If The Public Cannot Trust Accountants To Be Ethical, Who Can They Trust? Answer: Nobody

Let’s begin with a confession and an apology. On June 28, the SEC announced that it had charged Ernst & Young LLP with extensive cheating by its employees on exams required to obtain and maintain Certified Public Accountant (CPA) licenses. Moreover the Big Five firm withheld evidence of this misconduct from the Security and Exchange Commission’s Enforcement Division during the SEC’s investigation. EY admitted the facts leading to the SEC’s charges and agreed to pay a $100 million penalty. [You can read the SEC’s press release here.]

I have no idea how I missed such a major and troubling ethics story. It’s my job to keep up on such matters; I teach accounting ethics, though I haven’t had a training assignment for that profession since the pandemic hit. I apologize profusely. I will work to do better. While the various breaches of government, journalism, legal and business ethics that occupy most of my attention on Ethics Alarms are important, none are more ominous than this story. It really feels like the canary dying in the mine.

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Ethics News Flash: There Is Admirable Ethics News From New York!

New York is the East Coast dead ethics twin of California, one of the most damaging ethics corrupters among the states, and a constant anchor on any efforts to keep the culture from rotting. With one unethical mayor elected in New York City after another, the depressing Andrew Cuomo to Kathy Hochul hand-off in the State House, the corrupt and irresponsible state legislature, two habitually unethical U.S. Senators and the state’s determination to defy U.S. immigration law and the U.S. Constitution (I don’t have time to get into the rest, like the New York Times, Broadway and the Yankees), the entire Empire State has become on ongoing bad ethics pageant. Thus it is a shock, a relief, and a glimmer of hope that the it finally has generated a significant positive ethics development that should prompt the rest of the country to follow its lead.

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An Abject Grovel That Explains So Much

Ethics Alarms has frequently discussed the ethical and professional deterioration of the historian profession, as it, like so many other professions and institutions, has given up integrity for ideology and political agendas. History itself is under attack as a result, with historical censorship and airbrushing increasingly being favored over objective and balanced examination that does not distort past figures and events by the viewing them through the lens of “presentism.”

In an essay on the website of the American Historical Association, the organization’s president, James Sweet, offered constructive criticism of the trend, writing in part,

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Ethics Dunce (And Partisan Hack): Former Assistant U.S. Attorney Daniel Goldman

Daniel Goldman earns the Ethics Alarms clip with Sir Thomas More’s scalding indictment of the character of “A Man For All Seasons” villain Richard Rich, “Why Richard, it profit a man nothing to give his soul for the whole world. . . but for Wales?”

Donald Trump, fighting a coordinated (I believe) Democratic assault from all sides in a desperate effort to neutralize him (an effort than has continued unsuccessfully for a ludicrous six years!) invoked his Fifth Amendment rights against self-incrimination at a deposition for New York Attorney General Letitia James (D). While the ongoing January 6 kangaroo court in the House seeks to prove that Trump planned an “insurrection,” and the Justice Department raided his home ostensibly to find sufficient evidence to prosecute him for mishandling of classified documents, James is continuing her state’s long-running attempts to prove Trump engaged in illegal financial activity and/or corrupt business practices

After Trump’s non-response was reported, Goldman, who was an assistant U.S. attorney in the Southern District of New York for 10 years, tweeted,

“The Fifth Amendment ensures that people are not forced to incriminate themselves. But you don’t take the Fifth if you didn’t do anything wrong.”

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Minnesota’s Religious Freedom Pharmacist Case

In  2019, Andrea Anderson’s primary birth control method had failed, so she called her health care provider to ask for a prescription to Ella, an emergency contraceptive tablet. But when she went to  the local McGregor Thrifty White pharmacy in Aitkin County, Minnesota, pharmacist and local pastor George Badeaux refused to fill the prescription, citing his religious beliefs. He told her that a pharmacist working the following day could fill her needs if a snowstorm didn’t prevent the pharmacist from getting to work.The desperate woman ended up driving three hours round trip to Brainerd during a snowstorm to get her pregnancy-terminating pills.

Anderson sued under the Minnesota Human Rights Act, alleging sexual discrimination. The jury ruled against her.

Ethics Alarms verdict: the jury was right on the law, but the pharmacist was unethical. Continue reading

Now THIS Is An Unethical Lawyer…

And yet he’s running to be elected judge!

No, I don’t understand this at all.

