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SEC Now Seeks Power To Impose Greater Fines On Firms That Commit Fraud | Federal Judge Jed Rakoff dealt the Securities and Exchange Commission a serious reprimand when he rejected a $285 million settlement it reached with Citigroup, Inc. Smarting from the blow, the SEC is asking Congress to enact legislation that would give it “the power to impose much-larger penalties on financial firms and individuals that commit fraud.” In a letter to the Senate Banking Committee Monday, SEC Chairman Mary Schapiro asked for the power to impose fines up to nine times greater than the maximum currently allowed; to increase the maximum penalty to triple the net profit made from the fraud; and to triple penalties for repeat offenders who have been subject to SEC action or criminal conviction in the preceding five years. Had these rules been in place for the Citigroup case, “the maximum penalty would jump to $1.44 billion from $160 million.”

NEWS FLASH

Japanese Honda Employee Charged Under Alabama’s Immigration Law | A second foreign auto worker has been charged under HB 56, Alabama’s draconian immigration law. The Japanese Honda employee received a ticket at a routine roadblock police had set up, but he was not taken into custody like a German Mercedes executive arrested almost two weeks ago. The AP reports that the man had a valid Japanese passport and an international driver’s license with him when he was ticketed. Honda employs 4,000 people at a factory in Talledega County, Alabama, and last week, the company announced it will invest $300 million in the Alabama plant. Charges have been dropped against the Mercedes executive, but after his arrest, a Missouri newspaper suggested that Mercedes needed to move its investment to the “Show-Me State, not the ‘Show me your papers’ state.”

Republican Lawmakers Vote To Undermine Maine’s Landmark Public Financing System

A 15-year-old law providing for public financing in the state of Maine may soon be undermined by Republican state lawmakers.

In 1996, Maine voters passed the Clean Elections Act, making it the first state in the country to have public financing for state elections. Since that time, state legislative and gubernatorial candidates have used public financing, as the Maine Public Broadcasting Network writes , to “discourage the use of special interest money out of state and, allow candidates to spend more time running for office instead of fundraising.” The system has been so successful that in 2010, “more than 80 percent of legislators used Clean Election money,” according to the Bangor Daily News.

Here’s how it works. Once candidates collect a certain number of $5 qualifying checks, they receive a set amount of funds – just under $5,500 for contested state representative races – to run their campaign. If their opponent or an outside group spends additional money, the “clean elections candidate” receives matching funds as well.

Earlier this year, the U.S. Supreme Court struck down a similar matching funds provision in Arizona. As a result, Maine legislators agreed to revisit their state’s law and bring it into compliance.

However, Republicans are using the opportunity to try to undermine the state’s entire public financing system. Though a number of ideas have been proposed by the Maine Ethics Commission to bring the state’s program into compliance, Republicans rejected those proposals in a party-line vote yesterday. Instead, GOP lawmakers simply eliminated the matching funds provision without offering any alternatives to fill the void:

In a strict party line vote on Tuesday, Republican members of the Legislature’s Veterans and Legal Affairs Committee narrowly favored stripping the matching funds provision from the Maine Clean Election Act.

Maine lawmakers have been struggling since that court ruling with a way to address the elimination of matching funds and have debated two options put forth by the Maine Ethics Commission.

Under the first option, the state would pay candidates fixed amounts upfront — $7,716 for House candidates and $33,617 for Senate candidates, significantly more than the current allocations. Under the second, clean candidates could get extra payments by collecting additional $5 checks from private donors. In order to qualify for public funding in the first place, candidates need to collect a minimum number of such donations.

Republicans have rejected both.

State Rep. Diane Russell (D), one of the clean election law’s leading proponents, told ThinkProgress that the effort to roll back Maine’s public financing system could have national ramifications. “Maine is the model state,” said Russell. “If they kill public financing here, they put the stake in the heart nationally.”

The full legislature will take up the issue in January.

Politics

After Endorsing Drug Legalization Referendum In 1995, Gingrich Now Says Referendums Are Un-American

Gingrich can't make up his mind on referendums.

Last night, during a town hall meeting in South Carolina, GOP presidential primary candidate Newt Gingrich was asked if he supports a referendum to legalize the manufacturing, taxing, and regulating of marijuana in order to decrease revenue to drug cartels in Mexico. Gingrich dismissively responded that we just don’t do things by referendum in the United States:

Q: My question is, how would you feel about having a referendum on the ballot to legalize marijuana in the United States. To tax it, control it, sell licenses to manufacture it, and put the drug cartels out of business in Mexico?

GINGRICH: Well, I would oppose it. First of all, we don’t do things by referendum in this country. Because we are a republic, not a democracy. It’s been a very conscious design by the founding fathers. Second, I personally would be opposed to the legalization of marijuana. I think it is one of those passing fads where people don’t think through the consequences. If you legalize marijuana, as far as the drug cartels go, does that mean you’re going to legalize cocaine, which is a major source of revenue. Are you going to legalize heroin? I think what we need is a much more effective strategy of eradicating drugs in the United States in order to cut the off money that goes to the drug cartels of Mexico. I’d rather try to find a way to minimize American drug use, not find a way to legalize it and make it acceptable. That’s just my personal bias.

