Patient Abuse/Medicaid Fraud Control Unit 26 Greg Metcalfe

Th is pu blication, printed by Central Printing, is issued by the Offi ce of the Attorney General. One thousand five hundred (1,500) copies have been printed at a cost of $3,954.00. Copies have been deposited with the Publications Clearinghouse of the Oklahoma Department of ibraries.

2 Inside

An Opportunity for Extraordinary Service 4 Attorney General Drew Edmondson

Consumer Protection Unit 6 Jane Wheeler

Criminal Appeals Section 10 Jennifer Miller

Honors and Awards 13

Environmental Protection Unit 14 Kelly Foster

General Counsel Section 18 Gay Tudor

Litigation Section 22 Sue Noland

Patient Abuse/Medicaid Fraud Control Unit 26 Greg Metcalfe

Multicounty Grand Jury Unit 30 Tom Bates

Tobacco Enforcement Unit 32 Clyde Kirk

Public Utilities Unit 34 Bill Humes

A National Stage: NAAG Participation 37

Victims' Services Unit 38 Susan Krug

Workers' Compensation/Insurance Fraud Unit 42 Karen Dixon

A Time of Change 44 Tom Gruber

3 The Attorney General's Office: An Opportunity for Extraordinary Service

"To the people of Oklahoma who have allowed me to do a job I love for so long, I offer gratitude and hope for the future. This office has never been about one person - certainly not me. In- stead, this office has always been and remains today about each of you and your children, and your grandchildren." Attorney General WA. Drew Edmondson

It is hard to believe that 16 years have gone by since I was first elected Attorney General. Sixteen years. For some people that's a lifetime, and while I have never taken my time in office for granted, now that the end is near, I realize how quickly the time has passed.

I ran for attorney general because I wanted to serve. By the time I was elected, I had already served as Muskogee County District Attorney, as a school teacher and in Vietnam as a member of the U.S. Navy. Service was something that was instilled in me almost from birth by my dad, Ed, who was a County Attorney, Congressman and a Navy veteran and by my mother, June, who served as a Navy WAVE during World War II.

Because I had been a practicing attorney, the attorney general's office seemed a natural fit. There were changes that I wanted to make that were both practical and philosophical in nature, but I did not in the beginning have a firm grasp of the opportunities the office would provide to serve future generations of Oklahomans.

When I came into the attorney general's office, I had made only one promise: to reform the appeals process in death penalty cases. Up until then, appeals in capital cases could only proceed in one court at a time, and for victims' families, the process seemed, and in some cases proved to be, endless.

These are families that had already endured the loss of a loved one, often in horrific ways, and I felt that we, as a state, had a duty to minimize the burdens placed upon them by our justice system. I was proud in 1995 and 1996, when we changed Oklahoma laws and then got Congress to pass reforms to the federal appeals process.

So, my one goal for the office completed, I began to think bigger.

I began to think first about other ways that we could help crime victims in Oklahoma, and I created the office's first-ever Victims Services Unit. In the beginning, the unit consisted of one person whose job it was to notify victims' family members about important milestones and opportunities for participation in criminal cases.

Today, the Victims Services Unit has grown into a six-person team overseeing the state's VINE system, our Address Confidentiality Program, certification for domestic violence service providers and training for law enforcement officers and medical professionals on how best to aid victims and survivors of crime.

4 Next I turned my attention to public health. In 1996 I joined a group of state attorneys general from across the country who were concerned with the advertising tactics being used by the country's largest tobacco manufacturers. The tobacco companies were using cartoon characters to sell their highly additive and deadly products. Think of that now - cartoon characters! The companies also sponsored events where the primary audience was made up of kids, and they did product placement in movies rated for children.

When a $206 billion national settlement was reached in 1998, I was proud to serve on the negotiating team for the states. To date, that settlement has brought nearly a billion dollars to Oklahoma. Better still, I worked with then State Treasurer Robert Butkin to create the Tobacco Settlement Endowment Trust Fund, so that the money recovered would be spent on its intended purpose - to protect and improve the public health.

It was a win for Oklahoma then. It still is today, and because of the trust, it will be for future generations of Oklahomans.

I hope one day the same will be said of the lawsuit we filed in 2005 against a dozen Arkansas poultry companies. I was concerned then, as I am today, about the companies' practice of dumping untreated waste from hundreds of thousands of birds each year. I believed they did so without consideration to Oklahoma water, and the untreated waste would wind up in the nearest lake, river or stream. As a result, the waters of eastern Oklahoma have morphed from being so clear that scuba divers spent time there to, in places, a bacterial sludge you wouldn't want to dip your big toe in, much less swim in or drink.

The poultry lawsuit has been a long, arduous battle but it isn't one I would take back. As a result of our efforts, the poultry companies have begun trucking out a percentage of their waste, and residents of eastern Oklahoma report an improvement in the appearance and smell of the water they hope to one day enjoy again without fear of contracting a bacterial infection.

I am also proud of the work we've done to put cutting-edge technology in Oklahoma classrooms through the Oklahoma Educational Technology Trust. That trust was created with the proceeds of a 2001 telecommunications settlement, and to date it has trained 2,300 teachers and 1,200 administrators and put software, computers and SmartBoards in the classrooms of more than 60,000 students.

The Office of the Attorney General has, for me, been an opportunity to impact, for the better, the lives and health of the citizens of Oklahoma. Not everyone gets that opportunity, and I am so grateful that for the last 16 years, it has been mine.

None of this would have been possible without the support and tireless efforts of the men and women with whom I had the privilege of working each and every day. The lawyers, the investigators and the support staff at the attorney general's office are some of the finest individuals I have ever known, and I know they will continue to improve lives long after I leave office. To these men and women, I offer my heartfelt thanks and congratulations on a job done so very well.

To the people of Oklahoma who have allowed me to do a job I love for so long, I offer gratitude and hope for the future. This office has never been about one person - certainly not me. Instead, this office has always been and remains today about each of you and your children, and your grandchildren.

It is my hope that that will remain the priority of this office for generations to come.

5 Consumer Protection Unit

The mission of the Consumer Protection Unit (CPU) is to protect consumers from fraudulent and unfair practices through law enforcement and education.

Jane Wheeler, Chief

The vision of the CPU is to be a responsive, cutting-edge organization dedicated to protecting the public and solving community problems through the education of consumers, fair enforcement of consumer laws and cooperation and coordination with other law enforcement agencies. Further, the unit envisions that the organization adheres to the highest standards of professionalism, competence and integrity.

In 1994, Attorney General Edmondson pledged to strengthen consumer protection in Oklahoma. He made good on the pledge by doubling the staff of the CPU in 1996 and by espousing consumer protection throughout the term. During this time, the CPU developed into a diverse unit, protecting consumers on several fronts and in new ways. In line with the "cutting-edge" vision, the Consumer Protection Unit accomplished many "firsts."

Investigations and Prosecutions

After the Attorney General hired experienced investigators and prosecutors, the CPU filed its first criminal cases. The Multicounty Grand Jury Unit assisted the CPU on one of the first cases: an investigation of Brenda and David Morgan, and their adoption service,"A Chosen AngeL" The investigation resulted in a 12 count felony indictment for child trafficking.

The CPU prosecuted other large criminal cases, including:

• State v. Ryan, et. aI., involving a scheme to steal credit card information from consumers and purchase goods with the stolen card numbers;

• State v. Frias-Payan, et aI., involving the solicitations of donations of used cell phones, which were sold for personal gain; and

• State v. Long, involving an auto repair shop.

One of the largest "firsts" was the CPU's criminal cases alleging securities fraud, brought against WorldCom and several individual defendants. Ten years ago the CPU began focusing on Internet fraud, training an investigator to trace defrauders. The CPU's success in this area is largely due to the thoroughness of the investigations. The unit also brought charges against several defendants for home repair fraud.

6 The CPU not only prosecutes criminal cases, but civil cases as well. Some of our civil cases are also "firsts:"

• After the ice storm of 2007, the CPU entered into an agreement with a hotel chain to resolve allegations of price gouging. The settlement provided for refunds to consumers or cou- pons for hotel stays;

• The CPU filed a lawsuit and ultimately settled with Pure Energy Labs, an Oklahoma City company, after receiving complaints from consumers across the country. The consumers com- plained that they were deceived after signing up for a free sample of weight reduction or sexual enhancement pills. The settlement required the company to change business practices, make refunds to consumers and pay $10,000 to the state as a penalty; and

• In State v. Access Resources, et aI., the State alleged that the defendants violated the Consumer Protection Act by engaging in unfair and deceptive trade practices in the billing for the psychic calls of "Miss Cleo." ARS agreed to stop soliciting for business in Oklahoma and provide about $20,000 in refunds to about 300 Oklahoma consumers and to dismiss several unpaid claims.

Complaint Processing

Processing of consumer complaints is a large part of the work of the unit. Reviewing complaints helps investigators identify patterns of deceptive activity. Many complaints, however, are about a lack of communication between the merchant and the consumer rather than fraud. From 1995 until August 2010, the staff processed nearly 49,000 written consumer complaints. Additionally, staff fielded more than 194,000 phone calls from businesses and consumers. The complaint process has been modernized, providing consumers the option to either mail in a complaint form or file the complaint online. An increasing number of consumers are choosing the online option.

Don't Call and Commercial Telemarketer Registration

Pursuant to the Telemarketer Restriction Act, the attorney general created the Don't Call program to register telephone numbers for consumers who did not want to receive telemarketing calls. The CPU maintains a database of numbers and provides it to telemarketers for a fee. The CPU also registers commercial telemarketers as mandated by the commercial telemarketer statute.

Special Projects

Reverse Boilerrooms in Oklahoma City and Tulsa

To educate seniors about telemarketing fraud, the Attorney General, American Association of Retired Persons (AARP) and other partners called 4,500 victims and other consumers, talked to them about fraud, and offered to send them informational packets.

7 Consumer Day At The Capitol

In January 2010, the CPU sponsored the sixth Consumer Protection Day at the Capitol. Agencies and private organizations set up tables in the Capi- tol to provide information to consumers. A docu- ment shredding company provided free shredding of consumers' personal documents all day. The highlight of the day was the awarding of the Brad Edwards Consumer Champion Award.

Disaster Response

When disaster strikes, consumers are vulner- able to scams. Those affected want their property repaired as soon as possible and those who want to help may become victims of charitable scams. Therefore, the CPU strives to move proactively with consumer alerts and to respond to problems as quickly as possible.

When a telemarketer in Las Vegas misrepresented to consumers that he was raising money for victims of the 1995 Murrah Building bombing, the CPU filed a lawsuit to stop the practice. When the 1999 tornado struck, attorney general investigators went out in the field to deter frauds. Lawyers worked with colleagues from the Florida Attorney General's Office to draft and pass a price gouging statute. When terrorists attacked New York on Sept. 11, 2001, CPU staff fielded thousands of calls about price gouging. When hail damaged thousands of roofs in May, 2010, investigators began collecting information on the out-of-state roofers that emerged after the storms.

Multistate Groups

The National Association of Attorneys General (NAAG) provides a way for states to work together on consumer and antitrust issues. We have been able to stretch scarce resources by joining with other states to investigate, litigate or settle consumer protection and antitrust cases.

8 Don't Call Comes to Oklahoma In 2002, Oklahomans for the first time could say "don't call" to unwanted telemarketing solicitations.

Attorney General Drew Edmondson Sept. 16, 2002, kicked off the Oklahoma Telemarketer Restriction Act Consumer Registry, allowing Oklahomans to register their telephone numbers for the program designed to prohibit most telemarketing calls. - In the first week of registration, more than 200,000 telephone numbers were on the list and the number jumped to more than 320,000 by the end of the first month. Over the years, the count has risen to almost 650,000 registered telephone numbers. - "We knew this program would be widely popular in the beginning and its popularity has not faded," Edmondson said. "The program has been successful, especially in reducing the volume of bothersome telemarketing calls."

