Category Archives: conflict of interest laws

“Congress ethics office clears Bachus of insider trading”

WaPo reports.

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“Obama nominates elite fundraiser for top diplomatic spot”

iWatch reports.

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“‘Presidential’ vs. ‘Political’ Trips: A Blurry Line, and Tricky Math”

NYT: “Officials at the White House, the Chicago campaign headquarters and the Democratic National Committee declined to say how they decide which events are political and how much to reimburse the government. That secrecy has a tradition dating at least to the late 1970s.”

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“Why Lobbyists Dodge Calls From Congressmen”

Interesting NPR report on rent extraction. I deal extensively with lobbyist fundraising and the problem of rent seeking/extraction in my recent Stanford piece.

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Same as It Ever Was Dept.

Bloomberg: U.S. House Members Use Committee Positions to Finance Campaigns.

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“White House abandons push for federal contractors to disclose political giving”

The Hill reports.

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“Romney using ethics exception to limit disclosure of Bain holdings”

Extensive WaPo report quoting Cleta Mitchell, Joe Sandler and others.

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“STOCK Act to be Signed Today”

Sunlight Foundation: “A few of us at Sunlight are excited to be going to the bill signing ceremony for the STOCK Act (S. 2038) in a few hours. While the ultimate form the bill took was weaker than what we hoped for, Sunlight has long supported the STOCK Act and the increased transparency it will create.”

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“Insider Trading Ban for Lawmakers Clears Congress”

NYT reports.

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“Study Shows House Members Profit”

NYT:

A nonprofit ethics group here spent the last nine months examining every member of the House — for campaign spending, budget earmarks, office accounts and lobbying by any relatives — and found that the families of more than half of all the House lawmakers have received payments or otherwise benefited financially from their affiliation with a lawmaker in the two previous election cycles.

The 346-page report by Citizens for Responsibility and Ethics in Washington, or CREW, is an extraordinary compendium of creative accounting, self-interested budgeting and generous expense reimbursements. It highlights common practices that translate into tens of millions of dollars in payments to relatives or the lawmakers themselves.

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“The Dimensions of Judicial Impartiality”

Charles Geyh has posted this draft on SSRN.  Here is the abstract:

Scholars have traditionally analyzed judicial impartiality piecemeal, in disconnected debates on discrete topics. As a consequence, current understandings of judicial impartiality are balkanized and muddled. This article seeks to reconceptualize judicial impartiality comprehensively, across contexts. In an era when “we are all legal realists now,” perfect impartiality — the complete absence of bias or prejudice — is at most an ideal, with “impartial enough” becoming, of necessity, the realistic goal. Understanding when imperfectly impartial is nonetheless impartial enough is aided by conceptualizing judicial impartiality in three distinct dimensions: A procedural dimension in which impartiality affords parties a fair hearing; a political dimension in which impartiality promotes public confidence in the courts; and an ethical dimension in which impartiality is a standard of good conduct core to a judge’s self-definition. The seeming contradictions that cut across contexts in which judicial impartiality problems arise, can for the most part be explained with reference to the dimensions those problems inhabit and the constraints under which regulation in those dimensions are subject. Thus, being impartial enough to assure parties a fair hearing in the procedural dimension may or may not be impartial enough to satisfy the public in the political dimension, which may or may not be impartial enough to ensure that judges are behaving honorably in the ethical dimension. Analyzing partiality problems through the lens of the dimensions they occupy not only resolves many of the imponderables that have long plagued the subject, but also reveals a distinct trend, in which impartiality is being transformed from a value traditionally regulated largely by judges and the legal establishment in the procedural and ethical dimensions, to one that is increasingly the province of the political dimension, where it is regulated by the public and its elected representatives. By situating impartiality at the crossroads of judicial procedure, ethics and politics, this article offers a new perspective, not just on judicial impartiality, but also on the role of the American judiciary in the administration of justice and the political process.

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“Senate Accepts Weaker House STOCK Act, Drops Other Reforms: Statement of Meredith McGehee, Policy Director”

See here.

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“Retention Elections 2.010″

James Sample has posted this draft on SSRN (part of a symposium at the University of San Francisco Law Review).  Here is the abstract:

Counter-historically, the highest profile judicial election campaigns of the first judicial elections cycle following the Supreme Court’s decision in Citizens United v. Federal Election Commission1 were retention and ballot measure, rather than contested elections. Retention elections, in which voters cast their ballots either in favor of returning the incumbent judge to office for another term or for her removal, were intended to balance the values of judicial impartiality and accountability to the public.

