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AmericanBoardofInternalMedicine(ABIM)TaxDiscrepanciesEvidencePacket
WestbyG.Fisher,MDDirector,CardiacElectrophysiologyNorthShore UniversityHealthSystem
ClinicalAssociateProfessorofMedicinePritzkerSchoolofMedicine,UniversityofChicago
Blog:”Dr.Wes”http://drwes.blogspot.comTwitter:@doctorwes
• The American Board of Internal Medicine (ABIM) is a private corporation exempt fromfederal income tax under section 501(c)(3) according to Title 26 of the United StatesCode.
• The ABIM was founded in 1936 in Des Moines, Iowa (domicile state) and has its homeoffice at 510 Walnut Street, Suite 1700, Philadelphia, PA 19106-3699.
• The ABIM receives over 97% of its revenue from practicing physicians and receives noindustry funding.
• The ABIM confers its “certification” to nearly one quarter of all U.S. physiciansintended to denote a level of competency above and beyond a state’s medical license.
• The ABIM is the largest of 24 subsidiary member-boards of the American Board ofMedical Specialties (ABMS), a 501(c)(6) Business League
• The ABIM operates on a July-June fiscal year.
BACKGROUND:
• From 1936 through 1986, the ABIM issued life-time certificationto its physician diplomates that passed their examinationrequirement.• After 1990, ABIM changed its policy: lifetime certification was nolonger recognized as valid by the ABMS and its 24-member boards(including the ABIM) and only issued time-limited certificatesafter 1990. Repeat testing, later trademarked as “Maintenance ofCertification® (MOC®) by the ABMS) was required every 10 yearsor a physician’s initial certification would be rendered invalid.• Older physicians certified before 1990 were exempted from thisrule change and did not have to be subjected to recurrent life-longrecertification requirements.
BACKGROUND:
• OnOctober17,1989,theABIMcreatedtheABIMFoundation inPhiladelphia,Pennsylvania,butneverdisclosedthisentitytoitsphysiciandiplomates.(Source:PennsylvaniaDepartmentofStateBusinessFilingEntityHistory,accessed12/2/2014)• From1990through1999,over$55millionwassecretlytransferredfromtheABIMtotheABIMFoundation.• In1999,theABIMFoundationwasannouncedtophysiciandiplomatesandcarriedassetsof$59,618,428(Source:ABIMFoundation1998Form990)• InDecember,2007,theABIMFoundationpurchaseda$2.3millionluxurycondominiumcompletewithachauffer-drivenMercedesS-classtowncar.
BACKGROUND:
FundingofABIMFoundationfromABIMDiplomateTestFees“ABIMinitiallytransferred$5milliontotheFoundationin1990.Overnearly20years(between1990and2008),approximately$56millionwastransferredbyABIMtotheABIMFoundation.Therehavebeennotransferssince2008.”1
1ABIMFoundation.org Financeswebpage,accessed6Oct2017*Source:IRSForm990s
FactCheck: FY1999Fundbalance$59,618,428
AdditionalFundsTransferred:*FY2000:$3,300,000FY2001:$1,600,000FY2002:$1,000,000FY2006:$7,000,000FY2007:$6,000,000
TotalACTUALLYTransferred:$78,518,428
Chauffeur-drivenBMW7-series
TownCar
ConciergeService
ABIMFoundation’s$2.3millionLuxuryCondominium*
*Unit#11NW,210WestWashingtonSquare,Philadelphia,PA19106PurchasedDec2007
Whostayedthere?Investmentorperk?Underpressure,soldatlossfor$1.65M6/21/2016
ABIMFoundationOff-ShoresDiplomateFeestoCaymanIslands- 2014
TaxFormDiscrepanciesABIMFoundationForm990- 2015
• NodisclosureofCaymanInvestmentsmadein2014
ABIMBylawsChanged1998OkayforABIMBoardtoHaveUnlimitedConflicts
NumerousFinancialConflictsofInterestExistwithMOC®
Source:ABIMandABIMFoundationForm990sandConsolidatedFinancialStatements
Physicianshavepaidover$581milliontoABIMandonly$13.6millionremainJust23%ofrevenueusedforphysiciantesting
ABIM’sMountingLegalFees
$159,405 $152,671 $105,808 $131,068$209,722
$344,047$421,386
$1,028,770
$1,700,799
$2,319,356
$1,951,670
$1,052,722
$767,999
$947,441
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
LegalFees
ABMSMOC®Introduced
ABIMOfficer,Director,Trustee,orKeyEmployeeCompensation
2015*
AverageUSInternistCompensation2015**
*Reference:ABIMFY2016IRSForm990
**MedscapeInternistCompensationReport2015
}$849,483
TaxFormDiscrepanciesTheABIMFoundation
• In2008,theIRSchangedForm990toincludeadditionalfilinginformation,includingtheorganization’sdomicilestateanddateofformation.(https://www.irs.gov/pub/irs-tege/990_whatsnew_purpose.pdf )
• ABIMFoundationmisreporteditsstateand/ordateofdomicileforsixyears
TaxFormDiscrepanciesTheABIMFoundation
SimilarmisinformationappearedonABIMFoundation’swebsite.