While most telemarketing companies have complied without incident, some enforcement action has been necessary.

Just 10 days after the new law's enforcement date, Mortgage Investors Corp. of St. Pe- tersburg, Fla., was the first telemarketer to be charged with violating the young statute. The company eventually settled the state's case, paying a $10,000 fine.

9 Criminal Appeals Section

The Criminal Appeals Section represents the state in the criminal appeals process to ensure that the decisions rendered by judges and juries are upheld in the appellate courts. Jennifer Miller, Chief

Under the administration of Attorney General Edmondson, the Criminal Ap- peals Section has been extremely busy fulfilling its purpose of representing the State of Oklahoma in the appeal of all criminal convictions, capital and non-capital, in both state and federal courts. In addition, the section has represented the wardens of prison facilities when inmates challenge the outcome of disciplinary proceedings and has represented judges in petitions for extraordinary writs. The section has filed more than 11,500 briefs in both federal and state courts. The section has had an affirmance rate of approximately 95 percent.

In addition to writing appellate briefs, the attorneys in the Criminal Appeals Section are routinely required to appear in state and federal courts. The attorneys represent the state in state and federal evidentiary hearings. In addition, the attorneys are often required to orally argue cases before the Court of Criminal Appeals, as well as the Tenth Circuit Court of Appeals. Every capital case is orally argued before such courts. The capital attorneys also represent the state and advocate for execution at clemency hearings held before the Oklahoma Pardon and Parole Board.

While representing the state, the section has routinely dealt with numerous legal issues including, but not limited to, ineffective assistance of trial and appellate counsel, prosecutorial misconduct, in- sufficiency of the evidence, instructional issues, evidentiary issues, and Fourth Amendment issues. Fourth Amendment cases, which concern an individual's right to be protected against unreasonable search and seizures, have continued to evolve. Several cases have involved issues of first impres- sion. Such cases include:

• Jacobs v. State, 2006 OK CR 4, 128 P.3d 1085 - In Jacobs, the Court of Criminal Appeals held that even if a traffic stop is illegal, the police can learn of a defendant's name and, if disclosure of that name leads to discovery of an outstanding warrant for the defendant's arrest, any evidence discovered during the execution of the arrest warrant can be used against the defendant.

• Defries v. State, 2006 OK CR 13, 133 P.3d 887 - In Defries, the Court of Criminal Appeals held that the subjective motivation for an officer stopping a vehicle is irrelevant to the legality of the stop. If an officer has probable cause to believe a driver has violated a traffic law, stopping the vehicle is lawful regardless of the officer's subjective motivation for the stop.

--. Coffey v. State, 2004 OK CR 30,99 P.3d 249 - In Coffey, the Court of Criminal Appeals adopted the public safety exigent circumstance to a search warrant requirement. The case dealt with a clandestine methamphetamine lab. The Court held that the exception to the warrant require-

10 ment would exist where evidence shows (a) there is an odor associated with the manufacture of methamphetamine; (b) the officers are aware of the volatile nature of the chemicals and potential danger to the public; and (c) there is a possibility that persons in the area might be in danger from the chemicals.

Some uncommon issues the section responded to included notification under the Vienna Con- vention on Consular Relations and execution of the alleged mentally retarded. In dealing with these issues, action was taken to make certain all laws were properly followed. For example, in dealing with the Vienna Convention on Consular Relations procedures were put in place to educate law enforcement on their responsibilities pursuant to the international treaty. Further, when the Supreme Court of the United States held execution of the mentally retarded unconstitutional, the section began working on legislation, which defined and established procedures dealing with mental retardation and the death penalty.

The Criminal Appeals Section has been instrumental over the last 16 years in seeking and obtaining the following legislative changes:

• In 1995, our office requested, actively sought and was successful in obtaining changes to our state capital post-conviction statute. The changes assisted in speeding up the process so that capital cases would be decided in a timely manner.

• In 1996, our office was instrumental in the implementation of the Antiterrorism and Effective Death Penalty Act of 1996. This Act placed time limitations and other restrictions on filing petitions for writ of habeas corpus in federal courts.

• In 2002, our office requested and obtained an amendment to the statute which provides when executions shall be scheduled. The amendment was necessary to provide a more efficient procedure for when the governor or a federal court issued a stay of execution.

• In 2004, our office requested and obtained an amendment to the capital post-conviction statute to remedy issues raised by the Tenth Circuit Court of Appeals. Specifically, the Tenth Circuit had challenged how our state courts were dealing with claims of ineffective assistance of counsel on post-conviction. This statutory amendment assisted in re- solving the issue.

• In 2006, our office successfully obtained statutory law on definitions, as well as procedures, dealing with mental retardation and the death penalty.

Another change under the administration of Attorney General Edmondson was an increased focus on victim services. A victim-witness coordinator was hired to serve as a contact for family members of murder victims in capital crimes. The coordinator provides information to the families

11 about the appellate process, attends court hearings with the family and prepares the families for clemency and the execution process.

In addition to the duties discussed above, the Criminal Appeals Section has been called upon to assist in other ways. In 2000, allegations were made against Joyce Gilchrist, a chemist with the Oklahoma City Police Department. The allegations concerned whether Ms. Gilchrist had fraudulently or carelessly erred in the testing she conducted in many Oklahoma, Cleveland and Canadian County cases. Our office teamed up with the Oklahoma State Bureau of Investigation and the Oklahoma Indigent Defense System to review approximately 566 criminal cases. In the capital arena, cases of ten inmates who had already been executed were reviewed. In addition, thirteen current capital cases were reviewed.

The allegations against Ms. Gilchrist and the investigation resulted in General Edmondson imple- menting a DNA policy which provides that an execution date will not be requested in any capital case until the case has been reviewed by an assigned attorney, as well as General Edmondson, to determine whether further DNA or any other testing is necessary.

Since 1995, the State of Oklahoma has executed 89 inmates. The following is a breakdown of executions by year:

1995 - 3 1999 - 6 2003 - 14 2007 - 3 1996 - 2 2000 - 11 2004 - 6 2008 - 2 1997 - 1 2001 - 18 2005 - 4 2009 - 3 1998 - 4 2002 - 7 2006 - 4 2010 - 1*

* As of press time

12 Honors and Awards

Over the last 16 years, employees of the attorney General's Office have received dozens of awards for their service to Oklahoma:

1996 - Sandra Howard Rinehart, Recognition for Service as a U.S. Supreme Court Fellow, National Association of Attorneys General 1996 - Sandra Howard Rinehart, Regional Vice President's Appellate Advocacy Award, Region I, Association of Government Attorneys in Capital Litigation (AGACL) 1999 - Bill Humes, Appellate Award for Outstanding Advocacy in Capital Cases, AGACL 1999 - Kelly Foster, Wendell Bever Award, Oklahoma Wildlife Federation 2000 - Jane Wheeler, Marvin Award, National Association of Attorneys General 2003 - Jennifer Miller, Appellate Award for Outstanding Advocacy in Capital Cases, AGACL 2003 - Drew Edmondson, Lela Roddy Special Recognition Award, CASA 2003 - Drew Edmondson, Marian Opala First Amendment Award, Freedom of Information Oklahoma, Inc. 2003 - Linda Samuel-Jaha, Spotlight Award, Oklahoma Bar Association 2004 - Kelly Foster, State/EPA Strategic Partnership Award, EPA 2004 - Allyson Carson, Governor's Commendation, Crime Victims' Rights Week 2004 - Elizabeth Sharrock, Outstanding Barrister, The Ruth Bader Ginsberg American Inn of Court 2004 - Robert Whittaker, Appellate Award for Outstanding Advocacy in Capital Cases, AGACL 2004 - Drew Edmondson, Okla. Public Elected Official of the Year, National Association of Social Workers 2004 - Drew Edmondson, Advocate for Academic Freedom Award, Oklahoma Education Association 2004 - Drew Edmondson, Vision to Action Award, Center for Practical Bioethics 2004 - Drew Edmondson, Paul H. Chapman Award, Foundation for Improvement of Justice 2004 - Drew Edmondson, Public Policy Award, National Hospice and Palliative Care Organization 2005 - Drew Edmondson, Nathan Davis Award, American Medical Association 2005 - Drew Edmondson, Champion for Pain Relief Public Awareness Award, American Alliance of Cancer Pain Iniatives 2005 - Drew Edmondson, Kelly-Wyman Award, National Association of Attorneys General 2005 - Drew Edmondson, Bright Shining Star Award, Okla. Coalition Against Domestic Violence and Sexual Assault 2005 - Bryan Neal, Award for Service, Oklahoma Association of Municipal Attorneys 2006 - Bryan Neal, Agents Association Award, ABLE 2006 - Jane Wheeler, Doves Award, Friends of Early Settlement 2006 - Drew Edmondson, Home Run Hitter Award, Okla. District Attorneys Council 2006 - Drew Edmondson, Jim Barker Award, Okla. Coalition Against Domestic Violence and Sexual Assault 2006 - Drew Edmondson, John and Emma Bonica Public Service Award, American Pain Society 2007 - Allyson Carson, Non-Commissioned Woman of the Year, Okla. Women in Law Enforcement 2007 - Drew Edmondson, Award for Service, Internet Keep Safe Coalition 2007 - Drew Edmondson, Award for Service, YWCA of Oklahoma City 2007 - Tom Gruber, Marvin Award, National Association of Attorneys General 2008 - Drew Edmondson, Friend of Nursing Award, Oklahoma Nurses Association 2008 - Drew and Linda Edmondson, William G. Paul Okla. Justice Award, Oklahoma Bar Association 2008 - Drew and Linda Edmondson, 50 over 50 Award, AARP Oklahoma 2008 - Drew Edmondson, J.F.K. Community Service Award, Knights of Columbus 2008 - Drew Edmondson, National Aging and Law Award, National Aging and Law Association 2008 - Robert Whittaker, Directors Award for Law Enforcement, Okla. State Bureau of Investigation 2008 - Tina Izadi, President of the Young Lawyers Division, Oklahoma Bar Association 2008 - Medicaid Fraud Control Unit, Compliance Award, U.S. Dept. of Health and Human Services 2008 - Tamatha Mosier, Together We Can Award, OKC Catholic Archdiocese 2010 - Susan Damron Krug, Governor's Commendation, Crime Victims' Rights Week 2010- Seth Branham, Appellate Award for Outstanding Advocacy in Capital Cases, AGACL

13 Environmental Protection Unit

The Environmental Protection Unit works to protect Oklahoma's natural resources and provides legal representation to state environmental agencies.

Kelly Foster, Chief

Attorney General Edmondson created the Environmental Protection Unit (EPU) in 1996 to provide the state and its agencies with specialized legal advice and representation on environmental issues. Soon after forming the EPU, the attorney general added a criminal investigator to the staff in order to work with local, state and federal agencies to investigate the most egregious violations of Oklahoma's environmental laws. Attorneys in the EPU have been assigned to work with cabinet officials and state environmental agencies on a broad range of issues affecting the environment, including assistance with administrative enforcement, civil litigation and general counsel. Attorneys in the EPU have also drafted numerous Attorney General Opinions on environmental issues such as biomedical waste, waste tires, animal feeding operations, groundwater use, environmental setbacks, county zoning authority, solid waste and wildlife issues.The EPU has focused many of its efforts on pollution of Oklahoma's land and water caused by agricultural operations. For example, the EPU:

• Initiated a federal lawsuit against fourteen poultry companies to stop and cleanup pollution of the Illinois River Watershed caused by the annual disposal of more than 300,000 tons of animal waste in the watershed. The case was tried from September 2009 through February 2010 and a ruling by the trial court is pending. The EPU also assisted in successfully opposing the State of Ar- kansas' motion for leave to file an original action in the U.S. Supreme Court to enjoin Oklahoma's lawsuit against the poultry companies.

