To Big to Prosecute is A Myth

Attorney General Eric Holder made news earlier this year when he told the Senate Judiciary Committee that the big banks are too big too to prosecute.

I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the national economy, perhaps even the world economy, and I think that is a function of the fact that some of these institutions have become too large.

The recent House financial services committee hearing revealed that the Department of Justice based this assumption on no empirical evidence.

The U.S. Department of Justice appears to have neither conducted nor received any analyses that would show whether criminal charges against large financial institutions would harm the economy, potentially undermining a key DOJ argument for why the world’s biggest banks have escaped indictment.

Testimony by a top Justice official and fresh documents made public on Wednesday during a House financial services committee hearing revealed that financial regulators and the Treasury Department did not provide warnings to prosecutors weighing the economic consequences or fallout in the financial system of criminal indictments against large financial groups. DOJ also could find no records that would substantiate its previous claims that it weighed potentially negative economic or financial impacts when considering criminal charges, said Mythili Raman, acting assistant attorney general for the criminal division.

This is video Sen. Elizabeth Warren during her first Banking Committee hearing. Warren questioned financial regulators on when was the last time they took a major bank to trial. The answer they all the regulators gave is none. This was prior to the recent Senate Judiciary Committee hearing. Warren serves on the

The Obama administration has no interest in prosecuting major financial institutions. The Senate Judiciary Committee reveals that the Justice Department never had studies conducted on what the economic impact would be if major financial institutions were prosecuted. Holder never had the studies done because he never wanted to run the risk of an answer that would be unacceptable to the White House.

Rahm Emanuel Admits to Killing Gun Control

As President Barack Obama's Chief of Staff, Rahm Emanuel stopped Attorney General Eric Holder's attempt to gun control. Emanuel admitted this to Politico.

Chicago Mayor Rahm Emanuel on Tuesday didn’t deny telling the Justice Department that Attorney General Eric Holder needed to “shut the f—k up” about gun control in 2009.

Emanuel, who was then White House chief of staff, issued the warning to Justice in February after Holder said at a press conference the administration wanted to reinstate the assault weapon ban. The incident is recounted in Daniel Klaidman’s book, “Kill or Capture.”

“Let me say this,” Emanuel, whose use of profanity is legendary, said on CBS’s “This Morning” when asked about the report. “President [Barack] Obama always stood for getting this done, No. 1. No. 2, I passed the Brady Bill with the assault weapon ban. It is very, very important that we do that. The fact is, in 2009 the president and the entire government was very clear to say this, as the attorney general knows, in getting all the president’s legislation done and working with Congress to do that.”

The reality is that Obama was so uncommitted to gun control that the Brady Campaign gave him an F grade.

Strategic Allied Consulting Voter Fraud

Congressman Bobby Scott has asked Attorney General Eric Holder to investigate Strategic Allied Consulting. The Republican voter registration firm is under investigation in Florida and Virginia. Holder is not known as a fearless lawman. I have doubts of Scott's letter carrying much weight.

Attorney General Holder, We are writing today to urge the Department of Justice to conduct a multi-state investigation to determine if a pattern of voting registration irregularities related to Strategic Allied Consulting are connected and constitute a broader conspiracy of voter registration fraud. Our inquiry is prompted by the recent media reports that an employee of Pinpoint, a subsidiary of Strategic Allied Consulting, was charged in Rockingham County, Virginia with 13 counts of destruction of voter registration applications, disclosure of voter registration information, and obstruction of justice. We note that in addition to its Rockingham County operation, Pinpoint is reportedly operating in at least five other jurisdictions in Virginia: Chesapeake City, Fairfax County, Prince William County, Loudoun County, and Virginia Beach. We also note that prior to drawing a paycheck from Pinpoint, the charged individual was under the direct employ of Strategic Allied Consulting. As you are aware, Strategic Allied Consulting is currently under investigation by the Florida Department of Law Enforcement and faces more than 200 allegations of voter registration fraud including registration of the deceased. Allegations of voter registration fraud by Strategic Allied Consulting also have been raised in Arizona and Colorado. The number of allegations in a multitude of locations would seem to suggest something more than the isolated acts of "a few bad apples." While the Republican National Committee and five state committees have severed their relationship with Strategic Allied Consulting, we are concerned that the alleged illegal practices may be continuing under its subsidiary Pinpoint. We respectfully request the Justice Department to assume the responsibility and conduct its own investigation, given the mounting evidence that one company may have been engaged in a similar multi-state effort to commit voter registration fraud. We believe the circumstances warrant a broader federal review. We look forward to your favorable response. Sincerely, James P. Moran Gerry Connolly

Robert C. Scott

Nine counties in Florida reported receiving fake voter registration forms from Strategic Allied Consulting.

Strategic Allied Consultants claims the issue stemmed from one employee, who was fired on Sept. 15, but county election officials claim the fraud was more widespread, stretching across counties that are more than 500 miles apart.

"I don't subscribe to the theory that this was the action of one single individual who was able to get into more than half a dozen counties from one end of Florida to the other," said Paul Lux, the Okaloosa County Election Supervisor.

Lux said that out of 2,200 forms that Strategic Allied workers submitted, he and his staff have found about three dozen that appear to be faked. Some have signatures that do not match the names; others are only partially completed and a handful of forms have addresses that do not exist, he said.

"The problem is when you pay someone to do something like this, it kind of lends itself to what do you do to get paid?" Lux said.

Strategic Allied Consulting is run by Nathan Sproul. His firm was hired by the Republican Party of Florida. Unsurprisingly, Gov. Rick Scott was been less than vocal in calling out Sproul and SAC.

Pressed by reporters on how these developing concerns might damage the credibility of Florida Republicans, who have promoted repeated voter purge efforts as supposed proof of their commitment to the integrity of elections, Scott sidestepped.

"My focus is on making sure that I tell people all the time, that in our state, I want people to go register to vote," Scott said, according to the Herald. "They need to go talk to the candidates. When you’re running for office, when you’re in your community or in your state, vet the candidates, get involved, pick your candidates, support them, and then go out the vote. That’s where my focus is."

