South Carolina Education Lottery

Morning Ethics Warm-Up, 1/5/2018: Brrrrrrr!… “Hey!”… Duh!… And “WHAT?”

/ Jack Marshall / 57 Comments

G-g-g-good M-m-m-morning!

1 Enforcing societal standards in the cold. Today, as we ran errands in 13 degree weather and gusting winds to fetch my sick son some chicken soup and DayQuil, my wife witnessed the following episode at the 7-11. With a long line behind him, a man stood at the register meticulously picking lottery numbers. A woman in line confronted him directly, saying, “You came out in this cold just to waste your money on the lottery? You’re sick. Save your money. Be responsible. Get help”

Brava.

Driving home, we saw many parents walking their children to Alexandria schools (which delayed their opening here two hours.) At an intersection near the school across a parking lot from our home, my wife and I saw a young girl, maybe seven or eight, with her father, about to cross the street. The girl had a winter jacket on and a hat, but only thin leggings and—get this—sneakers with no socks. The wind chill outside here is estimated at -4.

We didn’t say anything to the father. Should we have? I think so.

2. More state lottery ethics. Speaking of unethical state lotteries, which could only become ethical if the states eliminated them, you will recall Item #4 in the 12/28/17 warm-up, about how South Carolina had bollixed up its lottery and is deciding whether to stiff the winners, since there were far too many of them thanks to computer programming error. That state needs to follow the ethical example of Connecticut.

After an error was discovered in how the drawing was handled—involving 100,000 tickets—the lottery posted a notice on its official website saying there was indeed a problem with the drawing, and that “due to an error in the range of tickets eligible for the Super Draw drawing, a second drawing will take place shortly. HOLD ALL TICKETS.” Later it announced,  through this statement from Interim Lottery President & CEO Chelsea Turner: Continue reading →

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

/ Jack Marshall / 10 Comments

 

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 →