ThinkProgress Home
ThinkProgress
ThinkProgress Logo

Stories tagged with “Ethics

Security

Pentagon Contractor Admits To Perpetrating Online Smear Campaign Against USA Today Reporters

The homepage of Leonie Industries' website

The former head of a group that contracts with the Pentagon to produce propaganda material used oversees has admitted to launching a similar disinformation campaign against two U.S.-based reporters.

In April, two USA Today journalists claimed they were the victims of a deliberate “reputation attack” after they wrote a series of stories about the Pentagon’s contracts with groups that specialize in the production of propaganda. Days after the journalists began speaking with officials at the Pentagon and other sources for the story, fake websites and social media accounts set up in the names of the two reporters were mysteriously registered and began trying to discredit the stories.

Camille Chidiac, the minority owner and former president of Leonie Industries, one of the consulting firms that works with the Pentagon and was featured prominently in USA Today’s reporting, took responsibility for the misinformation campaign. USA Today reports:

“I take full responsibility for having some of the discussion forums opened and reproducing their previously published USA TODAY articles on them,” he said a statement released by his attorney, Lin Wood, of Atlanta.

“I recognize and deeply regret that my actions have caused concerns for Leonie and the U.S. military. This was never my intention. As an immediate corrective action, I am in the process of completely divesting my remaining minority ownership from Leonie,” Chidiac said.

Chidiac says Leonie Industries and the Pentagon had no knowledge of the smear campaign, and no funding from either entity was used in the attack. Leonie Industries has received at least $120 million in Pentagon contracts since 2009.

Earlier this month, Rep. Hank Johnson (D-GA) called on the Pentagon to launch an investigation into the smear campaign against the USA Today journalists and said it should “consider suspending all contracts with Leonie Industries until such investigation is complete.”

Election

NRCC Chairman Sessions Brushes Off Buchanan Ethics Scandal, Attacks Democrats For Their Ethics

NRCC Chairman Rep. Pete Sessions (R-TX)

NRCC Chairman Rep. Pete Sessions (R-TX)

Rep. Pete Sessions (R-TX) is chairman of the National Republican Congressional Committee (the House GOP’s campaign arm). His finance vice chair, Rep. Vern Buchanan (R-FL) is currently under investigation by the House Ethics Committee for allegedly encouraging a business partner to file a false affidavit related to illegal campaign contributions — allegations Buchanan denies. A recent local television news report on these and other ethics allegations dogging Buchanan reported that a federal grand jury and the FBI are also investigating the car dealer and third-term Congressman.

Despite House Majority Leader Eric Cantor’s (R-VA) promised “zero-tolerance” policy on ethical scandals, Buchanan continues to serve on the powerful House Ways and Means Committee and to lead fundraising efforts for his party’s campaign committee. Watchdog groups and Democrats have called on Buchanan to resign — not just from those posts, but from his seat in Congress.

Sessions yesterday brushed aside calls for Buchanan to be removed from his NRCC post. He told the New York Times:

Vern Buchanan is entitled to have a fair hearing. At this point, there is no one that is making an accusation that he cannot sustain. And if it gets to the point where the ethics committee makes some decision, if they do, I’ll be glad to pay attention to that.

He notes that a “huge number of people that are Members of Congress, from outside groups, have been attacked for doing things. He’s not the only one.”

Watch the video.

While of course Buchanan and all politicians accused of political corruption are indeed entitled to a fair hearing, Sessions displays stunning hypocrisy on the point.

One of the most prolific of those unnamed “groups” attacking other Members of Congress is Sessions’ own NRCC. In a section of their website called “Democrats’ Dirty Laundry,” Sessions and his staff attack an array of Democratic members over allegations against them, even though they have not had a “fair hearing.”

Each post begins “SPIN CYCLE: Then-Speaker Pelosi Promised that Democrats Would ‘Demand the Highest Ethics from Every Public Servant’” and then contains an allegation against a Democrat described as “RINSE CYCLE.”

