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Published: March 8, 2008
“Extensive, organized fraud”
Lawsuits allege Planned Parenthood ripped off taxpayers for more than $180 million, fired whistleblower
 A former executive of Planned Parenthood-Los Angeles has filed a federal whistleblower’s lawsuit against all nine Planned Parenthood affiliates in California. The suit alleges the affiliates knowingly engaged in a criminal plot to fleece state and federal taxpayers out of more than $180 million over the course of at least six years.
Victor Gonzalez, former vice-president for finance and administration of Planned Parenthood-Los Angeles, secretly filed the lawsuit under the federal False Claims Act in U.S. District Court in Los Angeles in 2005. The suit was unsealed earlier this week following a prolonged review by the U.S. attorney’s office. Gonzalez worked for Planned Parenthood of Los Angeles from Dec. 9, 2002 until he was abruptly fired on March 9, 2004.
Gonzalez alleges he was fired for bringing "illegal accounting, billing and donations practices” to the attention of his superiors. The False Claims lawsuit alleges that Planned Parenthood’s irregular billing practices began in the late 1990s and continued until 2004, when Planned Parenthood was able to persuade the state legislature to change the law and allow it to bill the higher rates.
“The complaint documents what we believe is evidence of extensive, organized fraud by Planned Parenthood in California,” said Jack Schuler, Gonzalez’s attorney, in a prepared statement. “A previously buried and ignored California Department of Health Services 2004 Audit, which found more than $5 million in egregious over-billing in two years by the San Diego/Riverside Planned Parenthood affiliate, is an extraordinary indictment against Planned Parenthood. Here is the ultimate Hollywood movie set façade of a corporation that poses as charitable while grossly over-billing government programs funded to service the needy, not the greedy. I would not be shocked that criminal prosecutions might follow.”
According to Schuler, Planned Parenthood bought contraceptives and other medicines at deeply discounted rates because of their status as a charity, “then billed the state Medi-Cal program for 12 or more times their purchase price.” Both state and federal law explicitly forbid such over-billing, Schuler said.
Gonzalez has filed a separate wrongful termination lawsuit in Los Angeles Superior Court that is scheduled to go to trial on April 7. That lawsuit alleges Planned Parenthood of Los Angeles marked up medicines – principally oral contraceptives and NuvaRing, a device inserted into the vagina once a month to prevent conception -- purchased at substantial discounts under a special government-subsidized program.
“The effect of this at [Planned Parenthood-Los Angeles] is overcharging the State of California and self-pay patients approximately $2,000,000 per year,” the lawsuit alleges. “This has been going on for a number of years, and is prevalent with all the other California [Planned Parenthood] affiliates. As a result, the overcharging exceeds $10,000,000 per year.”
Gonzalez says in his complaint that he brought his concerns about the overcharging practices to other Planned Parenthood executives, “and participated in numerous telephone calls where both [Planned Parenthood-Los Angeles] and the Sacramento based [Planned Parenthood Affiliates of California]... was attempting to stopgap this violation.”
Other irregularities alleged in Gonzalez’s wrongful termination lawsuit include:
Planned Parenthood-Los Angeles advanced about $12,000 a month to Planned Parenthood Affiliates of California in Sacramento “to cover expenses for lobbying and advocacy. These loans are simply a subterfuge to support a whole team of people who advocate for specific issues and specific candidates in contravention of IRS guidelines” for non-profits.
Planned Parenthood-Los Angeles posted anti-George Bush and pro-Barbara Boxer signs at their headquarters building, and Gonzalez took digital photos as proof. These activities, too, “were in violation of the public policy underlying the Internal Revenue Service Code.”
Gonzalez complained of “misuses, diversion and cross-funding of grants, donations by both private and corporate/charities/organizations” by Planned Parenthood-Los Angeles during cash-strapped months, usually during the summer.
Planned Parenthood-Los Angeles provided “doctored and rosy financial projections” in an effort to obtain a $400,000 state-financed loan for a South Los Angeles clinic.
An executive of Planned Parenthood-Los Angeles “materially changed Plaintiff’s monthly report to the PPLA board’s budget and finance committee in order to present a more favorable situation than actually existed.”
Employees of Planned Parenthood-Los Angeles misused a corporate American Express card. “Instead of using the card for legitimate non-profit purposes, employees were using donor money and other PPLA money for Victoria’s Secret and private video purchases. Other instances of credit card abuse occurred as well.”
