investigations

Morning Ethics Warm-Up,1/28/2018: Looking For The Silver Lining

/ Jack Marshall / 17 Comments

Good Morning!

1 Phooey. This was one of those annoying weeks where the blog covered a lot of diverse topics (28 posts in the last 7 days), featured excellent comments, and was rewarded by a kick in the teeth. There was a big drop in followers, especially after the post about the Larry Nassar sentencing fiasco (I got slammed on Facebook, too.) That one is not open to legitimate controversy: the judge was unethical, the manner of sentencing did breach the Judicial Canons in Michigan and elsewhere, the length of the sentence was  disproportionate, and the parade of victims was a disgrace to the system. Never mind, though: he’s a monster and didn’t deserved to be treated any better by the judge, so good for her. No wonder trying to get people to reason using ethics tools and systems is so difficult. Most people default to emotion; some lawyers on Facebook even expressed that sentiment—“You go girl!”

It is such basic ethics, and so core to the justice system, that even the worst human beings deserve to be treated with the same respect and fairness as anyone else in the justice system. It is the bedrock of professional ethics that those with the job of protecting the public’s health, safety and welfare must be role models and eschew the passions and indulgences of the public they are pledged to serve. Yet people are frustratingly resistant to both concepts, giving lip service, pretending to understand, then  regularly bouncing back to rationalizations and mob reasoning like their values were on a bungee cord.

Silver Lining: It is satisfying to be 100% sure you are right in principle, even when, indeed especially when, you are getting beaten up for it.

2. And speaking of bitches…Contemporaneously with Hillary Clinton’s transparently cynical and damning response to the revelation that she responded to a campaign staffer’s complaint about sexual abuse by Hillary’s “spiritual survivor” in 2008 by transferring the accuser while keeping her advisor around (to harass others, it seems), she released a video…

…that began with the words, “And let me just say, this is directed to the activist bitches supporting bitches.” And thus we see how the Nation of Assholes is progressing. Somehow, I didn’t see the coarsening of the culture as Americans, as they always so, emulate the conduct of the President, extending to  Hillary Clinton, but why not? She has no integrity or ethics alarms. If she thinks going potty mouth will bring her money and power, why wouldn’t she ditch civility? The woman is first and always an ethics corrupter. Continue reading →

Morning Ethics Warm-Up, 12/19/2017: ‘Due Process? We Don’ Need No Stinkin’ Due Process!’

/ Jack Marshall / 16 Comments

Good Morning!

(Lights on the tree about 30% done, and the prickle wounds aren’t infected so far..)

1 Now, now, let’s not forget the wisdom of Joseph Goebbels...More questions about the objectivity, professionalism and fairness of the Meuller investigation are roiling D.C., even though the President isn’t about to fire the Special Counsel, though the mainstream news media went out of its way last week to make you think he was.

For example, were you following the Bruce Ohr fiasco? The former associate deputy attorney general, who was supposed to appear yesterday before the leaky Senate Intelligence Committee yesterday but didn’t, was demoted by the Justice Department when it was revealed that he had not disclosed that he had met with with officials from Fusion GPS, the people who prepared the salacious and discredited “Trump dossier.” Ohr had been part of the Meuller investigation too, but then it was learned that that his wife not only worked for Fusion GPS,  she worked on the anti-Trump opposition research that was apparently paid for by the DNC and the Clinton campaign. Is it partisan to question  how Meuller allowed people like Ohr and Strzok to be on his team in the first place? No, it’s not. In fact, it’s partisan NOT to ask that.

Meanwhile, Trump’s lawyers have challenged Mueller’s grab of transition team e-mails as a likely breach of attorney client privilege. (This will be in my next year’s Government Lawyer Ethics seminar for sure.) Writes attorney Robert Barnes, in part, on LawNewz:

According to published reports, Special Counsel Robert Mueller engaged in a mass seizure of all emails of the Trump transition team without even a warrant or a subpoena. In my opinion, a mass seizure – as is alleged here against Mueller – cannot conform to either Fourth Amendment standards or attorney-client privilege protections. The questions boils down to this: was there a reason for the individuals communicating by email, including with their lawyers, to believe their communications were private or privileged? Or, did the individuals forever waive or “implicitly consent” to any future search or seizure of their emails?

