Category: Corruption

About Time…

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It look like Prosecutors have finally gotten the guts to prosecute a bishop for concealing child abuse:

The first U.S. bishop criminally charged with sheltering an abusive clergyman has been accused of failing to protect children after he and his diocese waited five months to tell police about hundreds of images of child pornography discovered on a priest’s computer, authorities said.

Bishop Robert Finn and the Kansas City-St. Joseph Catholic Diocese have pleaded not guilty on one count each of failing to report suspected child abuse, officials said Friday.

Prosecutor Jean Peters Baker said Finn and the diocese were required under state law to report the discovery to police because the images gave them reason to believe a child had been abused.

“Now that the grand jury investigation has resulted in this indictment, my office will pursue this case vigorously,” Baker said. “I want to ensure there are no future failures to report resulting in other unsuspecting victims.”

The indictment, handed down Oct. 6 but sealed because Finn was out of the country, says the bishop failed to report suspicions against the priest from Dec. 16, 2010, when the photos were discovered, to May 11, 2011, when the diocese turned them over to police.

Finn denied any wrongdoing in a statement Friday and said he had begun work to overhaul the diocese’s reporting policies and act on key findings of a diocese-commissioned investigation into its practices.

“Today, the Jackson County Prosecutor issued these charges against me personally and against the Diocese of Kansas City-St. Joseph,” said Finn, who officials said was not under arrest. “For our part, we will meet these announcements with a steady resolve and a vigorous defense.”

Finn faces a maximum penalty of one year in jail and a $1,000 fine if convicted of the misdemeanor. The diocese also faces a $1,000 fine.

Maybe if some of these guys at the top start seeing the inside of the jail cell, they will stop aiding and abetting sexual abuse among their ranks.

Here’s a Surprise…

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It turns out that the US Marines are manufacturing statistics to falsely represent the safety of the V-22 Osprey:

It’s an aircraft with a reputation for falling from the sky. But on at least one occasion, the U.S. military’s controversial V-22 Osprey tiltrotor — a hybrid transport that takes off like a helicopter and cruises like an airplane, thanks to its rotating engine nacelles — did just the opposite. It flew upward, out of control of its pilots.

On March 27, 2006, at a Marine Corps air base in New River, North Carolina, an MV-22 assigned to Medium Tiltrotor Training Squadron 204 experienced an unplanned surge in engine power as the three-man crew was preparing for a flight. “That caused the aircraft to inadvertently lift off the deck approximately 30 feet,” Marine spokesman Maj. Shawn Haney explained. “It came back down … there was major damage sustained to the right wing and the right engine.”

………

Yet the Marines and the Naval Safety Center ultimately decided that the Osprey’s dangerous joyride didn’t count as a serious flying accident, known in Pentagon parlance as a “Class A flight mishap.” The reason, said Capt. Brian Block, a Marine spokesman: The aircraft wasn’t supposed to take off just then; therefore, it’s not a flight problem. If a V-22 suffers damage while preparing to launch or after landing, or if the crew does not explicitly command the aircraft to take off but it does anyways, then the accident doesn’t count as a flight accident.

“No intent for flight existed,” he told Danger Room. “As such, it is not included in calculating the Class A flight mishap rate.”

It’s not the only seemingly serious accident that the Marines neglected to include in its tally of flight mishaps for the Osprey. A review of press reports, analysts’ studies and military records turns up 10 or more potentially serious mishaps in the last decade of V-22 testing and operations. At least three — and quite possibly more — could be considered Class A flight mishaps, if not for pending investigations, the “intent for flight” loophole and possible under-reporting of repair costs.

………

The Marines boast that the Osprey is the “safest tactical rotorcraft within the U.S. Marine Corps” over the last decade, in the words of Lt. Col. Jason Holden, the V-22 plans officer at Marine Corps headquarters in Virginia. By the official reckoning of the Marine Corps and the Naval Safety Center, the V-22 has a Class A flight mishap rate of 1.28 per 100,000 flight hours over the last 10 years, compared to a Class A flight mishap rate of 2.6 per 100,000 flight hours for all Marine aircraft over the same period.

But the Marines have given all sorts of reasons not to trust that official rate.

