CORRUPTION
CREW's Most Corrupt Alumni List Members included in CREW's Most
Corrupt Members of Congress reports who are no longer serving in Congress http://www.crewsmostcorrupt.org/files/most_corrupt_wherearetheynow.pdf
Under Investigation CREW has compiled a list of Congress members likely under
investigation by the Department of Justice (DOJ), the Committee on Standards of
Official Conduct (House ethics committee), the Senate Select Committee on
Ethics (Senate ethics committee) or the Office of Congressional Ethics (OCE).
Due to the secrecy surrounding these investigative bodies, the list is compiled
from press reports. http://www.citizensforethics.org/under-investigation
In wake of Rangel's censure,
House members still raise funds for pet causes Source: Fredreka Schouten
// USA
Today Related Multimedia
Melanie Sloan Discusses Rangel's Censure on AC360
// 3 Dec 2010 Anderson Cooper 360 More Related Multimedia » 7 Dec 2010 //
WASHINGTON — House members and their surrogates continue to raise money for
their pet causes from companies and lobbyists with business before Congress,
even though they formally rebuked Rep. Charles Rangel, D-N.Y., for doing
something quite similar, congressional records show.
Read the entire story » http://www.citizensforethics.org/node/45992
Is the U.S. Perceived
as Corrupt? Dec. 2 2010 By KEN MAKOVSKY Wall St
Journal Transparency International, a global anti-corruption group based in
Germany, recently released its 2010 Corruption Perception Index. The
annual rankings survey ordinary citizens and business people in 178 countries
and grade each nation on a 0-to-10 scale. This year, the cleanest states
were Denmark, New Zealand and Singapore (which were tied at 9.3).
Among the most corrupt: Iraq,
Afghanistan, Myanmar and Somalia, with scores of 1.5 or
less.
The United States
scored a disappointing 7.1, tying with Belgium
and falling in behind Japan,
Qatar, the United Kingdom and Chile. And this was before
the midterm election ( elections often influence
opinions about corruption).
The U.S.
needs to take a good look in the mirror to figure out why it is not ranking
among the cleanest countries. Could it be the financial crisis, the BP
oil spill, our wars in Iraq and
Afghanistan
or ethical issues in some multi-national corporations? What do you think?
Read more here. http://blogs.forbes.com/kenmakovsky/2010/12/02/is-the-u-s-perceived-as-corrupt/?boxes=Homepagechannels
Corruption agency files charges against Cheney By Ifedayo Adebayo
December 8, 2010 The Economic and Financial Crime Commission
(EFCC) http://234next.com/csp/cms/sites/Next/News/Metro/Politics/5651299-146/corruption_agency_files_charges_against_cheney.csp
WikiLeaks cables on Afghanistan show
monumental corruption - CNN Hundreds
of US diplomatic cables obtained by WikiLeaks paint a
picture of corruption in Afghanistan
at every level of government and society. http://articles.cnn.com/2010-12-02/world/afghanistan.wikileaks_1_ambassador-karl-eikenberry-cables-afghan-president-hamid-karzai?_s=PM:WORLD
Developer in NJ case admits
money laundering Wall Street Journal NEWARK,
N.J. — Dec 10, 2010 The two tracks of New Jersey's largest federal corruption
investigation briefly intersected Thursday when a real estate developer pleaded
guilty to money laundering and conspiracy charges during a break in the
corruption trial of a former New Jersey assemblyman caught up in the same
sting. Moshe "Michael" Altman of Monsey, N.Y., whose business was
based in Union City, N.J., entered his plea in Newark federal court during a break in the
corruption trial of former assemblyman L. Harvey Smith. Smith has pleaded not
guilty to several extortion, bribery and money laundering counts. Both Altman
and Smith were among 44 people arrested in July 2009 in the two-track
investigation into political corruption and money laundering. The two seemingly
disparate threads of the case — money laundering networks allegedly run by
members of an insular Orthodox Jewish religious community, and officials from
several New Jersey towns arrested on corruption charges — were tied together by
one man: Solomon Dwek, the government's key
cooperating witness. Dwek, the son of a prominent
rabbi from Deal, N.J., agreed to wear a wire for federal authorities after
pleading guilty to a $50 million bank fraud. Alternately posing as a
businessman and a corrupt real estate developer, Dwek
ensnared several members of his Orthodox Jewish community on money laundering
charges before branching out to New Jersey officials in what prosecutors say
was a cash-for-development assistance scheme.
Prosecutors allege Altman, a 40-year-old real estate
developer who is Orthodox Jewish, was approached by Dwek
who asked him for help in concealing money from bankruptcy proceedings,
fraudulent bank deals and a counterfeit handbag business.
Altman admitted Thursday that between May 2007 and July
2009, he engaged in 15 transactions in which he helped Dwek
convert checks into cash by laundering them through a religious charity. Prosecutors
say Altman and his alleged co-conspirators laundered nearly $670,000 through
purported charitable, nonprofit entities, returning nearly $550,000 to Dwek in cash, and retaining a cut of more than $100,000.
Continued at ….
http://online.wsj.com/article/APb073c258e25b4c30804aec8fd3792714.html
State Senator Admits to
Corruption Charges Dec 8, 2010 By Jacob Gershman Wall Street Journal (blog)
Vincent L. Leibell, a long-serving Republican state
senator who resigned last week, pleaded guilty on Monday to federal corruption
charges that could send him to prison for up to 13 years. In federal court in White Plains, Leibell, 64 years
old, who represented a scenic stretch of land in Putnam, Dutchess,
and Westchester counties, admitted that he
tried to tamper with a federal probe looking into allegations that he siphoned
money from a nonprofit he founded. The charges related to cash payments that Leibell allegedly received from an unnamed attorney hired
by the Putnam Community Foundation. The 11-year-old group, which wasn’t accused
of any wrongdoing, develops senior housing and has received millions of dollars
in state grants sponsored by Leibell, authorities
said.
Investigators were trying to determine if the lawmaker had
pressured the attorney to split his fees. Days after they began their probe in
April, Leibell was caught on tape instructing the
attorney to lie to investigators about the payments. “You and I say there was
never any cash relationship, period,” Leibell said,
according to an excerpted transcript of the recording released by the U.S. Attorney’s
Office for the Southern District. He also admitted he failed to report on his
tax returns $43,000 in cash payments he received from a law firm that did
business with Putnam
County government and had
hired him as a consultant. Leibell, who was first
elected to the Senate in 1994 and served as chairman of a committee that
oversees nonprofits, was elected Putnam county executive last month but
declined to serve. State Assemblyman Greg Ball was elected to his Senate seat
in November. http://blogs.wsj.com/metropolis/2010/12/07/state-senator-admits-to-corruption-charges/
Senator says US hasn't always led by
example on graft Reuters By Lesley Wroughton WASHINGTON | Tue Dec 7, 2010 (Reuters) - A U.S.