…The Mueller search runs afoul of many…established court precedents and Fourth Amendment privacy and privilege principles. First, it appears Mueller searched and seized every email, without any kind of categorical or keyword search. This is exactly the kind of search the Supreme Court made clear was not allowed under the Fourth Amendment. This means Mueller can only prevail if he didn’t seize a single email of a single individual that the individual could have any expectation of either personal privacy or attorney client privilege in.

The primary excuses proffered so far for the broad seizure is the faulty assumption the use of a government server waived all privacy and all privilege of every email ever made over that server. As identified above, that has never been the law…

These are legitimate issues, yet the media, as usual, is soft-peddling them and spinning them as mere Trump obstruction. Worse, however are the multiple Democrats, including a Senator on CNN yesterday, who I have heard repeat a version of the despicable statement that recently earned New York Times editors a collective Ethics Dunce: “If he’s innocent, he has nothing to worry about.”

Please, please reassure me that we don’t have a major political party that is circulating that motto of despots, grant inquisitors, dictators and the Salem witch trial judges as a talking point. Please!

Continue reading →

Unethical Quote Of The Month, And A Bonus Kaboom: The New York Times Editors

/ Jack Marshall / 23 Comments

“But if your man is really innocent, what’s the worry?”

—The New York Times in an editorial, “Fox News v. Robert Mueller”

Yes, the New York Times really printed that, under its banner.

Well,

KABOOM!

There goes my head.

As much as I have learned to distrust the objectivity and motives of the New York Times, I did not expect the traditionally liberal paper to make a sinister argument typically associated with totalitarian regimes. This is nothing but a  rephrasing of the traditional “nothing to hide” rationalization for obtrusive state surveillance, as well as illegal police searches and abusive prosecutorial methods.

“If you’ve got nothing to hide, you’ve got nothing to fear” is such a cliché of oppressive state action that it has its own Wikipedia entry. It is often attributed to Joseph Goebbels or “1984,” though there is no documentation for either. It was uttered by villain Pius Thicknesse in “Harry Potter and the Deathly Hallows”:

“As your new Minister for Magic, I promise to restore this temple of tolerance to its former glory. Therefore, beginning today, each employee will submit themselves… for evaluation. But know this: you have nothing to fear if you have nothing to hide.”

In the film version of the novel, the actor (Guy Henry) playing Pius was cast to evoke Goebbels. (above).

Progressive writer Upton Sinclair used an inverted version in 1918 in “The Profits of Religion: An Essay in Economic Interpretation” (1918):

“Not merely was my own mail opened, but the mail of all my relatives and friends—people residing in places as far apart as California and Florida. I recall the bland smile of a government official to whom I complained about this matter: ‘If you have nothing to hide you have nothing to fear.'”

The statement adopted by the Times editors as well as the attitude behind constitute a rejection of democratic values and an endorsement of state sponsored fear and subjugation of individual rights. “It you are innocent, why worry?” literally stands for the proposition that one is guilty until proven innocent, which is an accurate description of the position of the Times, the mainstream media and “the resistance” regarding the baseless allegation of  “collusion” with Russia to steal the election from Hillary Clinton. In the context of the editorial, which dismisses legitimate questions about the objectivity and conflicts of interest among Special Counsel Robert Mueller’s team, the argument is especially disingenuous. If one is innocent, one shouldn’t worry if a biased team of lawyers is trying to find a way to make you look guilty? Continue reading →

Morning Ethics Warm-Up, 10/31/2017: A Hate Outbreak, A Bigoted Judge, A Lost Post, And More Halloween Ethics

/ Jack Marshall / 67 Comments

Good Morning!

1 On Facebook, many of my progressive friends literally expressed glee at yesterday’s indictments, especially at the charge that Paul Manafort had engaged in “conspiracy against the United States.” Lots of social media users were expressing similar sentiments, the thrust being that they were excited that two individuals who worked for the Trump campaign were facing criminal charges…simply because they worked for the Trump campaign. This cackling mob hadn’t read the indictment, or if they did, they didn’t understand it. They just were engaging in free-standing hate by association.

The reaction is not sort of like, but exactly like, what I called  the “Ugliest moment of election night”: Trump’s crowd chanting “Lock her up!” as the upset electoral victory approached. Criminalizing the political process is not the way of democracy, and rooting for people’s lives to be ruined because of their partisan alliances is disgusting. Who among the people so thrilled to see Manafort and former Trump campaign foreign policy advisor George Papadopoulos being prosecuted know anything about them other than the fact that they worked for the President’s campaign? What do they think justifies cheering their indictment? Papadopoulos pleaded guilty for lying to the FBI about when he tried to meet with Russians claiming to have damning Hillary Clinton e-mails—which, I hope you know (and I bet the Facebook mob doesn’t) isn’t a crime.