The Marines are so vested in the success of the V-22, that they cannot be trusted to manage the program.

The fact that the Marine Corps feels compelled to go to these lengths is an indication that the Osprey is not performing as promised.

Just Desserts

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Phill Klein, the virulently anti-abortion former Kansas Attorney General, has been under investigation by the Kansas bar for leaking confidential medical records in order to harass abortion providers and abortion recipients.

Well, the disciplinary board has now recommended that his license to practice law be permanently suspended:

A Kansas disciplinary panel said Thursday that former Kansas Attorney General Phill Kline should be indefinitely suspended from practicing law in the state because of the “dishonest and selfish” way he pursued abortion clinics.

The recommendation of the attorney disciplinary board culminates a turbulent six-year period in which Kline — as attorney general and later Johnson County district attorney — presided over investigations of the late George Tiller’s abortion clinic in Wichita and Planned Parenthood in Overland Park.

I’m not sure if this is a disbarment, or just one step short of this.

In any case, I wouldn’t worry about Mr. Kline. I’m sure that the VWRC will find him something remunerative to him, because, unlike Democrats, the wingers take care of their own.

Maddow notes that Jerry Fallwell’s phony school has already given him a professorship.

10 Percent of the Chinese Economy?

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It turns out that much of the lending to small businesses in China is done by loan sharks, because the official banks prefer to lend to large state owned enterprises.

That’s not shocking. Official Chinese societal structures have always been for the benefit of the few over the many.

That being said, a throw away line in a New York Times article is truly shocking:

Such illegal lending amounts to about $630 billion a year, or the equivalent of about 10 percent of China’s gross domestic product, according to estimates by the investment bank UBS.

10%?  10% of the f%$#ing Chinese economy is loan sharking???????

When the bubble bursts in China, and there is a bubble in China, it’s going to be incredibly ugly.

The Lesson Here is If You Cheat Investors, Be a White Man

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Long prison term, dark face, any questions?

You know why Raj Rajaratnam just got sentenced to 11 years in prison for insider trading:

Fallen hedge fund tycoon Raj Rajaratnam has been sentenced to a record 11 years in prison after his conviction in the biggest Wall Street insider trading case in decades.

Prosecutors had pushed for 25-year sentence after convicting Rajaratnam, 54, in the biggest insider trading investigation ever conducted by US authorities.

Legal experts said that while prosecutors may have been disappointed with the decision, the sentence was still the highest ever given for insider dealing.

The thing to remember here is that this is actually fairly small time by the scale of the financial meltdown, and that he is not white.

I won’t believe that there is any sort of meaningful crackdown on the banksters until we see someone who is both white, and at least at the VP level for a major bank.

This is just, “Rounding up the usual suspects.”

It’s the Vampire Squid’s World, We Just Live in It

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So when Goldman Sachs gets caught helping clients evade taxes, and British authorities hand them a get out of jail free card:

Britain’s tax authorities have given Goldman Sachs an unusual and generous Christmas present, leaked documents reveal. In a secret London meeting last December with the head of Revenue, the wealthy Wall Street banking firm was forgiven £10m interest on a failed tax avoidance scheme.

HM Revenue and Customs sources admit privately that the interest-free deal is “a cock-up” by officials, but refuse to say who was responsible.

Documents leaked to Private Eye magazine and published in full by the Guardian record that Britain’s top tax official, HMRC’s permanent secretary Dave Hartnett, personally shook hands on a secret settlement last December.

Hartnett is due to be questioned on Wednesday by the Commons public accounts committee. The leaked documents suggest that a previous PAC chairman, Edward Leigh, was misled when he was told it was illegal to reveal details of such cases to parliament.

Leaked legal advice from James Eadie QC, which the Guardian also publishes today, says the opposite. Hartnett has discretion to reveal such facts to the parliamentary watchdog, according to the advice.

………

In the 1990s, Goldman set up a company offshore in the British Virgin Islands. This entity, called Goldman Sachs Services Ltd, supposedly employed all of Goldman’s London bankers, who were then “seconded” to work there.

The device appears to have been designed to conceal the size of the bonuses. Judge David Williams said in 2009 that it was “a way of keeping information about the GS accounts and payroll out of the public domain and confidential”.