• Obtained a settlement with Simmons Foods to establish phosphorus and other pollutant limits in its Missouri poultry processing plant permit to discharge wastewater to Cave Springs Branch, a tributary of Honey Creek and Grand Lake. Simmons also agreed, among other things, to pay $300,000 to resolve the state's monetary claims, including $50,000 for residents to improve private water wells in the watershed.

• Obtained a settlement with Moark Productions, Inc. and contractor James Childers to close and clean up an unpermitted and unregistered poultry feeding operation near Miami.

• Challenged issuance of a Seaboard Farms Inc.'s swine CAFO permit to operate next to the Beaver River Wildlife Management Area before the Board of Agriculture and in district court obtaining a settlement that resulted in replacement of waste lagoons, modified land application practices, monitoring and odor-abatement practices.

• Conducted an administrative enforcement action against the Hanor Roberts Ranch swine

14 CAFO for numerous alleged violations of state law including illegal waste discharges, land application and lagoon leakage resulting in substantial modifications of the facility, prohibition on further land application and a fine of $360,000.

• Reached a settlement with Seaboard Farms, Inc. to address challenges to its water and CAFO permits at Wakefield Sow Farm that placed limits on land application, modified lagoon leak detection, required covering of certain lagoons and required certain odor-control technology.

• Conducted an investigation and enforcement action with the Department of Agriculture against Seaboard Foods swine facilities in Major and Kingfisher Counties alleging 11 violations involving management of wastewater and animal waste. The action was estimated to result in Seaboard investing about $6.9 million in environmental improvements at seven facilities and a payment of $180,000 in penalties and damages.

•Conducted an investigation and enforcement action against Cimarron Pork, Inc. alleging improper carcass disposal and illegal wastewater discharges resulting in a settlement wherein the company spent nearly $1 million for clean up.

• Conducted an administrative action with the Department of Agriculture against Alan Ritchey Dairy in Yuba resulting in a settlement closing and cleaning up the site, a $100,000 fine, and $45,000 for construction of an outdoor classroom.

• Assisted the Oklahoma Secretary of Environment in negotiating an agreement with the State of Arkansas to reduce phosphorus pollution in the Illinois River Watershed, including plac- ing phosphorus limits on wastewater treatment plants that were estimated to reduce loading by 75 percent.

• Provided oral and written testimony to the U.S. House Energy and Commerce Subcom- mittee on Environment and Hazardous Materials on proposed exemptions of animal waste from CERCLA and coordinated a multi-state letter from attorneys general in California, Connecticut, Kentucky, New Jersey, New Mexico, Oklahoma, and Wisconsin expressing concerns with the exemptions.

The EPU has worked to cleanup contamination at a number of former industrial and other sites across Oklahoma. At the Tar Creek Superfund Site, the EPU represents the DEQ and the Secre- tary of Environment on cleanup, cost recovery and natural resource damages. The EPU assisted in the formation of the Oklahoma Trustee Council and the Tri-State Partnership to facilitate cooperation between three states, eight tribal governments and two federal agencies on natural resource damage issues. The EPU, in conjunction with the other governments, settled the state's claims against one of the responsible mining companies, Asarco, L.L.C., in a bankruptcy proceeding recovering $8.8 million for cleanup costs and Oklahoma specific NRD and more than $28.6 million in joint NRD for the Oklahoma Trustees. In addition, the EPU:

• Finalized a settlement allowing a claim for $700,000 to resolve the State's claims for natural resources damages caused by the release of petroleum and hazardous substances at the abandoned Cyril Refinery from the APCO Liquidating Trust in a Delaware bankruptcy proceeding.

15 • Worked with the EPA and Department of Justice in handling the litigation involving the Dou- ble Eagle Superfund Site in Oklahoma City. The EPU represents the ODEQ in its response cost claim and the Oklahoma Secretary of Environment for natural resource damage at the former refinery. Following years of litigation, the DOJ and EPU recently negotiated settlements in the Double Eagle case with Union Pacific and other responsible parties for approximately $24.7 million for the federal and state parties.

• Handled litigation against North Tulsa Landfill to close the facility until required upgrades estimated at $3.7 million could be implemented to bring it into compliance with state law.

• Challenged a plan to decommission and reclaim a uranium conversion facility before the Nu- clear Regulatory Commission and the 10th Circuit Court of Appeals resulting in a mediated settlement requiring offsite transfer of certain waste and other modifications to protect human health and the environment.

• Challenged a permit to mine gravel from a scenic river by successfully obtaining an agreement to keep the operation out of the stream channel.

• Assisted the DEQ with several enforcement actions including actions to address out-of-state waste transfers, raw sewage overflows, and unsafe public water supplies.

The EPU has also been involved in issues involving the use of groundwater or surface water across Oklahoma. For example, attorneys in the EPU:

• Assisted the office in defending the constitutionality of a state law protecting the Arbuckle Simpson aquifer as a sole source groundwater aquifer in the case of Jacobs Ranch, L.L.C. v. Smith, et aI., 2006 OK 34, 148 P. 3d 842 (2006).

• Filed an amicus brief in the case of Messer-Bowers Co., Inc. v. State, 2000 OK 54,8 P.3d 877 (2000), arguing that the Water Board was required to determine whether waste by pollution would occur from all groundwater uses at a swine operation and the Oklahoma Supreme Court so held remanding the case for such a determination by the Board.

• Represented the Department of Wildlife before the Water Board in a challenge to the issuance of a permit to withdraw water from a scenic river resulting in the first and only minimum in- stream flow limit on a water permit in Oklahoma.

• Filed a brief in the case of Heldermon v. Wright, 2006 OK 86, 152 P. 3d 855 (2006) successfully arguing in the Oklahoma Supreme Court that the OWRB must receive notice of cases involving stream water rights so that the attorney general may intervene to protect the public interest.

16 In 1997, the EPU assisted in forming the Oklahoma Environmental Crimes Task Force (OECTF) in partnership with numerous local, state and federal agencies.

An attorney in the EPU served as Chairperson of the OECTF from its inception in 1997 until 2003 and the EPU criminal investigator worked on joint investigations with participat- ing agencies. From 1997 through 2010, the OECTF or the EPU in conjunction with the U.S. EPA Criminal Investigation Division or other entities have conducted 142 criminal investigations resulting in 56 prosecutions by state or federal prosecutors. Criminal cases ---1 have resulted in individual convictions on 110 felony and 21 misdemeanor counts and corporate convictions on 10 felony and three misdemeanor counts. Criminal sentences ---.J include more than $8 million in fines and 28 years of jail time.

Cases include:

• Worked with the U.S. EPA, U.S. Department of Justice and the U.S. Attorney's Of- fice for the Northern District of Oklahoma to investigate Sinclair Tulsa Refining Company --1 for violations of the Clean Water Act relating to wastewater discharges from its refinery in Tulsa resulting in a federal prosecution and guilty pleas by Sinclair to two felony counts and two managers to one felony count each for manipulating wastewater discharges into the Arkansas River. Sinclair was sentenced to two years probation and ordered to pay a $5 million fine and $500,000 for community service. The managers were both sentenced to six months home detention and three years probation, as well as ordered to pay fines and to do community service.

• Worked with the Multicounty Grand Jury Unit and the U.S. EPA to investigate and prosecute Kerrville Painting Company and its owner, Nick Muskie, on one felony count of unlawful disposal of hazardous blasting waste containing lead. He was ordered to serve a two-year sentence and pay $100,000 in restitution after pleading guilty.

• Worked with the Multicounty Grand Jury Unit and the Oklahoma Department of En- vironmental Quality to investigate and prosecute Keith Jones, President of Environmental River Erosion Control, resulting in a guilty plea and convictions for fraudulently billing the Oklahoma Tax Commission for reimbursement from the Waste Tire Indemnity Fund. He was ordered to pay more than $110,000 in restitution, serve 60 days in jail and perform 100 hours of community service.

• Worked with the U.S. Environmental Protection Agency and the Oklahoma De- partment of Environmental Quality to investigate two Elk City officials for violations of the Clean Air Act for using inmates to remove asbestos at the Rock Island Railroad Depot in Elk City. The investigation resulted in a federal prosecution and a conviction of the city manager for negligent endangerment of the inmates and a city supervisor for negligent endangerment and a felony count of making false statements to investigators. The city manager was sentenced to serve six months in federal prison and a $15,000 fine. The city supervisor was sentenced to eight months in federal prison, two years.of supervised release and 104 hours of community service.

17 General Counsel Section

In addition to several specialized duties, the General Counsel Section provides day-to-day legal advice for state agencies, boards and commissions.

Gay Tudor, Chief

The attorneys in the General Counsel Section provide legal representation to at least 150 agencies, boards and commissions. The functions of these agencies are diverse and their responsibilities involve a wide range of legal issues. General Counsel Section attorneys have expertise in many areas of the law and assist the agencies in navigating the complexities of operating a governmental entity. The current chief of the section, Gay Tudor, was appointed by Attorney General Edmondson in 1997 from within the section.

As part of their representation, General Counsel attorneys present cases or advise professional licensing boards in hearings involving the discipline of professional licensees. Professionals found guilty of violating the laws of their profession can be disciplined up to and including revocation of the professional license in order to protect the public.

The attorney general is charged by statute with providing a written Opinion on questions of law at the request of agencies, boards, commissions, district attorneys and legislators, and most of these Opinions are written by General Counsel attorneys. Because an official Opinion has the force of law, the process for issuing the Opinions is thorough and demanding. An attorney is assigned to research and write the Opinion, then it is brought to a conference made up of seasoned attorneys in the office, as well as the attorney general and the first assistant. Only after the Opinion has been thoroughly critiqued and analyzed by the conference and agreed on by the Attorney General is it issued. The Opinions of Attorney General Edmondson comprise 16 volumes, beginning in 1995, and are not only the law for state agencies but are excellent sources of legal analysis and scholarship.

From the beginning of his tenure as Attorney General in 1995, Attorney General Edmondson has been an advocate of openness in government. General Counsel Section attorneys are constantly educating and advising boards and agencies on Open Meetings and Open Records laws. In addition, the section has assisted the attorney general in presenting state-wide seminars for the public on the openness laws. The seminars were offered in 1998, and every other year beginning in 2001 through 2009, each time in 10 to 12 cities around the state, educating thousands of citizens including public officials about these important laws.

Bond Work

As Oklahoma's statutory Bond Commissioner, the Attorney General reviews and approves transcripts for all bonds issued by school districts, cities, towns, counties and the state paid from ad valorem or other voter-approved taxes, and by law, also reviews bond issues of most state agen-

18 cies and higher education institutions where bonds are repaid by annual legislative appropriations or revenues received from facility operations.

For example, almost all school buildings, school buses and items of school capital equipment are financed with "general obligation" school bonds voted by patrons and approved by the attorney general. State-agency revenue bonds, in which bond payments are derived from operation of buildings, utility systems or other facilities by the issuer are also reviewed by the attorney general's office. Since 2002, one of the more experienced bond attorneys in Oklahoma has served as assistant attorney general helping review these transactions. --' Since January 1995 the attorney general's office has reviewed more than 150 transcripts per fiscal year, with an all-time high in FY 2010 of 273 transcripts reviewed, providing assurance to issuers, bond purchasers and the public that bonds of the state and of state and local governmental agencies are being properly issued in full compliance with established laws and procedures. In addition, the office has assisted in the development of innovative types of bond issues saving money --' for taxpayers and users of revenue-generating facilities or programs, such as GRDA electrical generating facilities, buildings of higher education institutions, state highways and buildings oper- ated by state agencies. --' While financial conditions in the past few years have brought challenges to state and local agencies in meeting budgets and planning for new facilities, the period has also seen record-low interest rates on bonds, bringing opportunities to refinance or refund existing indebtedness, reducing the cost of debt payments, similar to savings seen by homeowners from refinancing a home mortgage loan at a lower interest rate.

