The Slaying of KPMG
The government still had not joined my qui tam lawsuit against KPMG, which had been filed in April 1998 and subsequently unsealed during the HCA executives' criminal trial in May 1999. In December 1999, seven months had passed since its unceremonious unsealing in open court, KPMG still denied wrongdoing. To bolster my case against KPMG, I agreed to review forty-six boxes of documents for the government. By now, the Federal Express driver and I were on a first-name basis, and while I'm sure he wondered what the boxes contained, he never asked. Kirsten and I sometimes speculated what the neighbors thought about all the constant deliveries.
Marie O'Connell, assigned to prosecute the KPMG case for the Justice Department, again seemed slow to develop the investigation. Rather than deciding to join the case, in January 2000 she instead requested an extension. The government and KPMG had met several times to discuss my lawsuit, and Peter Chatfield reported that the company had a weak legal position. Chatfield said the government would be foolish not to intervene.
While working at UGS, I was astounded to read that Medicare's own policy-making arm, the Health Care Financing Administration, had awarded KPMG a contract to perform audit quality reviews of fiscal intermediaries. The government, while fully aware that KPMG was accused of cost report fraud, nonetheless had chosen the company to review fiscal intermediaries performing cost report audits. Alarms went off in my head. How could that be? Someone has ignored a huge conflict of interest, I