Given Cantor’s pledges of zero tolerance — and the wide array of Republicans serving in key roles under ethical investigation — perhaps Sessions should focus on washing his own dirty laundry and pay attention now.

Justice

Conservative Wisconsin Justices Remove Ethics Offical After He Charges Three Of Them With Ethics Violations

Wisconsin Supreme Court Justice David Prosser

In recent years, three of the Wisconsin Supreme Court’s four conservatives were charged with ethics violations by the Wisconsin Judicial Commission — Justice Annette Ziegler for presiding over cases involving a bank where her husband was a director, Justice Michael Gableman for running a misleading campaign ad, and Justice David Prosser for allegedly grabbing a fellow justice by the neck. In the wake of these charges, all four of the court’s conservatives voted in a party-line vote not to reappoint the chair of this commission:

The Wisconsin Supreme Court’s conservative majority has decided not to reappoint the leader of a commission working to discipline Justice David Prosser.

Wisconsin Judicial Commission Chairman John Dawson’s term ends Aug. 1. Chief Justice Shirley Abrahamson, Justice Ann Walsh Bradley and Justice Patrick Crooks [Editor's Note: Abrahamson, Bradley and Crooks make up the dissenting bloc on the conservative Wisconsin Supreme Court] sent Dawson a letter Friday saying the court had decided it didn’t want him back.

The decision was made in a closed vote. The three justices didn’t reveal the tally, but it takes four votes to make a decision and all three of them said they supported Dawson. That means the four-justice conservative majority, which includes Prosser, did not.

Currently, the only pending ethics charge against a member of the state’s highest court is the charge against Prosser. Ziegler received a public reprimand for her ethical lapse and the charges against Gableman were eventually dropped after the remaining justices split 3-3 along party lines on whether Gableman committed misconduct.

The case against Prosser may get shut down before it even begins, however, thanks to a quirk in Wisconsin state law. Normally, when the judicial commission brings an ethics charge of this kind, a three judge panel is appointed to determine whether that charge has merits. As a technical matter, however, that panel must be approved by the state supreme court itself. Prosser is now trying to prevent such approval from even being given by asking his colleagues to recuse themselves from the case — something one of his fellow conservatives has already agreed to do. If two or more of his remaining colleagues follow along, that will mean that the court lacks a quorum to approve a panel, and the case against Prosser will be blocked by this technicality.

Economy

Office of Congressional Ethics Clears Spencer Bachus, Highlights Weakness Of Insider Trading Rules

Rep. Spencer Bachus (R-AL)

Rep. Spencer Bachus (R-AL)

The Office of Rep. Spencer Bachus (R-AL) gleefully announced yesterday that the outside Office of Congressional Ethics (OCE) board voted 6-0 against recommending an Ethics Committee investigation into allegations that Bachus engaged in insider trading. But the unanimous vote may say more about the permissive House rules than about Bachus’s ethical compass.

Last November, CBS’s 60 Minutes aired a report — based on Peter Schweizer’s book Throw Them All Out — accusing several members of Congress of profiting from stock trades made after receiving private briefings. In that report, the news program said that in 2008, one day after receiving a private briefing from the nation’s chief economic officials on the extent of the financial crisis, Bachus bet that the stock market would tank:

While Congressman Bachus was publicly trying to keep the economy from cratering, he was privately betting that it would, buying option funds that would go up in value if the market went down. He would make a variety of trades and profited at a time when most Americans were losing their shirts.

Bachus, now chairman of the powerful House Financial Services committee that oversees Wall Street, apparently made a $30,000 profit. But, as the report noted, members of Congress have long been considered exempt from anti-insider trading laws. Despite the exemption, the OCE opened an investigation into whether the Bachus trades violated any rule.