In cooperation with the office of the State Bond Advisor, the attorney general's office has helped numerous state and local agencies refund or otherwise refinance outstanding indebtedness, resulting in significant debt service savings to taxpayers and users of financed facilities. For example, since 1998 the attorney general's office has assisted in six or more transactions to refund outstanding bonds of state agencies, resulting in net present value savings of more than $39 million. These savings represent amounts not required to be paid from increased taxation or increased fees for usage of the financed facilities. Despite necessary budget cuts and other cost-saving measures caused by the ravaging effects of recent economic conditions, Oklahoma's financial condition remains sound. Recent actions by two of the national rating agencies affirmed Oklahoma's strong bond ratings.

In addition, several recent restructuring or refunding transactions have resulted in substantially lower principal and interest payments during fiscal years 2011 and 2012 when financial stress on agencies is expected to be particularly great, resulting in lessened revenue requirements or legis- --' lative appropriation needs for these periods. For instance, in 2010 the attorney general's office assisted in restructuring issues of two state agencies resulting in combined cash flow relief of more than $67 million in FY 2011 and FY 2012, money which did not have to be appropriated by the Legislature for such items as building or facilities leases or debt service. Thus the attorney general has helped agencies find significant relief in times of high financial stress. --'

End of Life Health Care

When asked about our expectations for end-of-life care, most of us share the same vision: to be free of pain; to be at home surrounded by family and friends; and to have our wishes known and

19 honored. Despite these expectations, statistics show most of us die in a health care facility, experi- encing pain and isolated from loved ones.

As president of the National Association of Attorneys General (NAAG) in 2002-2003, Attorney General Edmondson selected as his presidential initiative end-of-life care. Understanding that the desire for quality end-of-life care was generally not the reality, the cornerstone of Attorney General Edmondson's initiative centered on three regional listening conferences to provide an opportunity for attorneys general to hear compelling stories recounted by families who were thwarted in efforts to fulfill the final wishes of loved ones. Attorney General Edmondson believes, as the highest law officers in their respective states, attorneys general have a duty to protect consumers, including the dying. The conclusion of Attorney General Edmondson's term as NAAG president culminated in a comprehensive report entitled "Improving End- of-Life Care: The Role of Attorneys General," which summarized the information provided at the listening conferences and provided suggestions for attorneys general to improve end-of-life care in their respective states.

Following Attorney General Edmondson's term as NAAG president, he continued to be at the fore- front of end-of-life care issues. In April 2004, Attorney General Edmondson invited 15 health and legal professionals from around Oklahoma to join him on a task force to investigate barriers to quality health care for Oklahomans nearing the end or their lives. The task force listened to experts and submitted specific recommendations to address the barriers the task force found to advance decision-making for end-of-life care. One of the primary recommendations of the task force was the issuance of Attorney General opinions to clarify the laws regarding advance directives in Oklahoma.

In January, 2005, General Edmondson joined with 29 state attorneys general and the attorneys general for the District of Columbia and Puerto Rico in a letter to Karen Tandy, Administrator of the Drug Enforcment Agency (DEA). The letter expressed concern over the emphasis on enforcement in the DEA's policy statement on dispensing controlled substances for the treatment of pain, believ- ing it could have a chilling effect on physicians providing adequate pain management at the end of life. On April 12, 2005, Attorney General Edmondson and others met with Tandy to discuss the states' concerns over the DEA policy. Attorney General Edmondson has continued to advocate for a balance between prevention of drug abuse and patients' ability to receive the care they need and deserve, stating "overaggressive enforcement in combating diversion without sensitivity to needs and perceptions within the medical community, hampers effective pain management by causing medical practitioners to alter medical treatment, which leads to inadequate pain management."

On April 6, 2006, Attorney General Edmondson issued an Attorney General Opinion, 2006 OK AG 7, concluding the Oklahoma Rights of the Terminally III or Persistently Unconscious Act, 63 O.S. 2001 & Supp.2005, §§ 3101.1 - 3102A, was unconstitutional to the extent it limited an individual's right to refuse artificially administered hydration and nutrition in advance of incapacity to instances in which an individual had a terminal condition or was persistently unconscious. Immediately fol-

20 lowing the issuance of the Opinion, representatives of the attorney general's office negotiated with Oklahomans for Life representative Tony Lauinger to draft a revision to Oklahoma's law to guaran- tee an individual's right to refuse artificially administered hydration and nutrition in advance of incapacity resulting from an end-stage condition such as Alzheimer's. This law revision, the Oklahoma Advance Directive Act, was introduced in the House on April 25,2006, and signed into law by the Governor on May 17, 2006, less than six weeks after the Attorney General declared the prior law unconstitutional.

The attorney general followed up with two more official Opinions, 2006 OK AG 32 & 2006 OK AG ~ 24, providing guidance to Oklahoma citizens about the new Oklahoma Advance Directive Act.

Since 2002, Attorney General Edmondson has maintained a health policy coordinator to serve as a contact to answer end-of-life questions from consumers and healthcare providers. In addition, the attorney general's website has maintained links to important end-of-life resources for Oklaho- ma consumers and healthcare providers.

In 2004, Attorney General Edmondson received the Dr. Nathan Davis Award from the American Medical Association, which is awarded to a statewide elected official for outstanding contributions in promoting the art and science of medicine and the betterment of the public health. In 2008, Attorney General Edmondson received the National Aging and Law Award from the Amercian Bar Association for his work to ensure that older Americans "have their wishes known and honored regarding the types of medical procedures they wish to receive and have assurances that their pain will be controlled." Because of his expertise in end-of-life care, Attorney General Edmondson was asked to testify before the U.S. Senate Special Committee on Aging in 2008.

During his term, Attorney General Edmondson has helped reduce the amount of human suffering in Oklahoma.

21 Litigation Section

The Litigation Section defends and prosecutes the state's civil matters. The section also works to recover monies wrongfully taken from the state and supports litigation on behalf of the state in every county and jurisdiction.

Sue No/and, Chief

Cases handled by the Litigation Section include a full range of civil matters affecting the State. Litigation on behalf of the state is supported in every county, the Oklahoma Supreme Court, every federal district court in the state, the Tenth Circuit Court of Appeals, the U. S. Supreme Court and in other state jurisdictions.

Since 1985 when the state became generally liable for the tortious conduct of its employees, the At- torney General and the Litigation Section have had the responsibility of defending the state against suits and claims prosecuted under the Oklahoma Governmental Tort Claims Act, 51 O.S. 2001, §§ 151 et seq. The Office of the Attorney General also defends state employees when sued for alleged civil rights violations that occurred in the performance of their official capacity and represents state judicial officers, District Attorneys, Legislators, and the executive branch of state government when sued in both their official and individual capacities.

A majority of the more complicated and costly trials come from allegations surrounding the hiring, firing and promotion of state employees. The Litigation Section has worked to uphold numerous constitutional challenges including challenges to the state ban on chicken fighting; "right to work" laws; abortion; immigration; marriage; term limits; and, education. This section of the attorney general's office also has the responsibility of handling and directing major class action litigation filed against institutions including the challenges to the juvenile justice system.

In compliance with the Oklahoma Governmental Tort Claims Act, hundreds of tort claims are filed each year with the Department of Central Services' Risk Management Division. A member of the Litigation Section is responsible for reviewing claims, directing investigations, negotiating settlements and denying claims. Since January 1995, approximately 21,263 tort claims and more than 4,000 director and officers' claims have been filed with the Risk Management Division of the De- partment of Central Services. All claims filed have been reviewed by a member of the Litigation Section who is also assigned to give legal advise to Risk Management.

Between January of 1995 and October of 2010, there have been approximately 7,396 civil litigation cases defended by the Litigation Section. The following are highlights of some of the cases handled by the Litigation Section.

• When Attorney General Edmondson took office, the Oklahoma Attorney General's Office had been defending a case for 23 years, wherein the court had previously found that the conditions at the Oklahoma State Penitentiary (OSP) were unconstitutional and entered an injunction ordering remedial action to correct the conditions. The court had also ordered the state to reduce the popu-

22 lation at OSP and the Oklahoma State Reformatory (OSR).

In 1996, under the direction of Attorney General Edmondson, the state moved for dismissal of the case based upon the Prison Litigation Reform Act. With guidance and direction from the attorney general, the Litigation Section applied to the US Supreme Court to accept certiorari on the motion to dismiss based on the PLRA changes to inmate litigation. In October 1996 the U.S. Supreme Court granted certiorari, vacated the judgment and remanded the case to the Tenth Circuit Court for further consideration in light of the Prison Litigation Reform Act. In November of that same year, the Tenth Circuit Court re-adopted its previous conclusion and affirmed its earlier order, remanding the case to the district court for hearing.

In February 1999, the parties entered into a tentative settlement agreement. However, the Board of Corrections declined to sign the agreement because it required an expenditure of funds which it did not have. When the board declined to sign the agreement, the plaintiff's attorney filed a motion for emergency relief on claims regarding adequate medical care. As a result of the filing, hearings were conducted. Prior to the conclusion of the plaintiff's case in chief, the Oklahoma Legislature passed a supplemental appropriation of approximately $7.2 million. The hearings were continued until June to allow the De- partment of Corrections ( DOC) to implement new policies with the additional funds. In t June, the attorney general and First Assis- tant Attorney General Tom Gruber negotiated a proposed agreement for the conclusion of the litigation. Hundreds of objections were filed by inmates. DOC withdrew support for the agreement and moved for dismissal of the case. Hearings began in March 2000 to consider final disposition and concluded in August.

On January 26, 2001, U.S. District Judge Michael Burrage ruled there were no current or ongoing constitutional violations. The court granted the state's motion to terminate prospective relief under the Prison Litigation Reform Act, and terminated all prospective relief related to the health care delivery system in Oklahoma prisons. The judge cited a substantial change in the level of care provided in May 1999 precipitated by funding from the state legislature to address concerns with inmate medical care.

In 2001, the case was concluded when DOC entered into a Memorandum of Understanding with the United States regarding overcrowding; conditions of confinement including life, safety, health and sanitation; and racial segregation and discrimination. The United States agreed to stipulate to the federal court that DOC is in constitutional compliance in these areas and also agreed to stipulate to the termination of the injunctions relating to these issues. DOC agreed to make changes to its housing policy which included consideration of certain other factors (crimes, number of prison confinements, age, physical stature, known medical needs) when making housing assignments. DOC also agreed to continue monitoring the housing policy and practices.

23 • In 1990 a class action consent decree resulted in the closure of the Hissom Memorial Cen- ter, a Sand Springs intermediate case facility for the mentally retarded. Under the direction of Attorney General Edmondson, the Litigation Section participated in formal settlement negotiations which resulted in the end to federal court supervision of the state program and brought the case to a successful conclusion in 2007.

• In 2004 the Litigation Section brought suit against Magnolia Marine Transport Company, Ergon, Inc., and William Joe Dedmon in the Arkansas River 1-40 bridge collapse incident. After discovery was completed the defendants settled with the state for $4.5 million to resolve the state's allegation that negligence led to the May 2002 collision.

• Under the direction of the attorney general, the Litigation Section defended the state in a challenge to the state's semi-closed primary election law. At issue was the state's challenge to a Tenth Circuit Court of Appeals' ruling declaring the state's primary election system unconstitutional. By a 6-3 vote, the United States Supreme Court reversed the decision of the Tenth Circuit and upheld the constitutionality of Oklahoma's primary election system.

