Spending on private contractors has quadrupled under Bush | Adam Doster | Published: Tuesday October 23, 2007
...
According to the New York Times, “the amount of money the State Department pays to private security and has soared to nearly $4 billion a year from $1 billion.” At the same time, few new officials have been hired to oversee the contracts, and “auditors and outside exerts say the results have been vast cost overruns, poor contract performance and, in some cases, violence that has so far gone unpunished.”
Compared to the 70 Army officers managing just $900 million in logistics contracts in Kuwait “there are only 17 contract compliance officers at the State Department’s management bureau overseeing spending of the billions of dollars on these programs.” ...
Wednesday, October 31, 2007
Wal-Mart's REITs would simply take a hefty tax deduction for paying dividends to another subsidiary,... then not report earnings
Court docs: Wal-Mart plotted strategy in 'Tax Shelter Room' | Jason Rhyne | Published: Tuesday October 23, 2007
...
When the Wal-Mart corporation sent out a 2001 plea to heavy-hitting accounting houses requesting some bright ideas about how the retail giant might be able to pay less in state taxes, Ernst & Young LLP was eager to pitch in. But after being challenged by North Carolina's attorney general, the big-time firm's secret tax-slashing strategies have come to light in an array of revealing materials filed in court.
...
Among the revelations in the documents, according to the Journal, is evidence that Wal-Mart aggressively capitalized on its move a decade ago to transfer ownership of the company's stores to real estate investment trusts (REITs), subsidiaries that are exempt from federal tax provided that 90% of income is paid out in shareholder dividends. In California, Wal-Mart followed the firm's advice to claim tax deductions on shareholder dividends that were technically never paid.
Exploiting a loophole in California law that doesn't require dividend recipients to list that money as taxable income, Wal-Mart's REITs would simply take a hefty tax deduction for paying dividends to another subsidiary, which in turn would opt not to report the earnings. The practice resulted in a dramatic savings on tax bills in the state.
California's Franchise Tax Board, the state's income-tax agency, has since put the strategy on its list of "Abusive Tax Shelters," the paper reports. The current North Carolina case also involves real estate trusts. ...
...
When the Wal-Mart corporation sent out a 2001 plea to heavy-hitting accounting houses requesting some bright ideas about how the retail giant might be able to pay less in state taxes, Ernst & Young LLP was eager to pitch in. But after being challenged by North Carolina's attorney general, the big-time firm's secret tax-slashing strategies have come to light in an array of revealing materials filed in court.
...
Among the revelations in the documents, according to the Journal, is evidence that Wal-Mart aggressively capitalized on its move a decade ago to transfer ownership of the company's stores to real estate investment trusts (REITs), subsidiaries that are exempt from federal tax provided that 90% of income is paid out in shareholder dividends. In California, Wal-Mart followed the firm's advice to claim tax deductions on shareholder dividends that were technically never paid.
Exploiting a loophole in California law that doesn't require dividend recipients to list that money as taxable income, Wal-Mart's REITs would simply take a hefty tax deduction for paying dividends to another subsidiary, which in turn would opt not to report the earnings. The practice resulted in a dramatic savings on tax bills in the state.
California's Franchise Tax Board, the state's income-tax agency, has since put the strategy on its list of "Abusive Tax Shelters," the paper reports. The current North Carolina case also involves real estate trusts. ...
Tuesday, October 30, 2007
consumer product safety Commissioner: opposes increased penalties, protecting whistleblowers, public reports, prosecuting executives ...
October 30, 2007 | Bigger Budget? No, Responds Safety Agency | By STEPHEN LABATON
WASHINGTON, Oct. 29 — The nation’s top official for consumer product safety has asked Congress in recent days to reject legislation intended to strengthen the agency, which polices thousands of consumer goods, from toys to tools.
On the eve of an important Senate committee meeting to consider the legislation, Nancy A. Nord, the acting chairwoman of the Consumer Product Safety Commission, has asked lawmakers in two letters not to approve the bulk of legislation that would increase the agency’s authority, double its budget and sharply increase its dwindling staff.
Ms. Nord opposes provisions that would increase the maximum penalties for safety violations and make it easier for the government to make public reports of faulty products, protect industry whistle-blowers and prosecute executives of companies that willfully violate laws.
The measure is an effort to buttress an agency that has been under siege because of a raft of tainted and dangerous products manufactured both domestically and abroad. In the last two months alone, more than 13 million toys have been recalled after tests indicated lead levels that sometimes reached almost 200 times the safety limit.
Ms. Nord’s opposition to important elements of the legislation is consistent with the broadly deregulatory approach of the Bush administration over the last seven years. In a variety of areas, from antitrust to trucking and worker safety, officials appointed by President Bush have sought to reduce the role of regulation and government in the marketplace.
...
Some of Ms. Nord’s complaints were similar to the ones that business groups and manufacturers have raised, including that the legislation would be unnecessarily burdensome. But in other areas, like whistle-blower protection, her complaints went beyond those of industry.
While companies generally have not objected to giving protection to whistle-blowers in the industries regulated by the commission, for example, she said it would “dramatically drain the limited resources of the commission, to the direct detriment of public safety.” ...
...
The agency has suffered from a steady decline in its budget and staffing in recent years. Its staff numbers about 420, about half its size in the 1980s. It has only one full-time employee to test toys. And 15 inspectors are assigned to police all imports of consumer products under the agency’s supervision, a marketplace that last year was valued at $614 billion.
WASHINGTON, Oct. 29 — The nation’s top official for consumer product safety has asked Congress in recent days to reject legislation intended to strengthen the agency, which polices thousands of consumer goods, from toys to tools.
On the eve of an important Senate committee meeting to consider the legislation, Nancy A. Nord, the acting chairwoman of the Consumer Product Safety Commission, has asked lawmakers in two letters not to approve the bulk of legislation that would increase the agency’s authority, double its budget and sharply increase its dwindling staff.
Ms. Nord opposes provisions that would increase the maximum penalties for safety violations and make it easier for the government to make public reports of faulty products, protect industry whistle-blowers and prosecute executives of companies that willfully violate laws.
The measure is an effort to buttress an agency that has been under siege because of a raft of tainted and dangerous products manufactured both domestically and abroad. In the last two months alone, more than 13 million toys have been recalled after tests indicated lead levels that sometimes reached almost 200 times the safety limit.
Ms. Nord’s opposition to important elements of the legislation is consistent with the broadly deregulatory approach of the Bush administration over the last seven years. In a variety of areas, from antitrust to trucking and worker safety, officials appointed by President Bush have sought to reduce the role of regulation and government in the marketplace.
...
Some of Ms. Nord’s complaints were similar to the ones that business groups and manufacturers have raised, including that the legislation would be unnecessarily burdensome. But in other areas, like whistle-blower protection, her complaints went beyond those of industry.
While companies generally have not objected to giving protection to whistle-blowers in the industries regulated by the commission, for example, she said it would “dramatically drain the limited resources of the commission, to the direct detriment of public safety.” ...
...
The agency has suffered from a steady decline in its budget and staffing in recent years. Its staff numbers about 420, about half its size in the 1980s. It has only one full-time employee to test toys. And 15 inspectors are assigned to police all imports of consumer products under the agency’s supervision, a marketplace that last year was valued at $614 billion.
Monday, October 29, 2007
CEOs act like their corporations exist just to build their own massive fortunes,” says Edwards,
October 26, 2007, 11:25 am | Edwards Gets Tough on Business | Susan Davis reports on the presidential race.
