Category: Corruption

I Can Haz Prosecushuns?

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Michigan Governor Rick Snyder has released more of his emails, and it is pretty clear that he knew that he was poisoning the people of Flint, and he did not care:

Gov. Syder released 1.02 GB of emails in pdf form from various departments in his administration. However, none of them are pre-2014, a time period when many of the decisions regarding Flint’s move to the Flint River as its temporary source of drinking water were being made. Still, there is a LOT of new information in these emails and much of today’s news round-up comes from analysis of them by various news outlets. If you have a burning desire to plow through the gigabyte and change of files, here are the links to all of them:

………

In late March 2013, a full year before Flint switched to the Flint River as the source for its drinking water under the order of its Emergency Manager and with sign-off by their boss State Treasurer Andy Dillon, DEQ officials warned them about the potential for problems. In an email sent on March 26th, Stephen Busch, a staffer in the drinking water division of the Michigan Department of Environmental Quality (DEQ) informed his superiors about problems they could anticipate making the switch. That email was then forwarded up the food chain to Treasurer Dillon. Here’s are some of the warning flags he raised:

………

Mike Glasgow, Flint’s laboratory and water quality supervisor at the time of the switch to the Flint River made it very clear in an email to DEQ officials that the city’s water treatment plant was not going to be ready to treat river water in time for the conversion from water obtained from the Detroit Water and Sewerage (DWSD). However, his superiors were blowing him off:

………

On September 30th, Gov. Snyder finally acknowledged what nearly everyone else already knew: Flint had a problem with poisoned water and his administration had made mistakes, including not properly treating the water to prevent corrosion. However, it took until November 4th for his administration to finally authorize the installation of the corrosion control equipment:

………

Between Gov. Snyder’s admission and the approval of the corrosion control equipment, DEQ director Dan Wyant, a man with no background in water treatment or water regulations, assured the public that corrosion control had been in place the whole time. By the time he got around to approving the equipment, Flint had already switched back to DWSD water (that is already treated with phosphate for corrosion control.)

All of this happened, by the way, months after the EPA had been pushing them to begin phosphate treatment back in August:

The original docs are at the link along with some damning quote.

I want to see some prosecutions for depraved heart murder.

They knew that they were putting people’s lives at risk, and they did not care.

Mount St. Mary’s Update: This Is What Happens When You Trust a Finance Guy

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William Agee, former CEO of Bendix is a man of many failures, but his destruction of Morrison Knudson is particularly instructive on the skill set of finance types:

………

 Mr. Agee further estranged insiders by quietly moving the CEO’s office to his Pebble Beach estate, and worse, scoffing at the company’s engineer-oriented culture. “You construction guys have been trying to run the company for 75 years,” Keith Price, who headed Morrison Knudsen’s MK Ferguson unit until he retired in April 1991, recalls Mr. Agee telling him. “Now I’m going to show you how the financial guys do it.”

 The November letter pointed out just how the financial guy did his numbers. Using numbers available from earnings reports and filings with the Securities and Exchange Commission, the letter writers pointed out that the percentage of the company’s pretax income from nonoperating sources such as asset sales and interest for the five years ending 1993 averaged 43%. In other words, Mr. Agee was sweetening profit reports by selling Morrison off piece by piece, and investing Morrison’s cash.

 Meanwhile, lease obligations had rocketed. During the five years ended 1993, they had jumped, to $266 million at the end of 1993 from $38 million at the end of 1988. (To shore up cash, Mr. Agee had begun selling assets, such as equipment, and leasing them back, Morrison executives say.)

This is how finance works.  Find out a loophole, and use it to benefit personally, the future be damned.

At Mount St. Mary’s, Simon Newman, the recently appointed college President, a hedge fund type, decided to try to expel 5% of the freshman class to create the illusion that the retention rates.

When people complained, he fired them including a tenured professor with no due process.

We are now seeing the push back, with the faculty calling for his resignation by a vote of 87 to 3, which he promptly ignored.

Additionally, the alumni are freaking out, and the The Washington Post condemned the behavior of the President and the Board of Directors in no uncertain terms:

Mr. Newman has only himself to blame for the mess at “the Mount,” as the university is known, despite his and the board of trustees’ despicable efforts to deflect fault to what they regard as a cabal of infidels among the faculty and alumni. It was Mr. Newman who, in a conversation with professors, said that struggling freshmen should be culled in order to improve Mount St. Mary’s student retention rate, which affects its standing in U.S. News and World Report’s rankings of colleges and universities.

(Emphasis mine)

When I first posted about this, I jokingly suggested that Newman’s plan was to burn down the university for the insurance money.

More and more, it seems like my joke is reality.

Not “Flawed”, “Fraud”

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Morgan Stanley sold worthless bonds, and made a lot of money doing so, and when they got caught, they made what appears to be another “No Declaration of Wrongdoing (DOJ press release) settlement over this, the New York Times described it as Morgan Stanley to Pay $3.2 Billion Over Flawed Mortgage Bonds.