Matthew Leveridge, the commonwealth’s attorney for Russell and Wayne counties in Kentucky, should have been disbarred.  He admitted to impregnating a criminal defendant, Latisha Sartain, whom he prosecuted for drug trafficking in 2011. A motion filed on Sartain’s behalf in 2014 alleged that Leveridge filed a motion to revoke her five-year pretrial diversion agreement after she ended their relationship and revealed her pregnancy to Leveridge’s wife. For some reason, this didn’t result in any bar discipline, or an episode of “Law and Order.”  But wait! There’s more! Continue reading

Unethical Quote Of The Month: Ex CNN Anchor Chris Cuomo

“I saw a lot of brave men and women deciding to take somebody on who had a tremendous amount of power and who had come at them by name too and that’s a scary thing.”

—-Disgraced CNN star Chris Cuomo, celebrating himself and CNN for slanting new reports in order to oppose Donald Trump.

Cuomo could not have made a stronger case against the left-biased news media if that had been his objective. Many of his statements to Bill Maher in Cuomo’s appearance on HBO’s “Real Timewould serve as well as the above to prove just how arrogant and unethical Cuomo’s previous profession has become. For example, there is this: Continue reading

Ethics Musings On The Transgender Problem

Is being transgender a mental disorder? A lot of news and controversies around the suddenly militant minority seems to compel honest consideration of the question. It is definitely not a formal disorder, but that doesn’t deal with the issue. The medical profession, which is, as has been periodically documented on Ethics Alarms, is now politically-driven and in the directing of progressive positions and agendas.

Up until 2012, transgenderism was labeled a mental disorder; that year, the American Psychiatric Association revised its Diagnostic and Statistical Manual of Mental Disorders and struck transgenderism from the list. Now, woke institutions like the Cleveland Clinic state outright, “Being transgender is not a mental illness. But people who are transgender face unique challenges, such as gender dysphoria and discrimination, which can affect their mental health….” The Clinic then adopts whole cloth the familiar transgender narrative, uncritically, as if it is scientific fact rather than an ideological position:

Healthcare providers assign a baby a sex at birth. Babies may be assigned female at birth (AFAB) or assigned male at birth (AMAB) based on their external physical genitalia. The term “cisgender” describes people who identify as the gender that matches their assigned sex. (For example, if you’re born biologically female and you identify as female, then you’re cisgender.) But for some people, as they grow up and understand themselves better, they find that their gender doesn’t match their assigned, biological sex.

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Ethics Alarms Encore: “Possessed Lawyer Ethics”

The best legal ethics story I have ever heard and probably ever will hear arose in Arizona in 2010. I have regaled CLE seminars with it many times since, and it is ever green. After I mentioned the case again today at a Federal Bar convention program, I found myself wondering if I had ever posted about the weird episode on Ethics Alarms. Indeed I had, but it was way back in September of 2010.Here’s how long ago that was: Instagram didn’t yet exist, the statement that Donald Trump would be the next President might get you committed, and the only commenter on the post was “JJ,” whom I have completely forgotten.

Clearly, it’s time for an encore, so here it is, slightly expanded.

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Is it unethical for a lawyer to claim she is possessed by a client’s dead wife?

This  question has been puzzling professional responsibility experts for decades. Okay, not really. In fact, surprisingly, it just doesn’t happen all that often. But in Arizona, a lawyer is now facing suspension for claiming that she was possessed by the spirit of a client’s dead wife, then lying about it under oath. The dead wife is being accused of illegal immigration.

OK, I made up that part, too.

Sorry.

The ABA Journal reports that the lawyer, Charna Johnson, began representing a client during his divorce proceedings. While the divorce was in process,  the client’s wife, who was fighting many demons even before she got in the possession business, committed suicide. Johnson then represented the husband in probate proceedings, but one day became convinced, according to her sworn testimony and that of two witnesses, that the client’s wife had possessed her, like that real demon, Pazuzu. Continue reading

Professional Ethics Breach Alert! The Draft SCOTUS Abortion Opinion Leak

The issue right now is simple. Someone with access to Justice Alito’s draft majority opinion in THOMAS E. DOBBS, STATE HEALTH OFFICER OF THE MISSISSIPPI DEPARTMENT OF HEALTH, ET AL., PETITIONERS u. JACKSON WOMEN’S HEALTH ORGANIZATION, ET AL. leaked it to Politico. This is the worst breach of professional ethics in the history of the Court. It is the worst breach of professional ethics in the history of the federal court system. If a lawyer, such as a law clerk, was responsible, he or she should be, and probably will be, disbarred.

The draft is here.

I haven’t read the draft: the thing is 67 pages long, and I just got it. The conclusion, however, is clear:

We end this opinion where we began. Abortion presents a profound moral question. The Constitution does not pro­hibit the citizens of each State from regulating or prohibit­ing abortion. Roe and Casey arrogated that authority. We now overrule those decisions and return that authority to the people and their elected representatives.

The judgment of the Fifth Circuit is reversed, and the case is remanded for further proceedings consistent with this opinion.

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