John Edwards s targeting Corporate America and what he argues are its corrupt and greedy practices. In a speech today in Des Moines, Iowa, he is outlining his plan to renew the “social contract” between business and government if elected president. “In corporate America, where a broader sense of social responsibility once held sway, a culture of greed has taken over. Instead of treating their employees fairly, being accountable to their shareholders and contributing to America’s prosperity, CEOs act like their corporations exist just to build their own massive fortunes,” says Edwards, according to speech excerpts provided to Washington Wire by his campaign.
Edwards is proposing, among other things, universal retirement accounts that employers would be required to provide if they don’t offer pension programs. Workers’ contributions would be matched dollar-for-dollar on the first $500 through a proposed “Get Ahead” tax credit. The plan would also allow workers to put their savings into government-sponsored annuities that would be run through the existing federal retirement savings plan or the Social Security Administration.
Edwards is also proposing stronger protections for workers seeking to unionize and increased shareholder rights. And he’s proposing to cap tax-deferred compensation funds for top executives at $1 million annually, and pushing for more disclosure of corporate governance structures, the pay and demographics of top corporate officers, as well as political contributions, government contracts, and taxes paid.
To protect consumers, Edwards wants a new regulator, the Family Savings and Credit Commission, which would oversee credit card and financial services plans marketed to the public. He also proposes tougher Food and Drug Administration inspection standards and safety regulations on products, like kids’ toys, made abroad. ...
John Edwards s targeting Corporate America and what he argues are its corrupt and greedy practices. In a speech today in Des Moines, Iowa, he is outlining his plan to renew the “social contract” between business and government if elected president. “In corporate America, where a broader sense of social responsibility once held sway, a culture of greed has taken over. Instead of treating their employees fairly, being accountable to their shareholders and contributing to America’s prosperity, CEOs act like their corporations exist just to build their own massive fortunes,” says Edwards, according to speech excerpts provided to Washington Wire by his campaign.
Edwards is proposing, among other things, universal retirement accounts that employers would be required to provide if they don’t offer pension programs. Workers’ contributions would be matched dollar-for-dollar on the first $500 through a proposed “Get Ahead” tax credit. The plan would also allow workers to put their savings into government-sponsored annuities that would be run through the existing federal retirement savings plan or the Social Security Administration.
Edwards is also proposing stronger protections for workers seeking to unionize and increased shareholder rights. And he’s proposing to cap tax-deferred compensation funds for top executives at $1 million annually, and pushing for more disclosure of corporate governance structures, the pay and demographics of top corporate officers, as well as political contributions, government contracts, and taxes paid.
To protect consumers, Edwards wants a new regulator, the Family Savings and Credit Commission, which would oversee credit card and financial services plans marketed to the public. He also proposes tougher Food and Drug Administration inspection standards and safety regulations on products, like kids’ toys, made abroad. ...
Sunday, October 28, 2007
Sen. Mitch McConnell, R-Ky. has taken at least $53,000 in campaign donations: pushing $25 million in earmarked federal funds ... for British defense
McConnell marks funds for contractor | FIRM UNDER INVESTIGATION FOR BRIBERY | By John Cheves | JCHEVES@HERALD-LEADER.COM | Sat, Oct. 27, 2007
Sen. Mitch McConnell, R-Ky., is pushing $25 million in earmarked federal funds for a British defense contractor that is under criminal investigation by the U.S. Justice Department and suspected by American diplomats of a "longstanding, widespread pattern of bribery allegations."
McConnell tucked money for three weapons projects for BAE Systems into the defense appropriations bill, which the Senate approved Oct. 3. The Defense Department failed to include the money in its own budget request, which required McConnell to intercede, said BAE spokeswoman Susan Lenover.
BAE is based in Great Britain but has worldwide operations, including a Louisville facility that makes naval guns and employs 322. McConnell has taken at least $53,000 in campaign donations from BAE's political action committees and employees since his 2002 re-election. United Defense Industries, which BAE purchased two years ago, pledged $500,000 to a political-science foundation the senator created, the McConnell Center at the University of Louisville. ...
Sen. Mitch McConnell, R-Ky., is pushing $25 million in earmarked federal funds for a British defense contractor that is under criminal investigation by the U.S. Justice Department and suspected by American diplomats of a "longstanding, widespread pattern of bribery allegations."
McConnell tucked money for three weapons projects for BAE Systems into the defense appropriations bill, which the Senate approved Oct. 3. The Defense Department failed to include the money in its own budget request, which required McConnell to intercede, said BAE spokeswoman Susan Lenover.
BAE is based in Great Britain but has worldwide operations, including a Louisville facility that makes naval guns and employs 322. McConnell has taken at least $53,000 in campaign donations from BAE's political action committees and employees since his 2002 re-election. United Defense Industries, which BAE purchased two years ago, pledged $500,000 to a political-science foundation the senator created, the McConnell Center at the University of Louisville. ...
The winning firm had an unfair advantage due to Bush administration links, say companies in complaints to GAO
Defense contract award protested | The winning firm had an unfair advantage due to Bush administration links, say companies in complaints to GAO. | By Walter F. Roche Jr., Los Angeles Times Staff Writer | October 26, 2007
WASHINGTON -- A Defense Department medical services contract worth up to $790 million was awarded last month to a Wisconsin-based company three months after it hired a former Bush administration appointee who had supervised military health programs at the Pentagon for the last six years.
William Winkenwerder Jr., assistant secretary of Defense for health affairs from 2001 until April, joined Logistics Health Inc. as a director and consultant in June. The firm beat out two other bidders with proposals that ranged from $80 million to $100 million less, records show. Under the new contract, Logistics Health will provide immunizations and physical and dental exams for reservists and National Guard members.
Logistics Health of LaCrosse, Wis., is headed by another ex-official of the Bush administration -- former Secretary of Health and Human Services Tommy Thompson.
"They stacked the deck," said Fran Lessans, president of Passport Health, one of the losing bidders. Her Baltimore-based firm lost despite a bid projected over five years to cost nearly $100 million less than Logistics Health's winning proposal.
"It was wired. There is no doubt in my mind," Lessans said of the Defense procurement process.
Two other firms involved in the bidding have filed formal protests with the Government Accountability Office. A draft copy of one protest letter, reviewed by The Times, cited Winkenwerder's role and complained that the winning bidder may have "gained unequal access to information not available to other competitors" by hiring the former Pentagon official.
"This creates an organizational conflict of interest and potentially constitutes prohibited contact," the draft letter said.
WASHINGTON -- A Defense Department medical services contract worth up to $790 million was awarded last month to a Wisconsin-based company three months after it hired a former Bush administration appointee who had supervised military health programs at the Pentagon for the last six years.
William Winkenwerder Jr., assistant secretary of Defense for health affairs from 2001 until April, joined Logistics Health Inc. as a director and consultant in June. The firm beat out two other bidders with proposals that ranged from $80 million to $100 million less, records show. Under the new contract, Logistics Health will provide immunizations and physical and dental exams for reservists and National Guard members.
Logistics Health of LaCrosse, Wis., is headed by another ex-official of the Bush administration -- former Secretary of Health and Human Services Tommy Thompson.
"They stacked the deck," said Fran Lessans, president of Passport Health, one of the losing bidders. Her Baltimore-based firm lost despite a bid projected over five years to cost nearly $100 million less than Logistics Health's winning proposal.
"It was wired. There is no doubt in my mind," Lessans said of the Defense procurement process.
Two other firms involved in the bidding have filed formal protests with the Government Accountability Office. A draft copy of one protest letter, reviewed by The Times, cited Winkenwerder's role and complained that the winning bidder may have "gained unequal access to information not available to other competitors" by hiring the former Pentagon official.