As former S&L crisis investigator notes, these bonds were not flawed, they were fraud.

Throw some banksters in gaol, please.

Not Enough Bullets

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It appears that Republican members of Congress made a request to the government of Iran that they not release detained Americans until after the election:

Iran released four US citizens being held in Iran on January 16, including Washington Post reporter Jason Rezaian. In return the US said it was offering clemency to seven Iranians being held for sanctions violations and dropped charges against 14 more.

In his first interview with French media, Admiral Ali Shamkhani, who is secretary of the Supreme National Security Council of Iran, told FRANCE 24 that US Republicans – wary of allowing President Barack Obama to win a public relations victory ahead of the US presidential election in November – asked for the swap to be put on hold.

“We were carrying out negotiations with the Obama administration, when representatives of the Republican Party got in touch with us,” Shamkhani said. “As a favour, they asked us to do what we could to hinder the talks and to push them back until after the next US presidential elections – in other words, after President Obama’s departure.”

………

“It seems that the Republicans relegated humanity to second place after political expediency, which I found very surprising. But we succeeded, and the prisoners were released during Obama’s mandate.”

See also here, here, and here.

Shades of Ronald Reagan’s and GHW Bush’s deal with the Iranian in 1980, the so-called “October Surprise”, where they promised to release military hardware if the Iranians held the embassy hostages until after the elections.

I misspoke in the title though, traitors should be hung, not shot.

H/t JR at the Stellar Parthenon BBS.

Well, This Explains Why Chris Matthews Has Been Felching* Hillary Clinton on His Show Lately

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Did you know that Kathleen Matthews, the wife of MSNBC’s Chris “Tweety” Matthews is running to replace Chris Van Hollen in MD-8?

Did you also know that her campaign is getting lots of donations from friends of Hillary?

Funny, that:

After what can only be described as an absolute disaster of an electoral showing in the New Hampshire primary, Hillary Clinton’s hopes of becoming the Democratic nominee in 2016 increasingly hinge on her support from the Democratic establishment.

The establishment, which is connected to Clinton and her financial backers by ingrown threads of funding and financing, is panicking over the surging campaign of Bernie Sanders. It will turn to its people in the media and party leadership to reverse the trend.

………

Chris Matthews has been under considerable fire from the left recently for what’s been interpreted as “relentless shilling” for Hillary Clinton on his MSNBC talk show, Hardball.

………

His endless devotion to the Democratic Party got Matthews the kind of attention that many people only dream of from party elders. Over the past decade, his name has been bandied about as a candidate for Senate or Governor in his native Pennsylvania. He’s been the subject of a speculative New York Times Magazine cover story on his political aspirations.

But in the end, it appears Matthews is sticking with television. Instead, his wife Kathleen is running for political office as a Democrat, in Maryland, where the Matthews family lives.

And herein lies the crux of the matter. As the Daily Caller reported on February 9, many of the wealthiest Clinton donors are funneling money to the Kathleen Matthews Congressional campaign. This, in turn, makes Chris Matthews’ constant kow-towing to the Clinton campaign suspect at the very least. Although it may just be part of ingratiating himself to the Democratis establishment.

The money trail from Hillary Clinton to Chris Matthews crosses the path of DNC Chair Debbie Wasserman-Schultz. The support each of the latter gives to the former is a direct by product of that financing.

So not a surprise.

*If you do not know the definition of the word, “Felch”, do NOT Google it.

Ég er Íslendingur

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When I heard that Iceland has sentenced 26 bankers to a over 70 years in prison, (total, not each) my first thought was, “What’s the Icelandic for, “Ich bin ein Berliner?”

In a move that would make many capitalists’ head explode if it ever happened here, Iceland just sentenced their 26th banker to prison for their part in the 2008 financial collapse.

In two separate Icelandic Supreme Court and Reykjavik District Court rulings, five top bankers from Landsbankinn and Kaupping — the two largest banks in the country — were found guilty of market manipulation, embezzlement, and breach of fiduciary duties. Most of those convicted have been sentenced to prison for two to five years. The maximum penalty for financial crimes in Iceland is six years, although their Supreme Court is currently hearing arguments to consider expanding sentences beyond the six year maximum.

………

Almost eight years later, the government of Iceland is still prosecuting and jailing those responsible for the market manipulation that crippled their economy. Even now, Iceland is still paying back loans to the IMF and other countries which were needed just to keep the country operating.

And how many big banksters have been prosecuted in the United States?

Crickets.

I Endorse this Group

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The Repair Organization is dedicated to the idea that people have the right to repair the stuff that they own without being locked out through IP protections:

Last summer, when the Copyright Office asked if anyone wanted to defend the right for video game console jailbreakers to mod or repair their systems, no one had a formal legal argument prepared. A new association representing repairmen and women across all industries was just formed to make sure nothing like that ever happens again.