Goldman also begrudged paying its share of UK national insurance on the six-figure bonuses. Court judgments disclose that a typical Goldman bonus to a junior banker was £143,000 in 1998, and £191,000 the following year.

The company, along with 21 investment banks and other firms, purchased blueprints for an avoidance scheme called an employee benefit trust (EBT). The bonuses were indirectly invested into elaborate share option schemes.

It took the Revenue until 2005 to demonstrate in court that these EBTs were merely illegitimate tax avoidance devices. The 21 other firms surrendered, and handed over what they owed.

But Goldman Sachs refused to pay its £30.81m bill. Instead the city firm Freshfields and the tax QC David Goldberg fought tooth and nail on Goldman’s behalf through the courts. By 2010, according to a public judgment, the unpaid bill with accumulated interest had mounted to £40m.

Seriously, we need to take these muthas down hard.

Whiskey Tango Foxtrot?

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The power of wishful thinking

Representative Louise Slaughter has suggested during an interview on Olbermann and she suggested that, because of Clarence Thomas’s repeated violation of conflict of interest statutes that his votes might be subject to retroactive recusal.

Rep. Slughter’s suggestion as a remedy is just wishful thinking.

There is a remedy, and it’s called impeachment, and the idea that Chief Justice Roberts as head of the judicial ethics commission would refer this to the Department of Justice is ludicrous.

More Like George W. Bush Every Day

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Barack Obama is now claiming that the legal opinion granting him the authority to assassinate American citizens is a state secret, and so it is not subject to any sort of public scrutiny.

You know, as scary as George Bush was, he was basically a dunce, Barack Obama is a lot of things, but he is not stupid.

This not a fact that I find particularly reassuring:

Why? What justification can there be for President Obama and his lawyers to keep secret what they’re asserting is a matter of sound law? This isn’t a military secret. It isn’t an instance of protecting CIA field assets, or shielding a domestic vulnerability to terrorism from public view. This is an analysis of the power that the Constitution and Congress’ post September 11 authorization of military force gives the executive branch. This is a president exploiting official secrecy so that he can claim legal justification for his actions without having to expose his specific reasoning to scrutiny. As the Post put it, “The administration officials refused to disclose the exact legal analysis used to authorize targeting Aulaqi, or how they considered any Fifth Amendment right to due process.”

Obama hasn’t just set a new precedent about killing Americans without due process. He has done so in a way that deliberately shields from public view the precise nature of the important precedent he has set. It’s time for the president who promised to create “a White House that’s more transparent and accountable than anything we’ve seen before” to release the DOJ memo. As David Shipler writes, “The legal questions are far from clearcut, and the country needs to have this difficult discussion.” And then there’s the fact that “a good many Obama supporters thought that secret legal opinions by the Justice Department — rationalizing torture and domestic military arrests, for example — had gone out the door along with the Bush administration,” he adds. “But now comes a momentous change in policy with serious implications for the Constitution’s restraint on executive power, and Obama refuses to allow his lawyers’ arguments to be laid out on the table for the American public to examine.” What doesn’t he want to get out?

Think about it for a second: This ruling just an evaluations of public court rulings and public statutes, but they have buried this from any sort of public scrutiny.

There can’t be any sensitive secrets involved, but they are covering it up.

Something is hinky here.

Pass the Popcorn, Mortgage Fraud Edition

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And another shoe drops, as California leaving the 50 state mortgage deal, claiming that it’s too bank friendly, joining New York, Delaware, Minnesota, and Massachusetts (link) in objecting to the blanket grants of immunity proposed:

California Atty. Gen. Kamala Harris will no longer take part in a national foreclosure probe of some of the nation’s biggest banks, which are accused of pervasive misconduct in dealing with troubled homeowners.

Harris removed herself from talks by a coalition of state attorneys general and federal agencies investigating abusive foreclosure practices because the nation’s five largest mortgage servicers were not offering California homeowners relief commensurate to what people in the state had suffered, Harris told The Times on Friday.

The big banks were also demanding to be granted overly broad immunity from legal claims that could potentially derail further investigations into Wall Street’s role in the mortgage meltdown, Harris said.