Scott has signed controversial voting laws. Scott has limited the number of early voting days. Scott did this all in the name of stopping voter fraud. When a Republican voter regristration firm is cited for voter fraud Scott's lips are sealed.

Will Justice Department Challenge Florida Election Law

The Florida Congressional delegation asked the Justice Department to investigate the new election law signed by Gov. Rick Scott.

Florida Democrats Seek Investigation of Radical Elections Overhaul

Deutch Authors Letter to Department of Justice

(Boca Raton, FL) Today, the Democratic congressional delegation of Florida united to express their serious concerns over H.B. 1355, the radical and far-reaching overhaul of Floridians’ voting rights currently awaiting Governor Rick Scott’s signature. In a letter to the U.S. Department of Justice, U.S. Representatives Ted Deutch (FL-19), Alcee L. Hastings (FL-23), Kathy Castor (FL-11), Frederica Wilson (FL-17), Wasserman Schultz (FL-20), and U.S. Senator Bill Nelson (D-FL) request an evaluation of the bill to determine possible violations of the Voting Rights Act. The Department of Justice has the authority to review state law and block implementation if provisions are determined to disenfranchise voters.

“The role of government should never be to curtail the registration of newly eligible voters or hinder Americans from exercising the most fundamental democratic right afforded by our Constitution,” the delegation writes. “We are confident that any honest examination of this legislation will determine that it is in clear violation of the Voting Rights Act.”

H.B. 1355 contains unprecedented restrictions of the voting rights of Floridians. It all but eradicates voter registration drives conducted by volunteer-based, third party groups like the League of Women Voters, the Boy Scouts of America, and the NAACP. The legislation will also force dozens of legitimate voters to cast provisional ballots by eliminating a decades-old law enabling Floridians with proper identification to update their names and addresses at the polls due to a military family move, marriage, or divorce. H.B. 1355 also slashes the early voting period from 14 days to 6, posing a special challenge to working Floridians and elderly voters who cannot wait on the long lines of Election Day. Additionally, the bill places new restrictions on the validity of absentee ballots, determining them illegal if signatures do not closely enough match those on older state documents.

Read more »

The Gas Commission

Three months from now we won't hear anything about the Gas Commission investigation. Anyone really believes the Justice Department will prosecute an energy company. There hasn't been a major SEC investigation of any of the major financial institutions involved under President Barack Obama's watch. These companies needed bailout money because they hid their losses through off-the-books accounting practices. The New York Federal Reserve withheld announcement of a AIG credit swap exchange with.

"Do you think it might be feasible to hold off on the Maiden Lane III 8K and press release until next week?" Brett Phillips, a New York Fed lawyer wrote in an e-mail [to AIG counsel]. "The thinking is that the Maiden Lane III closing will be a less transparent event, and it might be better to narrow the gap between AIG's announcement and the New York Fed's publication of term sheet summaries."

Former New York Reserve chairman Tim Geithner was paying AIG 100 cent on the dollar of taxpayer money. No interest was charged. Geithner then went on to become Treasury Secretary.

I have no faith in the Obama administration cracking down on energy companies.

Update: another reason I doubt the White House will crack down is because it purposely sent out bogus numbers on the BP spill.

On 4 August, Jane Lubchenco, the NOAA administrator, demanded that the White House issue a correction after it claimed the "vast majority" of BP oil was gone from the Gulf.

A few days earlier, Lisa Jackson, the head of the EPA, and her deputy, Bob Perciasepe, had also objected to the White House estimates of the amount of oil dispersed in the gulf. "these calculations are extremely rough estimates yet when they are put into the press, which we want to happen, they will take a life of their own," Perciasepe wrote.

The financial crisis and Gulf spill gave the White House the opportunity to do the right thing. The White House felt protecting corporate interests is more important than the environment or taxpayers. The Obama administration bleeds neoliberal. People should stop kidding themselves that Team Obama is most concerned about the people.

Newt Gingrich Talks Impeachment of Obama

"Congress has every responsibility to demand President Obama live up to his constitutional obligations, but impeachment is clearly not an appropriate action."

Newt Gingrich, on Obama's order to the Justice Department not fight to defend the Defense of Marriage Act.

Newt really wants attention. government attorneys on the local, state and federal levels make decisions all the time on not taking cases. If Gingrich was honest about his statement then he would wholeheartedly support Attorney General Eric Holder investigating the Bush administration over torture.

Yet, we hear nothing from Gingrich on waterboarding. Apparently, Filegate was a bigger constitutional crisis then torture. Newt isn't sure.

VAN SUSTEREN: But you said a minute ago that it was torture, waterboarding…

GINGRICH: No, I said it’s not something we should do.

VAN SUSTEREN: OK. Is it torture or not?

GINGRICH: I — I — I think it’s — I can’t tell you.

VAN SUSTEREN: Does it violate the Geneva Convention?

GINGRICH: I honestly don’t know.

Newt on Filegate.

"When you have an agency (the F.B.I.) that turns 900 personnel files over to people like [ex-White House security chief) Craig Livingstone and doesn't protect those files ... it's very hard to justify giving that agency more power," Gingrich said on Fox News Sunday.

President Obama made it clear that the Defense of Marriage Act is still law and will be enforced. What Obama won't do is argue the legality of DOMA. Obama finally came to the conclusion that DOMA violates the equal protection clause of the 14 amendment.

These days Gingrich is talking about a government shutdown and impeachment of a sitting president. I don't remember those brilliant ideas working out well for former Speaker Gingrich.

Who Is Timothy Kuebler?

Florida Governor-elect Rick Scott named his economic transition team. An interesting name on the list is Timothy Kuebler, the Senior Vice President, Titan Florida Cement and Aggregate. Before Kuebler was pouring foundations in Florida, he was part of the management team of Builder's Concrete and Supply Co. Kuebler's profile on the Titan Florida Cement web site confirms this.

Builder's Concrete and Supply Co. was one of five concrete companies in Indiana that was caught in a price fixing scheme. The federal government prosecuted the executives of these companies.