"This creates an organizational conflict of interest and potentially constitutes prohibited contact," the draft letter said.
Thursday, October 25, 2007
he cannot even reveal how many fraud whistle-blowers he represents, but there are dozens
The People vs. the Profiteers | by David Rose November 2007
Americans working in Iraq for Halliburton spin-off KBR have been outraged by the massive fraud they saw there. Dozens are suing the giant military contractor, on the taxpayers' behalf. Whose side is the Justice Department on?
...
Over the past 16 years, Grayson has litigated dozens of cases of contractor fraud. In many of these, he has found the Justice Department to be an ally in exposing wrongdoing. But in cases that involve the Iraq war, the D.O.J. has taken extraordinary steps to stand in his way. Behind its machinations, he believes, is a scandal of epic proportions—one that may come to haunt the legacy of the Bush administration long after it is gone.
Consider the case of Grayson's client Bud Conyers, a big, bearded 43-year-old who lives with his ex-wife and her nine children, four of them his, in Enid, Oklahoma. Conyers worked in Iraq as a driver for Kellogg, Brown & Root. Spun off by Halliburton as an independent concern in April, KBR is the world's fifth-largest construction company. Before the war started, the Pentagon awarded it two huge contracts: one, now terminated, to restore the Iraqi oil industry, and another, still in effect, to provide a wide array of logistical-support services to the U.S. military.
...
So far, Alan Grayson estimates, his efforts to pursue qui tam cases against contractors in Iraq have cost him about $10 million. The severe terms of the False Claims Act mean that he cannot even reveal how many fraud whistle-blowers he represents, but there are dozens. Stuart Bowen is the special inspector general for Iraqi reconstruction (sigir), a unique watchdog whose office reports to both the Pentagon and State Department. He reported last year that his office knew of 79 suppressed qui tam cases, some of which have multiple plaintiffs. As of August, 66 are still under seal. There may be many more. (KBR refuses to say how many qui tam cases have been filed against it.) ...
Americans working in Iraq for Halliburton spin-off KBR have been outraged by the massive fraud they saw there. Dozens are suing the giant military contractor, on the taxpayers' behalf. Whose side is the Justice Department on?
...
Over the past 16 years, Grayson has litigated dozens of cases of contractor fraud. In many of these, he has found the Justice Department to be an ally in exposing wrongdoing. But in cases that involve the Iraq war, the D.O.J. has taken extraordinary steps to stand in his way. Behind its machinations, he believes, is a scandal of epic proportions—one that may come to haunt the legacy of the Bush administration long after it is gone.
Consider the case of Grayson's client Bud Conyers, a big, bearded 43-year-old who lives with his ex-wife and her nine children, four of them his, in Enid, Oklahoma. Conyers worked in Iraq as a driver for Kellogg, Brown & Root. Spun off by Halliburton as an independent concern in April, KBR is the world's fifth-largest construction company. Before the war started, the Pentagon awarded it two huge contracts: one, now terminated, to restore the Iraqi oil industry, and another, still in effect, to provide a wide array of logistical-support services to the U.S. military.
...
So far, Alan Grayson estimates, his efforts to pursue qui tam cases against contractors in Iraq have cost him about $10 million. The severe terms of the False Claims Act mean that he cannot even reveal how many fraud whistle-blowers he represents, but there are dozens. Stuart Bowen is the special inspector general for Iraqi reconstruction (sigir), a unique watchdog whose office reports to both the Pentagon and State Department. He reported last year that his office knew of 79 suppressed qui tam cases, some of which have multiple plaintiffs. As of August, 66 are still under seal. There may be many more. (KBR refuses to say how many qui tam cases have been filed against it.) ...
BP $373M for conspiring to manipulate propane price ... violating the Clean Air Act ... criminal fines and restitution for pipeline leaks
BP to Pay $373 Million in Federal Probe | Thursday October 25, 1:02 PM EDT
WASHINGTON (AP) — Oil and gas giant BP PLC agreed Thursday to pay $373 million in fines and restitution to end investigations into whether it manipulated energy markets and violated environmental laws, the Justice Department said.
Additionally, four former BP employees were indicted by a federal grand jury in Chicago on 20 counts of mail and wire fraud charges connected to the price-fixing scheme.
BP, Europe's second-largest energy company, will pay an estimated $50 million as part of an agreement to plead guilty for violating the Clean Air Act as a result of a 2005 explosion at its Texas City refinery that killed 15 employees and injured more than 170 others.
Additionally, it will pay $20 million in criminal fines and restitution to the state of Alaska and the National Fish and Wildlife Foundation for pipeline leaks ofcrude oil that polluted tundra and a frozen lake in Alaska.
The rest of the fines aim to punish BP for conspiring to manipulate propane prices. ...
WASHINGTON (AP) — Oil and gas giant BP PLC agreed Thursday to pay $373 million in fines and restitution to end investigations into whether it manipulated energy markets and violated environmental laws, the Justice Department said.
Additionally, four former BP employees were indicted by a federal grand jury in Chicago on 20 counts of mail and wire fraud charges connected to the price-fixing scheme.
BP, Europe's second-largest energy company, will pay an estimated $50 million as part of an agreement to plead guilty for violating the Clean Air Act as a result of a 2005 explosion at its Texas City refinery that killed 15 employees and injured more than 170 others.
Additionally, it will pay $20 million in criminal fines and restitution to the state of Alaska and the National Fish and Wildlife Foundation for pipeline leaks ofcrude oil that polluted tundra and a frozen lake in Alaska.
The rest of the fines aim to punish BP for conspiring to manipulate propane prices. ...
Wednesday, October 24, 2007
Without enough fire-prevention money, they say, it is only a matter of time before the county faces another massive wildfire.
Alliance fears cuts in wildfire prevention | Proposal to reduce funding alarms backcounty residents | By Mike Lee | STAFF WRITER | April 2, 2007
Across San Diego County's fire country, an alliance of agencies has spent about $50 million to clear dead trees and overgrown brush after blazes charred much of the region in 2003.
But now, the federal fire-prevention money for their work is drying up. Priorities in Washington, D.C., have shifted to paying for national defense, cleanups after Hurricane Katrina and other needs, forestry experts say.
...
As memories of the 2003 blazes fade, some local leaders worry that federal officials are forgetting the lessons learned that fall. Without enough fire-prevention money, they say, it is only a matter of time before the county faces another massive wildfire.
...
Forest Service officials say spending on vegetation removal in San Diego County is $1 million to $2 million a year. In 2004, the agency issued about $10 million in grants for the region.
...
“Somebody is responsible for removing these dead trees, and it isn't happening,” he said. “You want to avoid another fire – that should be clear to everyone by now.”
Across San Diego County's fire country, an alliance of agencies has spent about $50 million to clear dead trees and overgrown brush after blazes charred much of the region in 2003.
But now, the federal fire-prevention money for their work is drying up. Priorities in Washington, D.C., have shifted to paying for national defense, cleanups after Hurricane Katrina and other needs, forestry experts say.
...
As memories of the 2003 blazes fade, some local leaders worry that federal officials are forgetting the lessons learned that fall. Without enough fire-prevention money, they say, it is only a matter of time before the county faces another massive wildfire.
...
Forest Service officials say spending on vegetation removal in San Diego County is $1 million to $2 million a year. In 2004, the agency issued about $10 million in grants for the region.
...
“Somebody is responsible for removing these dead trees, and it isn't happening,” he said. “You want to avoid another fire – that should be clear to everyone by now.”
