Medical Supply Chain Discovers US Bancorp's Davis Continued Extortion Policy

KANSAS CITY, MO -- Samuel Lipari, founder of Medical Supply Chain, has discovered US Bancorp's current President and CEO, Richard K. Davis continued the extortion of healthcare supplier companies that caused US Bank's parent company to jettison its investment-banking unit US Bancorp Piper Jaffray. Samuel Lipari's lawsuit against US Bank has been in federal court since October 2002.

The case is currently captioned 'Lipari v. US Bancorp et al., Kansas'

District Court Case Number:
2:07-cv-02146-CM-DJW (1.) 

The case is presided over by the Hon. Judge Carlos Murguia, nominated to the bench in 1999 by former president Bill Clinton.

The National Association of Securities Dealers in 2002 found a US Bancorp managing director, Scott Beardsley, threatened to discontinue coverage of Antigenics Inc., a biotechnology company that develops treatments for cancers and infectious diseases, if Antigenics did not select US Bancorp Piper Jaffray as a lead underwriter for a planned secondary stock offering. Antigenics required the capital to enter the hospital supply market controlled by Novation LLC. As part of a settlement with the NASD, US Bancorp was censured and fined $250,000.

US Bancorp accepted liability for $12.5 million in disgorgement and an additional $12.5 million in penalties over US Bancorp Piper Jaffray's actions in falsely representing investment research related to capitalizing technology companies in IPO's on the NASDAQ stock exchange in 2003 as a result of Securities and Exchange Commission v. U.S. Bancorp Piper Jaffray Inc., 03 CV 2942 (WHP) (S.D.N.Y.).

US Bancorp underwrote the IPO for Neoforma, Inc. Neoforma was taken private in 2007 by Novation LLC to conceal member hospital kickbacks laundered through the publicly traded company from the Ft. Worth, Texas US Department of Justice's False Claims Act investigation of Novation LLC for Medicare Fraud involving over 2500 Novation LLC hospitals. The whistleblower case continues on as United States ex rel. Cynthia I. Fitzgerald v. Novation LLC et al N. Dist of TX Case no. 3:03-cv-01589 (2.) and has been covered by the New York Times (3.).

Jerry A. Grundhofer, the former CEO of US Bancorp attempted to disassociate US Bank from the notorious US Bancorp unit Piper Jaffray while Richard K. Davis was president by giving away Piper Jaffray to shareholders in a desperate spin off after two attempts to sell the investment unit at a hundred million dollar loss fell through in 2003. However, Richard K. Davis continued a policy of using US Bank to interfere with healthcare technology companies attempting to enter the hospital supply market controlled by Novation LLC.

Samuel Lipari discovered US Bancorp's agents while under the control of CEO Richard K. Davis continued to obstruct Lipari's Medical Supply Chain's entry into the market for hospital supplies as recently as January 2008. Emails and court records now show that Shughart Thomson & Kilroy, P.C. acting at the direction of US Bancorp CEO Richard K. Davis repeatedly interfered with Lipari's efforts to obtain trial counsel in Medical Supply's Missouri litigation against General Electric (exchange symbol GE).

GE provided the $600 million dollars to take Neoforma, Inc. private and prevent the USDOJ from obtaining access to hospital kickback records in the Medicare False Claims Act investigation. US Bancorp CEO Richard K. Davis attempted to conceal the fraud by omitting disclosure of the potential litigation liability in Securities and Exchange Commission filings as required under § 302 of the Sarbanes-Oxley Act. KPMG LLP also endorsed the filings omitting the disclosures required under § 302 of the Sarbanes-Oxley Act.

(1.)http://www.medicalsupplychain.com/Lipari%20v%20US%20Bancorp.htm (2.)http://fraudpi.org/Documents/US%20and%20Tex%20es%20rel%20C%20Fitgerald%20v%20Novation%20et%20al%20complaint.pdf
(3.)"Blowing the Whistle, Many Times" The New York Times By MARY WILLIAMS WALSH November 18, 2007 http://www.nytimes.com/2007/11/18/business/18whistle.html?_r=2&oref=slogin&oref=slogin 

About US Bancorp
US Bancorp is the parent of U.S. Bank, the sixth-largest bank in the United States based on holdings. US Bancorp's corporate counsel in charge is:

Senior Counsel Sarah B. Stroebel US Bancorp NA, BC-MN-H210 800 Nicollette Mall, Minneapolis, MN 55402 (612) 303-7803

The lawsuit defendants US Bancorp (exchange symbol USB) and US Bank NA have been represented by:

Steven D. Ruse, Mark A. Olthoff, Andrew M. Demarea and Susan Hascall of Shughart Thomson & Kilroy, P.C. 1700 Twelve Wyandotte Plaza 120 W 12th Street Kansas City, Missouri 64105-1929, (816) 421-3355

Patrick J. McLaughlin, partner and co-chair in the corporate trust services of Dorsey & Whitney LLP (www.dorsey.com), Suite 1500, 50 South Sixth Street, Minneapolis, MN 55402-1498 (612) 340-2975

About KPMG LLP
KPMG LLP is a U.S. limited liability partnership and a leader in auditing public corporations. KPMG LLP is a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative KPMG LLP 757 Third Avenue, New York, NY 10017. (212) 909-5600

About Novation
Based in Irving, Texas, Novation comprises the 2,500 members of VHA Inc. and the University HealthSystem Consortium (UHC), two national health care alliances and nearly 9,000 members of Provista, LLC (formerly known as Healthcare Purchasing Partners International, LLC (HPPI). VHA, UHC and Provista members purchased $31.6 billion through Novation LLC in 2006.

###