senator acknowledged on Tuesday that the United States had not always led by
example in fighting corruption in recent years but said that tackling graft
worldwide was absolutely essential. "Building the capacity to address corruption
worldwide is both a daunting challenge and an absolute imperative, and we must
be united and unequivocal in our response," Senator Patrick Leahy, a Democratwho chairs the Senate Judiciary Committee, told
more than 240 corruption fighters from 134 countries at the World Bank. "For
influential countries like the United
States, that means first and foremost
leading by example, which we have not always done in recent years," he
said. Continued at http://www.reuters.com/article/idUSTRE6B700A20101208
World Bank graft chief calls
for more action (Reuters) - By Lesley Wroughton WASHINGTON
| Mon Dec 6, 2010 7:13pm EST WASHINGTON
(Reuters) - The World Bank's top anti-corruption official on Monday called for
a strengthened global alliance to fight corruption to ensure more wrongdoers
are prosecuted. More than 250 corruption fighters, including attorney generals
and heads of corruption agencies from 134 countries, gather at the World Bank
from Tuesday for a high-level meeting of the Corruption Hunters Alliance on how to
advance the battle against graft. In an interview, Leonard McCarthy, the World
Bank's vice president for integrity, told Reuters he hoped the meeting would
agree to a global mechanism to track major corruption cases to ensure more
firms and individuals involved in fraud or corruption are held accountable. This
could be done by sharing more information, conducting parallel investigations,
and trying to get countries to adopt similar anti-corruption practices. "I
would like to have a tracking mechanism in place for all major corruption
cases, including the ones that the World Bank refers to countries," said
McCarthy. Continued at …. http://www.reuters.com/article/idUSTRE6B603S20101207
Another El Paso corruption
figure pleads guilty Houston Chronicle Dec 6,
2010 AP EL PASO, Texas EL PASO, Texas
— Another defendant in the cases arising from the federal investigation of El
Paso County corruption has pleaded guilty to corruption charges. Adrian Edward
Pena (PEHN'-yah) pleaded guilty in federal court in El Paso on Monday to two counts of conspiracy
to commit mail fraud. He faces up to 20 years in federal prison
per count when he's scheduled April 20.The 36-year-old defendant admits to
remodeling an El Paso
County commissioner's
home in return for his support for a county construction contract, and to
paying $10,000 to the commissioner after the county commissioners voted to pay
Pena's boss more than $382,000. He also pleaded guilty to conspiring with
another man to pay $13,000 to an El
Paso school
district trustee for his help in obtaining construction contracts. http://www.chron.com/disp/story.mpl/ap/tx/7327084.html
Ex-NLR alderman pleads guilty
in public corruption case Arkansas News By
Jeremy Peppas LITTLE ROCK — Posted on 06 December
2010 By Jeremy Peppas
Stephens Media LITTLE ROCK — A former North Little Rock alderman pleaded guilty
today to a federal public corruption charge. Cary Gaines
said during a hearing in U.S. District Court that he conspired with reputed
mobster George Wylie Thompson of Cabot to
rig bids for city public works projects to pay off gambling debts Read complete
article at http://arkansasnews.com/2010/12/06/former-nlr-alderman-pleads-guilty-to-conspiracy-charges/
Why Prince George's struggles with
corruption Greater Greater
Washington Dec 6, 2010 How did the
County get to where it is today: with its Executive and his wife, an incoming
Councilmember, being arrested, along with several police officers, business
owners, and possibly others to follow? Unfortunately, these aren't just a few
bad apples engaging in illicit and illegal behavior. There is a long history of
insider politics, cronyism, and outright corruption in Prince George's County. Read complete article
at http://greatergreaterwashington.org/post/8318/why-prince-georges-struggles-with-corruption/
People caught in up the Abramoff corruption probe
By The Associated Press November 22, 2010
The lawmakers, lobbyists, Bush administration officials,
congressional staffers and businessmen caught up in the Jack Abramoff public corruption probe:
- Abramoff was sentenced in
September 2008 to four years in prison on charges of mail fraud, conspiracy and
tax evasion. Since pleading guilty in 2006, the once-powerful lobbyist has
cooperated with the federal investigation of influence-peddling in Washington. He was
sentenced to a six-year prison sentence in a criminal case out of Florida, where he
pleaded guilty in January 2006 to charges of conspiracy, honest services fraud
and tax evasion in the purchase of gambling cruise boats. He was released to a
halfway house in June 2010 and then home confinement and has been working at a
pizzeria.
- David Safavian, the former chief
procurement officer in the administration of President George W. Bush, was sentenced in October 2009 to
a year in prison after being found guilty in a retrial in December 2008 for
lying to investigators about his relationship with Abramoff,
who provided gifts in return for information from Safavian
about government property the lobbyist wanted to acquire. Safavian's
2006 conviction on similar charges was overturned on appeal. The U.S. Court of
Appeals heard arguments in his appeal of his second set of convictions on Oct
22.
Kevin Ring, an ex-lobbyist who worked for Abramoff, was convicted Nov. 15 of bribing public officials
with expensive meals and exclusive event tickets. An earlier jury could not
agree on a verdict in October 2009 on charges that Ring showered tickets and
meals on employees of then-Republican Reps. John Doolittle of California and
Ernest Istook of Oklahoma and the Justice Department in return for
congressional appropriations and other assistance for Abramoff's clients. The second trial found the 40-year-old
former Republican congressional aide guilty of conspiracy, honest services
fraud and giving an illegal gratuity to an aide of former Attorney General John
Ashcroft. Sentencing is scheduled for March 1.
- Former Rep. Bob Ney, R-Ohio,
served a prison term and was released in August 2008. He acknowledged taking
bribes from Abramoff. Ney
was in the traveling party on an Abramoff-sponsored
golfing trip to Scotland
that was at the heart of the case against Safavian.
-Former Deputy Interior Secretary Steven Griles,
the highest-ranking Bush administration official convicted in the scandal, was
sentenced to 10 months in prison for obstructing justice. He admitted lying to
a Senate committee about his relationship with Abramoff,
who repeatedly sought Griles' intervention at
Interior on behalf of Indian tribal clients.
- John Albaugh, a one-time top
aide to Istook, pleaded guilty to conspiracy to defraud the House. Albaugh admitted in federal court in Washington that he
accepted meals and sports and concert tickets, along with other perks, from
lobbyists in exchange for official favors. He is cooperating with
investigators.
- Robert E. Coughlin II, a Justice Department official,
pleaded guilty to conflict of interest. He admitted in federal court in Washington that he
accepted meals, concert tickets and luxury seats at Redskins and Wizards games
from Ring, while helping the lobbyist and his clients. Coughlin is cooperating
with investigators. In November 2009, a U.S. District judge said Coughlin
did not deserve prison time for his actions.
- Italia Federici, co-founder of
the Council of Republicans for Environmental Advocacy, was sentenced to two
months in a halfway house, four years on probation and a $74,000 fine after
agreeing to help federal investigators. She pleaded guilty to tax evasion and
obstruction of a Senate investigation into Abramoff's
relationship with Interior Department officials.
- Tony Rudy, lobbyist and one-time aide to former House
Majority Leader Tom DeLay, R-Texas, pleaded guilty in
March 2006 to conspiring with Abramoff. He is
cooperating with investigators and his sentencing is scheduled for Feb. 8.