Gov't Auditors Warned Bush Administration About Poor Firefighting Plans ... evidence is growing that the Bush administration is not adequately prepare
Gov't Auditors Warned Bush Administration About Poor Firefighting Plans | October 24, 2007 02:10 PM
As firefighters continue to risk their lives battling the inferno in southern California, evidence is growing that the Bush administration is not adequately prepared to support them.
The Government Accountability Office, Congress's nonpartisan auditor, issued stark warnings earlier this year on shortcomings in the administration's plans to fight fires.
In a June report, the GAO report faulted the U.S. Forest Service, Department of Agriculture, and other agencies for failing to accomplish the "fundamental step" of planning out what assets and resources were needed to prepare for approaching fire seasons. Meanwhile, disaster response problems that have become all too familiar in recent years were also identified: administration officials placing resources where they were politically expedient, and using poorly performing contractors to accomplish critical national tasks.
...
The report shows that the Bush administration was warned that the approximately $3 billion spent each year on fire prevention and suppression was not being used appropriately.
"Agencies have not yet improved their systems for determining the appropriate type and quantity of firefighting assets needed for the fire season or for effectively and efficiently procuring them," the GAO states.
...
Other problems, the GAO notes, involve private contractors, a common malady in the Bush administration. The Forest Service has turned to national contractors that can deploy firefighting crews and aviation resources anywhere in the nation, but a failure to ensure accountability has resulted in poor performance.
"[R]equirements varied from contract to contract and did not ensure that the agencies obtained the most cost-effective assets," it reported. "Further, inadequate administration and oversight of the agreements by the agencies resulted in poor contractor performance and high rental rates." ...
As firefighters continue to risk their lives battling the inferno in southern California, evidence is growing that the Bush administration is not adequately prepared to support them.
The Government Accountability Office, Congress's nonpartisan auditor, issued stark warnings earlier this year on shortcomings in the administration's plans to fight fires.
In a June report, the GAO report faulted the U.S. Forest Service, Department of Agriculture, and other agencies for failing to accomplish the "fundamental step" of planning out what assets and resources were needed to prepare for approaching fire seasons. Meanwhile, disaster response problems that have become all too familiar in recent years were also identified: administration officials placing resources where they were politically expedient, and using poorly performing contractors to accomplish critical national tasks.
...
The report shows that the Bush administration was warned that the approximately $3 billion spent each year on fire prevention and suppression was not being used appropriately.
"Agencies have not yet improved their systems for determining the appropriate type and quantity of firefighting assets needed for the fire season or for effectively and efficiently procuring them," the GAO states.
...
Other problems, the GAO notes, involve private contractors, a common malady in the Bush administration. The Forest Service has turned to national contractors that can deploy firefighting crews and aviation resources anywhere in the nation, but a failure to ensure accountability has resulted in poor performance.
"[R]equirements varied from contract to contract and did not ensure that the agencies obtained the most cost-effective assets," it reported. "Further, inadequate administration and oversight of the agreements by the agencies resulted in poor contractor performance and high rental rates." ...
Saturday, October 20, 2007
about the same time [Senator] "telecom Jay" received $48,500 in contributions ... use his 'influence' to give "retro-active" immunity?
Friday, October 19, 2007 | Sen. Jay Rockefeller, Verizon and AT&T's dirty "retro active immunity" threesome
Senator Jay Rockefeller loves those telecom lobbyists. Well at least since March 2007 he has. In the last 5 years Rockefeller received a pathetic amount of funds from AT & T and Verizon. Nothing that could cause a controversy. That all changed in March when the wiretapping telecoms discovered the power of the chairman of the Senate Select Commitee on Intelligence.
Hmmm. Right about the same time "telecom Jay" received $48,500 in campaign contributions from the two companies, the government was intensifying their cases against them. Is Sen. Rockefeller trying to derail the investigations? Did "telecom Jay" use his 'influence' to give these complicit companies 'retro active' immunity?
According to Ryan Singel of Wired's, Threat Level, it appears so..and I must say, I agree.
Senator Jay Rockefeller loves those telecom lobbyists. Well at least since March 2007 he has. In the last 5 years Rockefeller received a pathetic amount of funds from AT & T and Verizon. Nothing that could cause a controversy. That all changed in March when the wiretapping telecoms discovered the power of the chairman of the Senate Select Commitee on Intelligence.
Hmmm. Right about the same time "telecom Jay" received $48,500 in campaign contributions from the two companies, the government was intensifying their cases against them. Is Sen. Rockefeller trying to derail the investigations? Did "telecom Jay" use his 'influence' to give these complicit companies 'retro active' immunity?
According to Ryan Singel of Wired's, Threat Level, it appears so..and I must say, I agree.
The Spring '07 checks represent 86 percent of money donated to Rockefeller by Verizon employees since at least 2001.View his donor list. Shame on you "telecom Jay". Who do you represent....US or them?
AT&T executives discovered a fondness for Rockefeller just a month after Verizon execs did and over a three-month span, collectively made donations totaling $19,350.
AT&T Vice President Fred McCallum began the giving spree in May with a $500 donation. 22 other AT&T high fliers soon followed with their own checks.
Monday, October 15, 2007
he unloaded $138 million worth of Countrywide’s stock ... in the months before the sub-prime crisis ...
Enron’s Second Coming? | By PAUL KRUGMAN | Published: October 1, 2007
In May 2005 NYSE Magazine featured an article titled “American Dream Builder” — a glowing profile of Angelo Mozilo, the chairman and C.E.O. of Countrywide Financial, the nation’s largest mortgage lender. The article portrayed Mr. Mozilo as a heckuva guy — a man from a humble background determined to help other people, especially members of minority groups, achieve the American dream of homeownership.
The article didn’t mention one of Mr. Mozilo’s other distinguishing characteristics: the extraordinary size of his paychecks. Last year Mr. Mozilo was paid $142 million, making him the seventh-highest-paid chief executive in America.
These days, of course, Mr. Mozilo doesn’t look like such a wonderful guy, after all. Instead, he’s starting to bring back memories of other people who used to be praised not just as great businessmen but as great human beings — people like Enron’s Ken Lay and WorldCom’s Bernie Ebbers.
...
Last but not least, since it may be the key to the whole story, is the victimization of Countrywide’s own stockholders.
Last year Mr. Mozilo’s huge compensation drew a protest from a group of shareholders including the American Federation of State, County and Municipal Employees Pension Plan. But the worst was yet to come.
In late 2006, even as Countrywide began using shareholders’ money to buy back its own stock at more than $40 a share — it’s now worth only $19 — Mr. Mozilo was selling. Between November 2006 and August 2007 — that is, during the months before investors fully realized the extent to which his company would be hurt by the subprime mortgage crisis — he unloaded $138 million worth of Countrywide’s stock.
Again, unless the stock sales lead to insider-trading charges, there’s nothing in this story that involves illegality. ...
...
Sure enough, C.E.O. paychecks, which came partway back to earth in 2002, more than doubled between 2003 and 2006. And with those huge paychecks came renewed incentives for malfeasance. Once again, executives could become richer than Croesus by creating the illusion of success, even for a little while. ...
In May 2005 NYSE Magazine featured an article titled “American Dream Builder” — a glowing profile of Angelo Mozilo, the chairman and C.E.O. of Countrywide Financial, the nation’s largest mortgage lender. The article portrayed Mr. Mozilo as a heckuva guy — a man from a humble background determined to help other people, especially members of minority groups, achieve the American dream of homeownership.