Repair groups from across the industry announced that they have formed The Repair Coalition, a lobbying and advocacy group that will focus on reforming the Digital Millennium Copyright Act to preserve the “right to repair” anything from cell phones and computers to tractors, watches, refrigerators, and cars. It will also focus on passing state-level legislation that will require manufacturers to sell repair parts to independent repair shops and to consumers and will prevent them from artificially locking down their products to would-be repairers.

………

That problem—that manufacturers of everything are trying to control the secondary repair market—has two main sources, Gordon-Byrne said. First, manufacturers use federal copyright law to say that they control the software inside of gadgets and that only they or licensed repair shops should be allowed to work on it. Second, manufacturers won’t sell replacement parts or guides to the masses, and often use esoteric parts in order to specifically lock down the devices.

These problems have been well known in the smartphone, computer, and consumer electronics for years, and it’s why groups like iFixit and the Electronic Frontier Foundation have been able to mount successful challenges to the DMCA in recent years. Increasingly, however, these problems are spilling over into just about every other industry.

………

And so The Repair Coalition will primarily work at a federal level to repeal Section 1201 of the DMCA, which states that it’s illegal to “circumvent a technological measure that effectively controls access to a work protected under [the DMCA].” Thus far, activists have tried to gain “exemptions” to this section—it’s why you’re allowed to repair a John Deere tractor or a smartphone that has software in it. But the exemption process is grueling and has to be done every three years.

………


On a state level, the group will push for laws such as one being proposed in New York that would require manufacturers to provide repair manuals and sell parts to anyone—not just licensed repair people—for their products. The thought is that, if enough states pass similar legislation, it will become burdensome for manufacturers to continue along with the status quo. At some point, it will become easier to simply allow people to fix the things they own.

“We want to become an umbrella organization for repair,” Gordon-Byrne said. “We want to help the small repair technicians that aren’t getting help from anywhere else.”

When the DMCA was passed, we were warned that this would happen.

And now it has.

The law needs to be fixed, though repeal would be a better option.

Back Loaded Bribery

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I’ve always said that much of the corruption in politics is not the result of an explicit quid pro quo, but an understanding that, once your political career is done, if you promulgate the agenda of the malefactors of wealth, you will be taken care of.

It’s a lot like being a “Made Man” in the mob.

Case in point, Timothy “Eddie Haskell” Geithner:

Former U.S. Treasury Secretary Timothy Geithner is preparing to borrow from JPMorgan Chase & Co. to help fund his new career in private equity.

Geithner, 54, secured a credit line with JPMorgan, one of the largest banks he oversaw during the financial crisis, to finance personal investments in funds started by his current employer, Warburg Pincus, according to a filing with the New York Department of State. He is borrowing money to invest in a $12 billion private equity fund that the firm raised in November, its first main fund since he joined almost two years ago, a person familiar with the situation said.

………

The regulatory filing doesn’t disclose the size of the loan or the financial terms, such as the interest rate. Warburg Pincus hasn’t said how much Geithner agreed to commit to the new fund, and the filing doesn’t say whether he made use of the credit line to finance it.

Mary Zimmerman, a spokeswoman for New York-based Warburg Pincus, declined to comment or make Geithner available. Officials for JPMorgan declined to comment.

This is the Timothy Geithner who claimed that he was not a banker, after being the fucking President of the Federal Reserve Bank of New York.

It now appears that he was enough of a banker to get a sweetheart loan from JP Morgan for what is probably north of $100 million.

Make no mistake.  This is a payment for his being one of them, and for running the Treasury Department for the banksters benefit.

Eric Arthur Blair Knows the Term for This

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Classification stupidity

The prosecutor for the military commission at Guantánamo is retroactively classifying pubic hearings:

The war court prosecutor is arguing that public disclosure of a transcript of a public hearing held at Guantánamo last year could endanger national security in response to a legal motion brought by 17 news organizations protesting pick-and-choose secrecy in the Sept. 11 pretrial hearings.

Army Brig. Gen Mark Martins makes the argument in a filing obtained by The Miami Herald that was still being reviewed for sensitive information on Thursday and not publicly released. At issue is the Pentagon’s decision to black out large portions of a 379-page transcript of an Oct. 30 hearing that included testimony from two soldiers who work at Guantánamo’s most clandestine prison, called Camp 7.

“That this information was uttered in a public session or is reported in news coverage does not render the information unprotected or vitiate the damage further disclosures would beget,” prosecutors wrote Jan. 29 in the 29-page filing in the war court case against Khalid Sheik Mohammed and four other men accused of plotting the Sept. 11, 2001 attacks.

In defending the decision to censor what was public information, the prosecutors included a less-redacted transcript that showed previously blacked out sentences and in the same filing sealed up a declaration from the Guantánamo prison commander explaining what is at risk.