- Michael Scanlon, a former Abramoff
business partner and DeLay aide, pleaded guilty in
November 2005 to conspiring to bribe public officials through his lobbying work
on behalf of Indian tribes and casino issues. He is cooperating with
investigators and his sentencing is scheduled for Tuesday.
- William Heaton, Ney's
former chief of staff, pleaded guilty to a federal conspiracy charge involving
a golf trip to Scotland, expensive meals, and tickets to sporting events
between 2002 and 2004 as payoffs for helping Abramoff's
clients. He cooperated with investigators and was sentenced to two years
probation and a $5,000 fine.
- Neil Volz, a former chief of
staff to Ney who left government to work for Abramoff, was sentenced to two years of probation, 100
hours of community service and a $2,000 fine after pleading guilty to
conspiring to corrupt Ney and others with trips and
other aid.
- Mark Zachares, former aide to Rep.
Don Young, R-Alaska,
pleaded guilty to conspiracy. He acknowledged accepting tens of thousands of
dollars worth of gifts and a golf trip to Scotland from Abramoff's
team in exchange for official acts on the lobbyist's behalf. He was sentenced
to four years probation and 12 weekends in jail.
- Trevor L. Blackann, a former
aide to Missouri Republicans Sen. Kit Bond and Rep.
Roy Blunt, pleaded guilty to not reporting $4,100 in gifts from
lobbyists in return for helping clients of Abramoff
and his associates. Among the gifts were tickets to the World Series and
concerts, plus meals and entertainment at a "gentleman's club." -
James Hirni, a former Republican Senate aide and
one-time Abramoff associate, pleaded guilty to using
wire communications to defraud taxpayers of congressional aides' honest
services. Hirni acknowledged providing Blackann with meals, concert passes and tickets to the
opening game of the 2003 World Series between the Florida
Marlins and the New York
Yankees at Yankee Stadium.
- Todd Boulanger, a former Abramoff deputy, pleaded guilty to lavishing congressional
aides with meals and tickets to sporting events, concerts and the circus in
exchange for help with legislation favorable to his clients.
- Ann Copland, a former aide to Mississippi Sen.
Thad Cochran, pleaded guilty to taking more than $25,000 worth of
concert and sporting event tickets in return for helping one of Abramoff's top clients, the Mississippi Band of Choctaw Indians.
- Roger Stillwell, a former Interior Department official,
was sentenced to two years on probation in January 2007 after pleading guilty
to a misdemeanor charge for not reporting hundreds of dollars worth of sports
and concert tickets he received from Abramoff.
- Former Abramoff business partner
Adam Kidan was sentenced in Florida in March 2006 to nearly six years in
prison for conspiracy and fraud in the 2000 purchase of the Fort
Lauderdale-based SunCruz Casinos gambling fleet.
- Horace Cooper, a former Labor Department official and
one-time aide to former Republican Rep. Dick Armey pleaded guilty in April 2010
to falsifying a document when he did not report receiving gifts from Abramoff and Volz in 2003.
- Fraser Verrusio, a former aide
to Young, is fighting charges for allegedly taking a free trip to the 2003
World Series. His trial is scheduled to begin Jan. 25. http://www.washingtonpost.com/wp-dyn/content/article/2010/11/22/AR2010112205065.html
Johnsons' arrests appear to be tip of federal corruption probe
Washington Post Nov 12,
2010 The arrests Friday of Prince
George's County Executive Jack B. Johnson and his wife suggest that a federal
investigation of corruption in county government, long a subject of rumor and
speculation, is reaching critical mass. Law enforcement officials familiar with
the probe, which is being overseen by the U.S. attorney for Maryland, said more
arrests are expected, possibly this week. Johnson (D), whose term ends next
month, and his wife, Leslie Johnson (D), newly elected to the Prince George's
County Council, were charged with destroying and tampering with evidence. They
were arrested after Jack Johnson pocketed $15,000 in cash from a developer
Friday, the FBI said in an affidavit, and his wife, at home, stuffed $79,600 in
cash in her underwear and flushed a $100,000 check down a toilet as federal
agents knocked on her door. Speaking on the condition of anonymity because the
investigation is continuing, authorities said the FBI intends to conduct more
searches of homes and offices, seeking evidence of graft related to developer
contracts. On Friday, agents carried out searches at the Johnsons'
home and the County
Administration Building.
A spokesman for County Executive-elect Rushern L.
Baker III, who has pledged ethics reform, issued a statement Saturday saying
the arrests would not interfere with his new administration's efforts to focus
on residents' needs and to clean up county business practices. Baker has
promised to establish an inspector general's office to root out waste, fraud
and abuse and to move to end the practice in which people can contribute to
slates of candidates in addition to individuals. Developers have been
significant campaign contributors. Exactly where the investigation is focused
remains unclear. Rumblings of wrongdoing in the county have been persistent for
years, although until now, Johnson had not been officially implicated in any
impropriety. This is not the first development-related investigation to emerge
in the county. The FBI spent many months examining details of a huge
development project in Greenbelt
and its ties to a former County Council member and two of his golfing buddies.
In 2008, agents involved in the inquiry obtained search warrants for several
homes and offices, including the offices of two of Johnson's top aides.
Another target of an FBI search during the investigation,
developer Patrick Ricker, had held a $500-a-head fundraiser for Johnson in
2002. Ricker was involved in the Greenbelt
development, which had Johnson's strong backing. In 2006, The Washington Post reported that 15 friends and
political allies of Johnson's had received 51 county contracts worth nearly
$3.3 million. Some were paid to advise the county on matters in which they had
little experience, and some failed to produce required reports about their
work. Johnson said the contractors were "first-class people." The Maryland state
prosecutor also investigated two county contracts awarded in 2005 to the
chairman of Johnson's campaign committee, according to sources familiar with
the probe and two people who appeared before a grand jury. Prosecutors
questioned the grand jury witnesses about the contracts, each for $100,000,
awarded in 2003 and 2004 to Wilbert R. Wilson, owner of a Largo
technology firm and a longtime friend of Johnson's, the sources and witness
said. The contracts called for Wilson
to "evaluate trends in regional, national and global economics" and
to "identify market trends and strategies for improvement of economic
benefit to county-based businesses." He was required to "furnish a
final written report" of his work to the county government.Read
complete article at http://www.washingtonpost.com/wp-dyn/content/article/2010/11/13/AR2010111304309_2.html
Ex-NJ lawmaker sentenced in corruption
case
Washington Post AP TRENTON, NJ – The
Associated Press Friday, November 19, 2010; 3:30 PM TRENTON, N.J. -- A former New Jersey lawmaker
snared in the state's largest corruption sting is going to prison for nearly 3
1/2 years. A federal judge in Trenton sentenced Daniel
Van Pelt on Friday for bribery and attempted extortion. The former assemblyman
from Ocean County must turn himself in after the
holidays. Van Pelt told the judge he was
trustworthy and never believed anyone would try to bribe him. He was convicted
in May. Prosecutors said the 46-year-old
accepted $10,000 in cash in exchange for his assistance in securing government
approvals for purported real estate projects in his district. Van Pelt testified he considered the payment
from government informant Solomon Dwek to be a
consulting fee. He was among 44 people
arrested in the sting and the second one convicted. Seventeen have pleaded
guilty. http://www.washingtonpost.com/wp-dyn/content/article/2010/11/19/AR2010111903559.html
Builder guilty in final Dallas
corruption trial Houston Chronicle 2010 AP DALLAS Nov. 19,
2010 DALLAS — A builder who was the
final defendant to face trial in the Dallas City Hall public corruption case
has been found guilty. A federal jury in Dallas
found housing developer Ron Slovacek guilty on Friday
of conspiracy to commit bribery, bribery and conspiracy to commit money
laundering. Slovacek faces a maximum of 35 years in
prison. Sentencing is scheduled for March 4. The jury found Slovacek
guilty of funneling kickbacks from housing developers to former Dallas Mayor Pro Tem Don
Hill, the No. 2 public official in city hall. Hill was sentenced earlier this
year to 18 years in prison. Authorities say the scheme involved city officials
shaking down developers for hundreds of thousands of dollars in return for
votes on their low-income housing projects in southern Dallas. Continued at ….. http://www.chron.com/disp/story.mpl/ap/tx/7302571.html
In Prince George's, corruption's long shadows
Washington Post
By Colbert I.
