Business & Commercial

An Incomplete Preview of Coming Attractions (Or Upheavals, or Reforms, Depending on One’s Point of View…)

/ Jack Marshall / 18 Comments

I have hinted here at various times recently of a major ethics project that I am working on relating to a growing and so far barely recognized scandal in the civil justice system. It is time to reveal a few details.

There are corrupt tactics and practices in the legal world centering on the litigation of mass torts. They are responsible for losses totaling billions of dollars inflicted on the victims of injury, plaintiffs, corporate shareholders, and taxpayers. These have metastasized over the last decade, spread by the opportunities created by too-loosely regulated law firms being allowed to include non-lawyer partners (in D.C., Arizona, and Utah), the rapid explosion of litigation financing provided directly to lawyers and law firms after a century of being regarded as an unethical practice to be avoided, and a tsunami of unethical and deceptive maneuvers that have been largely ignored by or unreported to the legal profession’s ethics watchdogs.

Quite by accident, I became aware of these practices in my legal ethics practice, frequently by being retained by lawyers and law firms who were the victims of them, and whose clients were at risk as a result. I was stunned at the depth of ignorance of this scandal among most lawyers, which, of course, is one major reason why it continues unabated. I began having regular discussions with legal ethics authorities, and, upon finding a whistleblower who had been an architect of many of these practices, began assembling a coalition, still growing, to expose the bad actors, tighten up the laws, regulations and legal ethics rules that have allowed them to thrive, and to overhaul the system itself that is neither trustworthy nor safe.

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Switching Jobs Ethics

/ Jack Marshall / 3 Comments

A Guest Post by

Alex

(From this week’s Open Forum)

Here are some real life ethics ruminations I’m going through as I’m switching jobs in the next month…

  • Two-week notice: In general, this a good and professional practice. In the past I even extended it to three weeks because of a high-priority project my team was dealing with. This time around it ended up being closer to a week because I had a planned vacation where my last day would have fallen, my current employer provides “unlimited” PTO and did not want to abuse the privilege of extra pay days at the tail end of my tenure. Thoughts?
  • Working for a competitor: In the past I’ve worked for $BIGTECH and seen people who are escorted out of the building because they are going to a company that is remotely involved in the same matters. This time around I’m going to a direct competitor, and yet, my manager, my management chain and HR all seemed fine with me working here until the last day. I’m a professional; in no way would I use the extra time to get access to information I should not or collect data for the new company. Seems like the prudent thing would be for management to cut my access immediately, as there is a balance between getting a good handoff of responsibilities (and actual work) vs. the risk of having someone with broad access. I’m happy the way things are turning out for me – even gives me a chance to say my goodbyes—but at what point is the risk too much for management to accept? (In this case I think the fact that we are not a public company is making the difference)
  • No poaching for a year: All my previous employers had that in the employment contract. This one does not. I don’t plan to try to bring anyone over (it’s a small industry) in the short term, but what does one do when a former coworker expresses interest in coming to the new place?
  • Throwing your own farewell party! This one is on a lighter note. There is a prohibition of using morale budget for farewell parties (understandable), so I’m sort of narcissistically organizing a small pizza get-together for my direct team and coworkers. I don’t need or plan to ask for contributions, but what would be the correct etiquette for that situation?

Anyway, it should be a fun week (as we are also trying to meet a very tight deadline).

Ethics Dunce: Wells Fargo Bank

/ Jack Marshall / 9 Comments

Hmmmm. Well THAT certainly enhances my trust in my bank!

As I told the Wells Fargo customer service agent (“second line!”) when I finally got through to one, I don’t need this. My wife’s sudden death put me in financial hell, punched my business in the metaphorical solar plexus, and sent me on a harrowing odyssey to repair my economic state—debts, credit, taxes—regarding problems I didn’t even know existed. Messages from my bank telling me I am over my credit limit causes my adrenaline level to shoot through the top of my head. Yes, a home repair financing arrangement required me today to employ a new credit card for the full amount: I thought that’s what it was for. Silly me. Foolishly, I didn’t realize that charging $8,000 for an $8000 purchase on a credit card with an $8,000 credit limit would cause me to go over that credit limit.

But I’ve never been good at such matters.

When I called Wells Fargo and asked why I had been sent that alert, I was told that they had no idea. Just fooling around, I guess. Just screwing with me. “I’m sorry. I guess the computer just sent the wrong email,” was the best I got.

Oh.

I pulled my accounts out of Wells Fargo during their last scandal, and came back when I discerned that they were no longer crooked there. Now they’re just stupid and incompetent.