“The public owes a debt of gratitude to whistleblower Victor Gonzalez, who had the courage to come forward – even at the cost of his job,” said Schuler. “We believe the evidence is overwhelming that Planned Parenthood clearly knew the law and then willfully and repeatedly violated it.”
Posted Saturday, March 08, 2008 5:21 AM By Pro Loza
It is only obvious that sooner or later the cracks of deceit and corruption---------- that this "charitable" organization bills itself---------which are the fundamental and underlying reasons for maintaining it's existence------- being Satan's playground-------would eventually be exposed for the fraud and evil it is. Let's pray for the conversion of Mr. Gonzalez and thank Our Lord at this new development to hopefully put a big dent in PP's plans of seeking the ruin of souls and it's blood thirsty practice, which has no place in any civilized society.
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Posted Saturday, March 08, 2008 7:12 AM By John
Who was the state official who helped PP cover up this fraud?
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Posted Saturday, March 08, 2008 8:34 AM By Miguel
I can't wait to see the public outcry, the media blitz, and the politicians seizing the moment. Oh what do I hear, crickets! That's all your gonna get folks! They media in the country is a Joke!!
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Posted Saturday, March 08, 2008 9:09 AM By Cheryl S.
Great reporting! Great story. Now, they should face criminal charges!
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Posted Saturday, March 08, 2008 9:27 AM By Juan Pablito
It would seem that Planned Parenthood didn't plan on a whistleblower to courageously come forward even at the cost of his job. We always knew Planned Parenthood had a very bad plan. Thank You and God Bless Whistleblower Victor Gonzalez. Our Lady of Guadalupe pray for Victor Gonzalez and that many more people like Victor come forward and continue to blow the whistle on Planned Parenthood's bad plan for unborn baby children that deserve the best plan of life that God could give them because all unborn baby children are created by God. Just think the name Victor is just one letter away from the word victory. This is a victory for Victor and all unborn baby children
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Posted Saturday, March 08, 2008 10:50 AM By Papamac
The Politicians will make certain that this is covered up, the media will support them by putting it on the back pages IF it even gets into print. Planned Parenthood with the FULL SUPPORT of the Demoncratic party at the State and Federal levels has been ripping off all AMERICAN TAXPAYERS for years. MIGUEL, the public outcry will be the same as came from S.N.A,P. and the other so called supporters of abused children when it was reported three weeks ago that the ATTORNEY GENERAL and the DEMOCRATIC LEGISLATURE in OREGON were supporting the cover up of TEACHER SEXUAL ABUSE in the entire Oregon school system, NOT ONE WORD OR MARCHING PROTEST, NO MONEY IN IT FOR THEM, SO WHO CARES ABOUT THE CHILDREN, RIGHT. MGB
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Posted Saturday, March 08, 2008 1:21 PM By Fr. M.P.
Let's get these criminals behinds bar with the full force of the law.
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Posted Saturday, March 08, 2008 2:13 PM By Margie R
Ever since I heard that the state of Virginia is the first state in the nation to defund Planned Parenthood, it has been my prayer that California be the second state to take on these crooks.
People of CA, please join me in praying that this is the beginnning of the end for funding of this wicked organization in California. No longer should they have access to our tax dollars. No longer should they corrupt our youth. No longer should they pose as a benevolent charity beloved by all. Wake up! This organization is corrupt and needs to repent. Lent is as good a time as any to see PP stop their evil ways.
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Posted Saturday, March 08, 2008 3:40 PM By Miguel
Papamac, God Bless you! Couldn't have said it better myself!! THE MEDIA IS A JOKE!!!
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Posted Saturday, March 08, 2008 4:10 PM By Maria G.
EVERY WEEK, 5,095 BABIES DIE FROM SURGICAL ABORTION at Planned Parenthood according to their own report. OUR TAX DOLLARS ARE PAYING FOR THIS!
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Posted Saturday, March 08, 2008 4:32 PM By Bob
Gee, what's the problem? PP is doing public good, aren't they? What's a few bucks, here or there? A pittence! The proof it is overblown is that the media does not report on such trivial matters. Quiet down now.