The article didn’t mention one of Mr. Mozilo’s other distinguishing characteristics: the extraordinary size of his paychecks. Last year Mr. Mozilo was paid $142 million, making him the seventh-highest-paid chief executive in America.
These days, of course, Mr. Mozilo doesn’t look like such a wonderful guy, after all. Instead, he’s starting to bring back memories of other people who used to be praised not just as great businessmen but as great human beings — people like Enron’s Ken Lay and WorldCom’s Bernie Ebbers.
...
Last but not least, since it may be the key to the whole story, is the victimization of Countrywide’s own stockholders.
Last year Mr. Mozilo’s huge compensation drew a protest from a group of shareholders including the American Federation of State, County and Municipal Employees Pension Plan. But the worst was yet to come.
In late 2006, even as Countrywide began using shareholders’ money to buy back its own stock at more than $40 a share — it’s now worth only $19 — Mr. Mozilo was selling. Between November 2006 and August 2007 — that is, during the months before investors fully realized the extent to which his company would be hurt by the subprime mortgage crisis — he unloaded $138 million worth of Countrywide’s stock.
Again, unless the stock sales lead to insider-trading charges, there’s nothing in this story that involves illegality. ...
...
Sure enough, C.E.O. paychecks, which came partway back to earth in 2002, more than doubled between 2003 and 2006. And with those huge paychecks came renewed incentives for malfeasance. Once again, executives could become richer than Croesus by creating the illusion of success, even for a little while. ...
Sunday, October 14, 2007
CIA: How can you do that and have the director turn around and investigate the Inspector.General.?
Watchdog of C.I.A. Is Subject of C.I.A. Inquiry | By MARK MAZZETTI and SCOTT SHANE | Published: October 11, 2007
WASHINGTON, Oct. 11 — The director of the Central Intelligence Agency, Gen. Michael V. Hayden, has ordered an unusual internal inquiry into the work of the agency’s inspector general, whose aggressive investigations of the C.I.A.’s detention and interrogation programs and other matters have created resentment among agency operatives.
A small team working for General Hayden is looking into the conduct of the agency’s watchdog office, which is led by Inspector General John L. Helgerson. Current and former government officials said the review had caused anxiety and anger in Mr. Helgerson’s office and aroused concern on Capitol Hill that it posed a conflict of interest.
...
Any move by the agency’s director to examine the work of the inspector general would be unusual, if not unprecedented, and would threaten to undermine the independence of the office, some current and former officials say.
...
“I think it’s a terrible idea,” said Mr. Hitz, who now teaches at the University of Virginia. “Under the statute, the inspector general has the right to investigate the director. How can you do that and have the director turn around and investigate the I.G.?” ...
WASHINGTON, Oct. 11 — The director of the Central Intelligence Agency, Gen. Michael V. Hayden, has ordered an unusual internal inquiry into the work of the agency’s inspector general, whose aggressive investigations of the C.I.A.’s detention and interrogation programs and other matters have created resentment among agency operatives.
A small team working for General Hayden is looking into the conduct of the agency’s watchdog office, which is led by Inspector General John L. Helgerson. Current and former government officials said the review had caused anxiety and anger in Mr. Helgerson’s office and aroused concern on Capitol Hill that it posed a conflict of interest.
...
Any move by the agency’s director to examine the work of the inspector general would be unusual, if not unprecedented, and would threaten to undermine the independence of the office, some current and former officials say.
...
“I think it’s a terrible idea,” said Mr. Hitz, who now teaches at the University of Virginia. “Under the statute, the inspector general has the right to investigate the director. How can you do that and have the director turn around and investigate the I.G.?” ...
If the Supreme Court is going to allow the business community to run virtually unchecked with these kinds of schemes, ...
Friend Of Defrauders Court | Submitted by Isaiah J. Poole on October 11, 2007 - 2:36pm.
If you are a Wall Street investment banker, there's new evidence that you've got the best Supreme Court money can buy.
Conservative Supreme Court justices did little to hide their disdain for the need to protect the interests of investors earlier this week as they heard the case of a group of stockholders seeking to recover damages from a corporation engaged in a fraud scheme designed to illicitly pump up their stock price.
...
The case involves two cable box makers who entered into an agreement with Charter Communications, a cable company, in which Charter would pay a $17 million cost increase for boxes from the companies. The companies agreed to use the windfall to buy an equivalent amount of advertising. That enabled Charter to claim it had an addition $17 million in revenue as it treated the equivalent increased expense as capital spending. The effect was a balance sheet that looked better than it actually was, and hence a stock price that was artificially inflated, à la Enron.
This should be a no-brainer: If you cook up a fraud scheme that ends up inflating a company's stock price, you should be liable for the fraud. But, as we've noted before, the Bush administration is using the right-wing ideological playbook, not common sense law, to encourage the Supreme Court—as if recent Bush appointees John Roberts and Samual Alito needed persuading—to shield so-called secondary actors from liability in stock fraud cases.
...
Roberts, the chief justice, made clear his stand when he said that Congress—that would be the Republican, Chamber-of-Congress-controlled Congress just reduced to minority status last year, to be precise—has already set the bounds for shareholder rights in these cases and, as he was quoted in The Washington Post, "my suggestion is that we should get out of the business of expanding it."
(The would be the same Justice Roberts who, along with Justiice Stephen Breyer, initially recused himself from hearing this case because both he and Breyer owned stock in Cisco Systems, the parent company of one of the cable box makers. But Roberts chose to sell the stock so he could weigh in. Breyer chose to continue refrain from participating.)
If the Supreme Court is going to allow the business community to run virtually unchecked with these kinds of schemes, with victims having no recourse, then Congress needs to step up now with a law that makes it clear that structuring Enron-style, cooking-the-books schemes is not merely sordid, but is the kind of criminal behavior that gets you sued.
If you are a Wall Street investment banker, there's new evidence that you've got the best Supreme Court money can buy.
Conservative Supreme Court justices did little to hide their disdain for the need to protect the interests of investors earlier this week as they heard the case of a group of stockholders seeking to recover damages from a corporation engaged in a fraud scheme designed to illicitly pump up their stock price.
...
The case involves two cable box makers who entered into an agreement with Charter Communications, a cable company, in which Charter would pay a $17 million cost increase for boxes from the companies. The companies agreed to use the windfall to buy an equivalent amount of advertising. That enabled Charter to claim it had an addition $17 million in revenue as it treated the equivalent increased expense as capital spending. The effect was a balance sheet that looked better than it actually was, and hence a stock price that was artificially inflated, à la Enron.
This should be a no-brainer: If you cook up a fraud scheme that ends up inflating a company's stock price, you should be liable for the fraud. But, as we've noted before, the Bush administration is using the right-wing ideological playbook, not common sense law, to encourage the Supreme Court—as if recent Bush appointees John Roberts and Samual Alito needed persuading—to shield so-called secondary actors from liability in stock fraud cases.
...
Roberts, the chief justice, made clear his stand when he said that Congress—that would be the Republican, Chamber-of-Congress-controlled Congress just reduced to minority status last year, to be precise—has already set the bounds for shareholder rights in these cases and, as he was quoted in The Washington Post, "my suggestion is that we should get out of the business of expanding it."
(The would be the same Justice Roberts who, along with Justiice Stephen Breyer, initially recused himself from hearing this case because both he and Breyer owned stock in Cisco Systems, the parent company of one of the cable box makers. But Roberts chose to sell the stock so he could weigh in. Breyer chose to continue refrain from participating.)
