Reporting on Consumer Fraud and Questionable Health Care

Two case studies that I have read are about businesses or organizations being misrepresented to the public. The first is an owner who is looking for salespeople to advertise and sell his product, and the second is an organization that is dancing on the line of malpractice.

In the first case study, the reporter sees an advertisement in the classified section of his own paper, promising high payment for direct commission sales for people experienced in the negative sales pitch. Thomas Dowling, the general assignment reporter, was curious because the advertisement gave no clue as to what they were selling.

Dowling called the number on the advertisement and was hung-up on because he did not show enough experience, but still did not know what was being sold. After investigating recent consumer frauds, Dowling found the same name and number on an advertisement for a new retirement community. He called the number and reached the same man he had spoken with earlier, and was invited to a dinner meeting.

As it turned out, the man was selling property in the desert, telling the audience that they had to sign a contract that same night to be considered. He promised that they would have a year to visit the property and the down payment would be paid back if, for any reason, they did not like it after seeing it. The deal sounded legitimate, but still sounded a little fishy to the reporter.

Dowling contacted and questioned a spokesperson for the attorney general in Arizona. The spokesperson told him that they have designed a complete community, but didn’t say they were actually going to build it. After the purchasers move in, the spokesperson told him, they would have to put up the money to build the schools and parks and even pave the streets.

Dowling thought the plan still seemed legitimate, but the spokesperson said that few people will ever make the trip to the property, and after a year, they are locked in to buying. If they do decide they don’t want the property before they year is up, the company tells them their property is worth twice as much and they will either give them their money back or list it for sale at twice the price. They have no buyers, the year expires and the contracts become fraudulent. They are selling the lots to each other and can be sued.

Dowling got an interview with a victim of this scheme and wrote his story, resulting in more people coming forward to tell their story.

The second case study was about a reporter who got a tip about a new cancer clinic that opened in an old municipal hospital. The place looked just like a medical hospital, but not one licensed doctor worked there. Great Forks Retreat was already suing a newspaper in Coastal City that had reported a negative story about them, and the reporter who received the tip was warned from several others to watch what she does.

The reporter contacted the Doctor of Unencumbered Methodology and was given the sugar-coated rundown of the retreat. She took a tour of the facility and was shown the miracle machine, which had the name scraped off the side. She did a national search of lawsuits that several complaints had been brought against the doctor by family members of patients who have died. She contacted attorneys and patients, and then learned that her competition was working on a story about the retreat and was printing it the following day.

The reporter continued working and found that the miracle machine was really a soil tester. She paid one more visit to the doctor, seeing him enter the building with a greasy burger and fries, which went against his strict diet. She gave him one more chance to explain and when he said nothing, she ran the story.

The competition ran their story the same day, but it only had one interview and it glorified the operation and the miracle machine. The reporter was one step ahead of the attorney general, who closed down Great Forks Retreat.

Senator Byrd's Financial Disclosure Reports

West Virginia Sen. Robert C. Byrd’s checking account is double what it was in 2007, but his stock is less than half of what it was that same year, according to financial forms released in May.

Byrd’s Financial Disclosure Report stated that his Sun Trust Checking account is now between $50,000 and $100,000, while his stock has declined to between $15,000 and $50,000.

Each year, all senators are required to file a United States Financial Disclosure Report that features their personal assets and income.  The report does not give exact amounts, but values in wide ranges, making it difficult to determine the definite financial well-being of an individual.

According to the disclosure report, Byrd suffered a $50,000 to $150,000 decline in assets between the calendar years of 2007 and 2008.           

The interest on his Sun Trust Individual Retirement Account remains between $100,000 and $250,000 and the amount of his assets for his rental house in Shepherdstown, W.Va. remains between $250,000 and $500,000.  The income for his rental house is between $5,000 and $15,000, which is no change from 2007.

There were increases in Byrd’s Sun Trust Checking Account that was valued at between $15,000 and $50,000 in 2007, which is now between $50,000 and $100,000 for 2008.

While the increase of his checking account could have been as little as $1 to make the jump to the $50.000 to $100,000 range, the amount of decline in his stock was much more significant.

The stock he had in HHC Insurance Holdings suffered a decrease from between $100,000 and $250,000 to between $15,000 and $50,000, meaning the amount was at least a $50,000 decrease.

The royalties he received from Geifman Schneider Literary Agents for his book income also decreased from $30,000 in 2007 to $10,000 in 2008.

Legistorm.com reported that Byrd’s salary for being senator as of January 1, 2009 increased to $193,400 from his 2008 salary of $188,100.

Financial Differences

What are the financial differences between the two West Virginia Senators after the recession?

I will research the differences in the assets and incomes of the two West Virginia senators and discuss how the recession and collapse of the economy affected them.

It is important for the general public to know the financial status of those in powerful political positions. It also keeps those in the positions honest. If the general public suspects that a certain senator is financially gaining from a company, stories like this one will clear the air.

I will document this story by drawing together all the documents available to determine the financial statuses of the senators.