………

Reporters, Sept. 11 victim family members and other members of the public heard the testimony on Oct. 30 through a 40-second audio delay designed to let the judge or a court security officer mute the sound if anyone spilled national security secrets. No one ever pushed the button. But when the transcript came out weeks later, portions that the Miami Herald had reported in a routine Twitter stream were gone.

Now, a comparison of the two different censored transcripts of the same hearing offer a study in over-classification. Nearly every redaction is refined in the updated version.

The term to describe this sh%$ is “Orwellian”.

Whip Me, Beat Me, Make Me Buy Apple Products

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Seriously. If you feel a burning need to be dominated and degraded by a pro, then you clearly need to own the newest iPhone:

Thousands of iPhone 6 users claim they have been left holding almost worthless phones because Apple’s latest operating system permanently disables the handset if it detects that a repair has been carried out by a non-Apple technician.

 Relatively few people outside the tech world are aware of the so-called “error 53” problem, but if it happens to you you’ll know about it. And according to one specialist journalist, it “will kill your iPhone”.

 The issue appears to affect handsets where the home button, which has touch ID fingerprint recognition built-in, has been repaired by a “non-official” company or individual. It has also reportedly affected customers whose phone has been damaged but who have been able to carry on using it without the need for a repair.

 But the problem only comes to light when the latest version of Apple’s iPhone software, iOS 9, is installed. Indeed, the phone may have been working perfectly for weeks or months since a repair or being damaged.

After installation a growing number of people have watched in horror as their phone, which may well have cost them £500-plus, is rendered useless. Any photos or other data held on the handset is lost – and irretrievable.

 Tech experts claim Apple knows all about the problem but has done nothing to warn users that their phone will be “bricked” (ie, rendered as technologically useful as a brick) if they install the iOS upgrade.

Freelance photographer and self-confessed Apple addict Antonio Olmos says this happened to his phone a few weeks ago after he upgraded his software. Olmos had previously had his handset repaired while on an assignment for the Guardian in Macedonia. “I was in the Balkans covering the refugee crisis in September when I dropped my phone. Because I desperately needed it for work I got it fixed at a local shop, as there are no Apple stores in Macedonia. They repaired the screen and home button, and it worked perfectly.”

 He says he thought no more about it, until he was sent the standard notification by Apple inviting him to install the latest software. He accepted the upgrade, but within seconds the phone was displaying “error 53” and was, in effect, dead.

 When Olmos, who says he has spent thousands of pounds on Apple products over the years, took it to an Apple store in London, staff told him there was nothing they could do, and that his phone was now junk. He had to pay £270 for a replacement and is furious.

 “The whole thing is extraordinary. How can a company deliberately make their own products useless with an upgrade and not warn their own customers about it? Outside of the big industrialised nations, Apple stores are few and far between, and damaged phones can only be brought back to life by small third-party repairers.

It appears that Apple’s new motto is, “There is a sucker born every minute.”

Elizabeth Warren Is Not Going to Make an Endorsement in the Primaries, but This Comes Close

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The distinguished Gentlewoman from Massachusetts just cut Lloyd Blankfein a new asshole over his whining about Bernie Sanders criticizing him:

Elizabeth Warren entered the intensifying battle for the Democratic presidential nomination, defending Vermont Sen. Bernie Sanders from a new attack by the head of Goldman Sachs — a Wall Street behemoth whose executives have delivered hundreds of thousands of dollars to Hillary Clinton, her presidential campaign and her family’s foundation.

In an interview with International Business Times hours before Wednesday night’s Democratic town hall in New Hampshire, the Massachusetts senator — whose endorsement is coveted by both Democratic candidates — slammed Goldman Sachs CEO Lloyd Blankfein for asserting earlier in the day that Sanders’ criticism of Wall Street had created a dangerous environment in America.

“He thinks it’s fine to prosecute small business owners, it’s fine to go hard after individuals who have no real resources, but don’t criticize companies like Goldman Sachs and their very, very important CEO — that’s what he’s really saying,” Warren told IBT.

In January, Sanders pointed to billionaire Blankfein as a prime example of the corporate greed he says is harming the United States. Sanders also released a television ad in which he slammed Goldman Sachs by name, and he has criticized Clinton, a former senator and secretary of state, for accepting $675,000 of speaking fees and $930,000 of campaign contributions from the firm and its executives during her career. Goldman Sachs has donated at least $250,000 to her family’s foundation — which in 2014 held a donor meeting at the company’s Manhattan headquarters.

Blankfein responded to Sanders’ criticism on Wednesday in an appearance on CNBC, saying the intensity of the criticism created an environment that “has the potential to be a dangerous moment — not just for Wall Street, not just for the people who are particularly targeted, but for anybody who is a little bit out of line.”