King Saturday, November 20, 2010 Once county residents get past the
image of Leslie Johnson allegedly flushing a $100,000 check from an unnamed
developer down the toilet, and - again allegedly - hiding nearly $80,000 in her
bra at the direction of her husband, County Executive Jack Johnson, they should
turn their attention to a larger question posed in a recent Baltimore Sun editorial: How long has the rot
been festering, and why has nobody seemed to notice until now? After all, the
corruption scandal has been brewing for some time. Reportedly, the FBI has had
Jack Johnson in its scope since January 2006. And the federal probe reaches
beyond Mr. Johnson and his wife, who have been charged with evidence tampering
and destruction of evidence. Their arrests represent only the tip of the
iceberg, federal officials say. The feds also allege that Langley Park liquor
store owners paid bribes to county officials and used county police in a
protection scheme involving the transportation and distribution of untaxed
alcohol and cigarettes. Nine people, in addition to the Johnsons,
have been arrested, including three county police
officers, with promises of more to come. Prince
George's residents should ask why it has fallen to
federal authorities to expose corruption in their county. Glenn Ivey, the
state's attorney for the county, told me it would be unfair to police and
prosecutors to suggest that they weren't doing their jobs unless they had
ignored evidence that the Johnsons were taking
bribes. While rumors of wrongdoing were heard, Ivey said, he was never aware of
someone who could provide information about it. Rumors, he said, don't constitute
probable cause, much less proof beyond a reasonable doubt. Ivey, a former
federal prosecutor, told me that he learned about the investigation the morning
the Johnsons were arrested. He said it's better that the feds have the case. They have the
resources, and they are immune to charges of partisanship or local
score-settling. The Sun's editorial also asked the whereabouts of the Prince George's County
Council, which has a government oversight role to perform. Apparently, the
council has decided to go to ground. The Post reports that one veteran council
member urged her colleagues to refrain from talking about the scandal to the
media because the council should speak with one voice. So with public
confidence in government most threatened, the council hunkers down. And, asked
the Sun, "In the case of the alleged untaxed black-market cigarettes and
alcohol, where was the state's comptroller's office that's supposed to monitor
sales of those commodities?" And the answer from Annapolis is. . .?
Have county politicians and state officials been asleep at the switch or have
they simply become inured to the rot and enablers of the corrupt? And what of county residents? Accounts of lax ethics and
graft in the county are hardly top secret. Surely some of them are aware of The
Post's investigation of Johnson's first term in office, which found that he had
given 15 friends and allies 51 county contracts
totaling nearly $3.3 million. The Post also found that Johnson and several
County Council members charged thousands of dollars in personal expenses to their
county-issued credit cards, revelations that prompted a state
investigation into the spending and a new law requiring audits.
Where was the public outrage? Or have residents resigned
themselves to tolerating a little hanky-panky in county government as long as
their trash gets picked up, streets get plowed, and their public officials show
up at cookouts, cabarets and funerals? Continued at ….. http://www.washingtonpost.com/wp-dyn/content/article/2010/11/19/AR2010111904461.html?hpid=opinionsbox1
Watchdog Group: Congress Still Failing To Fight Corruption
Correctly 
Staff
| November 17, 2010 Common Cause, a government
watchdog group, is warning lawmakers not to interpret a recent ruling from a
House panel against Rep. Charlie Rangel (D-N.Y.) as evidence that the
Congressional ethics system works. “While
Mr. Rangel has been embarrassed, and his campaign treasury depleted, the House
has again demonstrated its inability to efficiently but fairly police itself,”
a statement from Common Cause reads.The organization
cited the months that took place between the announcement of the charges and
the hearing as evidence that Congress needs a better policing method.Common Cause added that it would be a mistake for
Republican lawmakers to avoid closing down the recently created Office of
Congressional Ethics, an independent body that was not involved with the Rangel
trial, since depending on the Ethics Committee alone will be insufficient. “Its departure virtually ensures that future
allegations of Congressional misconduct will be handled with the same
clumsiness and partisanship that has marked the Rangel affair,” the statement
reads. Continued at ….. http://www.talkradionews.com/news/2010/11/17/watchdog-group-congress-still-failing-to-fight-corruption-co.html
Ring guilty on five counts in
Abramoff bribery case
By Spencer S.
Hsu Washington
Post Staff Writer
Tuesday, November 16, 2010
A federal jury Monday
convicted Washington
lobbyist Kevin A. Ring on five of eight counts related to the Jack Abramoff bribery and influence-peddling scandal, handing a
victory to the Justice Department unit charged with fighting corruption in
government.
After a two-week trial and three days of deliberation, the
D.C. panel of eight men and four women found Ring guilty on charges of
conspiracy, fraud and illegal gratuities related to his work with disgraced
lobbyist Abramoff and Ring's former boss, then-Rep.
John T. Doolittle (R-Calif.). The jury acquitted
Ring, of Kensington, on three counts of fraud in his dealings with John C. Albaugh, chief of staff to then-Rep. Ernest J. Istook Jr.
(R-Okla.), who recanted his testimony against Ring
shortly before trial.
"Another member of 'Team Abramoff'
has been held accountable for his actions," Mythili
Raman, a senior official for the Justice Department's criminal division, said
in a statement. "We are committed to bringing to justice those who seek to
corrupt our democratic process."
A downcast Ring and his lead attorney, Andrew Wise, declined
comment. U.S.
District Judge Ellen S. Huvelle set sentencing for
March 1 and allowed Ring to remain free on his own recognizance.
The decision nearly closes
the book on a four-year investigation that transfixed official Washington earlier this
decade, exposing the excesses and reach of unscrupulous K Street players into the White House,
executive branch agencies and Capitol Hill.