Architecture Ethics: If George Costanza Really Became An Architect…

/ Jack Marshall / 8 Comments

…he might have designed something like that bridge above, the Rail Over Bridge in Bhopal, India.

Central India’s Madhya Pradesh Government recently suspended the seven engineers responsible for the incompetent and dangerous design. Two construction companies have also been blacklisted, and small wonder. The bridge cost 200 million rupee ($2.3 million) and was announced 10 years ago to improve connectivity between Mahamai Ka Bagh, Pushpa Nagar, and the station area with New Bhopal. It was meant to eliminate long delays at railway crossings and shorten the commute for nearly three hundred thousand people.

VD Verma, the chief engineer on the project, claims that he and his team had no choice but to include the 90-degree turn because of land space and the presence of a metro station nearby. Of course he had a choice: tell officials that there was no way to build a safe bridge in the area available. Bhopal authorities are now trying to purchase more land, to allow the implementation of a safer turn. See, the idea is to do that before you build the bridge, not after.

I don’t understand how this could happen, do you? Nobody spoke up in either the planning or the construction stage to say, “Hey, wait a minute! You can’t have 90 degree turn on a bridge!”? Apparently these workers, so far unidentified, completed the bridge…

George, meanwhile, replied regarding his design,

July 4th Open Forum!

/ Jack Marshall / 5 Comments

Light whatever ethics fuses you choose here today. As usual, traffic is minor on a long weekend. I have only one matter to pass on: Sen. Bernie Sanders’ dishonest and aburd criticism of the Paramount/CBS/”60 minutes” settlement, which would be an “Unethical Quote of the Week” if so many Axis hacks and liars hadn’t been saying the same thing. Quoth Bernie,

“Paramount’s decision will only embolden Trump to continue attacking, suing and intimidating the media which he has labeled ‘the enemy of the people.’ It is a dark day for independent journalism and freedom of the press — an essential part of our democracy. It is a victory for a president who is attempting to stifle dissent and undermine American democracy.”

Asshole.

In order:

1. Trump should be “emboldened.” The media has been indulging in fake news, manipulated reports, partisan bias and anti-democratic fact-hiding for far, far too long, and a reckoning is overdue as well as necessary.

2. The press should be intimidated to make it stop abusing the freedom of the press and deliberately misleading the public.

3. The news media is the enemy of the people. The “60 minutes” scandal showed why.

4. The dark day for independent journalism arrived the first time a major news source like CBS set out to elect one candidate over another instead of reporting objectively and fairly on both. Making it clear that journalists face some adverse consequences when they betray their public trust this brightens the day.

5. The essential part of democracy is the public being reliably informed about the world, the nation and its elected officials objectively, responsibly and fairly. so they can competently participate in their own government. When the free press decides to misuse its power and special privileges to mislead the public, that’s an attack on democracy.

6. How can anyone describe what CBS did with the Harris interview (or NBC, with “Saturday Night Live,” giving Harris an illegal free campaign commercial three days before the election) as “dissent”? Answer: They can if they are dishonest, unscrupulous, shameless Machiavellian leftists like Bernie. This is the guy who said outright that Harris was pretending to be more moderate in her views to get elected, and that was fine with him. “By any means necessary,” after all!

Did I mention that Sanders is an asshole?

7. Bernie and anyone else who stood by and allowed a demented Democratic President be manipulated by unelected back-room aides is estopped from ever using the term, “undermine American democracy”again. Channeling Albert Brooks in “Lost in America,” I’d say that they can’t even use the components of that phrase, “undermine,” “American,” and “democracy.”

8. And can we please stop tolerating the “Paramount settled because it wants the merger to be approved” lie, the agreed-upon narrative the news media has pushed to shift the blame from “60 minutes” to Trunp? Paramount and CBS settled because they did not dare go through discovery, which would reveal high level emails in which various executives openly discussed how to make sure Harris won and Trump lost. Those would create a professional scandal from which CBS might never recover.

Paramount/CBS Pays For Its Unethical Election Interference: Good!

/ Jack Marshall / 15 Comments

It looks like the settlement will amount to around 16 million dollars when all is tallied up, more than what ABC paid for George Stephanopoulos repeatedly (but not maliciously, oh no, never that!) calling Donald Trump a “rapist” on national TV. Several cynics were telling me today that this was “a drop in the bucket” for Paramount—it doesn’t matter. The settlement is an admission of wrongdoing, and what CBS and “60 Minutes” did by stealth editing a Kamala Harris interview late in the Presidential campaign to make her sound like less of an idiot was wrong, another “enemy of the people” act, and a blatant attempt to mislead voters and support the Democratic Party under the guise of journalism.

