On Thursday, the US Department of Justice announced 17 additional charges against Wikileaks founder Julian Assange who is currently serving a 50 week sentence in London for bail jumping after he was removed from the Ecuadoran embassy. After his arrest last month, Assange was charged with attempting to hack the Pentagon computer system. These new …
Tag: Department of Justice
May 24 2019
Mar 26 2019
Since Attorney General Bob Barr issued a four page summary letter that was released less that 48 hours after he received Special Counsel Robert Mueller’s report, many on the left are freaking out and on the right declaring victory. The actual report from the investigation into the Crimes of Trump, however, is still under wraps. …
Mar 20 2019
So much for that “period of unemployment:” A Justice Department official declined to comment on whether the delay in Rosenstein’s departure means Mueller is still not ready to deliver his report. Deputy Attorney General Rod Rosenstein will stay at the Justice Department “a little longer,” according to a senior department official. Rosenstein had previously said …
Mar 06 2019
MSNBC host Rachel Maddow looks back at the context of the 1973 Department of Justice memo that serves as part of the basis for the conventional wisdom that a sitting president cannot be indicted, and shares insights from former Justice Department official J.T. Smith, who says the matter should be reconsidered. Walter Dellinger is a …
Jun 15 2018
The Department of Justice Inspector General’s report on the FBI’s handling of the Hillary Clinton server and e-mail investigation was released Thursday. Inspector General Michael Horowitz found that although then FBI Director James Comey had deviated from FBI protocol, it was done without political bias. Thursday’s report said that Comey’s move to hold a press …
Jun 12 2018
The war with the press did not start with Donald Trump. It began under George W. Bush and expanded when Barack Obama went after New York Times reporter James Risen in that administration’s prosecution of Jeffrey Sterling, a former undercover CIA agent accused of espionage. The Justice Department wanted Mr. Risen to testify at the …
Sep 29 2017
Back in October of 2016 the FBI and computer experts were looking at a Russian bank’s servers examining if there was a connection between the bank and the Trump organization. It appeared that Alpha Bank was using a secret server to interact with the Trump Tower during the campaign. The investigation was dismissed by some …
Mar 10 2017
Griping about his administration being undermined by Obama holdovers and some fantasy about the existence of a “deep state“, Attorney General Jefferson Beauregard Sessions III has requested the immediate resignations of 46 US Attorneys, including including Preet Bharara, the United States attorney in Manhattan. The firings were a surprise — especially for Mr. Bharara, who …
Jan 31 2017
Monday night, three hours after acting Attorney General Sally Yates issued a letter instructing US Attorneys not to defend Donald Trump’s Muslim ban, Trump fired her. The last time that happened was in 1973, when Richard Nixon fired Special Prosecutor Archibald Cox at the height of the Watergate scandal. It precipitated the resignation of Attorney …
Jul 10 2015
After six years of protecting them, former Attorney General Eric Holder triumphantly returned to his roots, the law firm where he defended Wall Street and the banking industry before his appointment as AG. As though this was ever in doubt.
Eric Holder, Wall Street Double Agent, Comes in From the Cold
Matt Taibbi, Rolling Stone
Barack Obama’s former top cop cashes in after six years of letting banks run wild
Eric Holder has gone back to work for his old firm, the white-collar defense heavyweight Covington & Burling. The former attorney general decided against going for a judgeship, saying he’s not ready for the ivory tower yet. “I want to be a player,” told the National Law Journal, one would have to say ominously.
Holder will reassume his lucrative partnership (he made $2.5 million the last year he worked there) and take his seat in an office that reportedly – this is no joke – was kept empty for him in his absence.
The office thing might have been improper, but at this point, who cares? More at issue is the extraordinary run Holder just completed as one of history’s great double agents. For six years, while brilliantly disguised as the attorney general of the United States, he was actually working deep undercover, DiCaprio in The Departed-style, as the best defense lawyer Wall Street ever had.
Holder denied there was anything weird about returning to one of Wall Street’s favorite defense firms after six years of letting one banker after another skate on monstrous cases of fraud, tax evasion, market manipulation, money laundering, bribery and other offenses. [..]
In this light, telling reporters that you’re going back to Covington & Burling to be “engaged in the civic life of this country” seems like a joke for us all to suck on, like announcing that he’s going back to get a doctorate at the University of Blow Me.
Holder doesn’t look it, but he was a revolutionary. He institutionalized a radical dualistic approach to criminal justice, essentially creating a system of indulgences wherein the world’s richest companies paid cash for their sins and escaped the sterner punishments the law dictated.
The transcript can be read here
Eric Holder Returns as Hero to Law Firm That Lobbies for Big Banks
By Lee Fang, The Intercept
After failing to criminally prosecute any of the financial firms responsible for the market collapse in 2008, former Attorney General Eric Holder is returning to Covington & Burling, a corporate law firm known for serving Wall Street clients.