The verdict brings to 19 the number of lobbyists, public
officials and legislative aides - including an Ohio congressman and a deputy
secretary of interior - ensnared by the corruption probe, admitting or being
found guilty of trading government favors worth millions of dollars for Abramoff clients in return for an "endless expense
account" of lavish meals, tickets to sporting events and luxury vacations.
Congress has since adopted clearer disclosure and gift
rules. Still, the Ring case showed how legal limits remain murky and
prosecutions rare, even as his supporters said he was a peripheral player
targeted by overzealous investigators.
Wise argued that Ring was just doing his job as a lobbyist -
influencing public officials - using the same tools that were used "all
over town" and calling his prosecution "guilt by association."
Prosecutors said Ring and other members of "Team Abramoff" boasted freely in e-mails about using gifts
to "thank" or "invest" in officials for taxpayer-funded
favors such as a $16.3 million Justice Department grant to build a prison for a
client, a Mississippi Choctaw Indian tribe.
The government said Ring helped scheme to provide
Doolittle's wife a $96,000-a-year job that required little work, and worked
with Robert E. Coughlin II, a Justice official who pleaded guilty to criminal
conflict of interest for accepting gifts from Ring.
Juror Stephen Baker, a tax accountant, called the
government's lengthy pursuit of Ring, a relatively minor figure, "a waste
of time and money." But, Baker added, prosecutors flooded jurors with a
consistent stream of evidence, concluding, "The law is what it is."
Abramoff investigations are winding down. In June, the
Supreme Court forced Ring prosecutors to streamline their case, narrowing the
government's use of a 1988 "honest services fraud" statute only to
bribes and kickbacks for specific acts, not broader patterns of corruption
without an explicit quid-pro-quo.
One-time targets Doolittle and Tom Delay (R-Tex.), former
House majority leader, announced this summer that they would not be charged.
One more defendant, Fraser Verrusio,
a former aide to Alaska congressman Don Young (R), is
scheduled for trial early next year on charges that he allegedly sought and
received an all-expenses-paid trip to Game 1 of the 2003 World Series in New York.
Abramoff is set to complete a four-year sentence in
home confinement in Baltimore
next month. Wise argued that Ring was just doing his job as a lobbyist -
influencing public officials - using the same tools that were used "all
over town" and calling his prosecution "guilt by association."
Prosecutors said Ring and other members of "Team Abramoff" boasted freely in e-mails about using gifts
to "thank" or "invest" in officials for taxpayer-funded
favors such as a $16.3 million Justice Department grant to build a prison for a
client, a Mississippi Choctaw Indian tribe.
The government said Ring helped scheme to provide
Doolittle's wife a $96,000-a-year job that required little work, and worked
with Robert E. Coughlin II, a Justice official who pleaded guilty to criminal
conflict of interest for accepting gifts from Ring.
Juror Stephen Baker, a tax accountant, called the
government's lengthy pursuit of Ring, a relatively minor figure, "a waste
of time and money." But, Baker added, prosecutors flooded jurors with a
consistent stream of evidence, concluding, "The law is what it is."
Abramoff investigations are winding down. In June, the
Supreme Court forced Ring prosecutors to streamline their case, narrowing the
government's use of a 1988 "honest services fraud" statute only to
bribes and kickbacks for specific acts, not broader patterns of corruption
without an explicit quid-pro-quo.
One-time targets Doolittle and Tom Delay (R-Tex.), former
House majority leader, announced this summer that they would not be charged.
One more defendant, Fraser Verrusio,
a former aide to Alaska congressman Don Young (R), is
scheduled for trial early next year on charges that he allegedly sought and
received an all-expenses-paid trip to Game 1 of the 2003 World Series in New York.
Abramoff is set to complete a four-year sentence in
home confinement in Baltimore
next month. Continued at ….. http://www.washingtonpost.com/wp-dyn/content/article/2010/11/15/AR2010111506785.html
High-profile corruption cases
frustrate residents of Md. county near the nation's capital By BRIAN WITTE , Associated Press Last update: November 20, 2010 BOWIE, Md. - In
two years, Prince George's County residents have seen a former schools
superintendent sent to prison and corruption charges brought against a senior
state senator and the county executive and his wife.
The latest case is the stuff of movies or late-night TV
jokes: Authorities say County Executive Jack Johnson and his wife were arrested
Nov. 12 after he accepted $15,000 from a developer and federal investigators
tapping his phone reportedly heard him tell her to flush a $100,000 check down
the toilet and hide $79,600 in her bra. The string of scandals has left
residents angry, frustrated and wondering who will be next. Maryland
U.S.
Attorney Rod Rosenstein described their arrests as "the tip of the
iceberg." "A lot of the problems with the county have been the
'pay-for-play' thing — that a lot of reputable stores just don't want to deal
with it," said longtime county resident Linda Baker, 64, as she shopped at
a strip mall this week. "Both my husband and I are retired, and we just
don't want to be here anymore." But Senate President Thomas V. Mike
Miller, whose district includes much of the county, said the federal
investigation could lead to a new beginning, as long-festering problems come to
the surface. "I don't see it affecting the county adversely in the sense
that I think there's going to be more indictments and I think there will be a
sigh of relief that this has come to a head and that the proper authorities are
dealing with it and that the county can now move forward," said Miller, a
political lion who has been the state Senate president since 1987. Prince
George's, a suburb of Washington, D.C., is the nation's wealthiest
majority-black county, according to the census. The county, which has about
834,000 residents, is 66 percent black with a median annual household income of
$71,696.
http://www.washingtonpost.com/wp-dyn/content/article/2010/11/20/AR2010112003760.html
Rangel Corruption Update by Mark Noonan on Nov 14, 2010 Seems that Charlie raided his own PAC stash: Congressman Charles Rangel, whose ethics
trial starts tomorrow, appears to have improperly used political-action
committee money to pay for his defense. Rangel tapped his National Leadership PAC
for $293,000 to pay his main legal-defense team this year. He took another
$100,000 from the PAC in 2009 to pay lawyer Lanny
Davis. Two legal experts told The Post such spending is against House rules.
“It’s a breach of congressional ethics,” one campaign-finance lawyer said…But
it doesn’t matter – Rangel was re-elected, and the House Democrats will dispose
of his case before the GOP gets in. So, its all good,
you see? Corruption? That isn’t important! What is
important is that a tool of the special interests remains in office so that
taxpayer cash can continue to flow. Geesh, do we have
to draw you a picture here? http://blogsforvictory.com/2010/11/14/rangel-corruption-update-3/
U.S. Attorney's Office seeks
to block defendants in N.J. corruption sweep from traveling to Israel November 13, 2010, NJ.Com, They're accused of laundering
millions of dollars through international networks that reach back to Israel,
yet several of the defendants in New Jersey's largest corruption sting have
been allowed to travel back and forth to that country since their arrests. The U.S. Attorney's
Office has sought to block the trips, telling a judge the defendants are
extreme flight risks. But experts say post-arrest travel is often allowed, as
courts recognize that bail conditions shouldn't interfere with defendants' livelihood.Among the 44 defendants arrested last year were
five rabbis from New York and New Jersey — including the chief rabbi for the
Syrian Jewish community in the United States — and several other Orthodox
Jewish defendants. They were caught up in a two-track federal investigation
into international money laundering and political corruption. Read complete
article at http://www.nj.com/news/index.ssf/2010/11/us_attorneys_office_seeks_to_b.html
US lawmakers voice concern
about Afghan corruption November 10, 2010 Associated Press KABUL, Afghanistan –
U.S. lawmakers visiting Afghanistan say that if Afghan President Hamid Karzai doesn't curb corruption in
his government, current gains being made on the battlefield will be
jeopardized. Sen. John McCain, the senior Republican on the U.S.
