose the fact that they were ordered by their administrators to increase admissions of Medicare/Medicaid patients by a certain percentage, or face consequences. Once admitted, these folks were ordered every conceivable test, including those that had nothing to do with the medical condition for which they were admitted! Medicare/Medicaid is a cash cow, I'm afraid. Of course, the whistle-blowing docs have been blackballed....but kudos to them for doing the right thing.

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Joe

7:59 am on Friday, January 25, 2013

Doctors continue to bilk the insurance companies and we do nothing. They have ways to get money that most of us never thought of. I'd report it if I could find someone who could do something about it.

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Our Town

9:04 am on Friday, January 25, 2013

Tip of the iceberg for that Cooper cash cow. They'll laugh while enjoying a nice, fat cuban at 12 million. Chump change.

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GoGalt

9:06 am on Friday, January 25, 2013

When people want their healthcare for "free" they are really asking everyone else to pay their bill for them. Medicare and Medicaid are funded by the taxpayers, all other insurances funded by those who pay the premiums. Then Medicare, Medicaid, Insurance Co pays for the care based on claims submitted to them by doctors, hospitals, and numerous other suppliers of care to the sick... and not so sick. It is no surprise that scamming occurs when there is this kind of third-party payment system. Not that an individual cant or wouldn't be scammed, but if there is no middle man, and people are directly and personally involved in paying for their care, they might be more critical of who is being paid for what services.
Unfortunately, medical care is not like other financial transactions, since so often the most expensive services are rendered at exactly the time when one is least in a position to question the necessity or cost of said services. Theres no easy solution...

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TW

9:12 am on Friday, January 25, 2013

Surprised??? Doctors are getting kick backs from the Pharm. Companies as well... why do you think so many people are addicted to pain killers!!!

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Big Daddy 1

10:00 am on Friday, January 25, 2013

Norcross involved in yet another pay to play type scheme. When does law enforcement finally stand up to him?

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Mark Infantado

10:14 am on Friday, January 25, 2013

COOPER Is A JOKE! Fell down the stairs and broke my ankle in 2010. Had an ambulance come and they asked "where do I wanna go Cooper or Lady of Lords." I mistakenly chose Cooper. 26 months and $110,000 later my ankle is still not right and I'm walking with a crutch. My health provider at the time was Horizon. They only covered less than half of the total bill and dropped my under a technicality. Getting calls and certified letters from collection agencies everyday. After my surgery I was parked in a hallway for 30 hours waiting for a room. During my stay the service was careless. All my doctor seemed to be interested in was prescribing me pain meds which I wound up becoming addicted to. Was told there was nothing further they can do to make my ankle right. I believe this hospital is corrupted and more will come out in the future.

I've since found The Rothman Institute to perform a surgery to make my ankle pain free and walk without a crutch.

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USSsinkinship

11:44 am on Friday, January 25, 2013

King Georgie Porgie still large and in charge 7 years later. Check back in 7 more......will still be 'da man!
http://newjerseyuntouchables.blogspot.com/2006/02/how-nj-corruption-works-caught-on-tape.html

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Reality Check Please!

11:49 am on Friday, January 25, 2013

Follow the crumbs. George Norcross is behind the push for the Camden County Police Plan. Look at it closely. Camden's 2012 budget for their police was approx 29 million, this plan that fires the entire police force, keeps the same dysfunctional police chief and brings in a new selected group of officers controlled all by Freeholder Lou Cappelli is going to cost the taxpayers a min. of 65 MILLION. Wake up people. this one is going to go down in history as the plan that bankrupted the entire county of Camden!

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Reality Check Please!

11:53 am on Friday, January 25, 2013

If you want to see the next Norcross county taxpayer disaster waiting to happen, go to http://www.facebook.com/SaveCamdenPolice

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USSsinkinship

12:17 pm on Friday, January 25, 2013

Follow the money is right Reality Check...........Connor Strong & Buckelew. The Camden PO-lice be needin' lotsa insurance. When every Camden Co town is forced to join the County Police Plan, more for the machine! Inch by inch, step by step......the regime continues their power grab while sucking the life out of the little people. Just keep throwin the sheeple some entitlement scraps and they'll keep voting Georgie's demoncratic boyfriends back in power. Ironic that the God forsaken worst city in America hell-hole is a golden ticket for Georgie and why they intend to keep it that way.