“It has been  a process of negotiating and sitting at a table in good faith, but ultimately I have decided that we have to go our own course and take an independent path. And that decision is because we need to bring relief to Californians that is equal to the pain California experienced, and what is being negotiated now is insufficient,” Harris told The Times in an interview.

Harris delivered the news in a letter sent Friday to Iowa Atty. Gen. Tom Miller, who has been leading the 50-state coalition.

Here are some other interesting bits:

The removal of California from the discussions is a major blow to fraying efforts by the coalition, which has been trying to strike a settlement deal with the big banks for months. The move by Harris to reject the settlement talks is also a key departure from efforts by the Obama administration, which has been pushing for a fast resolution to the so-called robo-signing scandal that erupted last year.

Just so you know, “Pushing for a fast resolution,” translates to, “Throwing lawbreakers another get out of jail free card,” because the Banksters are Obama’s real base.

“This whole concept of a settlement on foreclosure abuse is probably dead,” said Christopher Whalen, the founder of Institutional Risk Analytics. “Nobody in their right mind is going to opt into a settlement right now.”

So one would hope.  Neither the Obama administration, nor their corrupt lackey Iowa Attorney Gen. Tom Miller have had the slightest interest in pursuing any allegations or real wrongdoing against big banks.

I’m not sure what is motivating the AGs to bail on what would be a win-win for them, they get to “wave the bloody shirt” of some sort of settlement payments while insuring their own access to Wall Street campaign donations, but it appears that either they think that the political calculus is changing, or they just want to do the right thing.

Not Enough Bullets…

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The SEC has ruled that Congressmen, their staffers, and executive branch members are free to commit insider trading with impunity:

When you buy and sell stocks based on secrets you learned at the office, it could be insider trading.

But when a United States Senator does it, it’s probably perfectly legal.

That’s because the SEC has largely determined that trading stocks based on advance knowledge of action in Congress is not insider trading.

If anything, it’s “outsider” trading — buying and selling shares based on knowledge of an outside force that’s about to hit a company’s share value.

Think of it like a trader who sees a satellite image of a hurricane bearing down on an oil rig — and shorts the oil company’s stock in expectation of the damage.

Except in the case of Capitol Hill, the members of Congress can be both the trader and the hurricane — buying and selling shares in expectation of the effect that their own action has on the company’s stock price.

Some critics say that’s probably going on a lot on Capitol Hill — although they don’t have any direct proof.

“It’s really quite outrageous,” said Craig Holman, the legislative representative for Public Citizen. “If you just take a look at the statistics, members of Congress are either geniuses when it comes to stock trading or they are in fact trading off of some of this insider information.”

A pair of recent academic studies found that House members beat the market in their personal stock trading by about 6 percent, and Senators beat the market by about 10 percent.

Just when you thought that Washington could not get any more corrupt.

Occupy Wall Street Heats Up

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First, we are now seeing support from unions and local civil society groups:

The “Occupy Wall Street” protests, now entering their third week, are poised to get a whole lot bigger than its core of 200 to 300 people, potentially even exceeding the protesters original goals of 20,000 demonstrators, thanks to recent pledges of support from some of New York City’s largest labor unions and community groups.

On Tuesday, over 700 uniformed pilots, members of the Air Line Pilots Association, took to the streets outside of Wall Street demanding better pay.

…………

The other eight organizations expected to join in the October 5 rally, based on its Facebook page, are United NY, Strong Economy for All Coalition, Working Families Party, VOCAL-NY, Community Voices Heard, Alliance for Quality Education, New York Communities for Change, Coalition for the Homeless, which have a collective membership of over 1 million.

Additionally, since the video of a New York City deputy inspector Anthony Bologna going crazy with pepper spray on protesters went viral, the protesters are actually getting some ink in the American press. (Google news shows more coverage overseas than in the US)

Additionally, they finally had a mass protest, and related mass arrests, on the Brooklyn Bridge.

If the protesters, or their new supporters, can manage to get their sh%$ together, and leverage their recent US media coverage, we might actually have a real a voice for stopping the looting and starting prosecuting.

Finally!

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Pass the Popcorn

Even if the mortgage non-transfer transfers conducted through MERS fulfill the technical obligations required by existing real estate and trust law (they don’t), they still don’t excuse the illegal evasion of recording fees for local county clerks.