While the investigation was in progress, Congress passed the Stop Trading on Congressional Knowledge (STOCK) Act. The bill tightened some of the rules, but thanks to significant Wall Street lobbying, House Republicans successfully watered down the stronger Senate version. The final product left significant loopholes. Members of Congress can still own stocks in the industries they regulate and can still sell secret “political intelligence” to investors.

Friday, the OCE ended the inquiry. In a press release Bachus celebratedthe end of what he called a “destructive and disruptive, media generated assault,” saying:

It has been a long, painful, and frustrating experience to have a reputation built over many years sullied by untrue accusations. I also appreciate former SEC Chairmen Harvey Pitt and Roderick Hills and Federal Judge Stanley Sporkin for reviewing the allegations, determining they were false and meritless, and publicly coming to my defense. Perhaps the most gratifying aspect is that my constituents who know me best recently reaffirmed their faith in my character and my ability to serve their interests, and my personal commitment to them is to continue to serve with the highest level of effectiveness and accountability. Finally, I want to thank the OCE staff for their professionalism and the OCE Board for unanimously coming to the right conclusion. While their review and report should never have been necessary, I am pleased that they have helped clear my name.

Given that the rules in 2008 were not even the slightly tougher STOCK Act provisions, it is little surprise that the OCE found there was “not substantial reason to believe that a violation of House Rules and Standards of Conduct occurred.” Even if it did not violate the House’s permissive rules — and even if, as he claims, his behavior was not technically insider trading — the OCE’s action hardly has cleared his name. Significant questions remain about whether his dealings were ethical.

This ruling serves as a reminder of the gaping holes in Congressional ethics rules. And with unseemly — but unpunished — trading practices all too common, it is little wonder that Congress currently sports an approval rating in the low teens.

Justice

Sen. Marco Rubio (R-FL) Fined For Illegal Campaign Contributions

Sen. Marco Rubio (R-FL)

Sen. Marco Rubio (R-FL)

The first line of Marco Rubio’s biography on his 2010 campaign website claimed that the Florida Republican was “highly regarded for his principled, energetic and idea-driven leadership.” But a newly disclosed settlement with the Federal Election Commission (FEC) over illegal contributions accepted by his campaign committee has reignited long-standing questions about how “principled’ the freshman Senator’s ethics really are.

On March 19, Rubio and the FEC agreed to a negotiated settlement in which his Senate campaign committee agreed to pay an $8,000 fine to settle charges that it accepted over $210,000 in “prohibited, excessive and other impermissible contributions.” This news was not made public until a POLITICO story this weekend. Perhaps most disturbing is that even after an internal campaign audit, the Marco Rubio for Senate committee failed to address more than $83,000 in improper or misreported donations.

Rubio, who has been frequently mentioned as a possible vice presidential pick for Mitt Romney, has been in several previous ethical controversies, including:

  • Use of a Florida GOP credit card for personal purposes, many of which were reportedly only reimbursed by Rubio after media inquiries. Rubio’s 2010 campaign dismissed these allegations, saying they were reimbursed at the time.
  • Double-billing of Florida taxpayers for plane travel also billed to the state Republican Party. Rubio’s 2010 campaign claimed these happened without Rubio’s knowledge and were reimbursed.
  • Failure to disclose a $135,000 home equity loan from a bank controlled by political supporters. Rubio, in 2008, said his failure to disclose the loan was “an oversight” and that there was “nothing unusual about the loan or the application.”
  • Citizens for Responsibility and Ethics in Washington included Rubio among its “Crooked Candidates” of 2010. And Romney’s own press secretary Andrea Saul, then a staffer for a rival candidate, blasted Rubio in 2010 as “another typical politician who uses his public office for personal gain and only comes clean once caught.”

    Rubio’s office has not yet responded to a ThinkProgress request for comment, nor, according to POLITICO, to their request.