In Iowa, judicial retention elections-contests normally well beneath the radar even in Des Moines-became a national flashpoint for same sex marriage debates and, more to the point, for interest group spending in courts races. Also underscored by the Iowa judicial retention election was the prisoner’s dilemma faced by judges who are targeted by big dollar campaigns. Faced with that dilemma, the Iowa Chief Justice and two Associate Justices did “not want to contribute to the politicization of the judiciary,” and thus chose not to engage in fundraising.3 Realistically, that tactical decision, more than the Court’s unanimous 2009 decision in favor of same sex marriage, cost them their seats on the bench.

Conversely, Illinois Chief Justice Thomas Kilbride faced a wellfunded anti-retention effort-this one based on perceived anti-business rulings, but Kilbride aggressively raised more than $1 million from political parties, unions, and stakeholders before the bench, resulting in what the Chicago Tribune described as “a $3 million fight over a name most Illinoisans didn’t even see on the ballot.” Kilbride retained his seat.

This Article examines the dynamics driving these events, particularly in light of Citizens United’s potential to open the financial floodgates in state court races that, in their contested (as opposed to retention) iterations over the past decade alone, have already become soaked in campaign cash. For judicial retention elections nationally, the opposition to retention in the 2010 Iowa and Illinois elections represents a bell that will never be un-rung.

Finally, this Article draws a lesson pertaining to Retention 2.010 from another significant event that occurred on Election Day, 2010. Despite a concerted campaign that drew heavily on the prestige of Justice Sandra Day O’Connor, Nevada voters rejected a proposal to abandon contested elections, becoming the latest occasion in the last quarter century in which voters around the country have-without exception- chosen to maintain contested elections.

I look forward to reading this!

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“On a Corruption Bill, the Senate Gets It Right”

NYT editorializes on the STOCK Act.

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“Wisconsin Supreme Court justices battle over recusing themselves”

The Wisconsin Center for Investigative Journalism offers this report (via Howard).

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“The Influence Industry: Obama gives administration jobs to some big fundraisers”

T.W. Farnamfor WaPo: ” Big donors considering whether to work the phones raising money for President Obama’s reelection campaign might consider the fate of his 2008 bundlers. Many of them, it turns out, won plum jobs in his administration. Obama campaigned on what he called ‘the most sweeping ethics reform in history’ and has frequently criticized the role of money in politics. That hasn’t stopped him from offering government jobs to some of his biggest bundlers, volunteer fundraisers who gather political contributions from other rich donors.”

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“Tribes rip Abramoff, ethics watchdogs”

The Hill:“Native American tribes are questioning the ethics of government watchdog groups that have partnered with Jack Abramoff since his release from prison. The criticism has turned the tables on watchdog officials, who are usually the ones pointing the finger on ethics controversies.”

I trace Abramoff’s attempt at rehabilitation in this forthcoming book review.

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“For House leaders, no clear rules for policing their own”

Ben Pershing on lack of House ethics enforcement.

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“Anti-Corruption Provisions Should be Restored to STOCK Act in Conference, Legal Center, Reformers Tell Majority Leader Reid”

See this press release.

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“Fixing Washington”

I have posted this draft book review essay on SSRN.  Here is the abstract:

This Essay reviews recent books about lobbying, campaign finance, and the problems of Washington by Lawrence Lessig and Jack Abramoff. Together, Lessig and Abramoff offer a convincing critique of how lobbying skews public policy and can harm the United States. The books demonstrate that lobbyist fixers can thwart the public interest, especially by blocking or altering legislation on issues which lack salience with the general public but which mean a great deal for the individuals players with the most at stake. Although it is tempting to focus on Abramoff’s admittedly illegal behavior, both books illustrate that much of the problem of money, politics, and lobbying stems from what is legal, not illegal. Indeed, although both Abramoff and Lessig present the problem as one of “corruption,” the real concern is less with exchanges of dollars for political favors and more with the decline in national economic welfare which occurs thanks to lobbyist-facilitated rent-seeking. Lessig also appears concerned with political inequality, although he distances himself from egalitarian arguments for reform. Defining the problem as one other than corruption, however, threatens reform’s constitutionality in a post-Citizens United world.
While the critiques of the Washington status quo are well made, both books offer incomplete reform agendas and an unconvincing path to enacting reform. Much of what is wrong with Washington has nothing to do with money in politics. Instead partisan gridlock and the divergence of legislative action from the apparent public interest emerges from the highly partisan and ideological nature of Congress and the presidency; the breakdown of civility and an era of “gotcha” politics; and structural impediments to enacting legislation, such as the Senate filibuster and changes in the House committee structure. The current trend of toxic politics and inadequate institutions to channel such politics arose not from an outsized influence of money on politics but from a variety of sources, including the party realignment in the South following the civil rights movement and the resurgence of partisan media (and now social media).
Even if the authors’ complete reform agendas were enacted and the amount of rent-seeking legislation procured by lobbying significantly curbed, it is far from clear that Washington would be “fixed.” Lessig, for example, claims that money has prevented both left and right from getting their agendas passed. It is hard to see that money has been the primary stumbling block to enacting simultaneously competing agendas. When it comes to the high salience, big legislative questions such as immigration reform, the primary barriers to reform are partisanship and vetogates, not the role of money. In the rare circumstance when major legislative reform does pass, as in the case of health care reform, the passage of legislation further fuels partisan recriminations.
Nor is it clear that the kinds of fundamental campaign finance reforms which Lessig advocates stand any realistic chance of being enacted under current political conditions. Lessig acknowledges the hard road ahead, but even so he still seems overly optimistic. For example he suggests there is a 10 percent chance that a call for a constitutional convention to amend the Constitution to allow new campaign finance and lobbying reform could succeed. But the same partisan, sclerotic politics which would make reform of money in politics only a partial solution to broken Washington would also make the chances of calling a constitutional convention to enact a reform agenda much slimmer than one-in-ten. Fixing Washington may have to await widespread scandal or a societal shift which alleviates the partisanship currently gripping national politics.