My primary source will be LegiStorm.com, a site that helps bring transparency to the U.S. Congress by disseminating public documents and non-partisan information over the internet.

This will most likely be one story depending on the information I find. If there seems to be too much information or too large of a scope, I will narrow my field and consider a second part. I will also use charts as a visual addition.

Continuing to follow the senators’ financial statuses throughout the year will make for a good follow-up.

How to Increase Your Gas Mileage

With gas prices consistently rising, consumers need all the advice possible on how to increase gas mileage to keep money in the wallet and out of the tank.

There are the obvious alternatives like carpooling, biking or walking, but fueleconomy.gov says there are simple steps that will allow car owners to continue to drive their current vehicle at a lower cost. 

Driving more efficiently, keeping vehicles in good shape and planning ahead to combine trips are a few of the tips that the Web site recommends for consumers to see an increase in gas mileage.

“Depending on how bad of shape the car is in, with the proper steps you could see a 50 percent increase in gas mileage,” Joe Scott, Huntington, W.Va. AutoZone parts specialist manager, said.

He said he believes the simplest solution is utilizing fuel injector cleaner every 3,000 to 5,000 miles. The cleaner can run as low as $6 and it is as simple as pouring it into the gas tank.  The concentrated detergents break up minerals that clog the tiny nozzles on fuel injectors, which reduce the flow of fuel to the engine cylinder causing hard starts, sputtering and knocks.

Scott said the more common answers to getting better gas mileage are keeping tires inflated, getting a tuneup and driving slower.

However, Mark Roe, a National Hot Rod Association driver, said there is more to it than just those basic steps.

“Most people know they have to keep their tires inflated,” Roe said. “But what most don’t know is that filling them with nitrogen keeps them from deflating as fast.”

Roe mentioned fuel injector cleaner as a good option, but also suggested purchasing an aftermarket air filter, cleaning it monthly, because stock filters are not the best quality.

He also said that maintaining a vehicle while it is parked is only half of the battle.

“Stop-and-go driving is the worst thing on every aspect of a car, because any energy you put into a car by stepping on the accelerator, you take back by pushing on the break,” Roe said. “So people need to avoid driving in traffic if they can help it.  Also, they should always start their vehicle and let it get warm before driving because it uses less fuel when it reaches its running temperature.”

He said the running temperature varies depending on the type of vehicle, so the best solution is to just know the vehicle and watch out for hoaxes that promise amazing gas mileage.

According to the Federal Trade Commission Web site, the Environmental Protection Agency has tested over 100 supposed gas-saving devices and found that few provide any fuel economy benefits and that some may even damage a vehicle’s engine or increase exhaust emissions.

Traveling to each NHRA race requires Roe to drive many miles, so he said getting good gas mileage, keeping his engine in good shape and being cost efficient is extremely important to his success at a race.

“Anywhere I can cut back, I do, because when I’m racing I use four and a half gallons in a quarter mile,” he said. “That’s gallons per mile, not miles per gallon.”

According to the Energy Information Administration Web site, the national average price for regular gasoline increased for the seventh consecutive week, moving up five cents to $2.67 a gallon.  At the beginning of June, AAA's Daily Fuel Gauge Report said that motorists in West Virginia will find a price increase upward of 12.4 cents.

When it comes to actually purchasing the fuel, howtoadvice.com says to buy gas during the coolest times of the day. Arid Technologies Inc. reported that this is because gasoline is the densest when it is cool and gas pumps measure volume of gasoline, not densities of fuel concentration, resulting in paying less for more.

So where is the best place to buy gas? WestVirginiaGasPrices.com updates a post every 36 hours of the highest and lowest prices of all grades of gas at stations in the surrounding area.  A customer can search a city and find the price, name and a map to the station with the cheapest gas.

Rising gas prices are enough to drive anyone crazy, but doing the proper research and following these steps can increase gas mileage on vehicles that consumers already drive.

Case Studies and Investigative Journalism

Two case studies I examined were about reporters and problems they encountered.  The first dealt with a reporter, who covered his beat report heavily, being torn on whether or not to report a negative story about a police story shooting himself in the foot during a demonstration.  If he does report the story, he will lose his sources in his beat, but if he does not report the story, he is not fulfilling his duty the public.  The second case study concerned a reporter who had to compete with government officials to get the correct public documents about a potential scandal by a mayor.  The officials made it tough for her to get the documents, making the reporter suspicious of a cover up. 

The criteria for an investigative story is not explicitly stated, but the book "Investigative Journalism" by William Gaines says that most have similar qualities.  The stories reveal information that someone is trying to hide or that otherwise would not have been known, are a matter of importance to the public well-being, are the work product of the reporter rather than a leak from a government agency investigation, or expose a waste of tax money caused by mismanagement or corruption in government, dangerous conditions posing safety hazards or fraudulent conduct in the private sector that preys on the consumer.