    Justice

    Florida Investigation Finds ‘Possible Criminal And Ethical Violations’ By Freshman Republican Congressman

    Rep. David Rivera (R-FL)

    Rep. David Rivera (R-FL)

    Investigators at the Florida Department of Law Enforcement identified “possible criminal and ethical violations” by freshman Rep. David Rivera (R-FL). Among these were filing erroneous personal financial reports while a member of the Florida House of Representatives, falsely amending those disclosures after media criticism, and using campaign and government accounts to reimburse his own personal expenses.

    The report says:

    Analysis of documents obtained to date supports the contention that Mr. Rivera purposely falsified his financial disclosure forms in an attempt to legitimize other source of income beyond his salary as a State Legislator. First, Mr. Rivera provided information on his initial financial disclosure submissions that wasfalse and then amended the forms to remove the information. Second, Mr. Rivera amended his financial disclosure forms claiming that $132,000 received from Millennium Marketing were liabilities (loans), when, in fact, documentary evidence indicates that it was compensation for being employed as a consultant to the Flagler Dog Track for the gaming referendum.

    The Miami Herald reported yesterday that state prosecutors will not charge Rivera, as the statute of limitations has expired. IRS and FBI investigations into Rivera’s alleged tax evasion and failure to disclose $132,000 in “loans” from a company co-owned by his mother are reportedly ongoing. Rivera has denied the allegations and his campaign said in statements that Rivera “at all times acted in compliance with both the letter and spirit of Florida and federal campaign finance laws and has timely and properly reported all personal income” and that the investigation was an “unprofessional waste of taxpayer dollars.”

    In 2010, now-House Majority Leader Eric Cantor (R-VA) promised that if his party won the majority in the midterm elections, he (as majority leader) ‘institute a zero-tolerance policy‘ on ethics violations. In light of these serious charges, the Republican leadership could show its commitment to this policy by beginning an Ethics Committee investigation, stripping him of his committee assignments, calling for his resignation or even moving to remove him from Congress. It has done none of these things. Even with these apparent ethical breaches, they continue to let Rivera serve on the House Foreign Affairs Committee (and, ironically, its Oversight and Investigations Subcommittee) and the Committee on Natural Resources.

    This is yet another in a growing series of examples of just how little Cantor’s promised “zero tolerance” policy for ethical scandals really means.

    NEWS FLASH

    Rep. Paul Broun The Latest House Republican Accused Of Ethical Breach | Despite House Majority Leader Eric Cantor (R-VA)’s 2010 pledge of a “zero-tolerance policy” for ethical violations, the number of House Republicans under scrutiny for ethical lapses continues to grow. Yesterday, the non-partisan Citizens for Responsibility and Ethics in Washington filed a complaint with the Federal Election Commission against Rep. Paul Broun (R-GA). The watchdog group alleges that Broun illegally hid the source of more than $300,000 in loans made to his 2007-2008 campaign. Like with his colleagues under investigation, Cantor and the Republican leadership have made no effort to remove Broun from his post as chairman of the Committee on Science, Space and Technology’s Subcommittee on Investigations and Oversight. Broun’s office did not respond to a request for comment on the allegation.

    Justice

    House Ethics Committee Launches Another Investigation Of Rep. Vern Buchanan (R-FL)

    Rep. Vern Buchanan (R-FL)

    Rep. Vern Buchanan (R-FL)

    In a joint statement, House Committee on Ethics Chairman Jo Bonner (R-AL) and Ranking Member Linda Sanchez (D-CA), announced Friday that their committee will probe the actions of Rep. Vern Buchanan (R-FL). The decision comes after a referral by the Office of Congressional Ethics last month.

    Buchanan is reportedly already under a separate ethics investigation for alleged incomplete financial disclosure. The committee did not identify the nature of the new inquiry, though it did say it will announce its course of action on the matter, on or before May 9. An aide to the Florida Republican said the Congressman was confident the committee would clear him of any wrongdoing. Buchanan is also reportedly facing a federal grand jury investigation.