ABIMFoundationwebsite“AboutUs”webpage27Nov2014*
*Source:TheInternetArchivehttps://web.archive.org/web/20141127195454/http://abimfoundation.org/About-Us.aspx
TaxFormDiscrepanciesABIMPolitics/UnreportedLobbyingExpenses
ChristineCassel,MD,PresidentandCEOoftheABIM,appointedtoPresidentBarackObama’sCouncilofAdvisorsonScienceandTechnology(PCAST)thesamedaytheABIMemploystheunreportedlobbyingfirmJenningsPolicyStrategies.JenningsPolicyStrategiesislistedas“consultant”onFiscalYear2012(2011Form990)taxformswhileForm990lobbyinglineitemleftblank.
TaxFormDiscrepanciesABIMForm990– 2010:DisclosedLobbyistas“Consultant”
TaxFormDiscrepanciesABIMLobbying
Source:CenterforResponsiblePoliticshttp://www.opensecrets.org
Source:ABIM2013Form990
TaxFormDiscrepanciesABIMSignatureLine/Auditor
ABIM2011Form990listingChristineCassel,MDas“SnrVP&CFO”whenshewasPresidentandCEOoftheOrganization.
McGladrey LLP,ABIM’slong-termauditor,hadseriousaccountingdeficienciesin2012reviewbythePublicCompanyAccountingOversightBoard(https://pcaobus.org//Inspections/Reports/Documents/2014_McGladrey_LLP.pdf )
ABIMTaxFormDiscrepanciesWhereDidtheMoneyGo?
ABIMForm990- 2011 ABIMForm990- 2012
2011Form990:Legal$2,287,145versus$1,886,145(Difference:$401,000)
Accounting$361,753versus$107,240(Difference:$254,153)
2012Form990:Legal$2,249,239versus$1,026,406(Difference:$1,222,833)
Accounting$348,139versus$88,625(Difference:$259,514)
ABIMFoundationMoneyLaundering?
ProgramRevenue:$0
TaxDiscrepanciesABIMFailstoAllowIndependentAudit
• AmericanMedicalAssociation’sHouseofDelegatesPassedResolution607requestingAMAtoperformindependentauditofABIMinJune2016.(Availableat:https://assets.ama-assn.org/sub/meeting/documents/i16-resolution-607.pdf )
• ABIM’sPresidentandCEOrespondedtoAMAandreferredABIMdiplomatestotheABIM’sConsolidatedFinancialStatementandIRSForm990’sforclarification.(Letterofresponseavailableathttp://www.medtees.com/content/ABIMresponsetoAMA.pdf )
PracticingUSPhysicianDemand
• SinceformaleffortstoresolvetheconcernsoftheABIM’sactivitieshavefailedwiththeAmericanMedicalAssociationandtaxfraudappearsrampant,practicingUSphysiciandiplomatesoftheABIMrequestaninvestigationbytheInternalRevenueServiceandtheDepartmentofJusticeintothefinancialandpoliticalactivitiesoftheAmericanBoardofInternalMedicine,theirboardofdirectors,andaffiliatedorganizations,including,butnotlimitedto,theAmericanBoardofMedicalSpecialties.