I examined an investigative article in the LA Times about the process of removing a teacher from the education system in California.  "Failure Gets a Pass: Firing tenured teachers can be a costly and tortuous task," was written by Jason Song and published in the paper May 3, 2009.  The story is investigative because it took a situation and turned it into a broader look of how hard it is to fire tenured teachers. It reveals the information about every case on record in the last 15 years in which a tenured teacher was fired by a California school district and formally contested the decision before a review commission.  The Los Angeles Times also examined court and school district records and interviewed scores of people, including principals, teachers, union officials, district administrators, parents and students. The fact that so many people are involved in this matter, shows the importance to the public's well-being.  This story was the work of a reporter, not a leak from a government agency investigation.  A story about an escapee from a county jail being apprehended by police officers is not an investigative story because there is not much extended research. 

A good investigative story gives the target of the investigation a fair opportunity to state what happened, but the story I analyzed did not.  There was no statement from an official about why it takes so long for the removal process.  The documents Song did use were 15 years worth of court cases in California. 

There are a few visuals that accompany the article.  One is a graphic shows the actual process for firing a teacher after a misconduct complaint.  The graphic strongly resembles a children’s maze, looking impossible to get from start to finish in any reasonable time.  One photo is of an associate general counsel for L.A. Unified and a Trustee with an example of the volume of legal documentation sometimes needed to dismiss a tenured teacher.  The third picture is a simple visual of a teacher in a dark classroom to give the reader a little more of an emotional connection to the story. 

This article would be most interesting to parents with students passing through the California education system that have to put up with these tenured teachers.  Students and school administrators in California will also be concerned about the issue and all will be affected by the story and may feel compelled to try to take action in streamlining the firing process. 

The headline of the article seems fairly harsh, using the word “tortuous”, but after reading the story, it seems that these students that have to put up with the teachers are tortured because they are not receiving quality education at vital times in the learning process. 

As for where the information in the story was found, the reporter extended a story about a boy who slit his wrists, attempting to kill himself, returned to school only to have a teacher tell him that the cuts were weak and to cut deeper next time. The reporter investigated the process of how hard it would be to have this teacher removed from the school system, finding that many cases of appealed dismissals are overturned and administrators are far less likely even to try firing a tenured teacher.

Monday's HURA Meeting Results

New officers were elected Monday at the Huntington Urban Renewal Authority meeting, but it didn't seem to be business as usual.

The board has had enough members in attendance twice this year to have an election, but had not done so until today's meeting at 1:30 p.m. in the City Council Chambers.

Nate Randolph was elected chairman of the board, replacing Philip Carter who then declined every other nomination for office. Brandi Jacobs-Jones became the new vice chairman, Diane Mufson took over as secretary and Herb Stanley as treasurer.

Carter immediately stepped down from the chair to allow Randolph to take over, but seemed blind sighted by the results. For the remainder of the meeting, he sat displeased, joking with a few, certain members while snapping at others.

The board itself seemed fairly unorganized, but that could be due to a new slate of officers taking over only seconds after the election. Items on the agenda were skipped then returned to, Randolph wasn't so sure of Parliamentary Procedure and no one seemed to know how long they have served on the board.

Discussion of the Artisan Avenue Redevelopment Project was postponed because of the absence of Charles Holley, Huntington's director of management and planning, and it was on to the old business. New business was revisited later in the meeting to discuss the land bank concept. Two authorities are being considered for Huntington's land bank, Huntington Municipal Development Authority and the Huntington Urban Renewal Authority. Randolph said taking on the task would require more time, responsibility, possible training and hiring of subcontractors.  City Council will make the decision on who will be the authority.

Jacobs-Jones, also the chairman of the Huntington Municipal Development, identified that conflict of interest and abstained from voting on the motions while the other members elected to lobby for the authority. The board discussed hosting a workshop on land banks to get free advice from experts then decided it was premature because they do not know they will become the land bank authority.

Another odd discussion was about the board receiving a bank statement from a bank that previously carried the board's money, showing that the account held half of a million dollars. The sum initially excited the board, but upon further investigation, Jacobs-Jones said that it was a "figment" and that it was only insurance or the protection for the current, real funds.

While on the subject of banks and money, Stanley made the motion that the board should move funds to a local bank that would not charge the current activity fee being paid with Chase and proposed that a request for proposals be sent out to all banks that qualify. The motion carried and the information collected will be examined at the next meeting.

Urban Renewal Authority Meeting Monday

Our class will be attending the Huntington Urban Renewal Authority meeting Monday at 1:30 in the Mayor's Conference Room.  The seven members of the committee meet on the third Monday of each month.

The Agenda for the HURA meeting on June 15 is as follows:

1. Call to order
2. Pledge of Allegiance
3. Roll Call
4. Approval of the minutes of the regular meeting of the board on May 18, 2009
5. Approval of May 2009 Voucher Schedule
6. Election of Officers
  Charles Holley, Director of Development & Planning to update Board on Artisan Avenue Redevelopment Project.
8. New Business
9. Unfinished Business
  a. Federal Reserve Account
  b. Local Checking/Savings account
  c. July Meeting
10. Adjournment