We’ve had a couple of smaller counties file suit, but now it’s Dallas, Texas, which turn over a huge rock, and reveal what is underneath:

Mortgage Electronic Registration Systems Inc., along with Bank of America Corp., was sued by Dallas County District Attorney Craig Watkins over claims its mortgage-tracking system violates Texas law.

Merscorp Inc.’s MERS, which runs an electronic registry of mortgages, cheated Dallas County out of “tens of millions in uncollected filing fees,” Watkins said in a statement. MERS tracks servicing rights and ownership interests in mortgage loans on its registry, allowing banks to buy and sell loans without recording transfers with counties.

Watkins, in a complaint filed yesterday in state court in Dallas, claims MERS was established by banks including Bank of America to avoid paying filing fees, as well as to ease transfers of mortgages. The county asked the court to hold Bank of America liable as a shareholder of MERS and said the bank “knew or should have known” that the system would cause improper filing.

We are talking billions, if not tens of billions of dollars in fees that were illegally evaded by the banks, and Dallas County is big enough that the banks can’t afford to settle to make the problem go away.

My heart bleeds for these ratf%$#s.

These Folks Really Hate America…

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Basically, a good old boy policechief and judge in East Podunk Bay Minette, Alabama have decided that they have the right to tell people to go to church or go to jail:

A new alternative sentencing program offering first-time, nonviolent offenders a choice of a year of church attendance or jail time and fines is drawing fire from the American Civil Liberties Union as well as national attention, officials said Friday.

“This policy is blatantly unconstitutional,” said Olivia Turner, executive director for the ACLU of Alabama. “It violates one basic tenet of the Constitution, namely that government can’t force participation in religious activity.”

But the local police chief who is heading up the program starting Tuesday called “Restore Our Community” says no one is being forced to participate.

“Operation ROC resulted from meetings with church leaders,” Bay Minette Police Chief Mike Rowland said. “It was agreed by all the pastors that at the core of the crime problem was the erosion of family values and morals. We have children raising children and parents not instilling values in young people.”

Rowland said the idea was simple: get people who are not yet hardened criminals to become involved in positive programs — hundreds of free resources offered by some 104 churches in the region with 56 agreeing to help monitor first-time, nonviolent offenders. Under the program, pastors would report weekly to the chief and offenders in the program would bring a signed sheet to prove they attended church.

They would also have to answer some questions about the services, Rowland said. And the offenders who voluntarily choose church over jail get to pick the churches they attend. If they complete a year’s attendance, Rowland said, their criminal case would be dismissed.

Here’s the kicker:

“The biggest question or complaint we have had is about separation of church and state,” Rowland said. “Those issues won’t come to the forefront because the offenders are not being forced to attend church, and what religion they choose is really up to them. We even have provisions for people who are from out of town to choose a place to worship in their own communities.”

Of course they aren’t forced to go to church, they have a choice, it’s just that the alternative is prison.  Just like people weren’t forced to confess to witchcraft, they had a choice, it’s just that the alternative is being drowned or crushed under stones.

I’m thinking of going there and founding a “Pagan, atheist, secular humanist, free love Church of Saccharomyces cerevisiae,” and seeing if I can get some of these folks to attend my church.

H/t TPM.

Our Masters of the Universe CEOs, Now Accountability Free

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Because Meg Whitman just became HP’s CEO.

Whitman’s claim to fame is her sting at eBay, where she made lots of acquisitions, most of them ill-starred. (Skype and their contentious stake in Craiglslist anyone?)

After HP’s disastrous acquisition of Compaq, and a string of management failures at the top, since their hiring of an outsider (Carly Fiorina), they have continued to bring in sales weasels for what is a technology driven company.

You know, maybe the company wouldn’t be flailing if the people running it actually understood the company, as opposed to stroking their own egos.

Seriously, there is no level of failure that will make one of the members of the CEO class unhirable.

Uh Oh………

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It looks like company insiders have stopped buying their stocks:

Chief executives. Board members.

The head honchos. The people who know.

Just a few weeks ago, they were out in force, buying up shares in their own companies with both hands.

No longer. They’ve disappeared. Almost overnight.

