Posts Tagged ‘scandals’

Celebrity attorney Michael Avenatti charged with extortion

Federal prosecutors in New York have charged celebrity attorney Michael Avenatti with trying to extort $20 million from Nike by threatening to vent allegations that he threatened would knock billions off its market capitalization. A simultaneous federal indictment in California charges Avenatti with embezzling from a client and defrauding a bank. [Chris Dolmetsch and Erik Larson, Bloomberg]

Two tweets 47 minutes apart tell quite a story [Joe Weisenthal] The complaint filed in New York also describes an unnamed co-cpnspirator, who is not charged with any wrongdoing; Wall Street Journal reporting says that figure is California-based celebrity attorney Mark Geragos, a longtime Overlawyered favorite who has lately represented Jussie Smollett and Colin Kaepernick and until this week was billed as a legal commentator at CNN, where Avenatti too has made frequent guest appearances.

As in many other situations, the question arises: what would the legal difference be between extortion and ordinary lawyer behavior in settlement negotiations? Part of the answer is that Avenatti was alleged to be angling for his own, rather than the client’s advantage. From p. 9 of the New York complaint:

Comments Jeb Kinnison on Twitter: “Must observe the forms. If only he’d started a nonprofit to take the payoffs and pay him a salary…” And another reader is reminded of the 2013 Paula Deen episode [American Thinker, earlier]

Higher education roundup

  • Oops! “Tulane sophomore unknowingly named as plaintiff in lawsuit over college bribery scandal” [John Simerman, New Orleans Advocate] “Admissions scandal class action is ‘fascinating’ but likely doomed – experts” [Alison Frankel, Reuters] Plus advice from Ken at Popehat;
  • Some problems with the idea of a sweeping presidential order to decree free speech on campus — and a promising if more modest step the White House could take instead [Donald Downs, Cato] Two more views on how universities can “fend off outside intervention and, more importantly, be true to their own mission… [by] nurturing a better free speech culture” [Keith Whittington, parts one and two; John McGinnis]
  • “‘If racial preference [in college admissions] is unjust, then it doesn’t magically become just because people notice some other injustice that has different beneficiaries,’ Olson said. ‘Two things can be unjust at the same time, and two injustices do not add up to one justice.'” [John Blake, CNN, quoting me on the argument that the admissions scandal somehow proves preference advocates’ case]
  • Harvard lawprof and residential dean Ronald Sullivan under fire for defending unpopular figures facing MeToo charges
    [Randall Kennedy, Chronicle of Higher Education; Conor Friedersdorf (quoting HLS prof Janet Halley: “Finally, the ‘climate survey’ technique is a dangerous precedent as a matter of employment rights and as a threat to academic freedom. It’s a thinly veiled version of the heckler’s veto.”)]
  • The Snuggle is real: very long list of demands by Sarah Lawrence students occupying campus building includes consistent access to detergent and fabric softener [Sarah Lawrence Phoenix; Pamela Paresky, Psychology Today] Rather more seriously, the students demand the college reconsider the tenure status of a professor who published a mildly conservative op-ed in the NYT [Colleen Flaherty, Inside Higher Ed]
  • Even if occasionally subverted by dishonest actors, standardized tests remain the gold standard among transparent, objective ways to improve the accuracy of college success prediction [Jenna A. Robinson, Martin Center]

New Jersey considers launching state-owned bank

“Politicians Want to Start a Bank. What Could Go Wrong?” is the title of my new Wall Street Journal op-ed about New Jersey Gov. Phil Murphy’s very bad idea.

The article will be paywalled for many, but you can read some of the journalistic coverage of the bank issue: Matt Friedman, Politico, Samantha Marcus/NJ Advance Media. Some articles I cite in my piece along with relevant links/research: The Economist on German Landesbanken, Aaron Fernando, The Progressive (citing German example, and noting current campaigns for city-owned banks in Los Angeles, San Francisco, Seattle, and other cities); Erica Jedynak letter, MyCentralJersey.com (“A 2011 report based on research provided by Federal Reserve Bank of Boston and other state agencies recommended the Massachusetts legislature not pursue the idea”).

More: Joseph Lawler, Washington Examiner:

Research on public-owned banks across the world suggests [that lending is politicized]. A 2002 paper from a Northwestern University economist found that areas with stronger political parties get lower interest rates from public banks. Political interference is likely the reason that public banks have been found to underperform compared to private banks in underdeveloped countries, according to a 2012 paper written by Taiwanese researchers.

On corruption rankings, Transparency.org on Germany; Five Thirty-Eight and Harvard Safra Ethics Center on U.S. states. On New Jersey’s outstandingly bad record for corruption: Olivia Nuzzi, Daily Beast and Philip Bump, Washington Post.

Now out: Radley Balko and Tucker Carrington on Mississippi forensics scandal

On Thursday I attended a Cato forum with Radley Balko and Tucker Carrington on their new book on the extraordinary Mississippi forensics scandal, “The Cadaver King and the Country Dentist: A True Story of Injustice in the American South.” Excerpt of blurb from event:

Over the past 25 years, more than 2,000 individuals have been exonerated in the United States after being wrongfully convicted of crimes they did not commit. There is good reason to believe that tens or even hundreds of thousands more languish in American prisons today.

