Court Rejects N.Y. Times on Leak Probe
“The Supreme Court ruled against The New York Times on Monday, refusing to block the government from reviewing telephone records of two Times reporters in a leak investigation concerning a terrorism-funding probe.
“The one-sentence order came in a First Amendment battle that involves stories written in 2001 by Times reporters Judith Miller and Philip Shenon. The stories revealed the government’s plans to freeze the assets of two Islamic charities, the Holy Land Foundation and the Global Relief Foundation.
“U.S. Attorney Patrick Fitzgerald is trying to track down the reporters’ confidential sources for the stories. Fitzgerald’s spokesman, Randall Samborn, declined to comment on the Supreme Court’s order.” (AP, WSJ)
Contractors Face More Scrutiny, Pinched Purses
“After riding high for five years, government contractors are bracing themselves for increased oversight, tighter budgets and stepped-up regulations as Democrats take over on Capitol Hill and vow to keep a closer eye on how companies spend taxpayer dollars.
“Every company that does business with the government could feel the impact, but contractors that benefited most from work in Iraq and Afghanistan, from homeland security initiatives or from Hurricane Katrina are especially likely to be under the microscope. Big-ticket weapons programs are also expected to garner special attention, and it may become more difficult to get a no-bid contract, according to industry observers.” (WaPo)
FTC Readies Stricter Rules For ‘Robo Calls’
“A Federal Trade Commission proposal banning most recorded sales calls has many telemarketers urging the government to stick with more-lenient Federal Communication Commission regulations.
“The FTC proposal, which goes into effect Jan. 2, would prohibit telemarketers from making “robo calls” to any customer — unless a customer gives written permission to do so. On the other hand, FCC rules allow recorded calls to any customer with whom the company has an established business relationship.” (WSJ)
Coin Dealer Must Repay $16.7 Million
“A former GOP fundraiser convicted of embezzling from a state investment in rare coins must repay the state $13.7 million, a judge ruled Monday.
“Tom Noe was sentenced last week to 18 years in prison for his role in a scandal that contributed to the Republican Party’s loss of the governor’s office.
“Lucas County Common Pleas Judge Thomas Osowik said Noe must repay the $13.7 million the state says he stole along with the nearly $3 million cost of the investigation.
“Prosecutors said they weren’t sure how much money would be recovered. The state will get some money from the sale of coins and collectibles seized from Noe’s business, assistant county prosecutor John Weglian said.” (AP)
CREW Asks DoJ to Investigate Hastert’s Land Deal Helped Along by Earmarking
“As reported in the Chicago Tribune, in August 2002, Speaker Hastert purchased 179 acres of land, inaccessible by road, in Kendall County, Illinois for $925,000, or $5,200 per acre. Then, in February 2004, Speaker Hastert formed a real estate trust with two other land buyers and purchased 69 acres of land adjacent to the original parcel at a cost of $1,033,000, or $15,000 per acre. The trustâs 69 acres was then joined with 69 acres of Speaker Hastertâs land. . . .
“While Rep. Hastertâs partners each made a 144% profit on their investment, Speaker Hastertâs profit was 500% of his original investment.” (CREW)
Justice Department Eyes Spy Program
“The Justice Department has begun an internal investigation into its handling of information gathered in the government’s domestic spying program. However, Democrats criticized the review as too narrow to determine whether the program violated federal law.
“The inquiry by Glenn A. Fine, the department’s inspector general, will focus on the role of Justice prosecutors and agents in carrying out the warrantless surveillance program run by the National Security Agency.
“Fine’s investigation is not expected to address whether the controversial program is an unconstitutional expansion of presidential power, as its critics and a federal judge in Detroit have charged.” (AP, NYTimes)
Subject of FBI Probe Tells of Weldon Ties
“When Center City lawyer and Russian trade expert John J. Gallagher lost a $2.5 million investment in a cognac distillery in a former Soviet republic, a family friend stepped up to help – in a big way.
“The friend, U.S. Rep. Curt Weldon, first called the president of Moldova. When that didn’t work, Weldon went to the House and proposed cutting all U.S. aid to Moldova until Gallagher got his money back.
“That deal, now part of an FBI corruption investigation, wasn’t the only time that Weldon used his office to help Gallagher, a lawyer who specializes in putting together business deals – from Philadelphia City Hall to the U.S. Capitol to the Kremlin. . . .
“In the first interview given by one of the subjects of the FBI probe, Gallagher said his relationship with Weldon went back 30 years. Their careers, he said, dovetailed in Russia.” (Philly Inquirer)
New House Democrat with an Insider’s View on Iraq
“The sudden rise of Chris Carney, a pre-Iraq war Pentagon intelligence analyst turned newly elected Democratic congressman, has a remarkable quality about it.