But Gingrich didn’t always think referendums were so un-American. In July 1995, Newt Gingrich actually endorsed a national referendum on whether illegal drugs should be legalized, as the Milwaukee Journal Sentinel reported at the time:

It appears that Gingrich is either being a hypocrite or changing his views on the fundamental nature of American democracy. Additionally, many of Gingrich’s allies in the social conservative movement are happy to use referendums to suppress gay rights.

Economy

Soda Companies Aggressively Target Black And Latino Kids, Fueling Childhood Obesity Epidemic

It’s well known that America’s obesity epidemic disproportionately affects poor and minority children because of the country’s glut of cheap, unhealthy foods. Soft drinks are such a major culprit in the childhood obesity epidemic that some local governments have tried to levy taxes on them to reduce consumption. The Obama administration announced a plan to ban candy and sweetened beverages from schools.

Now, a new study reveals that soda companies have been targeting black and Latino children in high numbers, diminishing parents’ attempts to encourage their kids to eat right:

A new report from Yale’s Rudd Center for Food Policy and Obesity has found that beverage companies are aggressively targeting black and Latino kids with ads to promote sports, fruit and energy drinks. The products that are promoted to kids of color happen to be among the least healthy of the 644 products studied by researchers at the university.

Black children and teens saw 80 percent to 90 percent more ads compared with white youth, including more than twice as many for Sprite, 5-hour Energy, and Vitamin Water.

From 2008 to 2010, Latino children saw 49 percent more ads for sugary drinks and energy drinks on Spanish-language TV. Latino preschoolers saw more Spanish-language ads for Coca-Cola Classic, Kool-Aid, 7 Up, and Sunny D than older Latino children and teens did.

Colorlines notes that the two largest soda companies, Pepsi and Coca-Cola, have repeatedly promised to market less to children, who are more susceptible to advertising: “Coca-Cola, for example, has previously stated publicly that they wouldn’t market ads in TV, radio and print programming aimed at kids under the age of 12.”

But the report found that soda companies have just shifted to using more sophisticated and insidious forms of advertising that promise kids rewards for purchasing sugary drinks. Kids are exposed to these messages “often without their parents’ awareness.”

Companies’ targeting of minority children is a social justice issue as well as an economic one. Just like mortgage companies that focused their predatory lending on minority communities, soda companies are preying on a particularly vulnerable group (poor children) who are already suffering the ill effects of their product and have the most to lose from consuming more. For instance, these children are less likely to have health insurance to cover the numerous medical problems associated with obesity.

NEWS FLASH

Kentucky Church Votes To Ban Interracial Couples From Becoming Members | A small church in Pike County, Kentucky voted not to accept interracial couples as members or allow them to take part in some worship activities, according to the Lexington Herald-Leader. Melvin Thompson, minister at Gulnare Freewill Baptist Church, explained that the resolution “is not intended to judge the salvation of anyone, but is intended to promote greater unity among the church body and the community we serve.” Thompson issued the ban after a white woman and her black fiance, a native of Zimbabwe, performed at the church in August.

NEWS FLASH

Allen West Calls Undocumented Immigration An ‘Invasion’ | Taking the right’s obsession with immigration to a new level in an interview with a newspaper editorial board in Florida this weekend, Rep. Allen West (R-FL) called undocumented immigration an “invasion” and said under the Constitution, Congress should treat the situation as if a foreign country’s military were invading the country. He also said the Roman Empire fell in part because they “failed to secure their northern border”:

Ok. I think that illegal immigration – the operative word is ‘illegal’. It also says here in Article 1 Section 8 that you have to repel invasions. I think that anytime someone is coming across your border and they haven’t been invited, that can be considered what the founding fathers wrote as an invasion into your country.

Watch it:

New Alabama Law Encourages Neighbors To Spy On And Report Suspected Undocumented Immigrants Next Door

Law enforcement officials across Alabama were unsure how they would enforce — let alone pay for — HB 56, the state’s draconian immigration law, when it went into effect. Terry Davis, the president of the Alabama Association of Chiefs of Police, warned that officers were stretched too thin by the far-reaching demands of the new law, in addition to their regular duties.

One sheriff in Limestone County told the Athens News-Courier that his department’s resources are being strained to the breaking point by investigations prompted by the immigration law — including people asking police to investigate if their neighbors are undocumented immigrants:

Sheriff Mike Blakely said most of his department’s resources are not being stretched thin because of illegal immigration arrests, but instead because of investigations into the alleged mistreatment of illegal immigrants. [...]

In terms of the arrests of illegal immigrants, the sheriff said there hasn’t been a noticeable increase because he feels many illegal immigrants have left the community. However, he said the department’s call volume is rising because residents want officers to investigate neighbors who they believe are illegal.