More important than the symbolism of the money perhaps is CBS’s promise to install a mandatory new rule requiring the network to promptly release full, unedited transcripts of future Presidential candidate interviews. It is the “Trump Rule.” That a television news division had to be forced into institutionalizing such transparency tells us all we need to know about the dismal state of broadcast journalism.

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On the Illegality of Illegal Aliens

/ Jack Marshall / 13 Comments

Guest column by Ryan Harkins

We have this report from HotAir explaining that that the ICE raid on the meat packing plant in Nebraska was not simply due to the fact that the plant hired so many illegals. Instead, the focus of the raid was on an identity-theft ring running out of that plant.

I want to make it clear I am all in favor of whoever in the world who wants to come to the United States to make a better life for themselves should have the opportunity. I’d give top priority to those who wish to become US citizens, but I’m generally in favor of letting into the country far more people than our current immigration system allots. How many more, I can’t say, as I’ve not crunched the numbers. But in general more immigrants means more workers, more production, higher demand for services, all which contribute to a growing economy that enriches everyone here.

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Announcing a New Ethics Alarms Principal: The Jumanji Axe

/ Jack Marshall / 2 Comments

As regular and long-time readers here know, Ethics Alarms is fond of useful analogies and metaphors from popular culture that illustrate regularly occurring ethics breaches, self-defeating irresponsible conduct, or the proper remedies or reactions to them, in society at large or various segments of it. Hence we have the Barn Door Fallacy, the Julie Principle, the Popeye, the Nelson (“Ha-ha!”), the Ripley, the Costanza, and quite a few others.

I was, just this morning, in a discussion with a bar ethics counsel regarding a serious problem in the legal world. It is a corrupt system that neither the legal profession nor the incompetent news media has let the public know about, one that amounts to a multi-level scandal that hurts everyone except the unscrupulous, greedy lawyers who participate in it. At one point she said to me, “You know, we have had the means available to address this all along, and it never occurred to us even when the solution was not only obvious, but right in our hands.”

And I thought of that moment above from “Jumanji.” At least the kid in the movie had an excuse, since he had been turned into a monkey….

Do you have some current candidates for an Ethics Alarms “Jumanji Axe”? Let me know about them in the comments.

New Ways To Cheat: The Fake Flight Attendant!

/ Jack Marshall / 4 Comments

Tirone Alexander, 35, has been convicted of impersonating a flight attendant at least 120 times in order to get free commercial airline flights between 2018 and 2024 . He also doesn’t know how to spell “Tyrone.”

There is a common airline policy (that I never heard of before) allowing flight attendants and pilots from other airlines to fly for free. Alexander knew about the benefit because he had worked as a flight attendant for regional airlines between 2013 and 2015. He visited airline websites and checked the “flight attendant” option during the online check-in process. There he would find a form asking applicants to list their current employer in the industry, their hiring date, and badge number. Alexander faked all of it and counted on no one bothering to check. No one did.

Almost all examples of audacious cheating and grifting depend on 1) people trusting strangers to be honest, which is, sadly, a mistake; 2) people not doing their jobs diligently, which many don’t; 3) systems that have yawning loopholes that sociopaths can exploit, and 4) the cheater/con artist having boundless audacity.

Number 4 eventually gets most cheaters caught.

Alexander has been found guilty of four counts of wire fraud and one count of fraudulently accessing a restricted area of ​​the airport. He faces decades in prison at his sentencing, which is scheduled for August 25.

Meanwhile, the airlines will be tightening their free flight policies, and maybe eliminating them. As is so often the case, the rare cheat spoils a nice thing for everyone else.

From Boston, a Stunning “King’s Pass” Rejection [Updated!]

/ Jack Marshall / 14 Comments

“The King’s Pass” is #11 on the EA Rationalizations List, where it is described as follows:

One will often hear unethical behavior excused because the person involved is so important, so accomplished, and has done such great things for so many people that we should look the other way, just this once. This is a terribly dangerous mindset, because celebrities and powerful public figures come to depend on it. Their achievements, in their own minds and those of their supporters and fans, have earned them a more lenient ethical standard. This pass for bad behavior is as insidious as it is pervasive, and should be recognized and rejected whenever it raises its slimy head. In fact, the more respectable and accomplished an individual is, the more damage he or she can do through unethical conduct, because such individuals engender great trust.

Sports teams, both professional and amateur, are among the organizations most vulnerable to The King’s Pass, which is also called “The Star Syndrome.” Thus it is particularly satisfying to see the only sports team I care about, the Boston Red Sox, take a strong stand against the rationalization in one of the most vivid anti-#11 moves within memory by any organization in sports or out.

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