Posts tagged as:

scandals

“Who is protected by patient privacy laws? Hint: not patients.” [Stewart Baker, Volokh]

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Former Utah Attorneys General John Swallow and Mark Shurtleff were arrested Thursday on a combined 23 counts arising from a series of episodes in which the two men are said to have accepted cash and favors from persons with business dealings with their offices; Swallow is also accused of destroying and falsifying evidence to cover up dealings with a now-deceased entrepreneur from whom he had allegedly accepted $17,000 in gold coins. The two men, both Republicans, say they are innocent and expect to be vindicated. The Salt Lake Tribune’s coverage saves the Harry Reid angle for paragraph 19; the Las Vegas Review Journal gives it more attention, emphasizing Reid’s strong denial of any wrongdoing. Unrelated but also depressing: a former New Mexico AG and a penny stock.

Also: Meanwhile in Pennsylvania, officials have placed plaques beneath portraits of four lawmakers in the state capitol with details of their eventual criminal convictions. I have more details in a Cato post.

Medical roundup

by Walter Olson on July 9, 2014

  • Congress responds to Veterans Administration health care scandal by throwing huge new sums at care [Nicole Kaeding, Chris Edwards, Cato] “Every Senior V.A. Executive Was Rated ‘Fully Successful’ or Better Over 4 Years.” [NYT via Instapundit] “VA Hospitals aren’t included on the federal government’s Hospital Compare web site” [White Coat]
  • Canadian judge quashes as vexatious suit over non-admission to medical school [Winnipeg Free Press]
  • Brain-damaged child cases: “14.5 Million Reasons Physicians Practice Defensive Medicine” [White Coat, Cleveland] “North Carolina Jury Deadlocks in John Edwards’ Malpractice Trial Against Doctor” [Insurance Journal, emergency medicine]
  • “Medical Licensing in the States: Some Room for Agreement — and Reform” [Charles Hughes, Cato]
  • “NY Launches Statewide Med Mal Settlement Program” [NYDN via TortsProf]
  • “Unlucky Strike: Private Health and the Science, Law and Politics of Smoking” [John Steddon and David Boaz, Cato program] Here’s the long-awaited segue to complete prohibition: British Medical Association recommends banning tobacco permanently for persons born after 2000 [WaPo]
  • Sneaky: California ballot language undoing MICRA liability limits “buried in an initiative titled The Troy and Alana Pack Patient Safety Act of 2014.” [Yul Ejnes, KevinMD]

July 3 roundup

by Walter Olson on July 3, 2014

  • As Brooklyn changes, so do its juries: “more sophisticated people… they don’t believe [plaintiffs] should be awarded millions of dollars for nothing.” [NY Post quoting plaintiff's lawyer Charen Kim]
  • Richard Epstein: Massachusetts buffer zone statute “should have been upheld, not struck down” [Hoover Institution, earlier on McCullen v. Coakley, my related comment]
  • “Runners” as in client-chasing for injury work: “Arkansas AG Files Suit Against Chiropractic ‘Runners'” [AP]
  • Fox, henhouse: 2012 law says local transit agencies must sit on boards helping set their own funding [Randal O'Toole, Cato]
  • No-good, terrible, really bad idea: occupational licensure for software professionals [Ira Stoll]
  • More proliferation of legally required video surveillance [Volokh; guns, cellphone sales]
  • How do you expect the IRS to back up headquarters emails when we throttle its IT budget down to a mere $2.4 billion? [Chris Edwards, Cato]

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Some figures on the left have aggressively sought to dismiss the seriousness of the renewed IRS scandal. Rep. Lloyd Doggett (D-Tex.) captured this mood at one recent Capitol Hill hearing when he suggested that after voicing suspicions that the loss of emails might not be accidental, his GOP colleagues might go on next to quiz the Service’s leadership about the president’s birth certificate and space aliens in Roswell, N.M. It’s not a “serious inquiry,” Rep. Doggett said: “I believe it’s an endless conspiracy theory here.”

And yet many Americans who do not believe in space aliens do question the IRS’s account of what has happened. While we covered the story a year ago as well as more recently, this might make a good time to recapitulate why.

The IRS grants 501 (c)(4) nonprofit status (less favorable than (c)(3) status, which affords charitable tax deductibility to donors) to a wide array of “social welfare” organizations, many, like the ACLU, with a definite ideological valence. In recent years the status has been sought and obtained by groups whose missions are closely related to campaign and electoral politics, most notably Organizing for America, whose role on the national scene is to support President Obama’s messaging. Not surprisingly this has excited controversy about whether the eligibility rules for (c)(4) status are being drawn in the right place. Most advocates however profess to believe that whatever the right set of rules, they should apply alike to both sides in our political life.