If the Supreme Court is going to allow the business community to run virtually unchecked with these kinds of schemes, with victims having no recourse, then Congress needs to step up now with a law that makes it clear that structuring Enron-style, cooking-the-books schemes is not merely sordid, but is the kind of criminal behavior that gets you sued.
Tuesday, October 09, 2007
one day short of the number needed to be eligible for expanded educational benefits under the GI Bill ...
CNN: 'Day short' troops now 'fighting the Army they served' | David Edwards and Muriel Kane | Published: Tuesday October 9, 2007
The 2600 members of a Minnesota National Guard unit that returned from Iraq in July after serving there longer than any other ground combat unit were shocked to be told that their total time overseas of 729 days was one day short of the number needed to be eligible for expanded educational benefits under the GI Bill. Many of the soldiers wondered if this was done deliberately and they and Minnesota's senators asked the Secretary of the Army to look into it.
1st Lieut. John Hobot, a spokesman for the unit, told CNN on Monday that he believes it was simply a bureaucratic mixup, saying, "There's people that got off the same plane from Iraq ... and their orders read 730 days, whereas 1162 soldiers' orders say 729. These guys did the same exact tour." Hobot just wants the Army to fix the orders so that the soldiers, some of whom are already back in school, can receive the additional $500 to $800 a month.
...
CNN then asked Lieut. Col. Darryl Darden at the Pentagon what was taking so long. Darden praised Hobot for looking out for his men and said, "We know there has been an injustice and we have put together a process ... to seek redress for this bureaucratic mixup. ... We believe that by January 8 they should be able to receive their benefits." ....
The 2600 members of a Minnesota National Guard unit that returned from Iraq in July after serving there longer than any other ground combat unit were shocked to be told that their total time overseas of 729 days was one day short of the number needed to be eligible for expanded educational benefits under the GI Bill. Many of the soldiers wondered if this was done deliberately and they and Minnesota's senators asked the Secretary of the Army to look into it.
1st Lieut. John Hobot, a spokesman for the unit, told CNN on Monday that he believes it was simply a bureaucratic mixup, saying, "There's people that got off the same plane from Iraq ... and their orders read 730 days, whereas 1162 soldiers' orders say 729. These guys did the same exact tour." Hobot just wants the Army to fix the orders so that the soldiers, some of whom are already back in school, can receive the additional $500 to $800 a month.
...
CNN then asked Lieut. Col. Darryl Darden at the Pentagon what was taking so long. Darden praised Hobot for looking out for his men and said, "We know there has been an injustice and we have put together a process ... to seek redress for this bureaucratic mixup. ... We believe that by January 8 they should be able to receive their benefits." ....
Monday, October 08, 2007
Blackwater contracts 'awarded for political reasons' ... $500M in contracts were awarded without proper competition
Webb: Blackwater contracts 'awarded for political reasons' | Greg Wasserstrom and Mike Aivaz | Published: Monday October 8, 2007 | By Mike Aivaz
The security contracts awarded to Blackwater USA in Iraq were done so for primarily political reasons, Senator Jim Webb of Virginia told Joe Scarborogh today on MSNBC's Morning Joe. In an extensive discussion about US foreign policy, Webb brought up the controversy over Blackwater's actions in Iraq and the attempt by congress to bring them under US law. "With respect to Blackwater, we've allowed mercenaries to actually conduct combat operations, and we've never done this before," Webb said. "And they're doing this with no legal structure over them."
... Webb added. "That's something like half a billion out of their nearly billion dollar contracts were awarded without proper competition, according to the house committee report last year."
The security contracts awarded to Blackwater USA in Iraq were done so for primarily political reasons, Senator Jim Webb of Virginia told Joe Scarborogh today on MSNBC's Morning Joe. In an extensive discussion about US foreign policy, Webb brought up the controversy over Blackwater's actions in Iraq and the attempt by congress to bring them under US law. "With respect to Blackwater, we've allowed mercenaries to actually conduct combat operations, and we've never done this before," Webb said. "And they're doing this with no legal structure over them."
... Webb added. "That's something like half a billion out of their nearly billion dollar contracts were awarded without proper competition, according to the house committee report last year."
Iraq Demands $136M Blackwater Payout ... for Iraqi deaths ... and Sever all Contracts ...
Iraq Demands $136M Blackwater Payout | Authorities Also Call On U.S. To Sever All Contracts With Security Firm In Iraq | BAGHDAD, Oct. 8, 2007
(CBS/AP) Iraqi authorities want the U.S. government to sever all contracts in Iraq with Blackwater USA within six months and pay $8 million in compensation to each of the families of 17 people killed when the firm's guards sprayed a traffic circle with heavy machine gun fire last month.
The demands, part of an Iraqi government report examined by The Associated Press, also called on U.S. authorities to hand over the Blackwater security agents involved in the Sept. 16 shootings to face possible trial in Iraqi courts.
CBS News has found the Iraqi witness accounts of the shootings are remarkably consistent.
They say a four-vehicle Blackwater convoy drove into a traffic circle but was blocked by barriers protecting a maintenance crew, reports CBS News correspondent Elizabeth Palmer.
The Blackwater guards threw water bottles, warning the cars to stop, but as one car continued to inch forward, Blackwater started shooting, instantly killing the driver.
The tone of the Iraqi report appears to signal further strains between the government of Prime Minister Nouri al-Maliki and the White House over the deaths in Nisoor Square, which have prompted a series of U.S. and Iraqi probes and raised questions over the use of private security contractors to guard U.S. diplomats and other officials.
Al-Maliki ordered the investigation by his defense minister and other top security and police officials on Sept. 22. The findings mark the most definitive Iraqi positions and contentions about the shootings last month. ...
...
The report found that Blackwater guards also had killed 21 Iraqi civilians and wounded 27 in previous shootings since it took over security for U.S. diplomats in Baghdad after the U.S. invasion. The Iraqi government did not say whether it would try to prosecute in those cases.
The State Department has counted 56 shooting incidents involving Blackwater guards in Iraq this year. All were being reviewed as part of the comprehensive inquiry ordered by Secretary of State Condoleezza Rice.
(CBS/AP) Iraqi authorities want the U.S. government to sever all contracts in Iraq with Blackwater USA within six months and pay $8 million in compensation to each of the families of 17 people killed when the firm's guards sprayed a traffic circle with heavy machine gun fire last month.
The demands, part of an Iraqi government report examined by The Associated Press, also called on U.S. authorities to hand over the Blackwater security agents involved in the Sept. 16 shootings to face possible trial in Iraqi courts.
CBS News has found the Iraqi witness accounts of the shootings are remarkably consistent.
They say a four-vehicle Blackwater convoy drove into a traffic circle but was blocked by barriers protecting a maintenance crew, reports CBS News correspondent Elizabeth Palmer.
The Blackwater guards threw water bottles, warning the cars to stop, but as one car continued to inch forward, Blackwater started shooting, instantly killing the driver.
The tone of the Iraqi report appears to signal further strains between the government of Prime Minister Nouri al-Maliki and the White House over the deaths in Nisoor Square, which have prompted a series of U.S. and Iraqi probes and raised questions over the use of private security contractors to guard U.S. diplomats and other officials.
Al-Maliki ordered the investigation by his defense minister and other top security and police officials on Sept. 22. The findings mark the most definitive Iraqi positions and contentions about the shootings last month. ...
...
The report found that Blackwater guards also had killed 21 Iraqi civilians and wounded 27 in previous shootings since it took over security for U.S. diplomats in Baghdad after the U.S. invasion. The Iraqi government did not say whether it would try to prosecute in those cases.