Warren, a Democrat, disputed that notion in harsh terms, telling IBT that such statements show why American voters should focus on Wall Street’s power during the 2016 election.

“When Blankfein says that criticizing those who break the rules is dangerous to the economy, then he’s just repeating another variation of ‘too big to fail,’ ‘too big to jail,’ ‘too big even to prosecute,’” she said. “That tells you here we are, seven years after the crisis and these guys still don’t get it. Seven years. That crisis cost an estimated $14 trillion, it cost jobs, it cost homes, it cost retirement funds. And Lloyd Blankfein stands up and says ‘Don’t even criticize me, I ran a company that was right at the heart of some of the biggest financial frauds in history and made money off it, but don’t you dare criticize me.’ That’s his position? That’s why we need voters to get really engaged.”

This isn’t an endorsement as such, but it is a pretty clear indication that she has his back.

Lloyd Blankfein Just Gave the Best Endorsement of Bernie Sanders Ever.

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It appears that he considers the fact that Bernie Sanders does not worship his brilliance akin to terrorism:

Just days after a Bernie Sanders campaign ad singled out Goldman Sachs as “one of the Wall Street banks that triggered the financial meltdown,” the head of the global investment banking firm said such criticism is “dangerous.”

According to The Hill:

Sanders has railed against Wall Street throughout his populist campaign, accusing the sector of ruining the economy and holding down the middle class. And he has singled out [Goldman CEO Lloyd] Blankfein and his firm as a poster child for the greed and recklessness he says is endemic in finance.

In a January interview with Bloomberg, he specifically mentioned Blankfein as representing greed on Wall Street, for taking massive pay packages “after destroying the economy.”


“To personalize it, it has potential to be a dangerous moment,” Blankfein told CNBC on Wednesday. “Not just for Wall Street…but for anybody who is a little bit out of line.”

Blankfein also reportedly argued “that Sanders and his ilk are too rigid to get anything done,” as The Hill put it.

On the campaign trail, Sanders has criticized not only big banks, but rival Hillary Clinton’s cozy ties to them.

Bloomberg notes that Blankfein—who supported Clinton for president in 2008—also “declined to endorse a candidate for the 2016 U.S. presidential election, saying his imprimatur could harm that person’s chances.”

Oh, you poor delicate flower.

Bernie says mean things about you, and it’s the end of the world.

Get over yourself, you pampered, overpaid, psychopath.

So Not a Surprise

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Global Witness, a not-for profit anti-money laundering organization, and ran a sting on lawyers who aid people in getting their ill gotten gains into the US:

With attention growing on the use of shell companies in high-end real estate, an activist organization released a report Sunday night that said several New York real estate lawyers had been caught on camera providing advice on how to move suspect money into the United States.

The report is the result of an undercover investigation carried out in 2014 by Global Witness, a nonprofit activist organization that has been pushing for stricter money-laundering rules.

The lawyers featured in the report include a recent president of the American Bar Association.

“It wasn’t hard to find lawyers to suggest ways to move suspect funds into the United States,” said Stefanie Ostfeld, a spokeswoman for Global Witness. “We went undercover because it is the only way we could show what really happens behind closed doors. The findings speak for themselves — something urgently needs to change.”

The real estate industry has been under growing scrutiny as evidence has emerged that suspect money is flowing into luxury real estate. Global Witness cited an investigation last year in The New York Times that documented numerous foreign officials and their family members buying multimillion-dollar properties in Manhattan and quantified the rising use of shell companies in real estate transactions.

This is not a surprise.

There is whole industry of unethical but (barely) legal money laundering, on Wall Street in New York, and in The City of London.

Hopefully a this additional attention will make doing this harder.

Our financial sector is aggressively complicit in the looting of the poorest societies on earth.
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A Good Start

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For profit academic research publishers are firmly in the category of, “Mindless jerks who’ll be the first against the wall when the revolution comes.”

A particularly nasty player in this sphere is Elsevier, the publisher of such items as The Lancet and Cell, and Gray’s Anatomy, and it is particularly aggressive in its charges, and in its aggressive use of copyright to enforce its charges.

All for publications where the content providers, and the editors work for volunteers.

It has now engendered a boycott in its home base of the Netherlands:

A long running dispute between Dutch universities and Elsevier has taken an interesting turn. Last week Koen Becking, chairman of the Executive Board of Tilburg University who has been negotiating with scientific publishers about an open access policy on behalf of Dutch universities with his colleague Gerard Meijer, announced a plan to start boycotting Elsevier.

As a first step in boycotting the publisher, the Association of Universities in the Netherlands (VSNU) has asked all scientists that are editor in chief of a journal published by Elsevier to give up their post. If this way of putting pressure on the publishers does not work, the next step would be to ask reviewers to stop working for Elsevier. After that, scientists could be asked to stop publishing in Elsevier journals.