• During Attorney General Edmondson's terms of office, the Litigation Section has defended several provisions of the state's abortion law. Challenges were made on liability for performing an abortion on a minor without parental consent or knowledge, the ultra sound requirement, reporting requirements and on single subject violations.

• This section has defended numerous claims regarding the sex offender registration law. The causes of action ranged from misapplying the law to violations of the privileges and immunities clause of the US Constitution and violations of due process and equal protection.

• The Litigation Section and the Criminal Appeals Section have worked together on several lethal injection lawsuits filed against the Director of the Department of Corrections and the War- den of the Oklahoma State Penitentiary. The first lethal injection case came as an eleventh hour

24 civil rights lawsuit, which was filed by a death row inmate in an attempt to halt his execution. The hearing to stay the execution was held on the day the execution was scheduled. Attorneys for the inmate argued that the lethal injection procedure amounted to cruel and unusual punishment, a violation of the Eighth Amendment. The U.S. District Court halted the execution, but within hours the case was appealed to the Tenth Circuit Court of Appeals and the Tenth Circuit reversed the lower Court's decision. The execution took place as planned.

The Litigation Section and the Criminal Appeals Section continue to work together on defending the lethal injection statutes and the protocol used by the Department of Corrections in carrying out the executions.

• The Litigation Section defended the Department of Public Safety and the Board of Tests in a class action suit wherein the members of the class alleged the Guth 2100, an intoxilyzer machine, had not been properly approved, and, therefore, could not be used as reliable evidence of intoxication. The plaintiff asked the court to reinstate all drivers' licenses that had been revoked between 2003 and 2005. The case was successfully defended by the Section and the court denied the plaintiff's request.

• The Litigation Section has been involved in protecting Police, Firefighters, Law En- forcement and Public Employees' Pension Systems against financial attacks. All pension systems were involved in suits for allegedly misinterpreting and misapplying the Oklahoma pension statutes as well as federal law. The Section has been instrumental in staving off attacks that would have financially damaged the pension systems.

• In 2007 a lawsuit was filed which challenged Oklahoma's initiative petition process. Under the current Oklahoma law, individuals who circulate initiative petitions in the state are required to be Oklahoma residents. The court agreed, finding that Oklahoma had a compelling interest in protecting and policing both the integrity and the reliability of its initiative process. The case was appealed to the Tenth Circuit and reversed.

• In 2006, the United States of America through its Office of Civil Rights, Special Litigation Division sued the State of Oklahoma, the Governor, the Office of Juvenile Affairs (OJA), its board, the chairman of the board, its executive director, and the superintendent of the L.E. Rader Center, alleging that all defendants were depriving the youth residing at Rader of their constitutionally and federally protected rights to a safe secure environment, adequate mental health services and special education services in violation of the Individu- als with Disabilities Education Act and the Rehabilitation Act of 1974. After two years of conducting discovery and the state producing more than 900,000 documents, the United States and the State of Oklahoma came to a mutually acceptable agreement wherein some claims were dismissed and OJA agreed to make changes in the services provided and make physical changes to the facility to ensure a safe environment.

25 Patient Abuse/Medicaid Fraud Control Unit

The Patient Abuse and Medicaid Fraud Control Unit investigates and prosecutes Medicaid fraud and provider abuse, neglect and financial exploitation in Medicaid facilities.

Greg Metcalfe, Chief

The Attorney General's Patient Abuse and Medicaid Fraud Control Unit (PAMFCU) was established in July 1989 as a separate unit organizationally located under the Criminal Division of the Office of Attorney General. The PAMFCU currently has 20 full-time employees consisting of the director/assistant attorney general, three assistant attorneys general, one chief investigator, twelve investigators, one auditor/investigator, and two support personnel.

The PAMFCU has statewide jurisdiction to investigate and prosecute violations of state and federal laws pertaining to provider fraud in the administration of the Medicaid program. The PAMFCU also investigates and prosecutes cases of patient abuse, neglect and financial exploitation involving residents in nursing facilities receiving Medicaid funds across the state.

The following statistical information highlights the activities of the PAMFCU from Jan. 1, 1995, through Sept. 30, 2010. As reflected by the chart below, the PAMFCU convicted or resolved a total of 624 cases on various criminal or civil matters totalling $5,614,327.54 in criminal restitution and $62,655,495.39 in civil/administrative settlements.The following summarizes some of the PAMFCU's successful resolutions of cases litigated during this reporting period:

Year Cases Convictionsl Criminal Civil/Admin. Opened Resolutions Restitution Settlements

CY-1995 96 12 80,457.93 1,003,638.83 CY-1996 216 32 230,560.00 621,016.79 CY-1997 254 50 4,154.94 524,484.78 CY-1998 264 42 776,693.19 73,296.00 CY-1999 245 32 30,499.86 893,044.88 CY-2000 190 42 74,071.36 1,112,607.12 CY-2001 217 37 464,666.51 911,265.90 CY-2002 239 33 301,913.66 213,957.72 CY-2003 219 49 381,675.72 1,542,098.18 CY-2004 229 48 155,817.36 5,294,258.31 CY-2005 202 47 437,135.04 2,301,810.58 CY-2006 186 45 542,606.38 3,268,137.98 CY-2007 209 42 1,162,448.87 5,174,583.21 CY-2008 199 46 282,566.82 12,340,130.87 CY-2009 195 42 466,614.93 16,885,881.33 CY-2010 150 27 222,444.97 10,495,282.91

TOTAL 3,310 626 $5,614,327.54 $62,655,495.39

26 • In June 1997 Alvin Walling pleaded guilty to charges of first degree rape in Cleveland County District Court. Walling worked at the East Moore Nursing Center in Moore as a nurse aide when allegations surfaced that he was sexually abusive to a female resident at the facility. Walling received a 20-year sentence with 15 years incareration.

• In September 1998 the owner and two employees of an ambulance company in Wilburton were indicted in federal court on Medicaid fraud charges stemming from an investigation into allegations that they intentionally falsified ambulance run sheets to indicate that patients were bedrid- den and that oxygen therapy was administered. Harley Revis, the owner of Revis Ambulance Ser- vice, was found guilty on one felony count of conspiracy and sixty-two felony counts of mail fraud and causing a criminal act. Revis was sentenced to four years and three months in federal prison and three years supervised release and was ordered to pay $515,787.00 in restitution. The other two employees, Roman Yahola and Terrance Revis, each pleaded guilty to one felony count of mail fraud and causing a criminal act. Yahola was sentenced to two years incarceration and three years supervised release and was ordered to pay $3,600.00 in restitution. Terrance Revis was sentenced to five years probation and six months home confinement and was ordered to pay $10,000.00 in restitution.

Additionally, in October 2001 , the United States District Court for the Northern District of Oklahoma entered final judgment in a civil action against Harley Revis, d/b/a Revis Ambulance Service, on charges of conspiracy to defraud Medicare/Medicaid. Revis was ordered to pay a $10,000 civil penalty.

• In May 2000 the Patient Abuse and Medicaid Fraud Control Unit began an investigation into allegations of bribery, extortion and Medicaid/Medicare fraud at the Oklahoma State Department of Health (OSDH) involving former Deputy Commissioner Brent Vanmeter and other employees of the OSDH. This case developed into a two-part investigation where PAMFCU worked the bribery and extortion phase of the case jointly with the FBI, and the second phase of the investigation (ghost employees) was worked by the PAMFCU, FBI and OSBI. The entire investigation took approximately one and one-half years to complete, culminating in 19 fraud convictions, $100,000 in fines, and $199,066.76 in restitution.

In the first phase of the investigation, Brent Vanmeter, James Smart and E.W. "Dub" Jiles were charged in federal court. Vanmeter was found guilty on one count of bribery and was sentenced to three years imprisonment, three years supervised release and $50,000 in fines. Vanmeter also pleaded guilty to one count of conspiracy and was sentenced to two years imprisonment, two years supervised release, 104 hours of community service and $14,735 in restitution. Smart was found guilty on one count of bribery and was sentenced to three years imprisonment, three years supervised release and $50,000 in fines. Jiles pleaded guilty to one count of money laundering and was sentenced to five years and three months imprisonment, 104 hours of community service and $4,046.50 in restitution.

In the second phase of the investigation involving "ghost employees," there were numerous OSDH employees charged and convicted, ranging from former Commissioner of Heath Jerry Nida to lower echelon employees. Nida pleaded guilty to one felony count of conspiracy against the state and received a three-year deferred sentence and 300 hours of community service. Doyle Carper, a

27 deputy commissioner, pleaded guilty to one felony count of conspiracy against the state and received a three-year deferred sentence and 150 hours of community service. Steve Childress, a county administrator, pleaded guilty to one felony count of willful omission of duty by public officer and received a one-year suspended sentence. James Walker, a county administrator, pleaded guilty to one misdemeanor count of wilful neglect of duty by state officer and received a two-year deferred sentence and 100 hours of community service. George Dowell, a county administrator, pleaded guilty to one misdemeanor count of omission of duty by public officer and received a one- year suspended sentence and 150 hours community service.

Of the lower ranking employees, Jamie Pirrong pleaded guilty to one misdemeanor count of willful omission of duty by public official and received a one-year suspended sentence and $4,075.44 in restitution. Makala Bannister pleaded guilty to one felony count of obtaining money by false pretenses and received a three-year deferred sentence and 300 hours of community service. Fred- erick Joe Pierce pleaded guilty to eleven felony counts of obtaining money by false pretenses and received a one-year suspended sentence on each count to be served concurrently and $22,359.82 in restitution. Karen Sue Carper pleaded no contest to one misdemeanor count of willful omission of duty by public officer and received a one-year deferred sentence and $350 in restitution.

James Lane, a former state senator and OSDH employee, pleaded guilty to one felony count of conspiracy against the state and received ten years incarceration with five years suspended and $105,000 in restitution. Rebecca Lane pleaded guilty to one misdemeanor count of willful failure to perform duty and received a one-year suspended sentence, 500 hours community service, and $33,000 in restitution. Vernon Johnson pleaded no contest to one felony count of obtaining money by false pretenses and four felony counts of making a false claim and received a five-year deferred sentence, 250 hours community service and $12,000 in restitution.

Brent Vanmeter was also charged in Oklahoma County District Court and pleaded guilty to two felony counts of conspiracy against the state and received ten years suspended with the first two years to be served in federal custody concurrently with his federal charges. Judith Cochran pleaded guilty to one felony count of receiving a bribe and received a two-year suspended sentence. Karen Hernandez pleaded guilty to one felony count of soliciting a bribe and received a two-year suspended sentence.

• In May 2002 the last of eight Lawton nursing home employees, who were previously indicted by the Multicounty Grand Jury, was convicted in Comanche County District Court. Patsy Thom- ason and seven other employees of Western Hills Health Care Center failed to provide proper medical attention to a 91-year-old male resident who had previously suffered a broken leg. It was alleged that the victim was allowed, due to lack of care, to urinate into his leg cast for about one month. Other employees reportedly smelled a foul odor from the cast and alerted nursing supervi- sors to the situation, without result. The victim was admitted to the hospital after having developed a serious infection and subsequently died.