The State Department has counted 56 shooting incidents involving Blackwater guards in Iraq this year. All were being reviewed as part of the comprehensive inquiry ordered by Secretary of State Condoleezza Rice.
Sunday, October 07, 2007
State Dept Ignored 'Repeated Warnings' Blackwater Endangered Iraqi Civilians
State Dept Ignored 'Repeated Warnings' Blackwater Endangered Iraqi Civilians | LA Times | Paul Richter | October 7, 2007 03:29 PM
The State Department, which is facing growing criticism of its policy on private security contractors, overlooked repeated warnings from U.S. diplomats in the field that guards were endangering Iraqi civilians and undermining U.S. efforts to win support from the population, according to current and former U.S. officials.
Ever since the contractors were granted immunity from Iraqi courts in June 2004 by the U.S.-led occupation authority, diplomats have cautioned that the decision to do so was "a bomb that could go off at any time," said one former U.S. official.
Read full story here.
The State Department, which is facing growing criticism of its policy on private security contractors, overlooked repeated warnings from U.S. diplomats in the field that guards were endangering Iraqi civilians and undermining U.S. efforts to win support from the population, according to current and former U.S. officials.
Ever since the contractors were granted immunity from Iraqi courts in June 2004 by the U.S.-led occupation authority, diplomats have cautioned that the decision to do so was "a bomb that could go off at any time," said one former U.S. official.
Read full story here.
Saturday, October 06, 2007
Many soldiers get boot for 'pre-existing' mental illness ... Defense Department ... saving the expense of caring for them
Many soldiers get boot for 'pre-existing' mental illness | By Philip Dine | POST-DISPATCH WASHINGTON BUREAU | 09/30/2007
WASHINGTON — Thousands of U.S. soldiers in Iraq — as many as 10 a day — are being discharged by the military for mental health reasons. But the Pentagon isn't blaming the war. It says the soldiers had "pre-existing" conditions that disqualify them for treatment by the government.
Many soldiers and Marines being discharged on this basis actually suffer from combat-related problems, experts say. But by classifying them as having a condition unrelated to the war, the Defense Department is able to quickly get rid of troops having trouble doing their work while also saving the expense of caring for them.
The result appears to be that many actually suffering from combat-related problems such as post-traumatic stress disorder or traumatic brain injuries don't get the help they need. ...
WASHINGTON — Thousands of U.S. soldiers in Iraq — as many as 10 a day — are being discharged by the military for mental health reasons. But the Pentagon isn't blaming the war. It says the soldiers had "pre-existing" conditions that disqualify them for treatment by the government.
Many soldiers and Marines being discharged on this basis actually suffer from combat-related problems, experts say. But by classifying them as having a condition unrelated to the war, the Defense Department is able to quickly get rid of troops having trouble doing their work while also saving the expense of caring for them.
The result appears to be that many actually suffering from combat-related problems such as post-traumatic stress disorder or traumatic brain injuries don't get the help they need. ...
"I think it was a scheme to save money, personally." ... 729 days active duty, [1 short of paying for education benefits]
National Guard Troops Denied Benefits After Longest Deployment Of Iraq War | Rhonda Erskine, Online Content Producer | Updated: 10/3/2007 5:32:02 PM
MINNEAPOLIS, MN (NBC) -- When they came home from Iraq, 2,600 members of the Minnesota National Guard had been deployed longer than any other ground combat unit. The tour lasted 22 months and had been extended as part of President Bush's surge.
1st Lt. Jon Anderson said he never expected to come home to this: A government refusing to pay education benefits he says he should have earned under the GI bill.
"It's pretty much a slap in the face," Anderson said. "I think it was a scheme to save money, personally. I think it was a leadership failure by the senior Washington leadership... once again failing the soldiers."
Anderson's orders, and the orders of 1,161 other Minnesota guard members, were written for 729 days.
Had they been written for 730 days, just one day more, the soldiers would receive those benefits to pay for school.
"Which would be allowing the soldiers an extra $500 to $800 a month," Anderson said.
That money would help him pay for his master's degree in public administration. It would help Anderson's fellow platoon leader, John Hobot, pay for a degree in law enforcement. ....
MINNEAPOLIS, MN (NBC) -- When they came home from Iraq, 2,600 members of the Minnesota National Guard had been deployed longer than any other ground combat unit. The tour lasted 22 months and had been extended as part of President Bush's surge.
1st Lt. Jon Anderson said he never expected to come home to this: A government refusing to pay education benefits he says he should have earned under the GI bill.
"It's pretty much a slap in the face," Anderson said. "I think it was a scheme to save money, personally. I think it was a leadership failure by the senior Washington leadership... once again failing the soldiers."
Anderson's orders, and the orders of 1,161 other Minnesota guard members, were written for 729 days.
Had they been written for 730 days, just one day more, the soldiers would receive those benefits to pay for school.
"Which would be allowing the soldiers an extra $500 to $800 a month," Anderson said.
That money would help him pay for his master's degree in public administration. It would help Anderson's fellow platoon leader, John Hobot, pay for a degree in law enforcement. ....
Oral Roberts University: $39,000 in stores, Lexus SUV, red Mercedes, university jet trips, underage males ....
Scandal Brewing at Oral Roberts U. | Oct 5, 4:35 PM (ET) | By JUSTIN JUOZAPAVICIUS
...
Now, his son, Oral Roberts University President Richard Roberts, says God is speaking again, telling him to deny lurid allegations in a lawsuit that threatens to engulf this 44-year-old Bible Belt college in scandal.
Richard Roberts is accused of illegal involvement in a local political campaign and lavish spending at donors' expense, including numerous home remodeling projects, use of the university jet for his daughter's senior trip to the Bahamas, and a red Mercedes convertible and a Lexus SUV for his wife, Lindsay.
She is accused of dropping tens of thousands of dollars on clothes, awarding nonacademic scholarships to friends of her children and sending scores of text messages on university-issued cell phones to people described in the lawsuit as "underage males."
...
Richard Roberts, according to the suit, asked a professor in 2005 to use his students and university resources to aid a county commissioner's bid for Tulsa mayor. Such involvement would violate state and federal law because of the university's nonprofit status. Up to 50 students are alleged to have worked on the campaign.
The professors also said their dismissals came after they turned over to the board of regents a copy of a report documenting moral and ethical lapses on the part of Roberts and his family. The internal document was prepared by Stephanie Cantese, Richard Roberts' sister-in-law, according to the lawsuit.
An ORU student repairing Cantese's laptop discovered the document and later provided a copy to one of the professors.
It details dozens of alleged instances of misconduct. Among them:
- A longtime maintenance employee was fired so that an underage male friend of Mrs. Roberts could have his position.
- Mrs. Roberts - who is a member of the board of regents and is referred to as ORU's "first lady" on the university's Web site - frequently had cell-phone bills of more than $800 per month, with hundreds of text messages sent between 1 a.m. to 3 a.m. to "underage males who had been provided phones at university expense."
- The university jet was used to take one daughter and several friends on a senior trip to Orlando, Fla., and the Bahamas. The $29,411 trip was billed to the ministry as an "evangelistic function of the president."
- Mrs. Roberts spent more than $39,000 at one Chico's clothing store alone in less than a year, and had other accounts in Texas and California. She also repeatedly said, "As long as I wear it once on TV, we can charge it off." The document cites inconsistencies in clothing purchases and actual usage on TV.
- Mrs. Roberts was given a white Lexus SUV and a red Mercedes convertible by ministry donors. ....
...