Reality Check Please!

12:41 pm on Friday, January 25, 2013

The Poorest Cities receive the most Federal & State financial aide. Camden, I believe recently received over 165 Million in just state aide, so my question is where did the money go to? Why are only the city tax-exempt companies showing growth while the rest of the city and their services are sinking. Why is there no investigation into the core of the problems instead of throwing even more tax dollars and power into the hands of the ones who are the actual cause in the first place?

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Darren Gladden

1:14 pm on Friday, January 25, 2013

Thanks for the check ...........No if you play along with them they will make sure u get one .........SMH .......

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Darren Gladden

1:15 pm on Friday, January 25, 2013

BUT how can someone believe u words when u hide behind a fake name . come out and state your NAME , Remember that the American way

Big Daddy 1

12:46 pm on Friday, January 25, 2013

Democratic governments around here all do their insurance type business with Conner Strong Buckelew (which is Norcross). Hearing more stories that companies wishing to do business with Cooper also have to use a Norcross insurance business.

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Mel

12:52 pm on Friday, January 25, 2013

BD1: Please use the FBI tipline to report these.

Big Daddy 1

12:59 pm on Friday, January 25, 2013

I have reported crimes like these to the FBI a few times. They never call back. And the US attorneys won't do anything unless the FBI tells them to. Why do you think he gets away with this for decades? Just like FUMO. He was covicted 30 years prior, but a corrupt judge overturned it. His downfall was trying to extort Verizon.

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@xxLouA

1:39 pm on Friday, January 25, 2013

phew!!!!!
should all march to DC....and start from there....

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@xxLouA

2:20 pm on Friday, January 25, 2013

some people cry all the time and here it seems to flow all the time.
I had a relative who went to Rothman for knee replacement (both) not at same time. she had wrong type put in first time and now she is up to 4 ops on same knee. They do make mistakes but how many times would you allow them to try again.
On the other hand I been going to Cooper for sometime now....they saved my life at least 3 times, open heart surgery and so on.. Not to go into details.
so I don't have any complaints.
the nurses there always gave 110% and more
Maybe those people are what you say, but the whistleman made out like a bandit.
Good luck to all hagd

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Sam I Am

1:07 am on Saturday, January 26, 2013

Medicine in 2013 is a competitive BUSINESS. How many billboards tv commercials and newspaper adds do you see or hear or read daily? How many local hospitals have built 100 million dollar additions to attract patients to their locations? If this was a business selling insurance nobody would think too much of it, but because its predominantly tax payer supported anger at this is expected. Are we being hypocritical when as a nation we push back against the idea of government run healthcare then complain when hospitals try to make a buck? Afterall, Cooper supplies health care to people nobody else wants to care for and they do it pretty well.

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Reality Check Please!

8:55 am on Saturday, January 26, 2013

Sam I Am: As stated in all the TV commercials and newspapers ads, the reasons why people should chose Cooper are based on the experience, skill and knowledge of the healthcare providers. So why is their own CEO supporting the Camden County Metro Police Plan that replaces the entire Camden Police Force consisting of the most knowledgeable, skilled and experienced law enforcement officers in Camden? It doesn't make sense. These are qualities you can't replace. Healthcare has never been a more competitive business and has faced more challenges to be successful. The core of any successful business lies in the quality of the services AND the safety of it's environment. Having the CEO of Cooper support a plan that replaces the QUALITY of the Camden Police Force for quantity of poor quality officers is not the answer. The people are being sold a cost-effective plan that takes the budget for the Camden police force from 29 Million in 2012 to 65 MILLION! The NJ taxpayers are going to be OUTRAGED when they realize they have been taken to the cleaners to pay for this political plan. This plan alone will make the city even more dangerous causing people who want to go to Cooper deciding to go to another place they feel is more safe. Cooper has an excellent healthcare team, the Camden police officers know how to protect them and want to protect the streets that NO ONE else wants to! Cooper's CEO is sending a bad message to the public. There is no ad that can correct a negative perception!