Senate Armed Services Committee, says he and three of his colleagues will voice
their concerns in talks with Karzai Wednesday night. On
their visit to Kabul, McCain and Sens. Joe Lieberman, Lindsey Graham and Kirsten Gillibrand said good governance must
accompany military efforts to clear, hold and secure Taliban strongholds, especially in the south. The
lawmakers are going next to Pakistan to push the government to pressure the Haqqani insurgent network, which plots Afghanistan attacks from hideouts in Pakistan.
http://www.foxnews.com/world/2010/11/10/lawmakers-voice-concern-afghan-corruption/
Lawyer for ex-Toms River
superintendent Michael Ritacco calls corruption case
'preposterous' The Star-Ledger - NJ.com Ritacco, 62, is accused of taking up to $2 million in
kickbacks from a health insurance broker doing business with his school
district. Gifts included a $30,000 watch, appliances and jewelry, authorities
said. He surrendered to the FBI on Oct. 21, when the indictment was unsealed. http://www.nj.com/news/index.ssf/2010/11/lawyer_of_ex-toms_river_superi.html
Schiff calls on feds to open
local corruption investigations
By Frank C. Girardot, Staff Writer
11/11/2010 
Go behind the
yellow tape in the Crime Scene blog U.S. Rep. Adam Schiff, D-Pasadena, Thursday
called on federal prosecutors to examine political corruption in Los Angeles
County. Schiff, himself a former federal
prosecutor, said the U.S.
Attorney's Office has a variety of tools to use against local governments
engaging in fraud. "A much more
rigorous focus is obviously merited by events," Schiff said, pointing to
statutes that target ripoffs of taxpayer dollars.
"Some of these cases are difficult to prosecute (at the local level) and
where the U.S.
Attorney does very well is chasing it down." Schiff's remarks come as the Los Angeles
District Attorney's Office has announced probes and arrests in Bell and Irwindale
following a string of corruption allegations
Other cities whose officials have been charged with
corruption - or convicted - include Temple City,
La Puente, Pico Rivera,
Monterey Park and Vernon.
Justice Department spokesman Thom Mrozek
said that in June U.S.
Attorney Andre Birotte re-formed a unit in the United States
Attorney's Office dedicated solely to public corruption and civil rights matters.
Schiff was once a prosecutor in that
division. "The Public Corruption
and Civil Rights Section works with all the federal and local law enforcement
agencies across our district that handle matters of public corruption," Mrozek said in an emailed statement. "The section also
works with local prosecutors to review allegations, coordinate investigations
and prosecute matters of public corruption." Published reports indicate
federal authorities have launched a probe into the Bell salary scandal. There
City Manager Robert Rizzo was being
paid an annual salary of $787,637; Police Chief Randy Adams, $457,000; and Assistant City Manager Angela Spaccia,
$376,000. That made them the highest-paid city officials in the nation.
Additionally, Mayor Oscar Hernandez and three of the city's four councipl members - Teresa Jacobo,
Luis Artiga and George Mirabal
- were being paid $97,000 for their part-time jobs. All except Adams were
arrested and charged by Los Angeles
County District Attorney Steve Cooley with dozens of corruption charges. Mrozek declined to comment on specific cases. "We
cannot comment on any specific matter that we may or may not be
investigating," he said.
DA spokeswoman Sandi Gibbons was not available for comment
Thursday. She was out of the officep for Veterans
Day. Schiff said he would like to see federal prosecutors look beyond Bell. "I think they
have a compelling interest," Schiff said. "The federal government
clearly has jurisdiction in public corruption investigations. How federal
investigators and prosecutors arrive at a decision to open a probe varies, Mrozek said. "Sometimes we open investigations based
on citizen complaints, sometimes we read things in the newspapers, sometimes we
get a tip from an interested citizen," Mrozek
said. "Sometimes a lawsuit is filed that raises allegations that deserve a
criminal investigation, sometimes government investigators or regulators
uncover matters." Mrozek said he knows of no
current criminal cases in federal court involving local governments. "I cannot
think of any pending federal court case involving municipal officials in Los Angeles County," he said. frank.girardot@sgvn.com
626-578-6300, ext. 4478
Shell Bribes Among ‘Culture of Corruption,’ Panalpina
Admits
November 05, 2010, By David Voreacos
and Laurel Brubaker Calkins
Nov. 5 (Bloomberg) -- Bribes paid on behalf of Royal Dutch
Shell Plc’s Nigerian unit came from “a culture of corruption” that Panalpina World Transport Holding Ltd., a Swiss freight
forwarder, admitted in a U.S.
court yesterday. Panalpina, Shell and five oil
services companies agreed to pay $236.5 million to settle probes by the U.S.
Justice Department and Securities and Exchange Commission. Panalpina,
which admitted to bribing government officials in seven nations, will pay $81.5
million, and Shell will pay $48.1 million.Prosecutors
agreed to defer prosecution of five companies, including Panalpina
and Shell. Panalpina said it paid at least $49
million in bribes to government officials in Angola,
Azerbaijan, Brazil, Kazakhstan,
Nigeria, Russia and Turkmenistan. The bribes from 2002
to 2007 let its clients avoid the customs process, pass off phony documents or
smuggle contraband including medicines and explosives, Panalpina
said.“Prior to 2007 a
culture of corruption within Panalpina emanated from
senior level management in Switzerland
who tolerated bribery as business as usual,” the company said in a 34-page
statement filed in federal court in Houston.
“Dozens of employees throughout the Panalpina
organization were involved in various schemes to pay bribes to foreign
officials.”
The company said Shell’s Nigerian employees “specifically
requested Panalpina Nigeria to provide false invoices
with line items to mask the nature of the bribes.” Shell wanted to “hide the
nature of the payments to avoid suspicion if anyone audited the invoices,” Panalpina said. Panalpina, based
in Basel, Switzerland, dropped 4.1 percent to 123.2 francs ($128.63) yesterday,
ending an eight-day rise.
Shell Bribes Shell separately admitted paying $2 million to Nigerian
subcontractors on its deepwater Bonga Project. Shell
knew some money would go as bribes to Nigerian officials to circumvent the
customs process and give the company “an improper advantage,” according to its
admission in federal court in Houston.
Prosecutors charged Shell’s Nigerian subsidiary with
conspiring to violate the anti-bribery and books and records provisions of the
FCPA. The Justice Department will defer prosecution for three years as long as
the company makes required reforms.
The SEC said Shell, based in The Hague, reaped about $14 million in profit
as a result of the payments related to the Bonga
Project. Panalpina helped oil and gas industry customers move rigs, ships, workboats
and other equipment in Nigeria.