    Despite House Majority Leader Eric Cantor’s (R-VA) stated “zero-tolerance” policy on ethics, Buchanan continues to serve as finance vice chair for the National Republican Congressional Committee (the House GOP’s campaign arm). In fact, Buchanan was already one of more than 10 Republican Congressmen embroiled in ethics scandals.

    Amusingly, Buchanan’s Congressional website includes stories calling for reform in light of a Bush administration ethics scandal at the Minerals Management Agency, and touts his work in support of a 2007 ethics and lobbying bill.

    Economy

    Sen. Grassley Blasts Senate’s Watered Down STOCK Act: ‘Wall Street Traders Get Rich, But The American People Lose’

    The Senate today, by an overwhelming vote of 96-3, passed the STOCK Act, a bill crafted in response to a 60 Minutes investigation showing that members of Congress had personally profited from insider information. Most notably, House Financial Services Chairman Spencer Bachus (R-AL) made tens of thousands of dollars trading on information he received during private economic briefings at the height of the 2008 economic crisis.

    However, the bill that the Senate adopted is the same one that the House passed last month, not a stronger version that the Senate had written earlier and approved by a huge margin. The earlier version included a provision, championed by Sen. Chuck Grassley (R-IA), that would have required Washington insiders who sell intelligence to corporate America to register as lobbyists. Grassley, who was one of the three votes against the bill, today took to the Senate floor to blast Congress for adopting the watered down House version:

    On Tuesday the Republican Majority Leader of the House and the Democrat [sic] Majority Leader of the Senate worked together to thwart the will of 60 Senators and 286 Members of Congress. This is not the kind of bipartisan cooperation we need.

    I won’t ascribe motives to anyone in this body, but I know that today’s actions only serve the desires of obscure and powerful Wall Street interests and undercut the will of an overwhelming majority of Congress. [...]

    There are over 2,000 people working in the completely unregulated world of political intelligence, or political espionage as I call it. Right now, they are celebrating. They are celebrating because they know that its business as usual. They can continue to pass along tips they get from Members of Congress, Senators and staff and no one will be the wiser. They pass along these tips to hedge funds, private equity firms and other investors who pay them top dollar.

    The lobbyists get rich. Wall Street traders get rich. But the American people lose.

    The weaker House version of the bill was drawn up by House Majority Leader Eric Cantor (R-VA), who had earlier blocked the GOP from moving an anti-insider trading bill at all. Last month, Grassley reacted to the House removing his political intelligence provision by saying, “it’s astonishing and extremely disappointing that the House would fulfill Wall Street’s wishes by killing this provision.”

    Justice

    Justice Prosser Attempts To Kill Ethics Case Against Him By Asking All Colleagues To Recuse Themselves

    Wisconsin Supreme Court Justice David Prosser

    Wisconsin Supreme Court Justice David Prosser

    Last Friday, the Wisconsin Judicial Commission filed an ethics complaint against conservative Wisconsin Supreme Court Justice David Prosser. Prosser allegedly grabbed fellow Justice Ann Walsh Bradley around the neck during an argument in her chambers and the commission urged the high court to have a panel of three appeals court judges consider whether his actions violated three ethics rules.

    Under that proposal, the Wisconsin Supreme Court would review the panel’s findings and decide on Prosser’s fate. But yesterday, the embattled judge — who has explained the alleged assault as a “total reflex” reaction after Bradley “charged” him — suggested his own audacious proposal.

    Prosser said all six of his supreme court colleagues should recuse themselves from the case, which would have the apparent effect of killing the proceedings.

    “You have six justices who were present at the scene,” Prosser explained, “You have justices with actual bias who are eyewitnesses and, in effect, parties.” A former Republican Wisconsin house speaker, he also blasted the judicial commission for being “partisan.”

    By Prosser’s logic, justices would be able to escape punishment by their colleagues for any indiscretion — as long as they committed it in the presence of the rest of the court.

    Older

    Switch to Mobile