Last night, Stephen Colbert, the full-time attack jester of “the resistance,” said of the indictments, “I know it’s almost Halloween, but it really feels more like Christmas!” What an idiotic and hateful thing to say, as well as a statement that is misleading to his audience, who naturally would think that the action implicates the President and the White House in something. (It doesn’t.)

2. Colbert also engaged in gratuitous race-baiting, because dividing the country along racial lines and promoting racial distrust is apparently what progressives think is funny and cool. Noting that the charges against Paul Manafort were filed on Friday but that he didn’t have to turn himself in until Monday Colbert smirked,  “Wow, we white people really do get arrested differently.” The “joke” is untrue, and racist in its own implications, suggesting that only whites commit white collar crimes and are regarded as low flight risks, while blacks commit the violent crimes and robberies that lead to immediate arrests.

These are ugly, mean-spirited people, poisoned by ugly, mean-spirited thoughts.

You can quote me.

3. Judge W. Mitchell Nance, a Kentucky judge, resigned after judicial ethics charges were filed against him as a result of his refusing to preside over any same-sex couple adoption cases. Nance announced that he would not  participate in  gay adoption matters in April, when he issued an order saying he was recusing himself from such case, arguing that adoption by a gay couple would never be in the best interest of a child.

The judicial misconduct complaint filed last month argued that Nance’s order violated the judicial ethics canons requiring judges to promote confidence in the integrity and impartiality of the judiciary, to be faithful to the law, and to refrain from showing bias or prejudice.

It does. Good riddance. Continue reading →

Morning Ethics Warm-Up, 10/30/2017: Special Counsel Non-Bombshell Edition

/ Jack Marshall / 40 Comments

Good Morning!

1 Here is the complaint issued against former Trump campaign official Paul Manafort, as well as an associate of his I had never heard of before. This is the big news that sent the “Hooray! Trump is about to be impeached!” fantasists into near orgasms over once it was leaked—leaks from investigations are unethical—that Special Counsel Mueller had finally found someone to charge.

There is nothing in the complaint, literally nothing, that relates to “Russiagate,” the 2016 election, the Trump campaign, collusion, or anything else that was among the original justifications for this exercise. I couldn’t even find the name “Trump” anywhere in its 31 pages, but my “Find” function wasn’t working very well. There may be one or two.

I have no ethical problem with charging individuals with crimes that are discovered during the course of an investigation, even if the investigation was ostensibly about something else.

2. I assume that Manafort, who sure appears to be in big trouble, will be given a chance to cut a deal if he has something significant to reveal that would implicate the President or others in the administration  in wrongdoing. In the strange psychology of the Trump Deranged, this means that the end is near for the President, because they just know that he was colluding with the Russians. They just know, that’s all. In fact, if there was no illegal activity involving the campaign, and there is no evidence that there was, the fact that Manafort will have the opportunity to “roll over” on the President doesn’t mean there is anything to roll over about. The fair presumption should be that there isn’t, until there is. Continue reading →

From The “The Fish Rots From The Head Down” Files: The Uber CEO’s “Miami Letter”

/ Jack Marshall / 1 Comment

You wonder why Uber has ethics problems?

This is why Uber has ethics problems.

Uber is being investigated by two law firms hired to make assessments regarding the corporate practices and culture at the ride-sharing giant, determine what created the toxic environment that led to sexism, sexual harassment, other unethical management conduct, and recommend remedial measures. Usually in such situations, the problem stems from unethical leadership. Guess what? Uber’s unethical conduct stems from not merely unethical leadership, but a leader with ethics alarms that have rotted into dust and rust.

The two law firms recently uncovered a 2013 e-mail sent to Uber’s staff by  CEO Travis Kalanick before a company outing in Miami.  Internally referred to as the “Miami letter,” this thing screams “What was he thinking?”, “Where were the lawyers?” and “This guy might get elected President of the United States!”