Its workers there had 160 different terms for bribes, like “evacuations” and
“export formalities,” while its Kazakh workers called them “sunshine” and “black cash,” Panalpina said. Throughout
Government The bribes in Nigeria
were spread throughout the government for specific transactions, while some
were weekly or monthly allowances to ensure “officials would provide
preferential treatment to Panalpina and its
customers,” the company said. Knowledge of the bribes reached the directors,
where a former chairman “actively resisted” an outside auditor’s proposal in
2001 to adopt a code of ethics with an anti-bribery provision, according to the
statement. The criminal probe of Panalpina, which had
15,000 workers in 80 countries, began in 2006, and the company’s cooperation
after 2007 was “exemplary,” according to a Justice Department filing yesterday.
“Panalpina acknowledged and accepted responsibility
for misconduct, investigated and identified the nature and extent of the
misconduct,” and undertook a global remediation program, said a court filing by
Panalpina and prosecutors.
New Management The company replaced most of its
top leaders, as well as U.S.
managers implicated in improper conduct, ended its Nigerian business in 2007,
and changed its operations in high-risk countries, according to the filing. “The
settlement of these claims marks the closing of an extremely burdensome chapter
in Panalpina’s history and the end of a very
demanding three-year effort to address and eliminate serious concerns,” Chief
Executive Officer Monika Ribar said in a statement
yesterday. Prosecutors filed a two-count criminal charge accusing Panalpina World Transport of conspiracy to violate the
Foreign Corrupt Practices Act and a violation of the law’s anti-bribery
provisions. Panalpina U.S. will plead guilty to
conspiracy to falsify books and records and to aiding and abetting those
violations of the FCPA. The company also settled a lawsuit with the SEC.
Bribed Shipments In Nigeria, the company established Pancourier
Inc., which used distinctive packaging to alert Nigerian customs officials to
bribed shipments. As a result of bribes, the unit’s shipments sailed through
customs without required paperwork or a pre- inspection process that “could
take weeks to complete,” according to the SEC. Bribes were paid to sidestep
Angolan immigration laws, the SEC said. Angolan officials were bribed to fake
employees’ exit and entrance documents, overlook visa inspections, and avoid
deporting employees who overstayed visas, the agency said. One scheme involved
bribing Angolan military officers so customers could “use military cargo
aircraft to transport their commercial goods,” according to the SEC. The other
companies that settled with the U.S. were Transocean
Ltd., Tidewater Marine International Inc., Pride International Inc., GlobalSantaFe Corp. and Noble Corp. GlobalSantaFe
merged with Transocean in 2007. Transocean
is the world’s largest offshore drilling contractor. Tidewater is the world’s
largest offshore energy support-services company. Pride International will pay
$56.1 million; Transocean will pay $20.6 million;
Tidewater will pay $15.7 million; Noble will pay $8.1 million; and GlobalSantaFe will pay $5.9 million, authorities said. The
cases are SEC v. Noble Corp., 10-cv-4336; SEC v. Panalpina
Inc., 10-cv-4334; SEC v. Pride International, 10-cv-4335, U.S. District Court,
Southern District of Texas (Houston); and SEC v. Transocean
Inc., 10-cv-1891, U.S. District Court for the District of Columbia
(Washington). --With assistance from William McQuillen,
Joshua Gallu and Justin Blum in Washington, Andrew M.
Harris in Chicago and Eduard Gismatullin
in London. Editors: Fred Strasser, Michael Hytha. To contact the
reporters on this story: David Voreacos in Newark, New Jersey, at
dvoreacos@bloomberg.net; Laurel Brubaker Calkins in Houston at laurel@calkins.us.com.
To contact the editor responsible for this
story: David E. Rovella at drovella@bloomberg.net. http://www.businessweek.com/news/2010-11-05/shell-bribes-among-culture-of-corruption-panalpina-admits.html
Ex-mayor pleads guilty to NJ
corruption charges November 18, 2010 By The
Associated Press (AP) — Former
New Jersey assemblyman and Perth Amboy mayor Joseph Vas has pleaded guilty to
official misconduct, theft and money laundering charges. Vas, 55, entered his
plea to the state charges Thursday in Superior Court in Freehold. He was
convicted last month by a federal jury of mail fraud, election finance
violations and lying to authorities. http://www.newsday.com/news/region-state/ex-mayor-pleads-guilty-to-nj-corruption-charges-1.2476443
Is Charles Rangel corrupt? Christian
Science Monitor By Peter Grier, Staff writer / November 18,
2010 Yes, Rep. Charles Rangel has been found guilty of ethics violations
by a House ethics panel. But does that mean he was corrupt? It’s a question
that appears to matter quite a bit to Rep. Rangel (D) of New York himself. And well it might – if the
public at large begins to think of him as corrupt and sleazy, as opposed to
sloppy and careless, his legacy will be even more diminished after decades of
public service. And it perhaps he would
find it harder to look at himself in the mirror in the
morning. That is why at his punishment hearing on Tuesday Rangel admitted that
he had done wrong in such matters as failing to pay taxes on rental income
earned from his Dominican Republic beach villa, and soliciting donations for
the Charles Rangel Center for Public Service – but that his actions had been
inadvertent. “I had no intent to evade or avoid the law,” Rangel told a hearing
of the full House Ethics Committee. He
hadn’t known the details of his own tax returns, he said. Officials from the City College
of New York, site of the Rangel Center,
had come to him and suggested that he would be the best person to raise needed
cash for the institution, according to Rangel. In brief remarks to the
committee he reminded them that the panel’s own chief counsel, Blake Chisam, under questioning early in the week, had said he
saw no evidence of corruption per se in Rangel’s actions. And he also brought
along a character witness – Rep. John Lewis (D) of Georgia, himself a respected
veteran of the civil rights movement. Rep. Lewis reminded committee members
that Rangel is a decorated Korean War veteran, and that he had walked with
Lewis and Dr. Martin Luther King Jr. from Selma to Montgomery, Alabama, to try
and help win the right to vote for African-Americans. “My colleagues, I must
tell you that Charlie Rangel is a good and decent man. I know this man. I think
I know his heart,” said Lewis. However, ethics panel chief counsel Chisam still recommended that the full committee, and then
the full House of Representatives, vote to censure Rangel. That is the most serious Punishment
short of expulsion the House can mete out. And some panel members questioned
Rangel’s assertion that he is not corrupt. They noted that he had failed to pay
taxes on his beach villa for 17 years, and that he indeed reaped personal gain
from that, in the form of a lower tax bill. After all, Rep. James Traficant,
the Ohio
Democrat expelled from the House in 2002
after felony convictions on bribery and other charges, only failed to pay taxes
for two years. “Failure to pay taxes for 17 years.
What is that?” said Rep. Michael McCaul (R) of Texas. Rangel targeted donors for the Rangel Center
who had legislative business before the House Ways and Means Committee, which
he chaired at the time, according to Mr. McCaul.
“Is that not corruption?” said McCaul.