This is an early draft, just going out to law reviews.  Comments welcome!

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Powerful Amicus Briefs Supporting Cert. in Siegelman Case

In early February I flagged a cert. petition involving Former Alabama Governor Don Siegelman, saying I suspected and hoped the petition gets a lot of attention, because it raises important and recurring issues which have never been fully resolved about the relationship between the laws of bribery (and related offenses) and campaign contributions.

It has indeed gotten some heavyweight support, which not only increase the chances the Court would take they case. The briefs supporting cert. also illustrate why the Court should take the case.  From my work in the Carrigan case (to be argued on remand in the Nevada Supreme Court on Monday), and from watching the John Edwards case, I have come to see the danger of prosecutorial discretion in the criminal election law area where vague statutes, First Amendment interests, and sometimes political calculation figure into prosecutorial decisions.

First I would highlight the amicus brief of Rick Pildes and Sam Issacharoff, which Rick mentioned briefly yesterday. The brief draws heavily on the work of Dan Lowenstein, whose careful, comprehensive and detailed treatment of the issue highlights the desperate need for Supreme Court clarity in this area.  Rick and Sam’s brief shows how the dangers which Lowenstein highlighted have come to pass in the honest services area and related prosecutions, despite the Court’s recent Skilling opinion.

The other brief I would highlight is this brief from 100 former state attorneys general of both parties.  A snippet:

Having served as chief legal officers and/or law enforcement officers, we do not urge any action that might remove a valuable law enforcement tool in the battle to rid government of corruption. At the same time, however, clear legal standards are required to protect individuals from politically-motivated prosecutions based on conduct that is ingrained in our campaign finance system and has always been considered legal. The conviction of public officials under a charge of “honest services”mail fraud, conspiracy to commit that offense, or bribery, based on an allegedly “corrupt” agreement without the showing of an “explicit” quid pro quo linkage between the official action and the campaign contribution, will have an impermissible chilling effect on how political campaigns are run throughout the country. This Court should take action now to clarify the standards under which this critical aspect of the democratic process may be subject to the criminal laws.

With this kind of support, I would be shocked, actually, if the Court turns down this case.

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What’s Wrong With Washington, Continued

If Senator Snowe moves to K street, she could make $1 million per year as a lobbyist.  As I explain, the revolving door is one of the most dangerous aspects of Washington lobbying.

I’ll have more to say about lobbying, corruption, and the revolving door soon, when I post a draft of my book review of Larry Lessig’s and Jack Abramoff‘s books.

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STOCK Act Will Pass, Do Nothing

So says Politico.

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“CFTC Adopts Pay-to-Play Rule for Swap Dealers”

Allen and Overy client advisory.

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“Sheriff Baca admits violating campaign endorsement law”

LA Times: “Los Angeles County Sheriff Lee Baca admitted Friday that he broke state law by making a political endorsement while in uniform. Baca’s acknowledgment of the violation came after inquiries from The Times about a campaign video on the website for Dist. Atty. hopeful Carmen Trutanich that shows Baca wearing his badge and his department-issued sheriff’s uniform.”

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Quote of the Day

“It’s our system of checks and balances.  They deposit checks—it increases their balances.”

Jon Stewart, on Congress’s insider trading controversy and the STOCK Act

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Parallels Between Bachus Investigation and Credit Mobilier Scandal

WaPo explores.

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“Rep. Bachus faces insider-trading investigation”

AP: “The Office of Congressional Ethics is investigating the chairman of the House Financial Services Committee over possible violations of insider-trading laws, according to individuals familiar with the case. Rep. Spencer Bachus (R-Ala.), who holds one of the most influential positions in the House, has been a frequent trader on Capitol Hill, buying stock options while overseeing the nation’s banking and financial services industries.”