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Posted Saturday, March 08, 2008 5:33 PM By gb
I have faith in God, but not in the California Judicial system. While PP should have the book thrown at them, who'll be sitting on the bench to do that? Hopefully it is not a PP sympathizer, as they will probably ignore the law -- as so many judges do these days -- and rationalize their criminal activity somehow. I imagine they will justify what they did because they had to do to get the "proper" funding back then. And now that they have it, they no longer need to come up with creative accounting practices to insure a "women's right" is not violated. Still there is hope, who would have ever thought someone from their own ranks would have been keeping a paper trail of all these corrupt things.
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Posted Saturday, March 08, 2008 5:57 PM By Innocent III
What good news during 40 Days for Life. Prayer works, folks, so let's persevere.
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Posted Saturday, March 08, 2008 6:43 PM By Ozark_Sunshine
Planned Parenthood is nothing more than a racist organization that is so out of control and needs to lose their tax exempt charity status and put in jail and cut off from all funds, state and federal, period. Bob, name one thing they do that is good. That is the most idiotic statement I've read. Of course now that the leading psychiatrist has identified liberalism as a mental illness, you can get treatment for it.
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Posted Saturday, March 08, 2008 7:38 PM By DaMama
PP is indeed a racist organization, founded by a woman who wanted abortion legalized because she didn't want more African Americans, Hispanics and Jews. Margaret Sanger was an ardent admirer of Adolph Hitler and supported him wholeheartedly. This organization is a scourge upon our country. PP never reports statutory rape. The local PP here used to bring vans to the local high school and take minor girls for abortions without parental consent. Once word got out, parents were outraged and it stopped. They don't care about women's health, all they care about is getting more money. God bless Gonzalez!
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Posted Saturday, March 08, 2008 8:45 PM By James Hartline
The great evil snake is about to be beheaded! By the way do NOT go see the new Dr. Seuss movie Horton Hears A Who. Audrey Geisel, the owner of the Dr. Seuss franchise is a major supporter of Planned Parenthood and her money comes from said movies. I am doing everything possible to hurry up the beheading of that snake.
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Posted Sunday, March 09, 2008 12:08 AM By Kenneth M. Fisher
Miguel,
The media is not a joke, there is nothing funny about lies and deceit!
God bless, yours in Their Hearts,
Kenneth M. Fisher, Founder & Chairman
Concerned Roman Catholics of America, Inc.
www.crcoa.com
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Posted Sunday, March 09, 2008 8:18 AM By Jericho
While humans who breath through their bellies are the only ones being killed this holocaust will not end. When human who breath through their mouth/nose lay down their lives (9 were killed to end segregation) then the holocaust will end. Are you prepared to have your teen beat to death by enraged pro-abortion cops? No? Then expect the slaughter of the innocents to continue.
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Posted Sunday, March 09, 2008 9:27 AM By Margie
Snake beheaders of the world, unite!
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Posted Sunday, March 09, 2008 12:30 PM By KansasGirl
The good people of California need to take your state back! We are fighting PP in Kansas also. Of course we have liberals here as well. I only hope we are turning the corner on this genocide!
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Posted Sunday, March 09, 2008 5:34 PM By JR
Well, If Arnold can recoup any money for the state, which is needed, he should let the dogs off the leash to attack PP. Depending on what DEM/REP are in on the graff!! Hmmm, what twisted web they weave!
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Posted Sunday, March 09, 2008 5:51 PM By Jim
I read an article a couple years back from on-line news that reported PP giving a 13 year old girl a bus ticket to go from a parental notification state to a non-notifying one to have an abortion. While she was having her abortion someone stole her clothes and ticket home. Not sure how she got home, maybe called her dad who was a pastor. But it was for sure and certain the staff at PP could have given a rip. They had their money.
Notice liberals support the war on the innocent unborn and oppose the one against the religious zealots who took down the WTC and 3,000 civilians.
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Posted Sunday, March 09, 2008 7:02 PM By shinethelight
Please people wake up. This is just the tip of the iceberg. A drop in the bucket of the evil that Planned Parenthood has wrought. The reason they buy the birth control so cheaply is because it is "special made" for Planned Parenthood clinics to give out to little girls after they have gone through their "in school" sex education indoctrination. The pills are less than half strength - designied to fail. They want your underage girls to get pregnant. The more the better. It is their business model. They want to increase their "yield". More abortions and more baby body parts to sell on the black market. Wake up America. It's not about a "Woman's Right to Choose." Planned Parenthood doesn't care about that. That's why the activist judges are taking away parental rights. Their turning our public schools into mills to turn out more and more pregnant girls. And they are especially targeting the Hispanic and minority community. Open the border. More abortions. More Abortions. Pagan societies always sacrafice their young. Margaret Sanger admired and encouraged Hitler. Wake up America. The Liberals are the Fascists.
