Archive for April, 2012

Medical roundup

Wal-Mart and FCPA

Wal-Mart’s expansion into Mexico, one of the great American business success stories of recent years, may also have led the giant retailer into extensive violations of the Foreign Corrupt Practices Act — in particular, if a New York Times investigation is to be believed, through efforts by U.S. management to sweep under the rug strong evidence that rogue management in Mexico had paid millions of dollars in bribes to facilitate the chain’s expansion. [NYT, AW, Business Insider] Last fall I described the law as “a feel-good piece of overcriminalization” that Congress should never have passed; more on FCPA here.

You or your cat…

…can become a certified forensic consultant, it seems. “As soon as I finished the test, a screen popped up saying that I had passed, earning me an impressive-sounding credential that could help establish my qualifications to be an expert witness in criminal and civil trials. For another $50, ACFEI mailed me a white lab coat after sending my certificate.” Do the lab coats come in cat sizes? [Leah Bartos, ProPublica]

April 23 roundup

  • Fearful of adverse Supreme Court ruling, Department of Justice said to have exercised pressure on city of St. Paul to buckle in housing-disparate-impact case [Kevin Funnell]
  • Justice Janice Rogers Brown: we can dream, can’t we? [Weigel] The Brown/Sentelle opinion everyone’s talking about, questioning rational basis review of economic regulation [Hettinga v. U.S., milk regulations; Fisher, Kerr]
  • Claim: “The Bachelor” TV franchise discriminates on basis of race [Jon Hyman]
  • Chicago sold off municipal parking garages. Good. It also promised to disallow proposals for private parking nearby. Not good [Urbanophile]
  • Bad day in court for Zimmerman prosecution [Tom Maguire, more, Merritt]
  • “I want some systematic contacts wherever your long arm can reach” — hot-‘n’-heavy CivPro music video satire [ConcurOp, language]
  • Federal judge dismisses charge against man who advocated jury nullification outside courthouse [Lynch, Sullum, earlier]

Ethnic foodways vs. state regulation

The sale of live seafood, common in Chinese food markets, can collide with blanket state regulation of wildlife sales. Virginia, for example, classifies as wildlife any animals not appearing on a list of domestic animals, even if they are raised on farms and have never lived in the wild. While the Virginia suburbs of D.C. have won fame as a hot spot for admirers of Asian food, the selection got somewhat narrower last year with the confiscation of eels, crayfish, bullfrogs and other critters from the Great Wall supermarket. Two store managers were hit with felony charges. [NY Times, Washington Post]

Update: Baltimore City Paper on South Mountain Creamery case

Van Smith with the City Paper in Baltimore (where South Mountain Creamery is a farmer’s-market fixture) reported on Wednesday and again on Friday on the “structuring” charges and forfeiture action against dairy farmers Randy and Karen Sowers (see yesterday’s post). A few highlights:

  • On Wednesday, Smith reported that Sowers said in an interview that “he deposited the cash he’d made in the increments in which it had been earned. If the deposited amounts often ended up being a little under $10,001, he explained, that’s just the way it worked out and he [had] no intention of breaking the law.”

    On the other hand, according to Smith’s summary of the federal complaint yesterday, Sowers is said to have told federal investigators during a February 29 interview “that ‘during the farmers’ market “season,” his weekly cash receipts were on the order of $12,000 to $14,000,’ yet ‘he kept his cash deposits under $10,000 intentionally so as not to “throw up red flags.”‘ He also told the agents that ‘he was advised by a teller at the bank that the deposit of more than $10,000 in cash would lead to the filing of a form, and that he decided from that point forward not to make deposits in excess of $10,000,’ according to the complaint.”

  • “Historically, the anti-structuring statute has been used by prosecutors as an ancillary charge with other accusations of nefarious behavior, such as drug dealing or terrorism. And it still is. But over the last few years, prosecutors have started to use it more regularly as a standalone charge — an observation noted by defense attorneys that Maryland U.S. Attorney Rod Rosenstein confirms. Syracuse University’s Transactional Records Access Clearinghouse, a data center about federal court cases, reports that in fiscal year 2011 Maryland brought 14 of the nation’s 99 structuring cases, making it the top state for such prosecutions. Nationally, the numbers have been rising; the 2011 figures are up 8.8 percent from the year before and up 57.1 percent from five years ago.”
  • Targets in Bank Secrecy Act forfeiture cases — which, to repeat, need not be premised on any suspicion of tax evasion or other criminality unrelated to the Act — have included Maryland “gas stations, liquor stores, and used-car dealerships.” “South Mountain is not the first seasonal-produce market to find itself targeted for structuring recently. Taylor’s Produce Stand, on the Eastern Shore, was stung last year after the feds seized about $90,000 from its bank accounts. In December, pursuant to a civil-forfeiture settlement agreement after no criminal charges were filed, the stand’s owners got back about half of the seized money.”
  • And this clue as to why the U.S. Attorney’s office in Maryland might be outperforming its colleagues nationwide in pushing BSA forfeitures: the forfeiture complaint against the Sowerses was “signed by assistant U.S. attorney Stefan Cassella – who literally wrote the book on federal forfeiture law.”