Now, his son, Oral Roberts University President Richard Roberts, says God is speaking again, telling him to deny lurid allegations in a lawsuit that threatens to engulf this 44-year-old Bible Belt college in scandal.
Richard Roberts is accused of illegal involvement in a local political campaign and lavish spending at donors' expense, including numerous home remodeling projects, use of the university jet for his daughter's senior trip to the Bahamas, and a red Mercedes convertible and a Lexus SUV for his wife, Lindsay.
She is accused of dropping tens of thousands of dollars on clothes, awarding nonacademic scholarships to friends of her children and sending scores of text messages on university-issued cell phones to people described in the lawsuit as "underage males."
...
Richard Roberts, according to the suit, asked a professor in 2005 to use his students and university resources to aid a county commissioner's bid for Tulsa mayor. Such involvement would violate state and federal law because of the university's nonprofit status. Up to 50 students are alleged to have worked on the campaign.
The professors also said their dismissals came after they turned over to the board of regents a copy of a report documenting moral and ethical lapses on the part of Roberts and his family. The internal document was prepared by Stephanie Cantese, Richard Roberts' sister-in-law, according to the lawsuit.
An ORU student repairing Cantese's laptop discovered the document and later provided a copy to one of the professors.
It details dozens of alleged instances of misconduct. Among them:
- A longtime maintenance employee was fired so that an underage male friend of Mrs. Roberts could have his position.
- Mrs. Roberts - who is a member of the board of regents and is referred to as ORU's "first lady" on the university's Web site - frequently had cell-phone bills of more than $800 per month, with hundreds of text messages sent between 1 a.m. to 3 a.m. to "underage males who had been provided phones at university expense."
- The university jet was used to take one daughter and several friends on a senior trip to Orlando, Fla., and the Bahamas. The $29,411 trip was billed to the ministry as an "evangelistic function of the president."
- Mrs. Roberts spent more than $39,000 at one Chico's clothing store alone in less than a year, and had other accounts in Texas and California. She also repeatedly said, "As long as I wear it once on TV, we can charge it off." The document cites inconsistencies in clothing purchases and actual usage on TV.
- Mrs. Roberts was given a white Lexus SUV and a red Mercedes convertible by ministry donors. ....
Wednesday, October 03, 2007
November 2004, a BLM inspector noted that pillars of coal, which were holding up the mine's roof, were failing [...missed in 2005 due diligence??]
Agency Inspectors Knew of Mine Problems | JENNIFER TALHELM | October 2, 2007 05:05 PM EST
WASHINGTON — At least three years before the deadly August accident at Utah's Crandall Canyon Mine, Bureau of Land Management inspectors noted serious structural problems that they feared could cause the mine's roof to collapse, Congress was told Tuesday.
Yet the government's mine safety office didn't know of the bureau's concerns until after the accident, Kevin Stricklin, a coal mine safety administrator for the department, testified during a Senate hearing.
The Labor Department oversees the mine safety office and approved the Crandall Canyon mining plan. The Bureau of Land Management, which oversees how much coal is mined from public land, is governed by the Interior Department, a separate agency.
...
Lawmakers have said they are skeptical that the government did everything it could to prevent the accident. They also have questioned why the Bureau of Land Management noticed the problems at Crandall Canyon _ but not the mine safety department.
Documents released by the committee showed that in November 2004, a BLM inspector noted that pillars of coal, which were holding up the mine's roof, were failing.
The inspector, Stephen Falk, said that further mining by pulling out the pillars would be "untenable" and "wishful thinking" in hopes of extending the mine's life.
"Mining any of the coal in the pillars will result in hazardous mining conditions such as pillar bursts and roof falls," Falk wrote. ...
WASHINGTON — At least three years before the deadly August accident at Utah's Crandall Canyon Mine, Bureau of Land Management inspectors noted serious structural problems that they feared could cause the mine's roof to collapse, Congress was told Tuesday.
Yet the government's mine safety office didn't know of the bureau's concerns until after the accident, Kevin Stricklin, a coal mine safety administrator for the department, testified during a Senate hearing.
The Labor Department oversees the mine safety office and approved the Crandall Canyon mining plan. The Bureau of Land Management, which oversees how much coal is mined from public land, is governed by the Interior Department, a separate agency.
...
Lawmakers have said they are skeptical that the government did everything it could to prevent the accident. They also have questioned why the Bureau of Land Management noticed the problems at Crandall Canyon _ but not the mine safety department.
Documents released by the committee showed that in November 2004, a BLM inspector noted that pillars of coal, which were holding up the mine's roof, were failing.
The inspector, Stephen Falk, said that further mining by pulling out the pillars would be "untenable" and "wishful thinking" in hopes of extending the mine's life.
"Mining any of the coal in the pillars will result in hazardous mining conditions such as pillar bursts and roof falls," Falk wrote. ...
Tuesday, October 02, 2007
Joseph Schmitz, COO of Prince Group, Blackwater's company married to Jeb Bush's sister-in-law
Friday, September 28, 2007 | One More Interesting Blackwater Fact
Turns out Joseph Schmitz, COO & general counsel of the Prince Group, Blackwater's parent company, is married to one Lucila Garnica Gallo, Colomba Bush's sister (Jeb Bush's wife). Next on the list: What sort of family are the Garnica Gallos? Well, not the (literally) criminal lawyers George W. likes to help. Señor Garnica appears to have been a migrant worker. ...
Turns out Joseph Schmitz, COO & general counsel of the Prince Group, Blackwater's parent company, is married to one Lucila Garnica Gallo, Colomba Bush's sister (Jeb Bush's wife). Next on the list: What sort of family are the Garnica Gallos? Well, not the (literally) criminal lawyers George W. likes to help. Señor Garnica appears to have been a migrant worker. ...
Bush appointee --> oversee Pentagon contracts -->$$ --> inquiry into blocked criminal investigations --> COO of Blackwater [Iraq security
Man Bush chose to lead Pentagon contracting probes left under fire to become Blackwater COO | Jason Rhyne and Nick Juliano | Published: Tuesday October 2, 2007
The private security firm Blackwater USA, ... has numerous links to the White House as well as many current and former Republicans.
The connections include the firm's chief operating officer Joseph Schmitz, who was tapped by President Bush in 2002 to "oversee and police the Pentagon's military contracts as the Defense Department's Inspector General."
The relevation was first reported by Ben Van Heuvelen in Salon.
Serving until 2005, Schmitz went on to preside over "the largest increase of military-contracting spending in history" and joined Blackwater just a month after his departure from the Pentagon, according to Van Heuvelen.
"The resignation comes after Sen. Charles Grassley (R-IA) sent Schmitz several letters this summer informing him that he was the focus of a congressional inquiry into whether he had blocked two criminal investigations last year," according to a 2005 article in the LA Times. ...
The private security firm Blackwater USA, ... has numerous links to the White House as well as many current and former Republicans.
The connections include the firm's chief operating officer Joseph Schmitz, who was tapped by President Bush in 2002 to "oversee and police the Pentagon's military contracts as the Defense Department's Inspector General."
The relevation was first reported by Ben Van Heuvelen in Salon.
Serving until 2005, Schmitz went on to preside over "the largest increase of military-contracting spending in history" and joined Blackwater just a month after his departure from the Pentagon, according to Van Heuvelen.
"The resignation comes after Sen. Charles Grassley (R-IA) sent Schmitz several letters this summer informing him that he was the focus of a congressional inquiry into whether he had blocked two criminal investigations last year," according to a 2005 article in the LA Times. ...
Subscribe to:
Posts (Atom)