• In January 2003 Phillip Rushing pleaded guilty to four counts of Medicaid fraud. Rushing, who is the owner and pharmacist of Huskins Drug Store in Wilburton was sentenced to a three- year suspended sentence on each count and was ordered to pay $131,997.93 in restitution and $6,465 in investigative costs and attorney fees. Rushing was accused of submitting 215 false claims to the Oklahoma Medicaid program between July 1999 and July 2001. Rushing submitted bogus bills to the Medicaid program for the prescription drugs Rocephin, Eminase, Sporanox and Toradol. Rushing filed the bogus prescriptions on behalf of residents at Community Care Center and Latimer Nursing Home in Wilburton. 28 • In December 2005 Dr. William Edward Clymer was charged in Pawnee County District Court with one felony count of financial exploitation by caretaker after investigators found he had swindled money from his own father. Clymer allegedly filed a lawsuit on behalf of his father, Ed- ward Keith Winston, after Winston was involved in a serious traffic accident in January 2002. In May of that year, Clymer transferred Winston to Southern Oaks Care Center in Pawnee, where Clymer worked as the facility's medical director. Clymer forged Winston's signature on court documents to allow himself to be named Winston's legal guardian. Clymer then allegedly reached a $1 million out-of-court settlement in the traffic accident lawsuit without Winston's knowledge. When Winston inadvertently learned of the settlement, he was provided with $22,000.00 from an escrow account. The remainder of the money had been transferred to accounts controlled by Clymer. Clymer pleaded no contest in May 2007 to the allegations and was sentenced to a five-year deferred sentence. He was also ordered to pay $296,611.79 in restitution and $14,050.00 investigative costs.

• In August 2006 Timothy Fortune was found guilty on charges of first degree rape of a female resident at Kenwood Manor Nursing Home in Enid. Fortune was sentenced to thirty years incarceration and was ordered to complete a sex offender treatment program while incarcerated.

• In July 2008 Oklahoma received $4,542,768.07 in a national settlement agreement with Bristol-Myers Squibb Company and its former wholly owned subsidiary Apothecon, Inc. Oklahoma was one of 43 states along with the District of Columbia and the federal government that settled a $389 million settlement agreement to resolve Medicaid pharmaceutical pricing and marketing allegations.

• In August 2010 Terrance Belgarde-Delarosa pleaded guilty to two felony counts of abuse by caretaker and one felony count of neglect by caretaker in Stephens County District Court. While employed as a nurse aide at the Country Club Care Center in Duncan, Belgarde-Delarosa physi- cally abused two residents by striking one of the residents on the nose and by picking up and dropping another resident in a manner that endangered the resident due to the resident's physical condition. He was sentenced to a two-year term of imprisonment to run concurrently and was ordered to pay $3,000.00 in fines. ------

29 Multicounty Grand Jury Unit

The Multicounty Grand Jury Unit investigates and prosecutes cases ranging from homicide to narcotics violations. The unit administers all aspects of the Multicounty Grand Jury and provides assistance to law enforcement agencies and prosecutors across the state.

Tom Bates, Chief

In 1999 the Multicounty Grand Jury Unit conducted an investigation regarding an illegal gambling operation in Kay County. The investigation resulted in prosecution of former Kay County Deputy Sheriff Rodney Meeks for collusion.

In 2002 eight people were indicted during an investigation into allegations of kickbacks and bribery among employees and service agents of the Oklahoma Tax Commission.

Also in 2002, fourteen former Oklahoma Health Department employees were charged in an investigation of so-called "ghost employees."

In 2004 and 2005 former Oklahoma Insurance Commissioner Gordon Carroll Fisher and his special assistant were indicted for criminal wrongdoing during an investigation into multiple allegations including embezzlement/failure to pay over to the state and accepting or receiving a bribe. Fisher resigned in September 2005. The next year Fisher was found guilty of perjury and embezzlement and sentenced to three years in the custody of the Department of Corrections.

In 2005 the former Director of Administration and Personnel for the Oklahoma Center for the Ad- vancement of Science and Technology was prosecuted for filing false claims against the state after she received payment for 885.5 hours she did not actually work. Geneva Faye Worthen entered a guilty plea and was ordered to pay full restitution in the amount of $28,000 as part of her sentence.

Janet Bickel, former assistant district attorney, and Vyrl Keeter, office administrator, were indicted in 2006 after an investigation discovered drug possession, tampering with evidence and a cover-up scheme. The indictments contained multiple counts covering three Oklahoma counties.

In 2007 charges were filed against former Oklahoma County Commissioner Brent Rinehart and his former campaign manager, Tim Pope, for conspiring to illegally divert money into Rinehart's campaign for county commissioner.

In 2007 and 2008 the grand jury assisted in the investigation of illegal horse racing in Thackerville. The investigation resulted in prosecution of 23 defendants and 89 forfeiture cases.

In 2007 and 2008 the unit assisted DEA with the investigation and prosecution of Eric Organ, the owner and operator of D&E Pharmaceuticals who used his business to distribute scheduled controlled dangerous substances in Oklahoma. The grand jury learned that the business was not licensed to do business in the state and that Organ and D&E neglected to follow various laws and

30 regulatory guidelines governing the distribution of products used as precursor in manufacture of methamphetamine. The defendant completed numerous transactions involving bulk quantities of ephedrine and/or pseudoephedrine via mail order and internet sells to individuals and businesses in Oklahoma. The quantities were not reported to regulatory authorities and far exceeded the quantities necessary for any legitimate purposes.

In 2007 and 2008 the multicounty grand jury investigated allegations of wrongdoing arising out of the District Attorney's Office for District 20. As a DA investigator, Kevin Mcintire was entrusted with property consisting of monies seized from arrests and execution of search warrants. In particular, the grand jury's investigation focused on Mcintire's April 2004 arrest of a subject from whom Mc- Intire seized approximately $2600. Mcintire wrote a report in which he made no reference to the amount of currency seized. He also failed to file or cause to be filed a petition or notice of intent to forfeit these funds. When questioned about the money, Mcintire reported a burglary at the Ardmore Police Department that resulted in the theft of about $3,000. It was determined that this burglary was staged.

In 2009 the multicounty grand jury investigated Haskell Evans, a pharmacist in Lawton and member of the State Board of Health. The grand jury investigation revealed Evans recklessly sold large quantities of pseudoephedrine, a Schedule IV drug, to the general public without care or regard for its intended use. Following the grand jury's indictment, the State Board of Pharmacy presented Ev- ans with an 11,000 count petition alleging essentially the same conduct as presented to the grand jury. Soon after, the OBN also filed a petition alleging Haskell's Pharmacy violated at least 1,000 statutory rules and regulations. Evans surrendered his pharmacy license to the Pharmacy Board, surrendering Haskell's Pharmacy license to OBN and paid fines in the amount of $75,000 to each agency.

A 2009 investigation into allegations of mismanagement and sexual harrassment at the Office of Chief Medical Examiner resulted in the return of two indictments for sexual battery as well as the issuance of an interim report that recommended changes in procedures for the collection and tracking of evidence and human remains.

Also in 2009, the grand jury investigated allegations of embezzlement by the administrator of Oklahoma Court Appointed Special Advocates. The grand jury issued a single indictment against Anna Naukam charging her with one count of conspiracy and 148 counts of embezzlement. Her husband, Eugene Naukam, was charged with one count of conspiracy and 42 counts of embezzlement. Anna Naukam plead guilty to all counts on Sept. 4, 2009. She was ordered to serve a 35- year sentence, with the first 15 years to be served in the custody of the Oklahoma Department of Corrections followed by 20 years of probation. She was also ordered to pay $549,024.11 in restitution. Eugene Naukam plead guilty to all counts on March 15, 2010. He was ordered to serve a 20- year sentence, with the first five years to be served in the Oklahoma Department of Corrections, followed by 15 years of probation. He was also ordered to pay $148,000 in restitution, of which $43,000 was paid at the time of sentencing.

Finally, in 2009 the grand jury investigated allegations of embezzlement by Roger Melson, an employee at the Commissioners of the Land Office. The grand jury issued a single indictment charging Melson with 174 counts of embezzlement totaling more than $1 million. He plead guilty to all counts on August 27, 2010, in Oklahoma County District Court and was later sentenced to a 60- year sentence with 10 years incarceration and 50 years probation.

31 Tobacco Enforcement Unit

The Tobacco Enforcement Unit works to ensure compliance of the terms of the 1998 Master Settlement Agreement on an ongoing basis, recouping billions of dollars for the state.

Clyde Kirk, Chief

Nov. 23, 2008, marked the 1O-year anniversary of the Master Settlement Agreement (MSA) with the nation's largest tobacco manufacturers, a historic agreement Attorney General Drew Edmondson and seven colleagues negotiated on behalf of 46 states and six U.S. territories.

Forever altering the way tobacco companies do business, the MSA imposes sweeping changes in tobacco advertising, bans the tobacco companies from targeting children, allocates funding for tobacco education efforts and provides the states annual payments based on the number of cigarettes sold in the country.

"When we first filed suit against the tobacco companies in 1996, they had never lost a case in court," Edmondson said."They were thought to be bulletproof. We all know that smoking causes cancer, but we didn't have a single case where we could prove an individual's cancer was caused by smoking. We were facing scores of lawyers with a seemingly endless budget. We were essentially eight people holding a single card - state-by-state litigation. The card had to be a winner, and it was."

In 1996, Oklahoma became the 14th state to file suit against the tobacco giants. The state suit, filed in Cleveland County District Court, sought reimbursement for more than $1 billion in Medicaid money spent treating tobacco-related illnesses between 1980 and 1993.

Edmondson and his seven counterparts from across the country began negotiating with R.J. Reyn- olds, Phillip Morris, Brown and Williamson and Lorillard. Talks hit a snag when R.J. Reynolds and Brown and Williamson walked away from the negotiating table.

"We continued to negotiate with Lorillard and Phillip Morris, and eventually, R.J. Reynolds and Brown and Williamson returned to the table," Edmondson said. "That was a real turning point. We were eventually able to agree on substantial marketing restrictions, public health money for the states and a fund dedicated to counter-marketing that would offset the industry's pro-tobacco message.

"When the MSA was signed in 1998, it was met with skepticism" Edmondson said. "The statistics tell the story though. The number of smokers is down, and the number of smokers who want to quit is up. From a public health standpoint, the success of the MSA is irrefutable."

32 According to the Oklahoma Behavioral Risk Factor Surveillance System the number of adult smokers fell from 28.7 percent in 2001 to 25.2 percent in the first six months of 2008. Among kids, the decline is even more pronounced. According to the Oklahoma Youth Tobacco survey, in 1999, 33.5 percent of Oklahoma high school students smoked, and in 2007, that number had dropped to 23.4 percent.

"I am most proud of the decline in smoking among our youth," Edmondson said. "The MSA changed the way the tobacco industry markets their products. Gone are the days of cartoon Joe Camel and billboard tobacco ads. Instead, there is money dedicated to countering the tobacco industry's mass marketing. Kids are hearing the anti-tobacco message. We are seeing results."

Additionally, the MSA provides a revenue stream to help states offset the cost of treating smoking- related illnesses. Nationally, payments from the MSA are projected to be in excess of $206 billion over 25 years, and payments will continue as long as cigarettes are sold. In the first decade after the settlement, Oklahoma received $647,884,892.46. ----;

Of that money received by the state, more than $368 million was been placed in the Oklahoma Tobacco Settlement Endowment Trust fund (TSET), which was created at Edmondson's urging by a voter-approved constitutional amendment in November 2000. Only the interest and dividend -- earnings of the Trust may be spent, and the money must be spent on programs to improve the health of Oklahomans.

Oklahoma is the only state to have constitutionally protected its tobacco fund.

Also in 2008, the state received its first "strategic contribution" payment, which is awarded annually over 10 years. Because of Edmondson's place at the negotiating table, Oklahoma will receive an additional $268 million for the strategic contribution Edmondson, his office and local counsel -- , made to the prosecution of the lawsuit.

A Living Legacy The landmark Master Settlement Agreement also provided for the creation and funding of a national, independent public health foundation to combat the use of tobacco products. A non-profit 501 (c) (3) organization called the American Legacy Foundation was established in 1999 to manage the arduous countermarketing campaign against the use of tobacco.

33 Public Utilities Unit

The Public Utilities Unit represents and protects the interests of the state's utility customers in rate-related proceedings. The unit also participates in utility-related task forces.