1. For purposes of this Plea Agreement, the "Relevant Period" is that period from in or about July, 2000 and continuing until May 25, 2004. During the Relevant Period, the defendant was a corporation organized and existing under the laws of Indiana with its principal place of business in Fishers, Indiana. During the Relevant Period, the defendant was a producer of ready mixed concrete and was engaged in the sale of ready mixed concrete in the Indianapolis, Indiana metropolitan area and elsewhere. Ready mixed concrete is a product whose ingredients include cement, aggregate (sand and gravel), water, and, at times, other additives. Ready mixed concrete is made on demand and, if necessary, is shipped to work sites by concrete mixer trucks.

2. During the Relevant Period, the defendant, through some of its officers and employees, including high-ranking personnel of the defendant, participated in a conspiracy with other persons and entities engaged in the production and sale of ready mixed concrete, the primary purpose of which was to fix the price of ready mixed concrete sold in the Indianapolis, Indiana metropolitan area. In furtherance of the conspiracy, the defendant, through its officers and employees, engaged in conversations and attended meetings with representatives of other ready mixed concrete producers in the Indianapolis, Indiana metropolitan area. During those meetings and conversations, the defendant and its co-conspirators reached agreements to fix the price at which ready mixed concrete was to be sold in the Indianapolis, Indiana metropolitan area.

3. During the course of the conspiracy, the defendant's President on at least two occasions hosted meetings among the conspirators at which prices, discounts, and conditions of sale for the metropolitan Indianapolis, Indiana area were discussed and agreed upon by the defendant and its coconspirators. Those meetings were held in a horse barn located adjacent to the defendant's President's home on property he owns in Fishers, Indiana. The defendant's President also made numerous telephone calls and participated in several meetings among smaller numbers of individuals to ensure the compliance of his coconspirators with the conspiracy agreements. In addition to the defendant and its President, more than five individuals associated with the defendant's corporate coconspirators participated in the conspiracy on behalf of the companies they owned or by which they were employed.

4. During the Relevant Period, the corporate conspirators purchased substantial quantities of equipment and supplies from outside Indiana which were necessary to the production and distribution of ready mixed concrete. During the Relevant Period, the business activities of the corporate conspirators who produced and sold ready mixed concrete affected by this conspiracy were within the flow of, or substantially affected, interstate trade and commerce. Below are the facts of the case listed in the Justice Department plea agreement.

5. Acts in furtherance of this conspiracy, including the conspiratorial meetings and conversations described above, were carried out within the Southern District of Indiana. In addition, sales of ready mixed concrete affected by this conspiracy were made by one or more of the conspirators to customers within the Southern District of Indiana.

Kuebler is named in the plea agreement.

13. The defendant will cooperate fully and truthfully with the United States in the prosecution of this case, the conduct of the current federal investigation of violations of federal antitrust and related criminal laws involving the manufacture and sale of ready mixed concrete, any other federal investigation resulting therefrom, and any litigation or other proceedings arising or resulting from any such investigation to which the United States is a party ("Federal Proceeding"). The ongoing, full, and truthful cooperation of the defendant shall include, but not be limited to:

1. producing all non-privileged documents, including claimed personal documents, and other materials, wherever located, in the possession, custody, or control of the defendant, requested by attorneys and agents of the United States;

2. using its best efforts to secure the ongoing, full and truthful cooperation, as defined in paragraph 14 of this Plea Agreement, of the current and former directors, officers, and employees of the defendant as may be requested by the United States, but excluding Gus B. Nuckols III, a/k/a Butch Nuckols, John Blatzheim, and Timothy Kuebler, including making these persons available, at the defendant's expense, for interviews and the provision of testimony in grand jury, trial and other judicial proceedings in connection with any Federal Proceeding as described above.

Builder's Concrete and Supply Co was sentenced to pay a $4 million fine. I am shocked that Kuebler didn't mention that on his Titan Florida Cement bio. That must have been an oversight.

The Justice Department used the information granted in the plea agreements to build their prosecution against Chris Beaver, operations manager of Ma-Ri-Al Corp. Sales Manager Ricky J. Beaver of Ma-Ri-Al Corp was also indicted. A separate imdicted was issued to John J. Blatzheim, Executive Vice-President of Builder’s Concrete and Supply. These three were the major players in concrete price fixing. They held a meeting with other concrete-mixing companies in a barn to create the price monopoly. This is where Timothy Kuebler once again enters the picture. Nothing is more exciting than cloak and dagger concrete price-fixing meetings in a barn.

The first meeting in Nuckols’ horse barn took place on July 12, 2000. Tr. II-142. Nuckols explained that he invited his competitors to the horse barn because, “knowing it wasn’t the right thing to do, we didn’t want to be out in public doing this.” Tr. I-46. See also Tr. II-142 (Haehl) (“[The horse barn] was private and, you know, what we were
doing there was not legal.”).

The participants were Scott Hughey, President of Carmel Concrete, Tr. II-289; Richard Haehl, Vice-President of Shelby Materials, Tr. II-122; his brother Philip Haehl; John Huggins from Irving Materials; and Nuckols and Tim Kuebler from Builder’s Supply. Tr. I- 66-67; II-143. Nuckols could not recall with certainty whether anyone from Ma-Ri-Al attended, but both Richard Haehl and Scott Hughey testified that Ricky Beaver represented Ma-Ri-Al. Tr. II-143 (Haehl); II- 304 (Hughey).

Chris Beaver was convicted and went to prison.

Rick Scott has a man who admitted in a plea bargain agreement being involved in a federal crime advising him on economic policy. Scott wasn't kidding when he said Florida is open for business.

Wingnut of the Day: Joe Arpaio

The New York Times has called Joe Arpaio "America's worst Sheiff." Arpaio certainly qualifies as the strangest after he tweeted that he gave Sarah Palin pink undies. The Justice Department is suing Arpaio for violating civil rights of Hispanics. Arpaio has publicly stated he will not cooperate with the Justice Department investigation. U.S. District Judge Neil Wake ruled that Arpaio's Maricopa County, Arizona jail failed to meet the medical and mental health of the inmates. Arpaio was serving spoiled food to the inmates. Judge Wake ruled the conditions of the jail were unconstitutional.