The move completes one of the more troubling trips through the revolving door for a cabinet secretary. Holder worked at Covington from 2001 right up to being sworn in as attorney general in Feburary 2009. And Covington literally kept an office empty for him, awaiting his return.
The Covington & Burling client list has included four of the largest banks, including Bank of America, Citigroup, JPMorgan Chase and Wells Fargo. Lobbying records show that Wells Fargo is still a client of Covington. Covington recently represented Citigroup over a civil lawsuit relating to the bank’s role in Libor manipulation.
Covington was also deeply involved with a company known as MERS, which was later responsible for falsifying mortgage documents on an industrial scale. “Court records show that Covington, in the late 1990s, provided legal opinion letters needed to create MERS on behalf of Fannie Mae, Freddie Mac, Bank of America, JPMorgan Chase and several other large banks,” according to an investigation by Reuters.
The Department of Justice under Holder not only failed to pursue criminal prosecutions of the banks responsible for the mortage meltdown, but in fact de-prioritized investigations of mortgage fraud, making it the “lowest-ranked criminal threat,” according to an inspector general report.
May 28 2015
On Wednesday in the early morning hours in Zurich, Switzerland, at a five star hotel, there were six phone calls made by the concierge to six rooms telling the occupants: “Sir,” the concierge said in English, “I’m just calling you to say that we’re going to need you to come to your door and open it for us or we’re going to have to kick it in.” How polite.
The hotel, which overlooks Lake Zurich, provided an unlikely setting for the apprehension of six global soccer executives who were arrested on corruption charges and now face extradition to the United States. The operation took less than two hours and was strikingly peaceful – no handcuffs, no guns drawn. It also involved an unusual use of a bedsheet.
Raids in the United States are typically led by armed SWAT team members wearing bulletproof vests and helmets, but the Swiss took a more subtle approach. Rather than storming into the executives’ rooms and hauling them out in their pajamas, the officers waited for the men to come to the door and then gave them a chance to get dressed and pack their bags.
The officers appeared to lead the officials out one by one, through several exits, including a side door, the hotel’s garage and, in one case, the main entrance.
Thus started the arrests of six global soccer executives on corruption charges. The indictments were brought by the US Justice Department stemming from an FBI and IRS investigation into the business practices of FIFA, the world governing body of the world’s most popular sport. soccer.
The Justice Department, F.B.I. and I.R.S. described soccer’s governing body in terms normally reserved for Mafia families and drug cartels, saying that top officials treated FIFA business decisions as chits to be traded for personal wealth. One soccer official took in more than $10 million in bribes, Attorney General Loretta E. Lynch said.
The schemes involving the fraud included the selection of South Africa as the host of the 2010 World Cup; the 2011 FIFA presidential elections; and several sports-marketing deals. [..]
The Department of Justice indictment names 14 people on charges including racketeering, wire fraud and money laundering conspiracy. In addition to senior soccer officials, the indictment also named sports-marketing executives from the United States and South America who are accused of paying more than $150 million in bribes and kickbacks in exchange for media deals associated with major soccer tournaments. [..]
The promise that the investigation would continue raised the specter of more arrests, but officials would not comment on whether they were investigating Sepp Blatter, the FIFA president and the man widely regarded as the most powerful person in sports. One federal law enforcement official said Mr. Blatter’s fate would “depend on where the investigation goes from here.” [..]
United States law gives the Justice Department wide authority to bring cases against foreign nationals living abroad, an authority that prosecutors have used repeatedly in international terrorism cases. Those cases can hinge on the slightest connection to the United States, like the use of an American bank or Internet service provider.
Switzerland’s treaty with the United States is unusual in that it gives Swiss authorities the power to refuse extradition for tax crimes, but on matters of general criminal law, the Swiss have agreed to turn people over for prosecution in American courts.
What Esquire’s Charlie Pierce said:
Here and overseas, the entire corporate universe is shot through with metastatic corruption and crime. It is an essential part of the business model almost everywhere, from Wall Street offices to the pitch at Wembley. FIFA’s corruption is more than an endemic phenomenon. FIFA was simply one corrupt enterprise working with and through hundreds of other corrupt enterprises. There are governments, and there are communications empires, and there are all manner of companies advertising their wares — the “corporate partners” of a claque of brigands. If you did business with the crooks of FIFA, you’re a crook, too. There’s no way to avoid it. All of them are guilty. All of them are responsible. All of them are complicit in the corruption in the spotlight today, and in the death of anonymous workers in Qatar whose names they don’t even know. The whole goddamn corporate universe is begging for a gigantice RICO indictment.
