Ashcroft: No 'Conflict' in Watchdog Role

March 11, 2008— -- Displaying the fire and tenacity that made him a controversial attorney general, John Ashcroft appeared before Congress, Tuesday, to defend his selection as a federal watchdog for a company that was investigated by the Justice Department, which he used to lead.

Ashcroft, who served as the nation's top lawyer during George W. Bush's first term, testified about his role as a federal monitor in a case for Zimmer Holdings before the House Judiciary Committee's Commercial and Administration Law panel.

Ashcroft defended his role and fees paid to his company, The Ashcroft Group, LLC, which, according to subcommittee chairwoman Linda Sanchez, D-Calif., could total $28 million to $50 million.

Zimmer was one of five companies investigated by the U.S. attorney's office in New Jersey for allegedly paying doctors' consulting fees in order to recommend particular artificial hip and knee reconstruction and replacement products.

Sanchez said she had concerns that Ashcroft's appointment as compliance monitor appeared to have been reached with no guidelines and was not transparent.

After several questions, Ashcroft became visibly agitated and defended himself, saying, "This hearing cost far more in tax dollars than my monitorship will cost, because it did not cost taxpayers one dime ... there is not a conflict, there is not an appearance of a conflict," Ashcroft boomed at Sanchez, with whom he had a heated exchange.

Ashcroft was appointed as the monitor for Zimmer last September and has already billed the firm considerable fees, which must be paid by the company, not taxpayer funds.

Ashcroft's role is designed to ensure that Zimmer complies with a deferred prosecution agreement it entered into with the Justice Department. That agreement gives the company an opportunity to correct alleged actions before the government moves forward with prosecution. Generally, if all conditions of the agreement are met, the prosecutor declines to file a case.

Zimmer and three other firms entered into deferred prosecution agreements with the Justice Department.