The Netherlands has a clear position on Open Access. Sander Dekker, the State Secretary of Education has taken a strong position on Open Access, stating at the opening of the 2014 academic year in Leiden that ‘Science is not a goal in itself. Just as art is only art once it is seen, knowledge only becomes knowledge once it is shared.’

Dekker has set two Open Access targets: 40% of scientific publications should be made available through Open Access by 2016, and 100% by 2024. The preferred route is through gold Open Access – where the work is ‘born Open Access’. This means there is no cost for readers – and no subscriptions.

However Gerard Meijer, who handles the negotiations with Elsevier, says that the parties have not been able to come close to an agreement.

 ………

The 2015 Dutch boycott is significant. Typically negotiations with publishers occur at an institutional level and with representatives from the university libraries. This makes sense as libraries have long standing relationships with publishers and understand the minutiae of the licencing processes . However the Dutch negotiations have been led by the Vice Chancellors of the universities.  It is a country-wide negotiation at the highest level. And Vice Chancellors have the ability to request behaviour change of their research communities.

This boycott has the potential to be a significant game changer in the relationship between the research community and the world’s largest academic publisher. The remainder of this blog looks at some of the facts and figures relating to expenditure on Open Access in the UK. It underlines the importance of the Dutch position.The 2015 Dutch boycott is significant. Typically negotiations with publishers occur at an institutional level and with representatives from the university libraries. This makes sense as libraries have long standing relationships with publishers and understand the minutiae of the licencing processes . However the Dutch negotiations have been led by the Vice Chancellors of the universities.  It is a country-wide negotiation at the highest level. And Vice Chancellors have the ability to request behaviour change of their research communities.

These folks are leeches, who have made their business plan out of the free effort of academics.

I’d love to dance on their corporate grave.

Quote of the Day

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I owe almost my entire Wall Street career to the Clintons.

—Chris Arnade

Mr. Arnade continues, “I am not alone; most bankers owe their careers, and their wealth, to them. Over the last 25 years they – with the Clintons it is never just Bill or Hillary – implemented policies that placed Wall Street at the center of the Democratic economic agenda, turning it from a party against Wall Street to a party of Wall Street.”

He goes on to explain that the history of the Clintons is that they are creatures of big finance, and he uses the 1995 bailout of Mexico, which was really a bailout of big finance.

If you like Rubinomics, and believe that an excessively financialized economy is the future of America, by all means, vote for her in the primary.

Me, I’m hoping that my vote matters when Maryland votes on 26 April.

Joseph Heller is Spinning in His Grave

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Admiral Ted “Twig” Branch is the head of Naval Intelligence, but for the past 2 years, while at this position, his clearance has been suspended, and so he cannot read, review, or discuss classified material:

For more than two years, the Navy’s intelligence chief has been stuck with a major handicap: He’s not allowed to know any secrets.

 Vice Adm. Ted “Twig” Branch has been barred from reading, seeing or hearing classified information since November 2013, when the Navy learned from the Justice Department that his name had surfaced in a giant corruption investigation involving a foreign defense contractor and scores of Navy personnel.

 Worried that Branch was on the verge of being indicted, Navy leaders suspended his access to classified materials. They did the same to one of his deputies, Rear Adm. Bruce F. Loveless, the Navy’s director of intelligence operations.

 More than 800 days later, neither Branch nor Loveless has been charged. But neither has been cleared, either. Their access to classified information remains blocked.

 Although the Navy transferred Loveless to a slightly less sensitive post, it kept Branch in charge of its intelligence division. That has resulted in an awkward arrangement, akin to sending a warship into battle with its skipper stuck onshore.

 Branch can’t meet with other senior U.S. intelligence leaders to discuss sensitive operations, or hear updates from his staff about secret missions or projects. It can be a chore just to set foot in colleagues’ offices; in keeping with regulations, they must conduct a sweep beforehand to make sure any classified documents are locked up.

What the f%$# is wrong with the military?

The guy is forbidden by to do his job, and as opposed to doing the sane thing, and transfer him to a new post where he can do his job, you cripple a crucial department.

The idea that anyone in the Pentagon would allow this to happen for more than 2½ years is an indication that the bureaucracy and the general officer corps have become a dysfunctional carrerist dystopia.

Smedley Butler was right.  It’s a racket.

Business as Usual in the Charter School Industry

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The man at the center of dozens of charter school deals in southern California has been arraigned for corruption and self-dealing:

By the time Steve Van Zant left the Mountain Empire Unified School District in 2013, he had overseen the authorization of more than a dozen charter schools to operate in other districts throughout San Diego County — with several going on to hire his education consulting firm.

 All the while, Van Zant coached at least one other district on how to approve out-of-town charters, according to emails obtained by the San Diego Union-Tribune. As more districts approved far-flung charters, Van Zant’s EdHive consultant business took on some of the schools as clients.