“I guess it is how you define corruption here. I think reasonable people may
disagree on that interpretation.” http://www.csmonitor.com/USA/Politics/The-Vote/2010/1118/Is-Charles-Rangel-corrupt
2-Corrupt ex-head of China
nuclear firm gets life Fri Nov 19, 2010 By
Benjamin Kang Lim BEIJING Nov 19
(Reuters) - The disgraced head of China's main nuclear energy company was
jailed for life on Friday for accepting almost $1 million in bribes, part of a
crackdown on corruption that has sent shudders through the power sector. A closed-door meeting of the Communist Party
endorsed a 2009 decision to strip Kang Rixin, 57,
former president of China National Nuclear Corp, of his party membership for
"serious violations of the law and discipline breaches", Xinhua news agency said. "Kang was convicted of having
abused his power, enabling profits for others, and taking a large amount of
bribes" totalling $970,000 between 2004 and
2009, Xinhua said, quoting the Beijing Number One
Intermediate People's Court. Kang could
have faced the death penalty for his crime. "The sentence was lighter because Kang
cooperated with investigators and returned all his ill-gotten gains", it
said, adding that Kang was also deprived of political rights for life and had
his personal assets seized. The court,
contacted by telephone, declined to comment. Kang's family and lawyer could not
be reached. Before his downfall, Kang
was a member of the Communist Party's elite 204-member Central Committee and
held a rank equivalent to that of a cabinet minister. Continued...
http://af.reuters.com/article/energyOilNews/idAFTOE6AI03C20101119
Inquiry Finds Corruption at Agency for Probation By KATIE ZEZIMA
November 18, 2010 BOSTON — The hiring
and promotion practices of the Massachusetts Probation Department are rife with
“systemic abuse and corruption,” according to an independent report released Thursday. The report, commissioned by the state’s highest
court, details endemic patronage within the organization, including a “sham
selection process” in which favored job applicants were automatically pushed to
the next round of hiring, often with more qualified candidates passed over. “The hiring and promotion practices within the
Probation Department represent a pervasive fraud against the Commonwealth,” the
report said. The commissioner, John J. O’Brien, “awarded valuable positions
with substantial salaries and benefits to individuals sponsored primarily by
his political allies.” The chief
administrative officer on the court, which oversees the Probation Department,
will move to remove Mr. O’Brien from his job, the report said. Two of the
department’s deputy commissioners and its legal counsel were placed on leave
Thursday. The court created a task force, led by a former attorney general, Scott
Harshbarger, to review hiring in the state’s judiciary. A lawyer for Mr. O’Brien, who was appointed to
the job in 1998, could not be reached for comment. The 307-page report was
conducted by Paul F. Ware Jr. and colleagues at Goodwin Procter. Justices on
the court received the report last week and made it public Thursday. All
findings will be forwarded to the state attorney general and United States attorney in Boston. According to the report, Mr. O’Brien
orchestrated the fraud, which trickled down to numerous subordinates in charge
of hiring and administrative work who would, among other things, inflate the
scores of interview candidates. The fraudulent hiring has been happening for
more than a decade, the report said, and those who did not go along with it
were punished. “O’Brien retaliated against individuals who failed to comply
with a fraudulent process,” the report said. Mr. O’Brien did not cooperate with
the report, it said. The report details preferential treatment for candidates
favored by legislative leaders and other powerful figures, and a former deputy
commissioner testified that he understood that the “hiring and promotion
process was manipulated by the commissioner in exchange for favorable
legislative action on the department’s funding,” it said. The report was
ordered in May after The Boston Globe published an investigation into
the department’s hiring practices. http://www.nytimes.com/2010/11/19/us/19probation.html?_r=1
SEC Seeks To Ban Foreign
Officials From Whistleblower Program Wall St
Journal Nov 4, 2010 The
SEC singled out foreign officials as ineligible for the program, citing
“negative repercussions” for U.S. foreign relations — including
encouraging corruption. That’s likely to put a severe curb on eligibility in
countries where state ownership lies behind many companies. http://blogs.wsj.com/corruption-currents/2010/11/04/sec-seeks-to-ban-foreign-officials-from-whistleblower-program/
Former aide to ex-mayor
guilty of corruption Nov. 4, 2010, Associated Press DETROIT (AP) — A man who
served as executive assistant to then-Mayor Kwame
Kilpatrick pleaded guilty Thursday to paying $15,000 in bribes to an official
for support of $30 million in city pension investments. Marc Cunningham pleaded
guilty to conspiracy just a few hours after the charge was filed. He already
had negotiated a plea deal with the U.S. attorney's office and is the
third high-ranking former Kilpatrick aide to plead guilty to corruption. Before
going to work for Kilpatrick in 2006, Cunningham was a consultant for an
investment firm and was promised a $300,000 commission when two Detroit retirement funds
agreed to place $30 million with his employer. Cunningham said he subsequently
paid $15,000 in 2006 and 2007 as a "reward" to a city official who
supported the pension deal.
He said the official directed him to pay the money in cash
to a relative. The names of the official and the relative were not revealed in
court or in court documents. Prosecutors declined to comment. "The
relative did no work to earn the payments," Cunningham, 41, told a judge. Cunningham
faces as much as three years in prison, although his cooperation with the FBI
could net him a shorter sentence, Assistant U.S. Attorney R. Michael Bullotta said. Cunningham and defense attorney Vincent
Toussaint declined to comment outside court. Kilpatrick resigned as mayor in
2008 after pleading guilty to obstruction of justice in state court. He's now
in prison for violating probation in that case. He's also awaiting trial on tax
and fraud charges related to how he spent money from a nonprofit fund. Federal authorities have been investigating
corruption during Kilpatrick's years at city hall. Two brothers who were
high-ranking aides, Kandia and DeDan
Milton, were sent to prison this year for taking kickbacks in city land deals. The
Cunningham case is not the first time that prosecutors have referred to a city
official's "relative." Jim Rosendall, a
representative of a sludge-recycling company, said he paid thousands to a
relative to get a contract. He pleaded guilty in 2009. A former convention hall
contractor, Karl Kado, has said he paid money to
Kilpatrick's father, Bernard Kilpatrick. The elder Kilpatrick has repeatedly
denied any wrongdoing when his son was mayor http://www.mlive.com/newsflash/index.ssf/story/feds-file-charge-against-former-aide-to-ex-mayor/fa015f1155f4407eb9159c0b60f4dcf5
Panalpina Pays $81.9M To Settle US Justice Corruption Probe ZURICH (Dow Jones)—Nov 4, 2010 Panalpina Welttransport Holding AG (PWTN.EB) said Thursday it will
pay $81.9 million as part of a deal with U.S. justice authorities to set aside
a probe into corruption at the Swiss-based freight forwarder. Panalpina entered into a Deferred Prosecution Agreement, or
DPA, with the Department of Justice. Under the DPA, the DOJ has agreed to defer
any criminal prosecution of Panalpinafor three years.
Panalpina has accepted certain obligations under the
DPA, such as continuing to improve its compliance policies and procedures and
providing regular reports to the DOJ on the company's progress. http://online.wsj.com/article/BT-CO-20101104-718040.html
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