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Thursday, May 16, 2013

IRS faces class action lawsuit over theft of 60 million medical records

By Susan Duclos

When it rains, it pours.

Oon top of the IRS targeting conservatives, new reports of the EPA also using their agency with bias against conservatives, the AP phone record scandal and the recent release of the chain of Benghanzi talking point emails contradicting Wgite House claims, now comes the news that there is a class action lawsuit being filed against the IRS  over allegations that it improperly accessed and stole the health records of some 10 million Americans, including medical records of all California state judges. 10 million Americans totaling 60 million medical records.

According to a report by Courthousenews.com, an unnamed HIPAA-covered entity in California is suing the IRS, alleging that some 60 million medical records from 10 million patients were stolen by 15 IRS agents. The personal health information seized on March 11, 2011, included psychological counseling, gynecological counseling, sexual/drug treatment and other medical treatment data.
   
"This is an action involving the corruption and abuse of power by several Internal Revenue Service agents," the complaint reads. "No search warrant authorized the seizure of these records; no subpoena authorized the seizure of these records; none of the 10,000,000 Americans were under any kind of known criminal or civil investigation and their medical records had no relevance whatsoever to the IRS search. IT personnel at the scene, a HIPPA facility warning on the building and the IT portion of the searched premises, and the company executives each warned the IRS agents of these privileged records," it continued.

 According to the case, the IRS agents had a search warrant for financial data pertaining to a former employee of the John Doe company, however, "it did not authorize any seizure of any healthcare or medical record of any persons, least of all third parties completely unrelated to the matter," the complaint read.   

The class action lawsuit against the IRS seeks $25,000 in compensatory damages "per violation per individual" in addition to punitive damages for constitutional violations.  Thus, compensatory damages could start at a minimum of $250 billion. 

More from Courthouse News:

Plaintiff's attorney Robert E. Barnes declined to elaborate on the complaint's allegations, saying he will have more information "in a few months."

     "I had to file to protect against the statute of limitations being an issue, but am still investigating all facts," Barnes told Courthouse News in an email.

     The putative class claims the IRS agents' seizure of medical records violated the 4th Amendment.
     "These medical records contained intimate and private information of more than 10,000,000 Americans, information that by its nature includes information about treatment for any kind of medical concern, including psychological counseling, gynecological counseling, sexual or drug treatment, and a wide range of medical matters covering the most intimate and private of concerns," the complaint states.

     "Despite knowing that these medical records were not within the scope of the warrant, defendants threatened to 'rip' the servers containing the medical data out of the building if IT personnel would not voluntarily hand them over. Moreover, even though defendants knew that the records they were seizing were not included within the scope of the search warrant, the defendants nonetheless searched and seized the records without making any attempt to segregate the files from those that could possibly be related to the search warrant. In fact, no effort was made at all to even try maintaining the illusion of legitimacy and legality.

     "After being put on notice of the illicit seizure, the IRS agents refused to return the records, continued to keep the records for the prying eyes of IRS peeping toms, and keep the records to this very day. The records may concern the intimate medical records of every state judge in California, every state court employee in California, leading and politically controversial members of the Screen Actors Guild and the Directors Guild, and prominent citizens in the world of entertainment, business and government, from all walks of life."

More at Forbes, The Daily Caller and NextGov.


Related

Full Wake up America coverage on the IRS scandal can be found here.


Full Wake up America coverage on Obama administration scandals can be found here.