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Kenneth Gross Updates Where We Are on the STOCK Act Bills

Here.  UPDATE: Sunlight redlines the House and Senate versions of the bill.

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“STOCK Act’s Pace Worries Experts”

Roll Call: “Differences between the Senate and House versions of legislation banning insider trading by Members and staff have experts worried about what provisions will make the final cut as the two chambers rush to pass the bill and claim the ethical high ground.”

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“Capitol Assets: Some legislators send millions to groups connected to their relatives”

The latest installment in WaPo‘s must-read series on members of Congress and self-interest.

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“Senate Passage of STOCK Act Marks Important, But Initial, Step”

Meredith McGehee blogs.

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“Increasing number of ethics probes rattles House Republicans”

The Hill: “An increasing number of House Republicans are getting wrapped up in allegations of ethics violations ahead of the November elections, handing Democrats easy campaign fodder and putting the GOP in an unexpected bind.”

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“Legal Center Urges Senate to Pass STOCK Act Banning Congressional Insider Trading”

See this press release.

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“Sen. Nelson could get $1M from K Street”

The Hill reports.

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“Gableman voted with law firm after receiving free legal services; He cast key vote in collective bargaining case”

The hits just keep on coming at the Wisconsin Supreme Court.

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“Newt Gingrich tries to re-write history of his ethics scandal (Fact Checker biography)”

WaPo‘s “The Fact Checker” reports.

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“Justice Gableman not charged legal fees in ethics case”

Milwaukee Journal-Sentinel: “State Supreme Court Justice Michael Gableman received free legal service worth thousands of dollars from one of Wisconsin’s largest law firms as it defended him against an ethics charge, according to a letter released Thursday by the firm.”

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“Institute defends challenge to public employees’ right to serve in Legislature”

News from Nevada.

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“Gingrich Already Naming His Cabinet — But Is that Legal?”

WSJ‘s Law Blog reports.

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“Blagojevich Sentenced to 14 Years in Prison”

NYT reports.

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“Revisiting Newt Gingrich’s 1997 Ethics Investigation”

NPR strolls down memory lane.

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“Obama Administration White House blurs line with campaign”

Must-read Josh Gerstein post: “It’s illegal in some places to eat peanuts in church. And in some states it’s illegal to sell beer on Sundays. But could it really be illegal to talk politics in the White House press briefing room?”

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“Congress Discusses Enacting Stricter Insider-Trading Laws”

Bloomberg reports.

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“Isn’t That Already Illegal? Congressional Insider Trading”

Lisa Gilbert has written this column for the Huffington Post.

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“Judiciary Committee Urged to Pass Bill Tomorrow to Help Prosecutors Battle Public Corruption”

The Campaign Legal Center has issued this press release.

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How Not to Campaign for Judge in Indiana

The following election fundraiser ad by a judge (who is also the spouse of the Marion County Democratic party chair) earned an admonition from the Indiana Commission on Judicial Nominations:

Around August 15, 2011, invitations to a fundraiser to support the 2012 re-election campaign of Judge Pierson-Treacy were mailed to over six-hundred people in the Indianapolis area. The invitations notified potential donors that a fundraiser was to be held on September 15, 2011 at the office of a local attorney who is a co-chair of Judge Pierson-Treacy’s campaign committee. In the text of the invitation, under a heading marked “Suggested Contributions,” was a list of recommended monetary amounts with legal monikers next to them. The suggested contributions were written as:

$150 “Sustained”
$250 “Affirmed”
$500 “So Ordered”
$1000 “Favorable Ruling”

Recipients of the invitations then were directed to make checks payable to the “Re-Elect Judge Becky Committee” and to send the checks to a particular address.

 

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WaPo Editorializes on Fixing the Hatch Act

Here.

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State Farm Judicial Recusal Case Still Dead

Today I linked to an editorial in the Chicago Tribune in which the newspaper discussed a pending motion for recusal in a controversial Illinois Supreme Court case involving State Farm.  The only problem, as a reader just alerted me, is that the Illinois Supreme Court dismissed the motion to reopen the case last Thursday. See also this story.

I suppose this could be taken up to the U.S. Supreme Court.

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“South Jersey congressman spent $9,000 from campaign funds on donor’s wedding”

NJ.com:

A three-night stay at a five-star hotel in Edinburgh, Scotland, for a wedding: $7,725.

A set of china from Bloomingdale’s for the bride and groom: $463.

Cab rides, meals, tips and airline baggage fees: $953.

Expensing it to your campaign account: Priceless.

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