“There’s a lot of people confused about the law and people are getting frustrated with us,” he said. “If they suspect someone is illegal, we can’t just go out and check them out. The law prohibits us from doing that. We can contact ICE, but unless they’re committing a crime, we have no authority (to arrest them).”

Alabama’s anti-immigrant law is already a clear disaster for community safety, distracting police from focusing on violent crime and leading immigrant communities to distrust law enforcement officials. Equally disturbing is the evidence that the law is undermining the fabric of communities by sowing suspicion and turning neighbors against each other.

NEWS FLASH

Study: States That Legalize Medical Marijuana Reduce Traffic Fatalities | Opponents of marijuana legalization often suggest that legalization would lead to an increased number of vehicle accidents. However, a new study from the Institute for the Study of Labor finds that states that legalized medical marijuana have seen a decline in traffic fatalities, the “leading cause of death for Americans age 35 and under.” According to researchers, states in which medical marijuana is legal saw a decline in alcohol use which, in turn, helped lower the number of traffic fatalities. “Specifically, we find that traffic fatalities fall by nearly 9 percent after the legalization of medical marijuana,” they said. As of now, 16 states have legalized medical marijuana and recent polls reveal that an overwhelming majority of Americans believe medical marijuana should be legalized.

In An About-Face On Immigration, Perry Proposes Deporting Every Immigrant Apprehended At The Border

Recently the GOP presidential contenders have been engaged in a bizarre game of one-upsmanship on the issue of immigration, competing to offer the most merciless approach America’s undocumented population. Michele Bachmann recently proposed deporting every single one of the 11 million undocumented immigrants in the country — a plan that would cost more than $2.6 trillion.

Now Gov. Rick Perry, who has been trying to fight the perception that his immigration stance is too moderate, is following in Bachmann’s footsteps:

Rick Perry vowed to deport all illegal immigrants detained in the country if elected president as he sought on Tuesday to burnish his conservative credentials on immigration ahead of the 2012 Republican contest.

The Texas governor has faced criticism from Republican rivals like Mitt Romney for being “soft” on illegal immigrants, because those who live in Texas can attend state universities at the same cost as other Texas residents. [...]

My policy will be to detain and deport every illegal alien who is apprehended in this country,” Perry said. “And we’ll do it with an expedited hearing process so that millions of illegal aliens are not released into the general population with some hearing date down the road.”

Perry made the remarks while campaigning in New Hampshire with notorious Arizona sheriff Joe Arpaio, who is a hero to many conservatives for his degrading and illegal treatment of detained immigrants in his charge. The Perry campaign has embraced Arpaio’s endorsement to try to bolster his “tough on immigration” credentials. Perry contrasted his policy of deporting every immigrant with the Obama administration’s “horrific policy” of releasing non-violent immigrants.

As ThinkProgress noted Monday, it costs $23,148 for each undocumented immigrant to be apprehended, detained, legally processed, and transported out of the country. And the price tag may be even higher for the expedited process Perry calls for. A deportation-only policy would amount to $922 in new taxes for “every man, woman, and child in this country,” and the cost of deporting undocumented immigrants already in the country would total $285 billion over five years.

Perry’s fellow candidates pounced on him at an earlier debate for once supporting in-state tuition for undocumented students and opposing a border fence with Mexico. Plagued by allegations that he is insufficiently cruel to immigrants, Perry has taken a sharp rightward turn to placate the conservative base. Among other things, he’s attacked health care and education for poor immigrants to deflect from his past positions.

Justiceline: November 30, 2011

Welcome to Justiceline, ThinkProgress Justice’s morning round-up of the latest legal news and developments. Remember to follow us on Twitter at @TPJustice.

  • A group of right-wing Christian groups are staging a “live nativity scene” in front of the Supreme Court, complete with animals. The display is an act of protest against what they perceive as increasing “hostility toward public expressions of faith especially during the Christmas Season.”
  • GOP contender Gov. Rick Perry is desperately trying to counter the perception that he’s merciful to immigrants by embracing the endorsement of Arizona sheriff Joe Arpaio, who is notorious for his degrading and often illegal treatment of detained undocumented immigrants.
  • Did the Supreme Court send a grandmother back to prison just to teach the Ninth Circuit a lesson? Emily Bazelon reports that in their largely unnoticed but “most vindictive [decision] of the term,” the justices sent a women back to prison for a crime she probably did not commit — apparently to keep the lower court in line.
  • Despite persistent under-reporting, hate crimes in Mississippi are on the rise. More than two-thirds of Mississippi’s counties failed to file a report with the Justice Department, and activists say the actual numbers may be twice as high as what’s reported.
  • Thirty years after he attempted to assassinate then President Ronald Reagan, John Hinckley Jr. is seeking release from the mental hospital where he’s been since 1982. A jury found Hinckley not guilty by reason of insanity.
  • Yesterday the Senate struck down an amendment that would’ve eased the country’s tough policy on detainees. The amendment to the Defense Department spending bill would have removed a section that authorizes the president to use “all necessary and appropriate force” to detain people suspected of terrorism, which many say is a threat to constitutional liberties.
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