Bill Humes, Chief

The Office of the Attorney General of Oklahoma is charged by statute with the duty of representing Oklahoma utility consumers in rate-related proceedings before state and federal agencies and courts. That statutory duty is performed by the Public Utility Unit within the Attorney General's Office.

1995 - 1998 After the attorney general filed a response in the Oklahoma Supreme Court opposing the Oklaho- ma Corporation Commission's request to remand the Southwestern Bell Telephone (SWBT) rate case back to the Commission, the Supreme Court ordered the parties to participate in settlement discussions with a Special Master. The attorney general fought successfully for the inclusion of a $1 million annual contribution, effective for three years, to an education fund to purchase telecommunications service from SWBT or telecommunications equipment from any vendor. The final settlement included a rate freeze, a one-time refund of $170 million to consumers, $100 prepaid calling cards for consumers and various other benefits.

Two rate cases involving Public Service Company of Oklahoma (PSO) where heard by the Com- mission during this time period. The end result for these cases included a one-time refund to consumers of $29 million plus an annual rate reduction of $39.5 million. In addition to these monetary benefits, PSO was precluded from purchasing gas only from its wholly-owned subsidiary and required to also purchase from other suppliers.

1999 The attorney general was involved in negotiations regarding one of the largest electric company mergers in history between American Electric Power Company, Inc., PSO, and Central and South West Corporation. Negotiations between the parties led to an estimated $37 million savings for consumers over a six-year period.

After almost 18 months of pending litigation and negotiations, GTE agreed to the attorney general and the Commission staff's joint request to pay no less than $3.6 million in the form of cash or credit to the accounts of its Oklahoma customers in settlement of its rate case.

2000 SWBT requested Commission approval of "Prepaid Home Service." The attorney general argued that substantial market imperfections prevented this service from achieving the traditional benefits of competition - lower prices - and should therefore be denied. The attorney general also argued that this service, like all other prepaid phone service authorized in Oklahoma, only serves to lower

34 the quality of services traditionally available to customers and, as such, is not in the best interest of the public. Despite the attorney general's objections, the Commission approved the request, but did implement a number of consumer safeguards proposed and supported by the attorney general.

2001 Electric restructuring was a hot topic during 2001. The attorney general participated in various legislative, industrial and consumer group meetings and also made presentations to various groups of legislators, with a focus on consumer impact, protections and the need for consumer education.

After a record-setting cold winter and record-high natural gas prices, the Commission staff initiated several cases to determine the prudency of commodity purchasing decisions by Oklahoma electric and natural gas companies. One particular contentious case involved Oklahoma Natural Gas Company (ONG) which ultimately was denied recovery of approximately $34 million for services provided that prior winter.

2002 The Attorney General signed an agreement with ONG after three years of negotiations that provided more than $33 million in benefits to consumers over a three-year period.

The Attorney General was instrumental in negotiations and approval of an Oklahoma Gas and Electric Company (OG&E) rate decrease that resulted in more than $95 million in benefits to Oklahoma consumers. The agreement cut OG&E rates by $25 million per year and required that it acquire at least 400 megawatts of less costly, more efficient, electric generation.

2003 During 2003 the Attorney General's Office received a great number of calls from consumers, many residing in rural areas, who were upset about the discontinuation of several SBC long distance plans. After working with the Commission Staff and the Attorney General, SBC agreed to offer three alternatives to the discontinued plans including Toll Value, One Plus Saver, and (3) unlimited calls to a single SBC number for $19.95 per month.

2004 The attorney general participated in the CenterPoint Energy/Arkla rate case in which the company requested a rate increase of $7.4 million. The attorney general opposed the rate increase and a settlement was reached allowing for a $3.5 million increase, resulting in a savings to Oklahoma consumers of $3.9 million.

2005 The attorney general opposed a $41 million rate increase requested by PSO. After lengthy negotiations, a settlement was reached whereby PSO agreed to institute a rate decrease of $6.19 million, saving Oklahoma consumers approximately $47 million in rates.

The attorney general also opposed ONG's request to increase its rates by approximately $99 million. A settlement was ultimately reached that allowed a rate increase of $47 million, approximately $52 million less than originally requested.

The attorney general also participated in proceedings wherein OG&E requested a rate increase of approximately $89 million. After two weeks of hearings in which the attorney general opposed

35 much of the rate increase sought, the Commission granted OG&E a $41 million increase, $48 million less than requested.

2006 An agreement between the attorney general, the Commission staff, and CenterPoint Energy resulted in an $877,039 refund to customers and establishment of a "true-up." mechanism to insure proper future recovery of CenterPoint under their Performance Based Rate Change plan.

The attorney general also participated in a case in which OG&E sought to show that S02 allow- ance sales should not impact energy payments to AES. While the attorney general agreed with OG&E's position, the issue arose regarding how to properly divide the proceeds from the sale of the credits. The attorney general fought to get a greater credit to consumers. The end result was 90 percent of the sale proceeds would be credited to consumers.

2007 PSO initiated a rate case requesting a rate increase of $49.7 million along with CWIP (construction work in progress) costs. The attorney general not only strongly opposed the CWIP request but also proposed a rate decrease of approximately $24 million. The Commission denied the CWIP request entirely and approved a rate increase of only $9.7 million, saving consumers $40 million.

OG&E and PSO jointly sought approval for the construction of a coal-fired electric generating facility, the Red Rock Plant. The joint request included a plan for the flow-through to customers of financing costs prior to commercial operation of the plant. The attorney general opposed the recovery mechanism and the plant as proposed. The Commission ultimately denied the application on the basis the utilities failed to consider all reasonable generation alternatives as required by the relevant statutory language.

2008 The attorney general opposed a $132 million rate increase requested by PSO in its 2008 rate case. After a lengthy hearing, the Commission allowed for an increase of $77 million. Although higher than the attorney general's recommendation of $66 million, Oklahoma consumers still saved $55 million when compared to PSO's original request.

Following the Commission's denial of the application seeking approval to construct the Red Rock generating facility, OG&E filed an application to purchase the Redbud Plant, a natural gas-fired facility. The attorney general agreed and stipulated to the purchase. Although a small rate increase was seen by customers as a result of the purchase, the plant's reliability and long-term power sup- ply ensures cost savings to customers in the future.

2009 ONG initiated a rate case requesting a rate increase of $66.8 million. The Attorney General thoroughly reviewed the request and recommended an increase of $47.8 million. The Commission ultimately approved a rate increase of $51.4 million, saving ratepayers $15.4 million over the ONG request.

The attorney general also reviewed an OG&E request for a rate increase of $110 million. In this

36 instance, the attorney general recommended an increase of $30.2 million. The parties settled this case prior to trial for a total of $48.3 million, $61.7 million less than OG&E had initially requested.

2010 In 2010, the attorney general has been involved in two major cases involving the addition of wind generation to the generating systems of OG&E and PSO. The Crossroads wind project was approved in the early part of the year for addition to the OG&E system. The Minco wind project proposed by PSO is still being litigated. Additionally, the attorney general is reviewing and preparing testimony in response to PSO's application for a rate increase of $82.7 million.

A National Stage: NAAG Provides Opportunities, Platform During his 16 years as Oklahoma's attorney general, Drew Edmondson was frequently called upon by his counterparts from across the nation to serve in leadership roles within the National Association of Attorneys General. His vision and leadership earned him numerous accolades, including the organization's highest honor, the Kel- ley Wyman Award, in 2005. His leadership roles include:

NAAG President - 2002-2003 NAAG Immediate Past President - 2003-2004 NAAG Vice-President - 2000-2001 NAAG Executive Committee Chair representing Southern Region 1999-2000 NAAG Executive Committee Acting Chair representing Southern Region 1998-1999 NAAG Mission Foundation Board of Directors - Chair 2002-2008 Southern Region of Attorneys General - Chair 2000-2002

NAAG Committees

Consumer Protection Committee - Co-Chair 1996-1999 Corrections Subcommittee - Co-Chair 1996-1997 Domestic Terrorism Subcommittee - Chair 1996-1999 Homeland Security Committee - Chair 2003-2004 Civil Rights Committee - Co- Chair 2003-2004 Tobacco Committee - Co-Chair 2003-2004 Tobacco Committee - Convener 2000-2001 End-of Life Working Group - Chair 2003-2005

37 Victims'Services Unit

The Victims' Services Unit oversees funding and certification for domestic violence programs across the state. The unit also provides training for law enforcement officers, prosecutors and victim advocates.

Susan Krug, Chief

Although an official unit was not established until 2005, victims services were first provided by the attorney general's office in 1995 when a victim witness program unique to the history of the state was established to help guide the families of those killed by Oklahoma's death row inmates through the appeals process.

Thus began a history of firsts within the office that continued when another step toward improving victims services was taken in December 1999 when federal funding from the Violence Against Women Act enabled the attorney general to host the first annual conference against domestic violence. This initial training has since blossomed into a partnership among various state, local and federal agencies. The conference provides multi-disciplinary training with national-level quality speakers to law enforcement officers, shelter volunteers and advocates, prosecutors, judges, civil attorneys, medical professionals, assault survivors and other allied professionals. A record- breaking 750 participants attended in October 2007, the same year a faith-based track was added to the program. This training has significantly increased awareness among public, governmental, faith-based and private agencies of the causes, effects and magnitude of domestic violence, sexual assault and stalking and to help identify and work toward eliminating barriers which prevent victim access to services in order for them to be safe.

Various other regional and local training efforts are routinely conducted by staff with expertise in working with law enforcement, prosecutors, victim service providers and other allied professionals on victim-related issues. One particular project was launched in 2004 when the Cut It Out program was introduced through the attorney general's office to teach cosmetologists how to spot the signs of domestic abuse. In June 2007 a series of one-day training sessions were conducted in the twenty-six counties comprising the Eastern District of Oklahoma, as part of the Department of Justice's Project Safe Neigh- borhood Initiative through a partnership developed between the attorney general's office and the United States Attorney's Office in Musk- ogee. The seminar series covers the nuts-and- bolts of federal case investigation and prosecution focusing on domestic violence. The program was replicated in the Northern District in the spring of 2008.

38 Ultimately, in July 1995, as a result of the legislative transfer of oversight responsibilities of domestic violence, sexual assault and batterers intervention programs from the Depart- ment of Mental Health and Substance Abuse Services to the Office of Attorney General, the official Victims Services Unit was created. The unit works to improve services for crime victims who have suffered injustice at the hands of an abuser. Each year since, the attorney general's office has sponsored several events during the month of October, which is National Domestic Violence Awareness Month, in an effort to raise awareness of the problem of violence against women. Among the events are a poster project that displays portraits of domestic abuse drawn by children who receive services from state-certified domestic violence programs. Attorney General Edmondson also holds a capitol lighting ceremony. Another component of the unit is the SAFEline, a 24-hour hotline that is answered by crisis intervention specialists who are trained to provide information to victims regarding immediate action which should be taken, the social services available and legal rights and remedies. The hotline can also handle calls from the deaf and hard of hearing and is equipped with a language line with up to 150 languages.

Additionally, a nine-member Domestic Violence and Sexual Assault Advisory Council makes recommendations to the attorney general concerning policies for the unit and standards for certification of domestic violence, sexual assault and batterers intervention programs and other necessary administrative rules.

One of the first special projects of the unit came as a result of a consumer settlement. The settlement provided the Oklahoma Coalition Against Domestic Violence and Sexual Assault (OCADVSA) with funds for medications for victims, survivors and children of domestic violence and sexual assault through the Delores Fund. The Delores Fund was named for a domestic violence survivor from southeastern Oklahoma to provide emergency financial assistance to victims for immediate needs such as medication, shelter and transportation. The Victims Services Unit also assisted the OCADVSA in raising awareness of the fund when the attorney general co-hosted the first-ever Delores Dinner.