Arpaio just gets weird by giving Sarah Palin pink undies. Arpaio announced this on Twitter. These is the same underwear Arpaio makes his male inmates wear in order to humiliate them.

Proper etiquette would dictate not given Palin underwear. Arpaio doesn't seem to respect women, the constitution or humane treatment of others. What amazes me is Palin accepted this gift from this clown. If Palin was a real feminist she would have told Arpaio she could not accept his bizarre gift.

Rick Scott's 7 Year Plan

Rick Scott sent out a campaign mailer detailing his plan to balance the budget, reduce spending and create 700,000 jobs in 7 years. Scott plans to this by lowering taxes, turning downing stimulus money and keeping spending levels down to 2004 levels. There are several problems with Scott's plan. The state budget has been cut to the bone and is still in a deficit. Scott cannot get the budget balanced and cut taxes. Inflation has made it impossible to keep Florida's budget at 2004 levels. But Scott's campaign mailer has pretty pictures to make up for the fact he doesn't explain how he will pay to run the state.

Scott doesn't explain how Florida would save $77 million to drug test people filing unemployment claims. Doesn't the money spent drug testing every person on unemployment outweigh any savings made from taking someone testing positive of drugs off unemployment? Where did Scott come up with $77 million? Did economic advisor Donna Arduin pull out her Laffer Curve to come to that number? A wild claim by Scott is he can reduce operational cost of the state government by $500 million. A have no explanation for how Scott will do this since he doesn't provide one.

Scott's is most known for his former company Columbia/HCA being involved in the largest Medicare fraud case in United States history. From a Justice Department press release:

HCA Inc. (formerly known as Columbia/HCA and HCA - The Healthcare Company) has agreed to pay the United States $631 million in civil penalties and damages arising from false claims the government alleged it submitted to Medicare and other federal health programs, the Justice Department announced today.

This settlement marks the conclusion of the most comprehensive health care fraud investigation ever undertaken by the Justice Department, working with the Departments of Health and Human Services and Defense, the Office of Personnel Management and the states. The settlement announced today resolves HCA's civil liability for false claims resulting from a variety of allegedly unlawful practices, including cost report fraud and the payment of kickbacks to physicians.

Previously, on December 14, 2000, HCA subsidiaries pled guilty to substantial criminal conduct and paid more than $840 million in criminal fines, civil restitution and penalties. Combined with today's separate administrative settlement with the Centers for Medicare & Medicaid Services (CMS), under which HCA will pay an additional $250 million to resolve overpayment claims arising from certain of its cost reporting practices, the government will have recovered $1.7 billion from HCA, by far the largest recovery ever reached by the government in a health care fraud investigation.

Scott's idea of reforming Medicaid would result in medical costs increasing.

Reforming health care for Medicaid resipients (through a waiver), and state employees to consumer directed care will lower the costof health care, increase choice of health plans, and save taxpayers $1.8 billion.

What Scott doesn't make clear is he talking about putting poor people on private insurance plans or not having Medicaid cover the cost of medical procedures. Never options make much sense. Scott's claim that Medicaid is more expensive than private health care coverage is factually untrue. The Kaiser Institute has the numbers.

Government programs, such as Medicare and Medicaid, account for a significant share of health care spending, but they have increased at a slower rate than private insurance. Medicare per capita spending has grown at a slightly lower rate, on average, than private health insurance spending, at about 6.8 vs. 7.1% annually respectively between 1998 and 2008. Medicaid expenditures, similarly, have grown at slower rate than private spending, though enrollment in the program has increased during the current economic recession, which may result in increased Medicaid spending figures soon.

Unemployment and the recession has forced more people on Medicaid rolls. The fact is Medicaid is cheaper per person than private health insurance. Where is Scott going to get the money to put poor people on private insurance plans during an economic downtown? Taking people off of Medicaid and letting them fend for themselves would likely result in lawsuits. Scott's $1.8 billion in savings is a fantasy.

Update: the Bill McCollum campaign sent out a press release saying that Rick Scott's plan was stolen from Bill McCollum. The McCollum camp then point out how much the plan sucks. The stupidity of the press release leaves me speechless.

“Today, Rick Scott told Florida voters he wanted to be Florida’s Chief Economic Development Officer – blatantly and unapologetically plagiarizing Bill McCollum’s comments from an April 15 announcement made alongside Steve Forbes. Apparently Rick Scott thinks spending more than $25 million on misleading TV ads can gloss over a detail-free, partially plagiarized announcement masquerading as an original economic plan.

“Bill McCollum has been running on a comprehensive job creation and economic agenda for months. He’s offered solutions to create hundreds of thousands of new jobs, grow our economy, improve the state’s transportation network, provide more choice and affordability in our health care system, provide water solutions for our future growth needs and create a world education system for Florida’s students.

“Rick Scott couldn’t even be bothered to put out one solid policy proposal in advance of Floridians beginning to vote for the state’s highest office by absentee ballot. Now he has put out a plan, where, when it doesn’t copy Bill McCollum’s, the ideas are unrealistic and misguided at best. Moreover, Rick Scott has now flip-flopped on property taxes."

Another Jeb Era Blunder

The Jeb Bush legacy of screwed up policies continues. The Bush administration illegal approved selling personal information from driver licences. The U.S. Justice Department sued in January and won a settlement of $2.5 million. The Justice Department and Florida reached a settlement of $1.5 million.

The Justice Department suit alleged that the DHSMV disclosed the records to companies between May 13, 2003 and at least Oct. 1, 2004. The federal government can impose daily fines of as much as $5,000 a day for such violations.

Four South Florida drivers in early 2009 filed a class-action suit against the state for releasing their information. The settlement terms gave all Florida drivers a $1 credit in their registration or renewal as long as they had a license, car registration or state-issued ID between June 1, 2000 and September 30, 2004.

The question is why did Bush and the Department of Highway Safety and Motor Vehicles sell this information?

The Cheney PR Campaign For Waterboarding

This is a jaw dropping exchange between Anderson Cooper and former White House Press Sec. Ari Fleischer.