It seems the Justice Department is capable of investigating and obtaining indictments against officials of an organization whose business practices have been described as “byzantine and impenetrable,” why can’t the DOJ do the same for the bankers of JPMorgan Chase, HSBC, Citibank, Bank of America, et al? It apparently is not that hard, Loretta.
May 22 2015
The new Attorney General Loretta Lynch proves why she should not have been confirmed, as she rubber stamps the same weak polices of her predecessor Eric Holder regarding the prosecution of the “Too Big to Jail” bankers.
By Ben Protess and Ben Corkery, The New York Times
Adding another entry to Wall Street’s growing rap sheet, five big banks have agreed to pay about $5.6 billion and plead guilty to multiple crimes related to manipulating foreign currencies and interest rates, federal and state authorities announced on Wednesday.
The Justice Department forced four of the banks – Citigroup, JPMorgan Chase, Barclays and the Royal Bank of Scotland – to plead guilty to antitrust violations in the foreign exchange market as part of a scheme that padded the banks’ profits and enriched the traders who carried out the plot. The traders were supposed to be competitors, but much like companies that rigged the price of vitamins and automotive parts, they colluded to manipulate the largest and yet least regulated market in the financial world, where some $5 trillion changes hands every day, prosecutors said. [..]
A fifth bank, UBS, will also plead guilty on Wednesday to manipulating the London Interbank Offered Rate, or Libor, a benchmark rate that underpins the cost of trillions of dollars in credit cards and other loans. Federal prosecutors had previously agreed not to prosecute the Swiss bank over the Libor scheme. But in a rare stand against corporate recidivism, the Justice Department voided that non-prosecution agreement after learning that UBS was also taking part in the effort to manipulate currency prices.
The guilty pleas, which the banks are expected to enter in federal court in Connecticut on Wednesday, represent a first in a financial industry that has been dogged by numerous scandals and investigations since the 2008 financial crisis. Until now, banks have either had their biggest banking units or small subsidiaries plead guilty. But with the four banks charged with currency violations, the guilty pleas will come from their parent companies. [..]
For the banks, though, life as a felon is likely to carry more symbolic shame than practical problems. Although they could be technically barred by American regulators from managing mutual funds or corporate pension plans or perform certain other securities activities, the banks have obtained waivers from the Securities and Exchange Commission that will allow them to conduct business as usual. In fact, the cases were not announced until after the S.E.C. had time to act.
Senator Elizabeth Warren (D-MA) and Wall Street watchdog group Better Markets weighed in on the lack of any criminal prosecutions:
Better Markets called it a “slap on the wrist” and Sen. Elizabeth Warren (D-Mass.) said in an e-mail: “That’s not accountability for Wall Street. It’s business as usual, and it stinks.” [..]
Dennis Kelleher, president of Better Markets, a non-profit group, said that the Justice Department had not done enough, saying “it talks tough, but winks at Wall Street’s too-big-to-fail banks’ criminal conduct, structuring sweetheart deals to minimize the impact on the criminals.”
Kelleher said the fines alone wouldn’t deter future criminal acts and that the Justice Department should punish bank executives and their supervisors for bad behavior. “Banks don’t commit crimes, bankers do,” he said.
Warren said “the big banks have been caught red-handed conspiring to manipulate financial markets, and several have even admitted in court that they’re felons – but not a single trader is being held individually accountable, and regulators are stumbling over themselves to exempt the banks from the legally required consequences of their criminal behavior.”
At Esquire Politics, Charles Pierce is not impressed by Ms. Lynch:
What a fake. What a fraud. What an insult to any stick-up kid doing five-to-fifteen for robbing a bodega. The banks don’t even have to look between the cushions on the sofa for the loose change they’ll use to pay the fines. They get to use their stockholders’ money to pay the fine. [..]
This is altogether remarkable. Here we have a staggering series of crimes that did very real damage to thousands of people all over the world. Here we have a staggering series of crimes, but not a single identifiable criminal. Who rigged the markets? The bank buildings? A shadowy cabal of ledgers? Motorcycle gangs made up of quarterly reports? This is the only area of criminal justice where law-enforcement actively avoids identifying anyone as a criminal.
Let us face facts. Within these institutions, there have to be hundreds of people who were involved in some way with a scam this large. There were people who supervised those hundreds of people, and people who supervised them. Somewhere, in that mass of criminal activity, I’m willing to bet something substantial that a human being committed an actual crime.
But, no. “The banks” get fined. This is just too freaking hilarious.
After all this evidence and investigation, not one person has been arrested. Sure some were fired at insistence of some regulators, but never criminally charged. So, the crooks are still getting away with breaking the law. Fines are a joke. Most of these banks will recoup those fines in less than a day and, at the end of the year, deduct them as business losses, so the tax payer once again foots the bill. I would hardly call that a victory. It’s a joke.