By March 2012 the Associated Press was reporting on a flurry of bizarre and seemingly unprecedented IRS demands that some (c)(4) applicants of a right-of-center valence provide extraordinarily burdensome and intrusive documentation of their activities — things like copies of all books and literature distributed to participants, transcripts of leaders’ radio appearances and live speeches, printouts of all Facebook and Twitter output, and so forth, along with donor lists and names of family members. The Service was also delaying groups’ approval for long periods, in fact seemingly indefinitely, without explanation or a firm denial that could be appealed to a court. Defenders of the agency subsequently put out a search for left-of-center groups that might have run into similar treatment, and although they did manage to turn up a few tales of bureaucratic red tape and rigmarole, they were unable to come up with anything remotely comparable.

IRS nonprofit chief Lois Lerner at first denied any targeting, then sought to blame rogue employees at the IRS Cincinnati office for it. But emails soon emerged clearly indicating guidance by high-level IRS managers in Washington. Lerner then declined to testify, asserting her Fifth Amendment privilege against admissions exposing herself to criminal liability.

Through the ensuing scandal, there was little hard proof that Lerner and other IRS insiders had coordinated the targeting with political actors outside the agency — on Capitol Hill, say, or in party organizations, or the White House — although a number of details on the record, such as frequent White House visits by agency insiders and coordination with outside figures on press messaging, made for suggestive circumstantial evidence. To establish that political operatives or officials outside the agency were aware of targeting at the time, or even perhaps instigated or directed it, would be to blow the scandal wide-open, perhaps threatening the careers of well-known public figures. If any email documentation of such coordination is to be found, it would most likely be in the “external” (outside the agency) emails of Lois Lerner and other key players in the IRS targeting effort.

Those are the same emails that have now mysteriously vanished due to a reported crash of Lerner’s computer, a crash that happened ten days after the House Ways & Means Committee wrote her to inquire about (c)(4) tax exemption denials*. Emails of six other key IRS employees are also said to have vanished in a series of coincidental crashes.

This week, as if to confirm that shabby treatment of politically disliked adversaries was not unheard-of at the Lerner-era IRS, the agency agreed to pay $50,000 to the National Organization for Marriage over an episode in which persons unknown leaked its confidential return and donor list to its ideological adversary, the Human Rights Campaign, which proceeded to have it published. And the Ways & Means Committee has just released an email indicating that when an invitation intended for a Congressional opponent wound up by mistake in the hands of Lois Lerner, her immediate reaction was to wonder whether it might be used to generate an IRS investigation embarrassing to him.

After all these revelations, is it really those who distrust the agency’s leadership whose gullibility should be compared to that of flying saucer cultists? Or is are the credulous true believers the ones who insist that the latest jaw-dropping revelations from the Service are sure to have an innocent explanation, though the earlier ones did not? (cross-posted, with minor changes, at Cato at Liberty)

*An earlier version of this post described the letter to Lerner as being about targeting; Glenn Kessler at the Washington Post has disputed whether that is an accurate way to describe the contents of the letter, which concerned a plan to audit conservative (c)(4) donors. Ian Tuttle responds to Kessler here.

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I’ve got an update on the fast-developing scandal of evidence destruction at the IRS in my new Cato post (earlier). If not for reading Kim Strassel and her colleagues at the Wall Street Journal, I might not have learned that Lois Lerner’s emails got wiped from her hard drive by forces unknown about 10 days after the letter arrived from House Ways & Means inquiring into targeting of political opponents.

Since the new round of disclosures in the IRS scandal broke a week ago, the WSJ has shown itself willing to dig in a way that many other prestige press institutions have not. “People used to ask how Watergate might have turned out if the press had sided with Nixon instead of against him. Thanks to the work of Strassel and her WSJ colleagues, let’s hope we never find out.”

The Economist covers the story in this commentary. Our tag on evidence spoliation and document retention — lawyers among our readers will be familiar with how very seriously these concepts are taken in the world of litigation — is here.

Welcome readers: Glenn Reynolds/Instapundit.

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Paul Caron at the justly admired TaxProf blog has been patiently documenting the IRS scandal since the start and his daily link roundups are now as relevant as they have ever been. More: CNN, John Hinderaker/PowerLine, A. Barton Hinkle (finger of responsibility points at Congress), Peter Suderman. Earlier here, etc.

Update: IRS said on Tuesday that computer crashes swallowed without a trace the emails of several other employees central to the nonprofit-targeting probe, and admitted it waited months to tell congressional investigators that it did not expect to produce Lois Lerner’s emails.