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Posted Sunday, March 09, 2008 8:16 PM By karlzmom
Gee, Planned Parenthood has consistently failed to get government funding for abortion services, but can get massively over-paid for birth control. I'm sure that the cash-flow for each service has been kept strictly separate. Right! Things that make you go "hmmmm"
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Posted Sunday, March 09, 2008 9:19 PM By Jon
Even if Planned Parenthood in California is acquitted of Gonzalez's accusations, let's not forget the far greater horror of what they do. Regardless of how much they steal, how often they lie, and the ways in which they encourage adultery, fornication, and raping--the real atrocity is their systematic killing of human beings--with a smile on the face, in the name of compassion and virtue--worse than Hitler, who also had a plan to improve the world by killing those whose lives were not worth living. Culture of death, for sure! To a Christian, planned parenthood means waiting until marriage before engaging in the privileges of marriage--physical intimacy and the creation of a family. And if the plan fails, the Christian will not try to kill the evidence (a baby).
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Posted Sunday, March 09, 2008 9:21 PM By Jon
Even if Planned Parenthood in California is acquitted of Gonzalez's accusations, let's not forget the far greater horror of what they do. Regardless of how much they steal, how often they lie, and the ways in which they encourage adultery, fornication, and raping--the real atrocity is their systematic killing of human beings--with a smile on the face, in the name of compassion and virtue--worse than Hitler, who also had a plan to improve the world by killing those whose lives were not worth living. Culture of death, for sure! To a Christian, planned parenthood means waiting until marriage before engaging in the privileges of marriage--physical intimacy and the creation of a family. And if the plan fails, the Christian will not try to kill the evidence (a baby).
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Posted Sunday, March 09, 2008 10:01 PM By armando
FINALLY,SOMEONE HAS THE GUTS TO EXPOSE THEM AND TAKE THEM ON. GOD BLESS VICTOR GONZALEZ.
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Posted Sunday, March 09, 2008 10:07 PM By Jose
Victor, it was very smart that you took digital pictures of the anti-Bush political posters at Planned Parenthood Los Angeles,
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Posted Sunday, March 09, 2008 10:23 PM By George Brett
This information confirms what many thousands of citizens have known about Planned Parenthood for decades: the organization is about making money, period. Now the only question is, are they selling the body parts and tissues they acquire from the fetuses they terminate?
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Posted Monday, March 10, 2008 5:34 AM By wildemom
Most of us have known for decades of the evil of PP. The sorrow is that within the pro-life movement, we do not acknowledge the fact that life begins and must be defended the instant that the egg and sperm unite. We cannot justify the destruction of the tiny zygote by use of chemicals any more than we can justify the abortion of a child in utero. The contraceptive link which has been intrinsic to the abortion mentality, is the bottom line in our struggle. Until the entire pro-life movement recognizes and acknowledges that we must defend the lives of ALL babies, regardless of gestational age, we are going to continue to fight this battle. Contact LifeVoice 608 735 4653 for more information germane to this topic.
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Posted Monday, March 10, 2008 8:09 AM By D.W.
Oh, I wouldn't worry too much about how or when PP will not get their "justice due to them." Jesus is VERY much in control and has many ways in "leveling out the playing field." The Liberals, the Press, the Democratic Party are ALL to much self absorbed and won't be siding with ANYONE or ANYTHING that wouldl descredit their credibility. So you ask HOW will PP get their "comeuppance" and brought to either near bankruptcy or bankruptcy......It is easy.....the U.S government in the form of the IRS. If Uncle Sam is finally "returning the calls" to all of the hospitals for twenty to thirty years of "bilking medicare" (it was the hospitals who at that time felt that medicare was too ignorant, dumb or both to catch them with their hands in the cookie jar) and then are now realizing that the roosters have come home to roost via auditors (In three states alone, medicare has recouped about $300 million, and the remaining 47 states will also have their time of auditing). The US Government be it medicare and especially the IRS will make sure that the reported, or "underreported" $180 million dollars will receive their "unmitigated attention" of tax revenue that is due to them. Pride comes before the fall and if PP feels they are above the law they better think that the IRS has improved greatly in their "auditing techniques" since Al Capone. You remember Al Capone! He thought he was untouchable too until the IRS got ahold of him?
