Judge Grants Order Requesting Department of Justice Grant Immunity to Former Tiversa Employee With Knowledge of Sole Evidence FTC Used as the Basis of the Complaint Against LabMD
In a stunning turn of events, an order issued October 9, 2014 in the FTC’s complaint against LabMD blows the case wide open, exposing alleged government corruption by a FTC attorney involved in pursuing the complaint.
In June, Judge D. Michael Chappell stayed the Federal Trade Commission’s complaint against LabMD when notified of the House Oversight Committee’s investigation into the relationship between Tiversa and several Federal agencies.
Tiversa, Inc. is the cyber security firm at the center of the FTC’s complaint against LabMD. They have provided the only document entered into evidence as ‘proof’ LabMD engaged in ‘unfair trade practices’ by failing to use ‘reasonable and appropriate’ data security measures preventing unauthorized access to confidential patient information.
In 2008, Tiversa’s CEO Robert Boback contacted LabMD with allegations being proven false that his company discovered a file containing confidential patient information while performing unrelated searches for one of its clients.
When LabMD refused to enter into a service contract with Tiversa to gain additional detail on how and where the LabMD file was discovered, Tiversa turned the information over to the FTC, and an investigation into LabMD ensued.
Chairman Issa’s letter made clear the Tiversa investigation was ongoing and providing immunity for future testimony was under consideration. Former Tiversa employee Richard Wallace was scheduled to testify in the FTC vs. LabMD complaint, but when Wallace’s attorney confirmed his client was in immunity negotiations with the Oversight Committee, the judge stayed the case in order to provide sufficient time to strike a deal.
When politics as usual prevented an Oversight immunity deal, LabMD requested and was granted an order requesting the Department of Justice require Richard Wallace to testify in person under a grant of immunity.
In order to grant such a request, a judge must find the testimony be of public interest, and that the person being compelled to testify refuses to do so on the basis of self-incrimination.
Judge Chappell found both to be true, and the order was granted.
Why is Mr. Wallace’s testimony relevant? The previously undisclosed ‘in camera evidence’ provides insight:
The testimony makes clear Wallace intends to implicate a FTC attorney, as well as himself, in manufacturing evidence showing LabMD’s patient file was accessed by computers in four separate locations.
The reality is, Tiversa allegedly stole LabMD’s private property, and when LabMD refused to engage Tiversa for mitigation services, Tiversa turned the information over to the FTC via a sham company, “The Privacy Institute”, that was the FTC’s brainchild and created by Tiversa solely to funnel such files under the radar to the FTC.
Unethical behavior by a government agency to say the least.
In 2013, just prior to Robert Boback’s deposition for the FTC’s complaint against LabMD, a FTC attorney was notified the LabMD file was never located or accessed anywhere other than in a single folder on a single computer in LabMD’s Atlanta, Georgia, location. Armed with the facts, the FTC attorney whose agency is tasked with preventing unfair, deceptive and fraudulent practices allegedly engaged in some of his own by choosing to cover it up rather than doing the right thing.
The result: A small business, a cancer detection laboratory is forced to spend hundreds of thousands of dollars defending itself against baseless charges, closed its doors and its employees lost their jobs.
The Oversight Committee continues its investigation into Tiversa’s work with Federal ‘Agencies’ indicating the FTC vs. LabMD complaint may be only the tip of the iceberg. One wonders when the mainstream media will invest in investigative journalists to prevent such government abuse from occurring again.
More information about the FTC vs. LabMD case can be found in the book The Devil Inside the Beltway.