COOPER: Ari, was President Bush lying when he said, we do not torture?

FLEISCHER: No, I don't think he was lying.

COOPER: Was he telling the truth?

FLEISCHER: Yes. I think that it depends, again, on things that none of us were privy to, that none of us saw, that none of us know.

COOPER: If what they did was -- was right and -- and correct and legal, why did they destroy the evidence? Why did they destroy the videotapes?

(CROSSTALK)

COOPER: They destroyed the videotapes of two people being tortured, water-boarded, more than 100 times.

FLEISCHER: I think that's a fair question. And I think the CIA destroys a lot of things. They -- they typically like to destroy as much things as they can. That's a matter of procedure at the CIA, not only on this, but on a host of...

(CROSSTALK)

COOPER: Porter Goss, I think, head of the CIA, specifically did not want those tapes destroyed. And, yet, they were.

FLEISCHER: Well, and that's why I said I think that's a fair question. I think it's a matter of CIA routine procedure to destroy a lot of things. And, sometimes, they go too far, get themselves in trouble for it.

People can draw their own conclusions on why the C.I.A. destroyed 92 videotapes. If a drug gang or mafia destroyed evidence prosecuters would use that information to charge the leaders of criminal conspiracy. The cover up is what got the Watergate Seven and Lewis "Scooter" Libby convicted. The destruction of the videotapes hurt the Bush administration.

I'm not sure the Bush people should publicly defend waterboarding and say President Barack Obama is endangering America. Obama didn't have the stomach to prosecute. Dick Cheney and other former Bush officials attacked Obama on on the cable talk shows. Moveon.org, Firedoglake and Daily Kos pressured Obama to prosecute. Obama slightly retracted his earlier position of no prosecution of Bush officials.

Cheney badly miscalculated against Obama. Cheney will lose if he fights Obama in the political arena. The same way Hillary Clinton and John McCain lost. George W. Bush had enough sense to maintain a low profile. Cheney is a Vice-President so unpopular that he was not invited to the Republican Nation Convention. Democrats maintain control of both houses of Congress. Cheney has no political collateral. His surrogates Ari Fleischer and Michael Hayden have less. The smart move for Cheney would have been to keep his mouth shut and work a backroom deal with the Justice Department. Cheney isn't that smart.

Obama can turn the heat on Bush administration officials involved with torture and take the economy on the front page. Republicans will play defense for a highly unpopular President and Vice-President. The GOP is tanking in the polls and fighting amongst the moderates and red meat conservatives. Prosecuting the John Yoo isn't going to hurt Obama's approval ratings. If Republicans want to run on waterboarding in 2010 and 2012 the Democrats will win. Guaranteed.

Side note: if Cheney wasn't part of the waterboarding policy then why he is acting so frantic.

BLITZER: And if necessary, would you authorize it again?

CHENEY: Well, I'm not in the chain of command, but if necessary, I would certainly recommend it again.

Blackwater Indictments

Two sources told CNN that 5 members of Blackwater will be indicted. The charges stem from the 2007 shotting that killed 17 Iraqi civilians.

Related: Justice Served to Blackwater

The Associated Press reports the Blackwater mercenaries involved in the killing of 17 Iraqi civilians could be charged as early as Monday. The Blackwater contractors face charges of manslaughter and assault. The strangest possible charge is prosecutors using the Anti-Drug Abuse Act. Under the ADA Act, any person committing a crime with a fully automatic weapon are sentenced to 30-year prison terms.

Update: I found the CNN article is online. The charges are sealed. The prosecutor may announce the charges Monday. The CNN Wire blog post reports a sixth Blackwater guards made plea bargain deals. Which is how I figured the prosecutor would have to make his case. There may be Iraqi eyewitnesses in court.

Proving murder will be hard. A manslaughter and weapons charge under the Anti-Drug Abuse Act is more likely.

Update: Five Blackwater guards have been told to surrender to the FBI. Two Blackwater guards are lokking at the most prison time. Dustin Heard and Paul Slough are alleged to be the most proactive paticipants in the shooting.

Justice Served to Blackwater

The Associated Press reports the Blackwater mercenaries involved in the killing of 17 Iraqi civilians could be charged as early as Monday. The Blackwater contractors face charges of manslaughter and assault. The strangest possible charge is prosecutors using the Anti-Drug Abuse Act. Under the ADA Act, any person committing a crime with a fully automatic weapon are sentenced to 30-year prison terms.

The State Department granted immunity to the Blackhawk personal involved; in exchange for their testimony. FBI agents told the Washington Post that any information from those testimonies is inadmissible. The Justice Department had to use other investigative methods. Forenic evidence and eyewitness reports from Iraq civilians. Another possibility is the DoJ got a member of Blackwater to come forward. I am looking forward to finding out how prosecutors were able to build their case.

I truly hope the AP story pans out. I never thought Blackwater would have to answer for these senseless killings. This gives me new faith in the justice system.

Eric Holder To Be Next Attorney General

Newsweek reports Eric Holder will be the next Attorney General.

Holder, who served as deputy attorney general during the Clinton administration, still has to undergo a formal “vetting” review by the Obama transition team before the selection is final and is publicly announced, said one of the sources, who asked not to be identified talking about the transition process. But in the discussions over the past few days, Obama offered Holder the job and he accepted, the source said. The announcement is not likely until after Obama announces his choices to lead the Treasury and State departments.

Holder, 57, has been on Obama’s “short list” for attorney general from the outset. A partner at the D.C. law firm of Covington & Burling, Holder served as co-chief (along with Caroline Kennedy) of Obama’s vice-presidential selection process. He also actively campaigned for Obama throughout the year and grew personally close to the president-elect. Holder has not returned a call seeking comment; a spokeswoman for the Obama transition team told Newsweek in an e-mail early Tuesday afternoon that no decision has been made.

The Obama transition has been privately asking Senators if they will vote for Holder. A serious obstacle is Holder's role in the pardoning of Marc Rich. The latter was indicted for owing $48 million in back taxes and illegal oil deals with Iran. Rich refused to return from Switzerland to face prosecution.

