Morning Ethics Warm-Up, 12/28/2017: Bad Lawyer, Bad Losers, Bad Lottery, Bad Policy

 

GOOD MORNING!

1 Gee, I wonder how this happened? I’m doing a year-end legal ethics seminar for D.C. Bar members this afternoon, and this story showed up in time for me to use. A federal jury has found Evan Greebel, the former lawyer for convicted fraudster Martin “Pharma Bro” Shkreli guilty of helping the fick pharmaceutical executive craft a scam to repay defrauded investors. You remember Shkreli—this guy, who entered the Hall of Infamy for his unapologetic price-gouging of the HIV drug Daraprim after he bought the rights to the drug and  then hiked its price from $13.50 to $750.

Prosecutors  claimed Greebel, Shkreli’s lawyer during  scheme, gave his client detailed advice on how to pay off investors in his  hedge funds, MSMB Capital and MSMB Healthcare, with his company’s  funds, as well as how to circumvent trading restrictions. He was also was accused of participating in fraudulent backdating of documents and helping draft phony settlement and consulting agreements. Greebel’s lawyers countered that Shkreli was an evil manipulator who dragged his own lawyers, unaware, into his crimes. his own lawyers. Greebel, they said, acted in good faith as the outside attorney for Shkreli’s company, and lacked criminal intent.

The news story ends with this:

“Greebel, a partner with Katten Muchin Rosenman, saw his annual salary triple from $355,000 in fiscal year 2013 to $900,000 in 2014, when he was advising Shkreli.”

The moral: Nothing freezes ethics alarms like a lot of money.

2. What do Roy Moore, Al Gore and Hillary Clinton have in common? They are lousy losers. Moore, the horrible GOP candidate for the empty Alabama Senate seat, has filed a lawsuit to try to stop Alabama from certifying Democrat Doug Jones as the winner of the U.S. Senate race. Moore lost by 20,000 votes, but insists that there were irregularities. He wants a fraud investigation and a new election. Once upon a time, even the losers in close elections where some funny things went on conceded gracefully and accepted the results. This was a traditional demonstration of respect for the system and democracy, and girded our elections from cynicism and distrust. Even Samuel J. Tilden, the Democrat who was cheated out of the Presidency despite winning both the popular and the electoral vote, acceded to the back room deal that gave Hayes the victory.

No longer. Al Gore permanently killed that tradition in 2000, and Hillary’s minions set the corpse on fire in 2016. Now losing candidates can be expected to exploit any excuse imaginable to try to reverse election results. This is a dangerous slippery slope the endless Florida recount put us on, and I fear that it will eventually slide into violence. Better that the occasional election be won illicitly than to have every election be a potential court case.

In other news, the determination of a tie-breaker to settle who won a decisive seat in Virginia’s House of Delegates has been delayed after lawyers representing Democratic candidate Shelly Simonds filed a motion asking a trio of circuit court judges to reconsider their decision to allow a controversial ballot to be counted as a vote cast for her Republican opponent.

Of course! Continue reading

Morning Ethics Warm-Up, 9/10/17: A Creep Places A Bounty On Hillary’s Hair, And More….

GOOOD Morning.

1 My weekly assessment of anti-Trump mania based on the New York Times Sunday Review shows mostly petulant complaining. The front page is Trump-less, as is the second. After that respite,this issue is notable for some of the best illustrations yet of a journalistic phenomenon unique to Trump coverage, the “this is so horrible and sinister because it’s taking place under President Trump, even though it is neither unique nor noteworthy, being a condition that has existed for decades or even centuries.” Frank Bruni, for example, gets an entire page to tell us that White House aides who leave the Trump White House cash in, what Bruni calls “the ethos of enrichment.” You will be surprised, or maybe not, to learn that the essay about this new and venal trend under Trump never once mentions the name “Clinton,” the family that made cashing in on White house residency a family business, or do you have another theory why Chelsea Clinton is rich? You see, if Trump/Republicans/Conservatives do it, it’s disgusting because it’s Trump/Republicans/Conservatives doing it. What “it” happens to be doesn’t seem to matter much.

Then there is a “I can’t believe how stupid Trump supporters are” essay by NBC’s Katy Tur that contains this tell: “On election day they trusted his judgment more that they trusted any of us.” Wait: who’s the “us” that is being set up as opposition to a Presidential candidate, Katy? Journalists aren’t supposed to be telling citizens who to vote for, who is trustworthy or who will be a worthy leader. That statement is why so many voters don’t trust you, and also why they shouldn’t.

My favorite, though, a true classic in spin and how to present an issue in distorted terms to mislead the public, is a sob piece by a Yale grad student—yes, if you can write a sufficiently biased and critical essay about the plague that is the Trump administration, you don’t have to be a journalist. Your political biases are enough. In this case, the author is an illegal immigrant, as is every member of her family, so the Times believes that she is the perfect objective commentator on Trump policies regarding illegal immigration. Her theme: “Spreading fear is part of the administration’s plan.”

That plan is called law enforcement and deterrence. The government making life uncomfortable for law-breakers and ensuring that the guilty never feel comfy enough to think, “Well, the heat is off! They’ll never catch me now!” has been an uncontroversial and effective means of ensuring a safe and fair society for centuries. It was the Obama administration that endorsed the novel, bizarre and corrosive policy of telling illegal immigrants, “No problem: just make sure you don’t rape, kill or rob anyone, and you’re golden. Welcome!”

It is the indignation that comes through these essays that is so infuriating. How dare the government demand accountability for our law-breaking! tells us that her family has lived here illegally for 30 years.

If a newspaper is going to publish flagrantly manipulative junk like this, it would be responsible journalism to include a rebuttal along side it. Opinions are one thing; intentional distortions of the principles of civilization come unacceptably close to disinformation. Continue reading

The Unethical Face Of Martin Shkreli

Smirk

The face above belongs to Martin Shkreli, who was subpoenaed to testify before Congress over  last September’s decision as CEO of Turing Pharmaceuticals to raise the price for Daraprim, an antiparasitic commonly used to treat HIV patients, from $13.50 to $750 a pill. Shkreli bought the 60-year-old drug from Impax Laboratories in August for $55 million and swiftly raised its price. Three months later he stepped down from that position in December following his arrest on securities fraud charges. He is now free  on $5 million bail.

He is probably the less able to justify that face above, which he displayed to the elected representatives of the United States of America  on earth while refusing to testify, repeatedly citing his Fifth Amendment right not to incriminate himself. Nobody could justify that face, of course; not a ten year old brat, and definitely not a greedy, narcissist corporate executive and predator. In a setting where he should be humble and remorseful, he was defiant and disrespectful. The face is an affront to the entire nation and everyone in it. Continue reading