“In early 2002, Mr. Carney, a Naval Reserve officer, was assigned to work in a tiny intelligence unit created by Douglas J. Feith, then the under secretary of defense for policy, to search for links between terrorist groups and their possible state-sponsors, most notably Iraq. After the 2003 invasion, the Feith unit, the Policy Counterterrorism Evaluation Group, was caught up in the debate over the Bush administrationâs handling of prewar intelligence, and the office was investigated by a Senate committee and an independent presidential commission….
“In the summer and fall of 2002, Mr. Carney was at the center of the storm, briefing George J. Tenet, then the director of central intelligence, and Stephen J. Hadley, then the deputy national security adviser, on the Feith unitâs assessment of any links between Iraq and Al Qaeda. At the time, the unit was creating controversy within the government for arguing that there was significant evidence of ties between Iraq and Al Qaeda.
“Ultimately, the Bush administration emphasized the threat the United States supposedly faced from Iraqâs unconventional weapons as the primary justification for invading, while the Iraq-Qaeda connection gradually faded as a major talking point. In 2004, the independent Sept. 11 commission said it had seen ‘no evidence’ that the contacts ‘ever developed into a collaborative operational relationship,’ challenging the administrationâs prewar assertions.
“Today, Mr. Carney says he still believes there were links between Iraq and Al Qaeda, although he is careful not to overstate them.” (NY Times)
‘Honest’ Statute Prompts Bar Fight
“When former Palm Beach County Commissioner Tony Masilotti goes to court this week to face allegations of government corruption, he joins a long and seemingly ever-growing list of notables who have pleaded guilty to a charge that some lawyers claim is blatantly unconstitutional.
“Like lobbyist Jack Abramoff and U.S. Reps. Randy ‘Duke’ Cunningham and Bob Ney, the once high-rolling commissioner is charged with honest services fraud….
“A mere 28 words long, the statute has been giving courts and defense attorneys fits since it was enacted 18 years ago, said former federal prosecutor Richard Strassberg.
“Steeped in the mom-and-apple-pie idea that people have ‘the intangible right of honest services,’ it sounds good, said Strassberg, now in private practice in New York City. The problem is that no one knows what it means, he said.” (Palm Beach Post)
GOP Student Loan Lobbyists Likely Losers with Incoming Congress
“The college student loan industry has been so well-connected in the Republican-controlled Congress that a powerful committee chairman once assured its bankers and other financiers that their interests were in ‘two trusted hands.’…
“The new pressure on the student loan industry is just one example of how the 2006 election produced winners and losers not just among politicians but among congressional lobbyists.
“Most at risk in the transition are industries that have given heavily to and benefited mightily from Republican control of Congress, among them energy interests and pharmaceutical companies, as well as the companies that make student loans.” (LA Times)
Board Won’t Buy Back Calvert Land
“Jurupa Community Services District directors turned aside a proposal to ask Rep. Ken Calvert and his investment partners to sell back 4 acres of Mira Loma property some in the community say should be used for ball fields.
“The board voted 3-2 against the proposal offered by director R.M. ‘Cook’ Barela at Monday night’s meeting. Director Kathryn Bogart voted with Barela to make the request.
“At the suggestion of director Kenneth McLaughlin, board President Paul Hamrick turned the matter over to the district’s park committee for further consideration. . . .
“The district sold the land to Calvert, R-Corona, and his partners for $1.2 million in May without first offering the land to other public agencies — a violation of state law.” (Riverside (Calif.) Press-Enterprise)
South Florida Corruption Capital of the U.S.
“South Florida is the public corruption capital of the country, according to the U.S. Department of Justice.
“Between 1996 and 2005, a record-setting 576 people were convicted of federal corruption charges in the district that extends from Key West to Sebastian, according to the agency’s most recent annual report.
“That’s far more than the 402 convicted during the same 10 years in Washington, D.C. or the 453 convicted in Chicago, where political machines have been rolling for decades.
“New York City, another hotbed of government scandal, didn’t even come close. A mere 374 people were convicted of public corruption charges during the last decade, the report shows.” (Palm Beach Post)
After Probe, Donors to the Blagojevich Campaign Will Not Get Work From the Teachers’ Retirement System
“Pink slips have been handed to two East Coast law firms that made hefty political donations to Gov. Blagojevich and were placed on a preferred list for Illinois pension work.
“This month’s vote by the state Teachers’ Retirement System to overhaul the way it hires lawyers for class-action cases followed a Chicago Sun-Times report in September.
“That story detailed how federal authorities have been probing Blagojevich’s visits with the two firms during trips to New York in 2003. It also said Blagojevich’s interaction with a third law firm once employed by TRS also is under federal scrutiny.
“The three firms and their principals have given more than $120,000 to Blagojevich’s campaign. All ended up on TRS’ preferred list of potential class-action securities litigators — a list TRS board members dismantled Nov. 3.” (Chicago Sun-Times)
