Virginia Attorney General Ken Cuccinelli says the IRS held up a massive Medicaid fraud settlement due Virginia and suggested the delay may have been in retaliation for his repeated run-ins with the Obama administration.
But the Republican nominee for governor could not cite any evidence to support his claim.
"I don't know that I was targeted, but after eight months of incompetence, when they're sitting on the biggest asset forfeiture I think a state's ever gotten, and lo and behold, it happens to be Virginia with a Republican governor and with me, who has been fighting with this administration . . . it starts to raise other questions," Cuccinelli said Wednesday on Fox News' "On the Record with Greta Van Susteren."
He was referring to the Treasury Department's release Wednesday of $115 million owed to Virginia for its role in a $1.5 billion court-approved settlement with Abbott Pharmaceuticals for Medicaid fraud, the Richmond Times Dispatch reported
"This would be the biggest asset forfeiture that I'm aware of a state ever getting, and the IRS was the only player left that had to fill out a two-page form that they do in a lot of other cases," Cuccinelli said. "This is not new to them. They've done it hundreds, maybe thousands of times, to move the asset forfeiture along. And lo and behold, whose asset forfeiture doesn't move but Virginia's?"
But Cuccinelli acknowledged that he had no evidence the settlement delay of eight months was politically motivated.
"I can't point to an e-mail, something that says, 'OK we're going to deny Cuccinelli and Virginia their rightfully earned money in the biggest health care fraud case ever investigated by a state,'" he told Van Susteren.
But he added, "The minute anything crosses the Potomac from Virginia and gets into Washington, all sorts of bad things seem to happen, or more accurately in this case, nothing seems to happen."
Cuccinelli said that the IRS, already under the gun for targeting conservative groups seeking tax-exempt status, was the "only block left" to Virginia receiving the settlement money.
"After eight months of incompetence, it starts to look like a little more than just incompetence," he said
Cuccinelli has repeatedly clashed with the Obama administration. He was the first state attorney general to challenge Obamacare and he has also fought the Environmental Protection Agency over regulations on greenhouse gas emissions.
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