Two interesting side note: Rudolph Giuliani was the prosecuting U.S. Attorney. Lewis "Scooter" Libby was Rich's defense attorney.

Denise Rich, the former wife of Marc Rich, contributed to the Clinton Library and the Democratic Party. Bill Clinton pardoned Rich his final day in the White House.

The Justice Department was been damaged with the U.S. Attorneys scandal. Former Attorney General Alberto Gonzales wrecked morale within the Department of Justice. Obama has stated he wants to appoint Republicans to cabinet positions. Republican U.S. Attorney Patrick Fitzgerald is well-respected. His appointment would send a message that Obama wants to be a reformer and reach across the aisle. Fitzgerald's independent streak and investigation into Obama contributor Antoin Rezko probably makes his nomination improbable. Fitzgerald's appointment would prove Obama is serious about having a cabinet of rivals. Fitzgerald conviction of Libby for the Valerie Plame scandal, may cause a Republican filibuster. Fitzrerald would not be a lock for confirmation.

Holder sends the message that Obama wants a party loyalist in the Justice Department. Color me unimpressed.

Update: The Obama team is confident the Rich controversy won't stop Holder from being confirmed.

One person involved in the talks said the Obama team has received some assurances that, while the Rich pardon would certainly come up during hearings, the nomination likely wouldn't be held up. All spoke on condition of anonymity to describe private conversations.

The transition team must be confident they have the votes. It is hard to imagine Holder being nominated, with a GOP majority, in the Senate.

Update: Crooks and Liars has video of an MSNBC story on Holder.

Who Needs the Fourth Amendment

Senator Dianne Feinstein asked if the Fourth amendment applies to the military on domestic searches. The fact that Congress needs to ask the question is fucking scary. John Yoo and other past and present Bush administration officials viewed the Constitution as a minor hassle to their Orwellian-style of governing.

"This isn't a question of oversight," Feinstein said. "I'm just asking you, 'Is this memo in force that the Fourth Amendment does not apply?"

"The principle that the Fourth Amendment does not apply in wartime is not in force," Mukasey replied.

"That's not the principle I asked you about," Feinstein countered. The memo referred to domestic military operations, she said.

"There are no domestic military operations being carried out today," Mukasey replied.

"I'm asking you a question. That's not the answer."

"I'm unaware of any domestic military operations being carried out today," he repeated.

"You're not answering my question," she said.

KBR Admits to Taking Rape Kit

The Pentagon's Inspector General Claude Kicklighter will not investigate the Jamie Leigh Jones case. The reasoning is that the Justice Department is investigating the Jones' allegations she was rape Kellogg Brown and Root employees. Kicklighter's explanation defies logic. The Justice Department has decided long ago not to press charges against KBR.

The Pentagon can not press charges against KBR. Contractors are under State Department supervision. Congress made all State Department contractors excempt from military prosecution. The Bush administration could place contractors under Defense Department management. That would make KBR liable under military law. The administration has shown no desire to change contractor control.

Senator Bill Nelson told ABC News he is "not satisfied" Kicklighter's response.

The Inspector General will investigate the confusing matter of what happened to the rape kit.

In a separate letter, Kicklighter's office said that the State Department had said its security officials had Jones' rape kit in their possession at one point.

The State Department's Bureau of Diplomatic Security told Kicklighter "evidence in the rape kit was collected by a U.S. Army doctor and was later provided to [the Bureau of Diplomatic Security]," the IG's office wrote to Sen. Daniel Akaka, D-Alaska, who had asked about Jones' case.

An Army spokesman referred questions about the rape kit to the State Department, which declined to provide new information on the case.

Jones lawyer, Todd Kelly, has yet to examine the rape kit. Former KBR employee Jamie Armstrong told ABC News that an Army doctor gave the rape kit to Halliburton/KBR security personnel. Jones has been vocal about her mistreatment at the hands of Armstrong, when Jones was recovering from her sexual assault in the KBR crate. Armstrong and Jones can hardly be considered pals, which makes Armstrong's statement more damning.

The Inspector General will investigate why the rape kit was turned over to KBR/Halliburton security. Kicklighter is attempting to determine how many more rape kits for given to private contractor security teams. KBR has admitted they had the kit in their posession.

Officials for Houston-based KBR have said the kit was handed over to a company security coordinator and placed in a safe until investigators from the State Department's Bureau of Diplomatic Security — the department's law enforcement arm — arrived three hours later.

Jones testified that she spoke earlier this year with a special agent from the bureau, who was unaware of the rape kit's existence. Eventually, the agent found the kit, but the photographs and doctor's notes were missing, Jones said.

The kit was eventually handed over to the State Department. The kit was handed over to the Justice Department. The State Department did not request the DoJ to prosecute. Now the Justice Department is telling the media they are investigating the case. Even though they can't be bothered to respond to Senator Nelson on the progress of the investigation. The Defense and State Departments refuse to tell Nelson how rapes of female contractors have been reported in Iraq.

Jamie Leigh Jones Testifies

Proof that the Bush administration doesn't care about the allegations of rape and sexual harassment against Iraq contractor Kellogg Brown and Root, the Justice Department did not send a representitive to the House Judiciary Committee hearings.

"I'm embarrassed that the Department of Justice can't even come forward," said the chairman of the House Judiciary Committee John Conyers, D-Mich.

"This is an absolute disgrace," said Conyers. "The least we could do is have people from the Department of Justice and the Defense over here talking about how we're going to straighten out the system right away."

Jamie Leigh Jones testified in front of the committee and reports widespread abuse from KBR employees.

"The problem goes way beyond just me. Through the Jamie Leigh Foundation, numerous other people have contacted me who have been assaulted and raped, then retaliated against for reporting those attacks," Jones said.

Congressman Ted Poe testified before the committee. Poe testified that Jones is not the only victim.

"Since Jamie has gone public with her experience, my office has heard from 3 other women. Of course, my office will furnish the names of these women to the Judiciary Committee if needed."

The reason Halliburton is named in the lawsuit is because the company will not let Jones take the men who attacked her to court. Jones signed an arbitration agreement, Halliburton can not allow her case to be heard in a public court. Halliburton would rather be sued and face negative publicity than have the case go public.