How this can happen unfolds in the riveting new book from Radley Balko and Tucker Carrington. The Cadaver King and the Country Dentist recounts the story of two Mississippi doctors—Dr. Steven Hayne, a medical examiner, and Dr. Michael West, a dentist—who built successful careers as the go-to experts for prosecutors and whose actions led many innocent defendants to land in prison. Some of the convictions then began to fall apart, including those of two innocent men who spent a combined 30 years in prison before being exonerated in 2008.

Balko and Carrington reveal how Mississippi officials propelled West and Hayne to the top of the state’s criminal justice apparatus and then, through institutional failures and structural racism, empowered these two “experts” to produce countless flawed convictions on bad evidence and bogus science….

The book recounts in detail the unlikely claims that can be put across for supposed autopsy and bite-mark evidence, especially when no well-informed lawyer appears on the other side to push back. In addition to an exceedingly high volume of autopsy reports for police, Hayne was also available for medical expert witness testimony in civil litigation. We’ve been on the story for ten years: see links here, here, here, here, and here.

Related: The dubious forensics of “shaken baby syndrome” have been known for years. This Mississippi man remains on Death Row for it. [excerpt from book in Reason]

Brad Smith: looking back at the IRS targeting scandal

Brad Smith, a former commissioner of the Federal Elections Commission, in the Washington Examiner:

…what we are now seeing is an outright attempt to rewrite history so as to whitewash the entire affair. Newsweek has gone so far as to call the scandal “fake news,” with one of its columnists calling it “a lie.” A Dec. 29 editorial by the Washington Post claims that there was “mismanagement … but not deliberate targeting.”…

The IRS itself eventually conceded that of 199 cases analyzed under this “Be On the Look Out,” or “BOLO” program, approximately 75 percent [150] “appear to be conservative leaning, while fewer than 10 appear to be liberal/progressive leaning groups.” In other words, the fact that the terms the IRS used to pull applications for extra scrutiny — terms such as “Tea Party” and “patriot” — snagged a few liberal groups doesn’t mean that the purpose and effect was not to target conservative organizations.

As the basis for whitewashing the IRS scandal, Newsweek, the Washington Post, and others have turned to a new TIGTA report concerning a different IRS program altogether. That program, called “Touch and Go,” swept up a mix of conservative and progressive groups. But that is precisely because it didn’t target groups based on politics, which was the problem with BOLO. Nothing in the latest TIGTA report contradicts TIGTA’s 2013 report revealing the IRS targeting, and TIGTA doesn’t claim that it does.

Earlier here, here, etc.

Claire Berlinski on #MeToo

Veteran journalist Claire Berlinski has a contrarian warning regarding the #MeToo momentum on sexual harassment and assault: “Revolutions against real injustice have a tendency, however, to descend into paroxysms of vengeance that descend upon guilty and innocent alike. We’re getting too close.” [The American Interest] Related, Emily Yoffe on the workplace and the Title IX example [Politico]

Weinstein’s investigations — and settlements

Harvey Weinstein, assisted by the law firm of celebrated attorney David Boies, “hired private investigators, including ex-Mossad agents, to track actresses and journalists.” At least one agent used false names and identities to insinuate herself into accusers’ and journalists’ circles. “Techniques like the ones used by the agencies on Weinstein’s behalf are almost always kept secret, and, because such relationships are often run through law firms, the investigations are theoretically protected by attorney-client privilege, which could prevent them from being disclosed in court.” [Ronan Farrow, The New Yorker]

Would it help to abolish confidentiality in settlements, as some urge? “California State Sen. Connie Leyva… said she plans to introduce a bill next year to prohibit nondisclosure agreements in financial settlements that arise from sexual harassment, assault and discrimination cases. The rule would apply to public and private employers, she said.” [Danielle Paquette, Washington Post “WonkBlog”] “Getting rid of NDAs reduces accusers’ bargaining power so they end up with lower money settlements or perhaps no settlements,” notes HLS Prof. Jeannie Suk Gersen on Twitter and at more length in The New Yorker. Might that impair their chance of getting a private lawyer interested in their case in the first place? “[We would be choosing] to impair the ability of private parties to resolve a dispute in favor of the public interest.” [Scott Greenfield]

Prosecutors: “Fast Eddie” Vrdolyak got secret cut of Illinois tobacco fees

The great tobacco settlement of the 1990s certainly is the scandal that keeps on giving, isn’t it? “On Tuesday, federal prosecutors…. charged that [influential former Chicago alderman Edward] Vrdolyak worked out a secret deal with other attorneys to collect as much as $65 million even though he’d done no work on the tobacco case [for the state of Illinois]. The indictment did not make clear just how much the former alderman actually pocketed. … The [Seattle-based Hagens Berman] firm has denied any attempt to conceal payments.” [Chicago Tribune]

By the time my book The Rule of Lawyers came out in its 2004 softcover edition, enough was known about the multistate tobacco settlement for me to call it a “gigantic heist.” More stories have emerged since then. How many more still haven’t come to light?

“A liberal legal icon condemns the IRS’ abuses”

Overlawyered gets a mention today in a New York Post editorial today, but the greater credit should go to Prof. Larry Tribe for his willingness to be swayed by the evidence on the Internal Revenue Service targeting controversy (earlier). In a Cato post largely adapted from previous coverage here, I note in a P.S.: “If word of the D.C. Circuit panel decision has not gotten around as widely as it should, one reason is that some major news organizations have still, nearly three weeks later, not seen fit to cover it.”