Trump granted clemency to Medicare fraudsters before vowing to cut the program

Bob Menendez with Salomon Melgen

Disgraced former President Donald Trump’s recent statements about cutting entitlement programs have sparked controversy, especially in light of his actions during his presidency.

Trump repeatedly used his clemency powers to free criminals convicted in significant fraud cases before making promises to reduce spending on Social Security and Medicare.

During an interview on CNBC’s Squawk Box, host Joe Kernen asked Trump if he had changed his “outlook on how to handle entitlements: Social Security, Medicare and Medicaid?”

Kernen’s question was based on a concern that cutting entitlements is necessary to reduce the federal deficit and those programs, if not cut, will continue to fuel increases in the U.S. national debt.

Trump suggested that he’s open to cuts to Medicare and Social Security.

Trump’s comments came during an interview on CNBC, in response to a direct question posed to him about Social Security and Medicare on Monday.

Describing entitlements as “a third rail of politics. And we’ve got to what a $33, $34 trillion total debt built up and very little we can do in terms of cutting spending,” Kernen asked: “Have you changed your, your outlook on how to handle entitlements Social Security, Medicare, Medicaid, Mr. President? Seems like something has to be done, or else we’re going to be stuck at 120% of debt-to-GDP forever.”

“There is a lot you can do in terms of entitlements, in terms of cutting and in terms of also the theft and the bad management of entitlements,” said Trump, who added: “There’s tremendous amounts of things and numbers of things you can do.”

The statement was a response to a question posed to the twice-impeached, four-time indicted, insurrection-inciting former president about Social Security and Medicare and he replied that “there is a lot you can do in terms of entitlements, in terms of cutting,” adding he would tamp down on “the theft and the bad management of entitlements.”

However, his track record in the final months of his presidency tells a different story, as he granted clemency to several individuals convicted of Medicare fraud, including some involved in massive schemes to ripoff taxpayers.

Among those who received clemency from Trump were Judith Negron, convicted for filing $205 million in fraudulent Medicare claims, Daniela Gozes-Wagner, sentenced for falsely billing over $28 million in claims, and Philip Esformes, involved in a $1.3 billion fraud scheme.

These actions raise questions about Trump’s commitment to combating fraud within entitlement programs.

The controversy deepened as one of the beneficiaries of Trump’s clemency, Salomon Melgen, a Florida eye doctor convicted of a $100 million Medicare fraud, had his sentence commuted.

Melgen’s case attracted attention not only for the magnitude of the fraud but also for allegations of bribery involving U.S. Senator Bob Menendez, who the White House said supported the commutation along with Fidel Castro’s nephew, Republican Congressman Mario Diaz-Balart.

According to a statement from the White House, numerous patients and friends of Melgen testified “to his generosity in treating all patients, especially those unable to pay or unable to afford health-care insurance.”

In addition to being convicted of dozens of counts of healthcare fraud, Melgen was accused of influencing Menendez with bribes.

Federal prosecutors in New Jersey claimed Melgen and Menendez operated as a mutually beneficial bribery team: The Florida eye doctor gave the corrupt lawmaker gifts and campaign contributions and in return, the senator pressured federal agencies to help his benefactor.

Melgen, a retinologist who had eye clinics from Port St. Lucie to Delray Beach, was convicted in 2018 after investigators proved he falsely diagnosed and treated hundreds of elderly patients for macular degeneration, defrauding Medicare and other insurers out of millions of dollars over the years.

While Trump defended his comments about cutting Social Security and Medicare, claiming that he would focus on waste and fraud, critics argue that granting clemency to thieves involved in large-scale healthcare fraud makes it unlikely that he would protect taxpayer money or ensure the integrity of those programs.

President Joe Biden’s campaign has seized on these comments, using them to highlight differences in Democratic approaches to safeguarding entitlement programs and Republican ambitions for ending them.

Trump’s inconsistent messaging on cutting Social Security and Medicare has become a focal point in the ongoing political discourse as the 2024 election approaches.

As the campaign continues, the spotlight remains on policymakers who fail to address waste, fraud, and abuse in entitlement programs at the same time they neglect changes necessary to preserve the essential benefits Social Security and Medicare provide for millions of Americans.


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