 The San Diego district attorney’s office arraigned Van Zant on Jan. 15 on a felony conflict-of-interest charge from an undisclosed incident in May 2010 while he was superintendent of Mountain Empire.

 The district attorney’s office declined to disclose details of its investigation, and it is unclear whether the charge relates to his work with charter schools. According to the criminal complaint, Van Zant violated laws that prohibited him “from being financially interested in contracts made by him in his official capacity.”

 The Union-Tribune has tracked a charter empire built by Van Zant by taking advantage of what some call a shortcoming in state law that gives districts a financial incentive to place charters in other school districts. By placing charters outside its boundaries, a district can raise new funds — up to 3 percent of a charter’s revenue — without any threat to enrollment or state attendance funds.

 More than 80 out-of-district charters have been approved in San Diego County, the vast majority of which were authorized by small East County districts — several with help from Van Zant, who includes a list of charter clients on his LinkedIn professional network profile.

 ………

 When Van Zant accepted the job in 2013 as superintendent of the Sausalito Marin City School District, he was positioned to devote even more time growing his consulting business. He would commute from his Mission Bay home for the three-day-a-week position in Northern California with a starting salary of $165,000 and still run EdHive, which recently opened an office in Symphony Towers in downtown San Diego.

 The EdHive website says it can “find an authorizing district for your charter and cut a deal that provides the financial incentive for the district and still save your school money” among services such as negotiating leases and setting salaries.

 ………

 Van Zant has been placed on indefinite paid leave in Sausalito. He was seen leaving EdHive’s Symphony Towers office Friday.

There are way too many stories like this.

I know that there is an opportunity for corruption in schools of any sort, as there is with any sort of public funds, but the degree to which charter schools are a petri dish for corruption strongly implies that this is a feature of the system, not a bug.

It Appears that Unicorns* Don’t Believe in Due Diligence

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We have another shoe dropping at Theranos Lab:

U.S. health inspectors have found serious deficiencies at Theranos Inc.’s laboratory in Northern California, according to people familiar with the matter.

 The problems were found during an inspection by the Centers for Medicare and Medicaid Services, the chief federal regulator of clinical labs, at the blood-testing company’s facility in Newark, Calif. Failing to fix the problems could put the Theranos lab at risk of suspension from the Medicare program.

 The inspection results are expected to be publicly released soon, these people said. A spokesman for the agency said it “can’t confirm any survey conclusions or results at this time.”

 ………

 Theranos already has stopped collecting tiny samples of blood from patients’ fingers for all but one of its tests while it waits for the Food and Drug Administration to review the company’s applications for wider use of the proprietary vials called “nanotainers.” In October, the FDA said it had determined that the nanotainers were an “uncleared medical device.”

 Since then, Theranos has been performing just one test—to detect herpes—using its proprietary Edison device, people familiar with the matter said. That test was approved by the FDA.

 Theranos is using traditional machines for the rest of the more than 200 tests it offers to consumers, the people said.

Theranos has been a hawking a proprietary technology which allows for a wide range of blood tests to be conducted by a simple finger prick.

They have a valuation of over $1 billion, their technology does not work reliably. their conventional lab tests have been cited by the FDA, and most of their business they have to outsource at a loss.

I understand that this Might Be a promising technology, but how does this become a multibillion dollar valuation?

How is there difference between this and much of the rest of the froth in Silicon Valley?

There are no venture capitalists.  There are just con men looking for the next idiot.

*In the world of business, a unicorn is a company, usually a start-up that does not have an established performance record, with a stock market valuation or estimated valuation of more than $1 billion.

You Have Gotta be F%$#ing Kidding Me………

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In the latest episode of “Welcome to a Police State”, prosecutors are arguing that they don’t need a warrant to use a Stingray to track people by their cell phone data because ……… Google Maps:

Up in Baltimore, where law enforcement Stingray device use hit critical mass faster and more furiously than anywhere else in the country (to date…) with the exposure of 4,300 deployments in seven years, the government is still arguing there’s no reason to bring search warrants into this.

The state’s Attorney General apparently would like the Baltimore PD’s use of pen register orders to remain standard operating procedure. According to a brief filed in a criminal case relying on the warrantless deployment of an IMSI catcher (in this case a Hailstorm), the state believes there’s no reason for police to seek a warrant because everyone “knows” cell phones generate data when they’re turned on or in use. (h/t Brad Heath of USA Today)

The whereabouts of a cellular telephone are not “withdrawn from public view” until it is turned off, or its SIM card removed. Anyone who has ever used a smartphone is aware that the phone broadcasts its position on the map, leading to, for example, search results and advertising tailored for the user’s location, or to a “ride-sharing” car appearing at one’s address. And certainly anyone who has ever used any sort of cellular telephone knows that it must be in contact with an outside cell tower to function.