“They’ve stopped buying,” says Charles Biderman, the chief executive of stock market research firm TrimTabs, which tracks the data. “Insiders aren’t buying this rally.”

Insider stock purchases, which surged above $100 million a day in the market slump last month, have now collapsed to just $13 million a day.

Meanwhile the ratio of insider sales to purchases has skyrocketed. Today insiders are dumping $7 in stock for each $1 that (other) insiders are buying. That’s a worrying ratio. Six weeks ago the amounts of purchases and sales were about equal.

It’s the kind of news that should give investors pause.

What insiders do with their own money is one of the stock market’s best barometers.

Gee, you think?

But ……… That would mean ……… That our noble captains of industry are using their internal knowledge of their businesses to derive an undeserved profit!

As the saying goes, “If you sit in on a poker game and don’t see a sucker, get up. You’re the sucker.”

Time to get out of the big casino if you are in.

Schadenfreude, Sweet Schadenfreude

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It appears that News Corp has gotten a letter from the Department of Justice regarding possible violations of overseas anti-corruption laws:

News Corp. was sent a letter by U.S. prosecutors investigating foreign bribery, requesting information on alleged payments employees made to U.K. police for tips, according to a person with knowledge of the matter.

The letter is part of an effort by the U.S. Justice Department to determine whether News Corp. violated the Foreign Corrupt Practices Act, or FCPA, according to the person, who declined to be identified because the matter isn’t public. News Corp. fell 1.7 percent on the news.

The inquiry advances an existing U.S. probe that is reviewing claims that victims of the Sept. 11, 2001, attacks had their phones hacked by News Corp. employees. The letter doesn’t carry the same legal force as a grand jury subpoena, which would compel a response under law.

Earlier this year, it was revealed that reporters at New York-based News Corp.’s News of the World had hacked the voicemail accounts of celebrities and a young girl who had been kidnapped and murdered. Investigators subsequently began looking into allegations that the tabloid’s staffers made payments to police officers in return for confidential information.

Not a good day to be Rupert.

Police Withdraw their Official Secrets Act Filing Against the Guardian

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It sounds like someone in Scotland Yard got a clue, and decided that doing Rupert Murdoch’s bidding in public was a bad idea:

The Metropolitan police has dropped its attempt to force the Guardian to reveal confidential sources for stories relating to the phone-hacking scandal.

Scotland Yard wanted a court order to force Guardian reporters to reveal confidential sources for articles disclosing that the murdered teenager Milly Dowler’s phone was hacked on behalf of the News of the World. They claimed that the paper’s reporter Amelia Hill could have “incited” a source to break the Official Secrets Act.

A police spokesman said: “The Metropolitan Police’s Directorate of Professional Standards consulted the Crown Prosecution Service (CPS) about the alleged leaking of information by a police officer from Operation Weeting.

“The CPS has today asked that more information be provided to its lawyers and for appropriate time to consider the matter.

“In addition the MPS has taken further legal advice this afternoon and as a result has decided not to pursue, at this time, the application for production orders scheduled for hearing on Friday 23 September. We have agreed with the CPS that we will work jointly with them in considering the next steps.”

The Met’s attempt to identify potential police leaks was widely condemned.

Just how did they think that it was going to look?

Idiots.

The Banks are Going Spitzer on New York AG Schneiderman

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They are hiring private investigators to dig up personal dirt on him and his staff:

The New York Post has a salacious story about Alisha Smith, a lawyer with the New York attorney general’s office, who is a dominatrix in her private life. Frankly, many of the skills honed by being a domme probably come in handy in litigation (such as knowing exactly how much pain and humiliation to administer when).

The problem isn’t with her having a kinky private life per se; it is the allegation by the Post that she may have gotten paid for performing at S&M parties. Smith makes all of $78,825 a year and the policy of the state AG’s office is for staff to obtain prior approval of any activity which will earn them more than $1,000. The Post presented its allegations about Smith, who was hired by Andrew Cuomo and played an important role in a securities fraud case that led to a $5 billion settlement by Bank of America. She has been suspended without pay as the AG conducts an investigation.

The banksters are going to stop at nothing to protect their asses, and what they feel is their God given right to earn insane pay for stealing money from the rest of us.