Here is the e-mail; I’m going to bold some important features: Continue reading →

You Asked For It: There are Indeed Ethics Issues Raised By Inexplicable Choking In The NBA Play-Offs

/ Jack Marshall / 24 Comments

Prolific commenter slickwilly wrote in one of the Comey threads,

Jack, we need a post on how the Spurs were aided in their win by either a) James Harden point shaving, or b) someone slipped him date rape drugs How ethical are the accusations?

I had been vaguely aware of the surprise rout the short-handed San Antonio Spurs inflicted on the Houston Rockets to win their NBA play-off series, but as the NBA is far-off my ethics radar due to the fact that I consider it a fake sport played by too many ethically-challenged athletes who achieved fame and wealth thanks to the corrupt college basketball system,  a direct query like this was required to get my attention. Here is what happened, courtesy of the Sporting News, as the Houston Rockets superstar delivered an epic choke when his team needed it most:

With Kawhi Leonard and Tony Parker out for Game 6 of the Western Conference semifinals, James Harden was expected to dominate the Spurs.

Instead, Jonathon Simmons and LaMarcus Aldridge led a perfectly executed game plan by Gregg Popovich to hold Harden and the Rockets to just 75 points in a 39-point win. Harden made just two field goals, had six turnovers and registered a minus-28 as Houston shot just over 30 percent in the loss.

The Washington Post later elaborated on the shocking details:

In the wake of the Spurs’ playoff series-clinching, 114-75 rout of the Rockets on Thursday, it was hard to know which was more shocking: that San Antonio could play so well without Kawhi Leonard and Tony Parker, or that James Harden could play so poorly. The Houston star scored just 10 points on 2-of-11 shooting in more than 36 minutes of play, looking nothing like a leading contender for NBA MVP honors…Harden not only failed to take advantage of the absence of the league’s best perimeter defender, he was stunningly ineffective in the final four minutes of regulation and through the five-minute overtime period. In that span, Harden scored four points on 1-of-6 shooting, turned the ball over four times, and committed two costly fouls, including an offensive foul on what could have been a game-winning possession with seconds left in regulation.

This is not just an example of a star player having a bad game, like “Casey at the Bat.” Harden is regarded as a strong contender for the 2017 NBA MVP award. Nobody could remember a similar example of a healthy NBA super-star playing so poorly for so long in a crucial play-off game, and there is no sport where a single great player’s performance can make the difference between victory and defeat more surely than basketball. Harden has not explained his flop, so people are making excuses for him. The popular  theory seems to be that he was suffering from a concussion following an elbow to the head suffered in the previous game two days earlier. This is pure speculation, however, and as the Post notes, Continue reading →

Ethics Dunces: The Academy Of Motion Picture Arts And Sciences

/ Jack Marshall / 11 Comments

The Academy Awards announced that it will allow PriceWaterhouseCoopers to continue to represent the Oscars’ integrity as well as the organizations pledge that the results aren’t being, will not be, cannot be and haven’t been rigged, misread, wrongly tallied or mistakenly announced.

This, despite the fact that the firm proved beyond a shadow of a doubt that it cannot be trusted to do this, by either the Academy or the Oscar viewing audience, because it did not do it, exposing its carelessness and incompetence on national TV.

This is NASA letting Morton Thiokol continue to build space shuttles. This is the federal government re-hiring the same IT firm that made Healthcare.gov. This is Wesley Snipes rehiring the tax expert who told him he didn’t have to pay income taxes.

In addition to complete failure of management that the Academy’s decision to let bygones be bygones represents, it also has cultural consequences. As a culture, the United States has become allergic to accountability in all sectors. Over at Wells Fargo, where management presided over a nation-wide conspiracy to defraud depositors,  CEO John Stumpf opted for early retirement after the scandal, and is walking away with around $130 million, according to SEC filings.  Unless further action is taken by Wells Fargo’s board, which looks increasingly unlikely, Stumpf will leave with a fortune made up of stocks, cash payouts and other compensation. The Obama Administration, as documented here, repeatedly refused to hold incompetent agency heads accountable for fiascos, notably both of its Attorney Generals, and all three of its White House spokesmen. University president after university president disgraced their institutions by capitulating to racist, anti-speech, anti-education demands by students without consequence to their tenure. In journalism, Brian Williams remains on NBC’s payroll and the TV screen, despite having proven himself to be a habitual liar. Continue reading →

Incompetent Elected Official Of The Month: Rep. Devin Nunes (R-CA)

/ Jack Marshall / 23 Comments

Usually the “Incompetent Elected Official” category comes down to some variety of a conclusion that can be summed up by the sturdy phrase, “What an idiot.”  This one is worse than that.