The state’s brief folds in parts of the Third Party Doctrine and the Supreme Court’s 1979 Smith v. Maryland decision to make a truly terrible argument that because certain aspects of cell phones involuntarily create location data, the Fourth Amendment never comes into play.

Matt Blaze rephrases the state’s argument slightly, exposing the ridiculousness of this assertion.

“People let people into their houses sometimes, therefore no warrant is needed to search houses”. Or something. https://t.co/XncuaZvdwW

— matt blaze (@mattblaze) January 14, 2016

The state follows this up by arguing that, because the use of a pen register order to deploy an IMSI catcher is not expressly forbidden by local statutes, the evidence shouldn’t be suppressed.

………

All well and good, except that the only reason there was no statute in place is because local law enforcement spent years keeping its cell phone tracking devices hidden from judges and defendants, obscuring the technology through parallel construction and misleading pen register order requests. This case is no different than the hundreds preceding it. The magistrate judge signing the pen register order had no idea what the Baltimore PD was actually doing. The presiding judge in this prosecution declared the Baltimore PD’s pen register request contained “material misrepresentations” on his way towards granting the suppression of evidence.

This is why we need the exclusionary rule.

Lazy cops and lazy prosecutors are a threat to our civil liberties.

It takes very little to get a warrant from a judge, and for these guys, it’s too much.

Your Daily Schadenfreude

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Under pressure from the Texas Governor’s Office, the Harris County prosecutor’s office convened a grand jury to investigate the bogusly edited video from the so called “Center for Medical Progress” that alleged that Planned Parenthood sold fetal tissue.

They came back with indictments ……… of the antiabortion Taliban that created the video:

A grand jury here that was investigating accusations of misconduct against Planned Parenthood has instead indicted two abortion opponents who made undercover videos of the organization.

Prosecutors in Harris County said one of the leaders of the Center for Medical Progress — an anti-abortion group that made secretly recorded videos purporting to show Planned Parenthood officials trying to illegally profit from the sale of fetal tissue — had been indicted on a charge of tampering with a governmental record, a felony, and on a misdemeanor charge related to purchasing human organs.

That leader, David Daleiden, 26, the director of the center, had posed as a biotechnology representative to infiltrate Planned Parenthood affiliates and surreptitiously record his efforts to procure tissue for research. Another center employee, Sandra Merritt, was indicted on a felony charge of tampering with a governmental record.

………

On Monday, the Harris County district attorney, Devon Anderson, said in a statement that grand jurors had cleared Planned Parenthood of any wrongdoing.

………

The case here started in August, when Lt. Gov. Dan Patrick, a Republican and an outspoken opponent of abortion and Planned Parenthood, asked Ms. Anderson to open a criminal investigation into the organization. His request came after the release of an undercover video recorded at a Planned Parenthood Gulf Coast office in Houston with a research official for the organization. Mr. Patrick said the video showed the group “discussing the gruesome and barbaric work of Planned Parenthood and what appears to be its profiteering from selling body parts from aborted babies.”

………

This month in federal court in San Francisco, Planned Parenthood sued the center, Mr. Daleiden and other abortion opponents involved in the videos. The suit accused them of engaging in a three-year criminal enterprise to target the group.

“These people broke the law to spread malicious lies about Planned Parenthood in order to advance their extreme anti-abortion political agenda,” Eric Ferrero, a spokesman for the Planned Parenthood Federation of America, said in a statement Monday. “As the dust settles and the truth comes out, it’s become totally clear that the only people who engaged in wrongdoing are the criminals behind this fraud, and we’re glad they’re being held accountable.”

In making the videos, Mr. Daleiden and others have been accused of setting up a fake company called Biomax Procurement Services, creating fake identities and claiming to be part of a legitimate provider of fetal tissue to researchers. The charge of tampering with a governmental record appeared to be related to Mr. Daleiden’s and Ms. Merritt’s use of fake ID cards.

“We know that they used fake IDs that had their real photographs but fake names and fake addresses purported to be issued by the state of California,” said Josh Schaffer, a Houston lawyer who represents Planned Parenthood Gulf Coast in the Harris County criminal investigation. Mr. Daleiden and Ms. Merritt presented those IDs to security at the Planned Planned office to gain entry to the building. “They never denied that they presented a fake ID,” Mr. Schaffer said.

Mr. Schaffer said he believed the misdemeanor charge stemmed from laws prohibiting offers to buy fetal tissue. He said that following the meeting with Planned Parenthood officials in Houston, Mr. Daleiden sent an email to them offering to buy fetal tissue for $1,600 per sample.

“It does not surprise me that a grand jury that chose to correctly apply the law to the evidence that was presented would return this result,” Mr. Schaffer said. “The written charges have not been released publicly yet, so at this point I am working on my knowledge of the investigation.”

I am so amused by all of this.

Considering the nature of their actions, I’m thinking that Homeland Security should put Daleiden and his co-conspirators on the no fly list, but that is probably a pipe dream.