Below is a video of Jones's opening statement.

Jamie Leigh Jones On 20/20 & CNN

Jones describes waking up after being gang raped.

"Then I don't remember anything at all after that. I woke up naked, I was bruised. And then when I sat on the toilet, that's when I realized my inner thighs were very bruised and I was bleeding pretty bad. And then I knew I had been raped."

The Justice Department told Jones's lawyer her case is closed because they dis not have jurisdiction.

CNN has a report and interview with Jones.

Tracy Barker tells Brian Ross she was locked up for three days for trying to call the KBR hotline. Barker endured constant sexual harassment. Her superior repeatly asjed her to have sex with him.

Barker accuses State Department official Ali Mokhtare of attempting to rape her in Iraq. The Justice Department refuses to investigate and Mokhtare is still employed with the State Separtment.

Related: Jamie Leigh Jones
John Conyers and Ted Poe Information Request On Jones Case
Pajamas Media Embarrasses Itself On Jamie Leigh Jones Story
Jamie Leigh Jones Update
Eyewitness Tells ABC News Rape Kit Given To KBR
Bill Utt In Damage Control Mode

jamie leigh jones, kbr, tracy barker, iraq,

John Conyers and Ted Poe Information Request On Jones Case

John Conyers and Ted Poe have requested the Justice Department give them information on status of the Jamie Leigh Jones case. Jones has gone through State Department channels for two years and has little idea of what (if any action) has been taken on her behave. The Justice Department refused to comment to ABC News about the case. That is hardly a confidence builder.

The Conyers and Poe letter:

December 11, 2007

The Honorable Michael Mukasey
United States Attorney General
U.S. Department of Justice
950 Pennsylvania Avenue, NW
Washington, DC 20530

Dear Mr. Attorney General:

We are writing to follow up on the letter sent yesterday by Representative Poe concerning the Department’s response to American Jamie Leigh Jones’ report that she was assaulted and raped by fellow employees of Halliburton/KBR in Baghdad, and that in the aftermath of this assault she was imprisoned under armed guard for over 24 hours without food or water.1

Ms. Jones further states that she was told she would be fired if she sought outside medical care and that the results of a medical examination documenting the alleged rape were given by U.S. Army personnel to KBR security and have now “disappeared.”

This report of criminal misconduct directed against a U.S. citizen at the hands of employees of an American-based corporation working in Iraq at the behest of the U.S. Government, as well as a possible cover-up and destruction of evidence, is deeply troubling.

It also raises broader concerns, which the Judiciary Committee has already been investigating, about the Department’s role in enforcing laws protecting Americans who are working in Iraq.

In addition to the general questions in yesterday’s letter, we ask that you provide answers to the following specific questions as soon as possible, and no later than Tuesday, December 18, 2007:

1. Based on the facts as reported by Ms. Jones, does the Department believe that it has jurisdiction to investigate and prosecute in this matter under the Military Extraterritorial Jurisdiction Act of 2000, 18 U.S.C. § 3261, or section 804 of the USA Patriot Act, 18 U.S.C. § 7(9)? Please explain.

2. Has the Department investigated Ms. Jones’ claims?

a) If not, why not?

b) If so, please describe the course and current status of the investigation and whether it includes the apparent destruction of evidence described above.

c) If so, what offices of the Department have participated in the investigation? Which Assistant Attorney General is responsible for this and other investigations of alleged crimes within the Department’s jurisdiction committed in Iraq?

d) If so, is the investigation limited to events alleged to have occurred in Iraq, or is the Department investigating events that may have occurred in countries other than Iraq, including the United States?

3. ABC reports a statement by KBR that “it was ‘instructed to cease its own investigation by U.S. government authorities ‘because they were assuming sole responsibility for the criminal investigations.”

a) Did the Department issue such an instruction to KBR?

b) If so, please describe the exact terms of the instruction and explain when, why, and by whom it was issued.

c) If not, do you have any information regarding whether any other component of the US government issued such an instruction? Which one?

d) If some other agency issued the instruction, what is the basis for an assertion that an agency of the US Government other than the Justice Department can have “sole responsibility” for all related criminal investigations? Do you agree that the Department should be involved from the outset of an investigation into a serious criminal matter such as this one?

If the State Department's handling of the Blackwater shooting is any indication, they will stonewall. Worse case scenario is the accused will be granted immunity for testimony. That will effectively destroy what little chance there is for procecution.

What is interesting is the rats are jumping ship. Halliburton is trying to pass off accountability on KBR.

Halliburton says it is improperly named in the matter and expects to be dismissed from the case. "It would be inappropriate for Halliburton to comment on the merits of a matter affecting only the interest of KBR," the oilfield services company said in a statement.

The State Department is passing the Jones case off to the Justice Department.

State Department spokesman Sean McCormack declined Tuesday to comment on specifics of the case, but he confirmed its Bureau of Diplomatic Security had responded to and investigated the incident. He said the results were turned over to the Justice Department.

The State Department freed Jones from imprisonment at the request of Rep. Poe. Jones details the State Department's bumbling handling on her diary.

February, 2007- I spoke with the state department and was told that my case had still not been presented to the AUSA for prosecution

March, 1, 2007- I contacted the state department and asked when my case would be presented to the AUSA- I was told my investigator was on vacation.

March 16,2007- I was told that my case was sent via FedEx to the AUSA in Florida . I was told that the AUSA was out but would review my case the week of 3/26

April, 25, 2005- I called and asked the state department what the status of my case was or who I could call that would know. I let them know that I was quite concerned since I hadn't heard back from anyone in over a month.

April 26, 2005- The state department told me there s no update. “It is with the AUSA and I will call today but it is my experience that this is the time we want to be patient as their decision is the final one.”

Conyers and Poe are right to question the Justice Department's actions. What needs to be taken into account is why the State Department didn't suspend the contractors involved in the alleged crime and immediately launch an inquiry. A rape case is harder to prove as time elapses. How are we to believe these diplomats can run a country if they can't handle one criminal investigation?