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Posted Monday, March 10, 2008 10:13 AM By Cowboy
Wow, Depending upon the IRS to dominate PP to bring it to justice is like waiting for the wolf to do the same to/for the coyote. How can two "wrongs" make a "right"? (Hmmm. come to think of it, I prefer the wolves and the coyotes!) All citizens of the U.S. would be so far better off without either of these two outfits it's incomprehensible! I am so looking forward to Jesus coming - are you ready?
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Posted Monday, March 10, 2008 10:14 AM By dm
You think the media will actually cover this story?
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Posted Monday, March 10, 2008 10:31 AM By CJ
"Therefore do not be afraid of them. Nothing is concealed that will not be revealed, nor secret that will not be known. What I say to you in the darkness, speak in the light; what you hear whispered, proclaim on the housetops. And do not be afraid of those who kill the body but cannot kill the soul; rather, be afraid of the one who can destroy both soul and body in Gehenna." (Matt 10:26-28)
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Posted Monday, March 10, 2008 11:14 AM By Elizabeth
I wish Fox News would get 'wind' of this story.
How does one get heard?
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Posted Monday, March 10, 2008 12:27 PM By Regina McMahon
Planned Parenthood makes it's money from killing children and maiming women... why would anyone be surprised that they are also bilking the govenment and taxpayers. They are evil through and through.
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Posted Monday, March 10, 2008 2:09 PM By James
What words do they do not understand in:
"Thou Shalt Not Kill"?
"It is a very great poverty to decide, that a child must die, that we might live as we wish"
Blessed Teresa of Calcutta.
Must we say more?
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Posted Monday, March 10, 2008 6:04 PM By Marilyn Krocheski
It's about time they found out who the real gangsters are. planned parenthood should be dissolved and wiped off the face of the earth.
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Posted Monday, March 10, 2008 7:09 PM By John L. Sillasen
Planned Parenthood will "walk" on this one. The public is more interested in what the govt can give it, than in moral choices, and this is how it votes.
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Posted Monday, March 10, 2008 11:27 PM By John
Too bad that so many in the dishonest news media will try to bury this news. If a pro-life organization had committed such fraud, it would be front-page news.
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Posted Tuesday, March 11, 2008 1:34 AM By misch
What they did was totally wrong they shall gets there just dues as they say in the end!!
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Posted Tuesday, March 11, 2008 8:01 AM By Kathleen
Dittos to all the above. Be assured, though, that God is still in charge and will handle the situation in His time. Meantime, pray, pray.......
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Posted Tuesday, March 11, 2008 10:52 PM By John L. Sillasen
God handles situations by means of people.
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Posted Wednesday, March 12, 2008 5:18 AM By Francis Kolbe
dm the media will not cover this story because doesn't make the agenda of the culture of death that they have been promoting look too good at all. Sadly the vast majority of the media have forgotten that they should be neutral observers reporting all the facts of both sides of a story they are covering. In this particular case what ususally happens in the mainstream media when confronted with such stories even worse is they won't bury the story as John suggests, they simply won't cover it thus pretending this never occurred. I would urge you all to pray for members of all media across America because the profession they have is really a vocation from God to tell the truth and inform the public about the truth and all the facts and sides about the truth of each issue or story they are writing or coverning for the news.. St. Francis de Sales, Patron Saint of Writers pray that all our brothers and sisters in Christ that are writers and journalists and authors tell the truth and nothing but the truth so help you God.
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Posted Saturday, March 15, 2008 7:37 AM By Marcia
The media may not cover it, but we can forward this article on to our friends and relatives. I also plan to tag it on my own blog. The world needs to hear this, and the internet is a powerful tool. Pass it on! eHomebody.com
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Posted Thursday, March 27, 2008 11:35 PM By Terry C
Margaret Sanger, the woman that started PP was into eugenics which is the same as ethnic cleansing. A racist pal of Hitler. And we are surprised her legacy are cheats? Not really. They are murderers of more babies than Hitler killed Jews. The Holocaust continues but on children.
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Posted Tuesday, May 06, 2008 11:41 AM By DJ Johnson
Keep exposing PP for the evil that they truly are. Thank you for this story.
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Posted Monday, June 23, 2008 11:42 AM By John
Does anybody know the official no and name of this suit? Where could the actual cout documents be found?
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