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Quoth California Sen. Leland Yee, D-S.F., would-be censor of violent video games, whose involvement in a wildly colorful arms-smuggling scandal, though neglected in some national media circles, lends irony to talk of the psychologically obscure Root Causes of Violence. Thanks, Sen. Credibility! [Lowering the Bar]

More: Leland Yee, international man of mystery: how’d he manage to duck terrorism charges? [Contra Costa Times]

IRS scandal update

by Walter Olson on June 28, 2013

Despite vigorous efforts from some quarters to establish a “progressives were targeted too” narrative, Jonathan Adler explains why the IRS scandal is “still a scandal (but still not ‘Watergate’).” More: “The Internal Revenue Service scrutinized ‘progressive’ groups less harshly than conservative groups, the Treasury Inspector General said in a letter to Congress this week.” [ABC] Earlier here, here, etc.

May 31 roundup

by Walter Olson on May 31, 2013

  • The American Illness: Essays on the Rule of Law, new book from Yale University Press edited by Frank Buckley, looks quite promising [Bainbridge]
  • So the New York Times gets spoon-fed “confidential” (and disappointingly tame) documents from the old Brady Campaign lawsuits against gunmakers, and then nothing happens;
  • IRS commissioner visited White House 118 times in 2010-11. Previous one visited once in four years. Hmmm… [John Steele Gordon, more] (But see reporting by Garance Franke-Ruta and commentary by Yuval Levin.) Did politics play role in 2011 Gibson Guitar raid? [IBD]
  • Supreme Court of Canada: “Judges may ‘cut and paste’ when writing their judgments” [Globe and Mail]
  • Lack of proper land title and registration holds Greece back [Alex Tabarrok]
  • I try not to clutter this blog with links to memoir-ish personal pieces of mine, but if you’re interested in adoption, or in how America manages to be at once the most conservative and the most socially innovative of great nations, go ahead and give this one a try [HuffPost]
  • Big Lodging and hotel unions don’t like competition: New York City’s war against AirBnB and Roomorama [John Stossel, Andrew Sullivan]

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The IRS scandal is a genuine scandal, for sure; efforts to portray it as merely a “scandal” within quotation marks, as by the L.A. Times’s Michael Hiltzik, are well answered by Megan McArdle, Patterico, Ed Krayewski, and (implicitly in advance) by this Josh Barro column exploding the notion that 501(c)4 status was somehow intended only for volunteer fire departments and the like and not for politically engaged citizen groups.

Once the scandal momentum gets going, however, people start in on all sorts of efforts to connect dots that may not have any necessary connection or even qualify as dots at all. Example: at the Daily Caller this morning, reporter Patrick Howley is out with a story headlined, “Embattled IRS official Lois Lerner’s husband’s law firm has strong Obama connections.”

Curious, I read on to see which law firm with strong Obama connections Lerner’s husband, an attorney named Michael Miles, is a member of. It turned out to be Sutherland, Asbill & Brennan, a pillar of the Atlanta legal establishment known for its strong tax practice.

Sutherland, Asbill & Brennan is a so-called BigLaw firm. Per the American Lawyer’s profile, it has 387 lawyers and represents all sorts of clients, with an emphasis on corporate work across a wide range of industries.

So what’s the evidence that Sutherland has “strong Obama connections” or is tight with White House Democrats? Here it is: according to Howley, the firm:

hosted a voter registration organizing event for the 2012 Obama re-election campaign, praised President Obama’s policy work, and had one of its partners appointed by Obama to a key ambassadorship.

Really? In a 387-lawyer BigLaw firm, those are the strongest Obama links Howley was able to come up with? As with virtually all BigLaw firms, Sutherland has attorneys active in both parties who host events favorable to one side or the other. It took me only a minute or two on search engines to confirm that Sutherland lawyers and alumni are quite successful in landing prominent appointments under Republicans. Here’s a 14-year Sutherland alum (though he’d moved on to other employers in the interim) who served as National Executive Director of Lawyers for Bush-Cheney in 2000 and went on to a distinguished career as ambassador appointed by that administration. Here’s a Sutherland attorney (“top lawyer at the Pentagon for six years”) nominated by President George W. Bush to the Fourth Circuit U.S. Court of Appeals.