In April 2005 the attorney general along with the attorneys general for all 50 states, Puerto Rico, the District of Columbia, American Samoa and the Marian Islands sent a letter urging Congress to avoid cutting more than $1.2 billion from the Federal Crime Victims Fund created by the Victims of Crime Act of 1984. Oklahoma received $4,383,300 from VOCA that year. The money assists shelters and victims' services programs associated with the district attorney offices and local law enforcement agencies.

Another first occurred when the Office of Attorney General granted the District Attorneys Council's request to provide 20 percent match from the funding of domestic violence and sexual assault programs for all of the VAWA subgrantees.

39 In May 2006 the attorney general's office received a $1.2 million Bureau of Justice Assistance Grant for the development and implementation of OK VINE (Victim Informa- tion and Notification Everyday). The first of its kind, this innovative tool is a criminal tracking and victim notification system designed for crime victims statewide. OK VINE allows citizens to register and be notified of changes in status of Oklahoma inmates. The automated system notifies registered participants if an inmate is released, transferred or dies while in the custody of one of the 77 county jails or Department of Corrections.

The system was enhanced in September 2006 when an additional $1.1 million federal grant was received to implement a similar system for victim protective order notification. VINE Protective Order is a free telephone or email service that gives petitioners information about their protective orders without the respondent's knowledge. Petition- ers can register to be notified when a protective order is served as well as providing hearing and expiration date reminders.

The Caitlin Wooten Act, enacted by SB 1037 in 2007 after Caitlin was killed by her mother's boyfriend who had been released from jail on bond for kidnapping her mother, codified the authority of the attorney general to establish a notification system relating to crime victims, witnesses and persons who have filed protective orders to assist public officials in carrying out their duties to notify and inform crime victims and witnesses.

Further enhancements to OK VINE were made in 2010 to provide for notifications in a text messaging format as well as to enable the system to provide status updates on offenders released from DOC on probation or parole.

One of the most monumental accomplishments of the attorney general occurred on July 1,2007, when the legislature provided the first funding increase for the state's domestic violence and sexual assault programs in more than a dozen years. Twenty-nine programs received a $500,000 increase by the legislature and the legislature also passed a bill that was projected to bring in an extra $1 million annually through court fees on civil and criminal cases.

The Address Confidentiality program (ACP) was initiated by the Secretary of State and transferred to the attorney general July 1, 2008. ACP provides victims, who have moved to a new location

40 unknown to their abuser, with a substitute address for use when interacting with state and local agencies. The program provides participants with a cost-free first-class mail forwarding services. The ACP allows the state to contribute to the safety of victims by denying abusers the opportunity to use public records as a means to violate the rights of others.

In September 2008 the attorney general's office received the first year of a three-year grant to be- gin planning a State Victim Assistance Academy (SVAA) through a partnership with East Central University. Both organizations have recognized a need to unify and improve the quality of service provided to victims of crime in the State of Oklahoma. The SVAA project is the first academy to work toward ensuring all victims receive the assistance they need from law enforcement, prosecutors' offices, social services, advocates and other allied professionals. The project will develop a SVAA that provides comprehensive, academically-based fundamental education and training for all who serve victims. The goal will be reached through the following objectives: 1) the establishment of a diverse steering committee to oversee planning and the development of the academy based on a thorough needs assessment of the state; 2) the development of a curriculum and training program that meets the needs of providers without duplicating existing training; 3) ac- creditation to provide assurance and recognition that the professional is properly trained and edu- cated; 4) the development of a plan to sustain the appropriate staffing and finances required to maintain the academy beyond the federal funding stage, and 5) an established means of select- ing academy participants. The first academy was held at East Central University in June 2010.

The unit continued to expand when the administrative functions of the Domestic Violence Fatal- ity Review Board were transferred to the attorney general's office September 1, 2009. It is the mission of the Board to increase professional and public awareness of the dangers and warning signs of volatile domestic violence situations so future deaths can be prevented.

The attorney general's office is also the umbrella funding agency for Court Appointed Special Advocates (CASA).

41 Workers' Compensation/Insurance Fraud

The Workers' Compensation and Insurance Fraud Unit investigates and prosecutes fraud on the part of claimants, doctors, attorneys and insurance companies. The unit also provides education and training about workers' compensation fraud.

Karen Dixon, Chief

Concerned citizens, Oklahoma businesses and lawmakers recognized an alarming growth of fraud and abuse within the Oklahoma workers' compensation system, and as a result, the Workers' Compensation Fraud Unit was established in the attorney general's office in September, 1992. In 1999, the legislature empowered the attorney general to prosecute other types of insurance fraud. The mission of the Workers' Compensation and Insur- ance Fraud Unit is to combat fraud and to promote integrity among all concerned participants by holding claimants, employers, providers and insurers accountable.

Accomplishing the mission requires a multi-faceted approach including: identification and aggres- sive investigation and prosecution; continuous education and training for the public, employers, insurance professionals and other law enforcement officers regarding workers' compensation and insurance fraud; and analysis of the workers' compensation system in order to make recommendations for legislative changes. Since 1995, the Workers' Compensation and Insurance Fraud Unit has investigated more than 5,000 complaints of fraud and filed criminal charges against more than 750 individuals in 55 counties in Oklahoma. Defendants have been ordered to pay restitution of more than $3.7 million.

Claimants must be held accountable for providing truthful information regarding injuries. Brandon Harris, a former employee of Shelter Insurance, made false statements about the nature and extent of his injuries and his participation in drag racing activities. Harris was ordered to pay almost $21,000.00 in restitution and is serving a three-year deferred sentence. Charges are appropriate when a worker fraudulently reports that he or she is unable to work, but is found to be working or able to work. Robin Shelton pleaded guilty to workers' compensation fraud for working cleaning new homes while telling her doctors that she had been unable to do any work and had not worked. She was ordered to pay $5,676.00 restitution.

The fraud unit has charged numerous workers with filing false workers' compensation claims. One such case is that of William LaValley, who was working for Putnam City West High School when he claimed that upon opening a closed door, wood fell from a closet striking him and causing him to fall to the ground, injuring his neck, back and head. A security camera positioned in the hallway caught the incident on video and revealed that some boards did fall, but did not hit LaValley or knock him to the ground as he claimed. Early detection prevented LaValley from being compen- sated with benefits he did not deserve. Another worker employed by Crest Foods was caught by a store surveillance camera practicing for a slip and fall that he later reported as work-related. Greg- ory Thompson was sentenced to a five-year sentence, all suspended except the first six months in the county jail, and he was ordered to pay restitution of $1 ,838.25.

42 Fraud investigations are not limited to allegations of bogus workplace injuries. Business owners who do not provide required coverage and insurers who deceive employers about their product should know they are breaking the law. For example, Timothy Esau was operating a business that failed to carry insurance for his workers. He pleaded guilty and is serving a five year deferred sentence and was ordered to pay restitution of $15,706.85 to employees who were injured when he had no coverage. In other similar cases, employers were required to obtain and maintain workers' compensation insurance as a condition of probation.

Oklahoma businessman Byron Waeckerle through his company Employee Benefits Association, defrauded numerous Oklahoma employers by selling what he represented was an alternative to workers' compensation insurance. His scam resulted in the loss of more than $440,000.00 in worker benefits and employer premium payments. He pleaded guilty to seven counts of obtaining money by fraud and three counts of workers' compensation fraud and was sentenced to 10 years. He was ordered to serve five years in the state penitentiary and the balance of five years was suspended on condition that he pay $446,213.05 in restitution.

Through prosecution, the attorney general's office also hopes to send a message to unscrupulous professionals that fraud and theft will not be tolerated. Following a 21-month investigation, racke- teering, conspiracy, embezzlement, forgery and workers' compensation fraud charges were filed in Tulsa County District Court against William J. Anton, a former attorney, and Fred M. Schraeder, a Tulsa attorney. Anton surrendered his law license in 2007 but continued to practice, albeit illegally. They are alleged to have embezzled more than $1.1 million from their clients, with Anton's share alone exceeding $1 million, and to have settled workers' compensation and other insurance claims without the client's knowledge or consent. The funds that were taken were intended to benefit citizens who were injured, whether on the job or in another type of accident.

As part of its mission to hold providers accountable, an agreement was reached between Attor- ney General Drew Edmondson and Concentra Health Services that required the company to pay $44,189.72 in restitution to CompSource, pay $88,379.44 in penalties to the Oklahoma Crime Vic- tims Compensation Fund, and reimburse $50,000.00 in investigative costs to the attorney general's office. The agreement also required the company to institute new training procedures on coding and compliance to settle state concerns about the company's billing practices.

Insurance professionals have the trust of their clients and the public. Therefore, it is essential to prosecute those who breach the public trust. Jeffrey Plunkett was an agent of Prudential and was a manager of financial services. After it was discovered that he had embezzled client funds, he resigned his position and his licenses were terminated. He pleaded guilty and was sentenced to a forty-year sentence, with fifteen years to serve and the balance of twenty-five years suspended on the condition that he pay restitution of $627,512.91 to Prudential Financial. The insurer had already reimbursed the victims for their loss.

Insurers must be good stewards of the premiums received from Oklahoma businesses. Rhonda Bonnewell, a former insurance claims manager, was charged with five felony counts of grand larce- ny by fraud. She pleaded guilty to writing more than $12,000.00 in checks for her personal debts by charging the money off against legitimate workers' compensation claims. She was ordered to pay restitution and serve a five-year deferred sentence.

43 A Time of Change, but Not the FirstTime

"Through these and other changes, the employees of the attorney general's office have provided exceptional service to the State of Oklahoma ..."

Tom Gruber, First Assistant Attorney General

It is hard to accept that our time in the attorney general's office is coming to an end.I joined the office in 1998, and it has truly become home. I love the work. I love the people I work with. And I am honored to have had the opportunity to provide exceptional service to my home state and its people.

But the times, they are a-changin' and in January, a new attorney general will be sworn in, and he will assume the challenges and the opportunities that come with this office.

He will also inherit, if he chooses to, some of the greatest individuals I have ever known. Of all the things I have loved about being first assistant, my co-workers are highest on my list. The people in the attorney general's office are superior from top to bottom. When I say this place has become home, it's because these people are family. They enjoy their work, and they enjoy each other.

And they've already seen the office through so many changes.

When Attorney General Edmondson first took office in 1995, the office had computers, but they were not networked in any way. Every brief had to be created from scratch, despite the fact that the cases before this office frequently require us to make the same or at least similar arguments. It was a change for the better when we were finally able to network our state computers and share our work.

We also did not have email in 1995 and our offices were in about five different locations with four of them being in Oklahoma City and one in Tulsa. When we needed to send a file or a brief to someone who was located in another office, someone drove it there. Today, we can share work and information with the click of a button.

Probably the biggest change over the last 16 years has been the office itself. As I mentioned previously, the attorney general's office used to be housed in several locations. We had offices on the first floor and in the basement of the capitol, in several different buildings and floors in an office complex on Lincoln Boulevard and in Tulsa. In 2006 as part of the Oklahoma Centennial, we were fortunate to receive a building large enough to house everyone who works in Oklahoma City. The space, which is just west of the state capitol, has office space for everyone and storage space that we simply did not have on-site up to that point. It's a beautiful, very functional building, and I would be remiss if I did not mention our Office Administrator, Trent Corken, and the great work he did to make it all come together.

44 All of these things have increased our efficiency and allowed us to work more effectively and efficiently for the people of Oklahoma. Through these and other changes, the employees of the attorney general's office have provided exceptional service to the State of Oklahoma, to me and to Attorney General Edmondson. I know that if given the opportunity, they will do the same for Attorney General Pruitt, and that the state will continue to be well-served by their joint efforts. We wish them well and know that while change isn't always easy, it can be good. We expect that to be the case, yet again, in the attorney general's office.

45 Notes

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