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Paul J. DiBartolo

9:00 am on Saturday, January 26, 2013

Sam, I would never complain about the service Cooper provides, rather what concerns me is the hundreds of thousands of dollars that is passing hands on the down low. When I turn right on a red light too soon...BOOM...I get nailed. On the other hand, we have these doctors pocketing $4500 four times a year under the guise of providing advice when they were actually being romanced to refer patients to Cooper. Look, I've just seen some bills paid for by my insurance to Cooper and it ain't nothing to sneeze at. So, what are you really trying to say?

Michael Makinson

10:22 am on Saturday, January 26, 2013

The name Norcross appears in the article. What a shocker!!

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Frank

12:29 pm on Saturday, January 26, 2013

its all starting to unravel. Remember evildoers, You Reap What You Sow

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kathy de cicco

7:55 pm on Saturday, January 26, 2013

Sounds like the great stent caper that occurred at St. Jospehs Hospital in Towson, Md., a couple of years ago. Always glad when these dishonest medical facilities get caught and fined.

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steve

8:53 pm on Saturday, January 26, 2013

Here is a thought for discussion. Expenditures like these totaling hundreds of thousands of dollars to nonemployees (in this case physicians) REQUIRES DIRECT APPROVAL OF THE BOARD OF GOVERNORS. There is no plausible denials of knowledge of these payments. I wonder how many employees will be fired by the Board of Governors because of this criminal event.

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kathy de cicco

9:25 pm on Saturday, January 26, 2013

Well Steve, funny you should mention that. As a result of the stent escapade, St. Joseph's Hospital was bought by and merged with the University of Maryland Medical Center. As a result, many people, including some close friends and relatives, lost their jobs. Duplication of jobs, got to let you go, bye!

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kathy de cicco

9:26 pm on Saturday, January 26, 2013

And did I mention it's a Catholic hospital?

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Mr. Inkman

1:14 am on Sunday, January 27, 2013

The doctors are force to participate. They are paid chump change for the medicare business. The doctor makes the money off the surgery and the hospital doe not give the business to the independent home health care companies. They keep it. at 4500 a pop. Its all about keeping the business in house. The patient is clueless unless they have used a home healthcare company before.
The hospital only gets a slap on the hands in fines ...see bad boys OK don't do it again OK..... OK we won't. Its the patient rights to have the service of there choice and 99% haven't a clue.

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felix

2:33 am on Sunday, January 27, 2013

Tenet Health Care did something similar at Alvarado Hospital in San Diego. They were charged and forced to sell hospital.

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Big Daddy 1

3:41 pm on Sunday, January 27, 2013

Sounds like a good idea (charging them and forcing a sale). Let Cooper be about medicine and not all that other crap.

TJ

8:38 am on Sunday, January 27, 2013

I thought Cooper was a good hospital with honorable doctors and management. I'm glad iI saw this article. I will never use the hospital or any doctors affiliated with them again.

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Pundit

9:36 am on Sunday, January 27, 2013

If you need cardiac surgery, go to the Hospital of the University of Pennsylvania. Their cardiac doctors are among the best in the country. Both my father and brother received excellent care there. I was very disappointed by all of the care my father received at Cooper's cardiac care unit. I almost thought I was inside Our Lady of Lourdes - Willingboro. It was that bad. I would still use Cooper for routine surgery but not for anything serious like cardiac surgery.
The Cooper doctor wrongly told my father he was inoperable. Yet, he was operable as the Hospital of the University of Pennsylvania proved. I cannot stress too much how better the cardiac care is at the Hospital of the University of Pennsylvania.

Radiohead

2:47 pm on Monday, January 28, 2013

TW

You are clueless. There are no doctors taking any money from pharmaceutical companies to write painkillers. People
who abuse painkillers have only themselves to blame. Sure there are a few bad doctors out there. But pharmaceutical companies cannot even give pens or paper to docs anymore. Your statement is born of complete and utter ignorance .

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Radiohead

2:51 pm on Monday, January 28, 2013

DiPace does not need that money for whistle blowing.
I smell a rat. Are you kidding me??
He blew the whistle because it was way more lucrative to do so. Now if he donates the 2 million to charity then I will eat crow!!!

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