Jamie Leigh Jones

Jamie Leigh Jones told ABC News she was drugged and raped fellow Halliburton/KBR contractors. Jones told 20/20 she was locked in a crate by her assaulters and told not to file charges.

"It felt like prison," says Jones, who told her story to ABC News as part of an upcoming "20/20" investigation. "I was upset; I was curled up in a ball on the bed; I just could not believe what had happened."

Finally, Jones says, she convinced a sympathetic guard to loan her a cell phone so she could call her father in Texas.

"I said, 'Dad, I've been raped. I don't know what to do. I'm in this container, and I'm not able to leave,'" she said. Her father called their congressman, Rep. Ted Poe, R-Texas.

Imagine being a father and hearing your daughter say she has been raped and held captive. Jamie's situation is even harder to fathom. Being a woman in a foreign country at the mercy of brutal men.

Welcome to the heart of darkness.

Media reports, Congressman Ted Poe and Jones' father say that she was released because of State Department intravention.

"We contacted the State Department first," Poe told ABCNews.com, "and told them of the urgency of rescuing an American citizen" -- from her American employer.

Poe says his office contacted the State Department, which quickly dispatched agents from the U.S. Embassy in Baghdad to Jones' camp, where they rescued her from the container.

A Congressman confirmed the story. The Bush administration would be stupid to use the State Department to protect Halliburton and KBR. The State Department granted Blackwater mercenaries, involved in the killings of 17 Iraqi civilians, were granted immunity. The only logical reason for doing this is to destroy the FBI chances of prosecution. People should put pressure on the State Department to make sure that doesn't happen again.

The Army test showed Jones was raped. Why in God's name did Army doctors hand the rape kit to KBR? Any criminal investigation should be done by neutral outsiders. Jones is an American citizen protected under the laws of the United States. KBR is not law enforcement. The Army should have informed the FBI about a civilian rape.

The Justice Department had two years to make a case and did nothing. By all accounts: prosecution should have been a slam dunk. Instead the rape kit was given to the last people that should have posession of evidence and we have no idea if DoJ ever questioned State Deparetment officials. Exactly what does a contractor have to do to warrant the Bush administration's outrage?

The sad fact is the Bush administration put contracts under the State Department. Jones's assaulters are protected from prosecution thanks to the law designed by the State DEpartment.

Other bloggers posting on the story:

Majikthise - KBR employee says she was gang raped by coworkers and detained in Iraq

Matthew Yglesias - It's the Strategy

Jesus' General - The Republican Revolution delivers again

Update: Jamie's journel is at her foundation's website.

July 26, 2005 US/ July 27 Baghdad- I sent several e-mails to management to ask to be moved into a container because I was experiencing cat calls even when I was walking through the barrack to get to the restroom. I received the response that I would be fine if I “go to the spa." There was no spa in Greenzone, Baghdad . I started socializing with some Halliburton/ KBR employees, including approximately four or so firefighters. One of these men prepared me a drink and joked that there were no “rooffies” in it, and handed it to me. After having a couple sips, I passed out. I was drugged.

July 28, 2005 US/ July 29 Baghdad- I awoke the next morning in the barracks to find my naked body battered and bruised. I was still groggy from whatever had been put in my drink. I was bleeding from between my legs and my breast implants were severely disfigured. (I found out later that my attackers tore my pectoral muscles due to the brutality of the attack). One of the men who had raped me was brazen enough to be lying in the bottom bunk of my assigned bunk bed. After getting to the clinic and having a rape kit performed, and pictures taken of my bruising, I was locked in a container with no food, no way to call my parents, and was placed under armed guard by Halliburton. I did not have access to soap, toiletries, a tooth brush, or any of my belongings. I was unable to leave, therefore I was imprisoned. After some time, one of the guards allowed me to use his cell phone out of sympathy. I called my father back in Houston, who quickly contacted Congressman Ted Poe, who then initiated a Congressional Inquiry to get me out of Baghdad . At this point I was in a state of shock, severely traumatized, and was scared for my life.

Jones goes into detail about her frustration with the handling of her case. The incompetence is staggering. The doctor wasn't sure if he could find Jones's rape kit because he has "no idea which rape victum you are because so many young contractor girls were raped after drinking with the guys."

Update: More bloggers have covered the story.

Hullabaloo - The Pirates of Mesopotamia

Fiedoglake Halliburton Slips Just A Little Further Down The Barbarism Slope

Newshoggers - Texas Girl Alleges Gang Rape By Contractors In Iraq

Newshoggers links to conservative bloggers defending Halliburton and casting doubt on Jones's story with no facts to back up their assertions. The fact that a Republican Congressman believes Jones's story is not good enough. Exactly how does Halliburton equal conservatives' tough on crime values?

aTypical Joe - Gang-Rape Cover-Up in Iraq. By U.S., Halliburton/KBR

It looks like her only real recourse is a media-induced public outcry.

The federal govenrment is going to have to be shamed about this. Many Americans associate all Iraqis to terrorists. The Right can't say Jones is a member of Al-Qaeda that got what she deserved. The media will go into overdrive over a young attractive woman in distress. CNN couldn't be bothered to question the WMD intelligence. They are too busy covering Anna Nicole Smith, the Runaway Bride and any young attactive woman that will garner ratings. It is sad that it takes a rape of an American woman to get the media to question the State Department's handling of contractors.

Update: Shakesville has a post on the Jones story and links to other bloggers covering the story.

I left this comment at Shakesville.

The outrage has sparked so fast. What people need to do is lobby Congress to retroactively change the State Department contracting laws. Blackwater, Halliburton need to be held accountable.

Jamie's diary states that an Army doctor told her that there are so many rapes of American woman in Iraq that they would have a hard time finding the rape kit. They ultimately did. There is no telling how many Western and Iraqi women have been raped by military and contractor personal.

Change. the. contractor. law. now.

Update: John Conyers and Ted Poe Information Request On Jones Case

Pajamas Media Embarrasses Itself On Jamie Leigh Jones Story

Jamie Leigh Jones Update

Latest Update Jamie Leigh Jones & Arbitration Fairness