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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.