Representative Devin Nunes is chairman of the House committee investigating Russian interference in the Presidential election. This involves intelligence, investigations and secrets that are necessarily a matter of discretion until a final report can be released. No investigation can proceed in a trustworthy manner if every new shred of information becomes public, or worse, is revealed to parties who have a stake in the investigation. This has been understood by members of Congress since, oh, the first Congressional inquiry. The Constitution’s framers assumed that Congress would conduct investigations, just as as the British House of Commons did. James Wilson of Pennsylvania, Convention delegate, a future Supreme Court Justice and the Declaration of Independence signer that “1776” unjustly smears as a weenie , wrote in 1774 that House of Commons members were considered

“grand inquisitors of the realm. The proudest ministers of the proudest monarchs have trembled at their censures; and have appeared at the bar of the house, to give an account of their conduct, and ask pardon for their faults.”

During the First Congress in 1790, Robert Morris, who was the superintendent of finances during the Continental Congress and a financier of the American Revolution, asked Congress to investigate his handling of the country’s finances to clear his name of claimed improprieties. If Nunes doesn’t know the history of the legislative function he is involved in, he should.

Nunes had received intelligence that related to the President’s disputed claim that “he” (meaning who and what, it is unclear) had been wiretapped (meaning surveiled, presumably) by  “Obama” (meaning someone who reports to Obama, I’m guessing), and chose to bypass his committee members, Democrats, protocol and common sense by relaying it directly to the White House. The new information,  Nunes said, showed that American intelligence agencies monitoring foreign officials may have “incidentally” picked up communications from Trump transition team members, and thus the President’s much maligned accusation was kind-of, sort-of, bolstered.

Predictably, the President followed this good news with a tweet. Ugh.

Continue reading →

A Very Bad Month For Price Waterhouse Coopers

/ Jack Marshall / 14 Comments

Earlier this month, Big Four accounting firm Price Waterhouse Coopers sustained a high-profile hit to its reputation when  the senior accountants the firm sent to ensure the integrity of the Oscars broadcast, a job the firm has had for more than half a century,  couldn’t manage to hand out the correct envelope at the televised ceremony’s surrounding.  Now it looks like the chaos that this botch created was a prelude to far, far worse.  For years, federal investigators have been scrutinizing Catapillar’s overseas tax affairs, examining the complex maneuvers involving billions of dollars and one of the company’s Swiss subsidiaries.

Now, a report commissioned by the government accuses the equipment manufacturing giant of carrying out a massive tax and accounting fraud involving billions of dollars. And the accounting firm Caterpillar employed to perform its audits?

The envelope please?

You guessed it.

The report, part of a wide investigation being undertaken by the United States attorney’s office for the Central District of Illinois, the IRS and the Inspector General of the F.D.I.C., thus far is neither public nor made available to Caterpillar for review.  It  describes an illegal company strategy to bring in billions of dollars from offshore affiliates while avoiding federal income taxes.  Leslie A. Robinson, an accounting professor at the Tuck School of Business at Dartmouth College and the author of the report, concluded that…

“Caterpillar did not comply with either U.S. tax law or U.S. financial reporting rules. I believe that the company’s noncompliance with these rules was deliberate and primarily with the intention of maintaining a higher share price. These actions were fraudulent rather than negligent.”

Dr. Robinson’s 85-page analysis, based on publicly available and internal financial data from Caterpillar as well as bank data tracking wire transfers from Switzerland into the United States, found that Caterpillar brought back $7.9 billion into the U.S. structured as loans, over and beyond the income that had already been taxed overseas. The company failed to report those loans for tax or accounting purposes, though under U.S. law those profits would be subject to federal taxes.

For example, the professor  found  correspondence between the company and the Securities and Exchange Commission in which Caterpillar said it had $2.5 billion  in income eligible to be brought to the United States tax-free. The company, she wrote, did not have “anywhere near” that much money still available to be brought in tax-free.

No charges have been filed yet. Last week, federal agents raided three Caterpillar buildings near its headquarters in Peoria, Ill., as part of the investigation. Caterpillar said it was cooperating with law enforcement, but denied wrongdoing. The Internal Revenue Service is currently seeking more than $2 billion in income taxes and penalties on profits earned by the Swiss unit.

Continue reading →