Of course, some BigLaw firms do have a distinct coloration that falls toward one side of the political spectrum while tolerating the occasional maverick from the other. Is this true of Sutherland? I consulted the Open Secrets database and found that in the last election cycle the firm’s lawyers donated $41,700 to Mitt Romney and $35,413 to Barack Obama. In Congressional races, the firm’s lawyers donated $38,040 to Republican candidates and $25,350 to Democrats. The biggest recipient by far in the Congressional races? Ted Cruz (R-Texas), who got $16,250 from Sutherland lawyers. Overall, these figures would rank Sutherland as not a particularly heavy hitter among law firms in federal donations. Twenty other law firms’ attorneys gave upwards of $1.2 million in the last election cycle, mostly leaning much more toward the Democratic side than did the donations from Sutherland’s attorneys.

I suppose “Embattled IRS official Lois Lerner’s husband’s law firm has strong Ted Cruz connections” would have made for too confusing a headline on a Daily Caller lead story.

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For all with eyes to see (except maybe some folks at The New Yorker) the IRS scandal has been hiding in plain sight for more than a year, I argue in a new Cato post. For example, this site briefly covered the Service’s ridiculously broad documentary demands on Tea Party groups — for things like transcripts of speeches and radio shows and the contents of Facebook and Twitter postings– in March and May of last year.

The Treasury Inspector General’s report on the affair, released yesterday, is here. (Coverage roundup: Paul Caron, TaxProf.) It makes clear that many groups were singled out because of their controversial political stances and then subjected to both objectively unreasonable document demands (e.g., for thousands of pages of documentation) and objectively unreasonable delays (e.g., for two years) in resolving their applications. (The Service seldom if ever actually denied applications from the singled-out groups, perhaps because its actions would then have come under more rigorous court review). Meanwhile, other groups with controversial views of a different political valence were waved through. It is not a question of whether applications for tax exemption should somehow be “approved without question,” as some have contended, but whether they should come under review that is even-handed and with no more delay and regulatory burden than is inherent to the process. At Time, Michael Scherer collects past examples that suggest IRS retaliation against political adversaries is something of a tradition in America. (Similarly: Cato video podcast).

P.S. Defending itself against the Inspector General’s report, the IRS says the applicants flagged for special scrutiny “included organizations of all political views.” It points to three such left-leaning groups — out of 471 in all singled out for extra screening. [Bloomberg via Newser] Much more: Gregory Korte, USA Today (“As applications from conservative groups sat in limbo, groups with liberal-sounding names had their applications approved … the liberal groups applied for the same tax status and were engaged in the same kinds of activities as the conservative groups.”) Meanwhile, L.A. Times columnist Michael Hiltzik is unafraid of going way out on a limb to defend what the Service did: if you don’t want to be harassed for your dissidence, it seems, you shouldn’t have sought (c)(4) status in the first place.

Yet more: Reuters has illuminating coverage of how the Service tried to break one of the year’s biggest stories on a Friday afternoon via a friendly question before a room full of tax lawyers. (“They made a bet that this would be the quietest way to roll it out,” [Eric Dezenhall] said of the IRS strategy. “It didn’t work.”) “Did Citizens United Critics Push the Agency To Misbehave?” asks my Cato colleague John Samples, while Tim Lynch adduces “Some Empirical Evidence of IRS Political Manipulation”. The BBC has a lexicon of political scandal euphemisms (“tired and emotional,” “hiking the Appalachian Trail,” etc.)

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Kings of Tort, the new book on Mississippi’s Dickie Scruggs and Paul Minor scandals by Alan Lange (YallPolitics) and Tom Dawson, is now out. Its website links to reviews and other angles of interest.

P.S. A blog reaction from Tom Freeland.

Gene Cauley gets seven years

by Walter Olson on November 24, 2009

The Arkansas plaintiff’s lawyer says he was too embarrassed to make layoffs as his finances turned sour, which is why he stole the $9.3 million in class-action settlement funds [WSJ Law Blog, ABA Journal] Earlier here, here, and here.

More from Kevin LaCroix:

An earlier WSJ.com Law Blog post reported (here) that Cauley was in fact a protégé of Bill Lerach. Today’s article on Bloomberg (here) about Cauley’s criminal sentencing notes that Cauley joins a growing list of plaintiffs’ securities class action attorneys who have “been jailed for felonies,” including Bill Lerach himself and his former law partners, Mel Weiss, Steven Schulman and David Bershad, and including even Marc Dreier.

These gentlemen of course made their living for many years accusing corporate officials of fraud. Ahem. Yes, well…isn’t ironic, don’t you think?

Bringing to a close another chapter in the Scruggs scandals. [WSJ Law Blog]

One is co-written by Alan Lange of YallPolitics blogging fame. [Freeland] More: Joe Palazzolo, “Scruggs Prosecutor Writes Tell-All Book”, Main Justice.

The Louisville Courier-Journal profiles Angela Ford, who took the lead in exposing Kentucky’s massive fen-phen settlement fraud.