Buck Naked Politics

Hundreds Indicted for Mortgage Fraud

Via Memeorandum, a Justice Department press release states, in part:

"Today we are announcing the results of a nationwide law enforcement sweep aimed at investigating and prosecuting mortgage fraud. In three and a half months, this action, known as Operation Malicious Mortgage, has resulted in charges against more than 400 individual defendants. Yesterday alone, 60 people were arrested and face charges, and arrests are continuing today....

"In a separate action today, an indictment was unsealed in the Eastern District of New York charging two Bear Stearns portfolio managers with conspiracy and fraud charges related to two hedge funds that invested in, among other things, securities tied to mortgage debt.  (Read more here.)

Prosecutors Drop Siegelman and Scrushy Appeals

by Deb Cupples |   After 52 former state attorneys general asked Congress to investigate the prosecution of former Alabama Governor Don Siegelman -- after 60 Minutes did a story on the questionable prosecution -- Siegelman was released from prison.  That was nearly two years after he'd first went to prison.

While Siegelman was appealing his sentence, the prosecutor decided to cross appeal, asking for Siegelman's sentence to be increased to 30 years.  Yesterday, the prosecutor announced that his office would drop the appeal to increase the sentence -- without explaining why. The Associated Press has the story (via Memeorandum).
 

The 60 Minutes video is after the jump.  It begins with this question: "Is Don Siegelman in prison because he's a criminal or because he's in the wrong political party in Alabama?"

Rezko Convicted, RNC Focuses on Ties to Obama

by Deb Cupples |   Yesterday, Chicago businessman Antoin "Tony" Rezko was convicted of two counts of aiding and abetting bribery, two counts of money laundering, six counts of wire fraud,  and six counts of  mail fraud. (Chicago Tribune).  He was acquitted of four counts of aiding and abetting bribery, there counts of wire fraud, and one count of attempted extortion.

Rezko gained national attention, partly because of his ties to Democratic presidential nominee Barack Obama.  According to ABC, Rezko raised about $250,000 for Obama's campaigns for the Illinois legislature and the U.S. Senate. 

Obama -- who was not implicated in the Rezko case -- has assured the press that Rezko did not get any government-related benefits from Obama in return for Rezko's donations.  That aside, the Republican National Committee is now focusing on Obama's ties to Rezko.  Memeorandum has commentary.

Would House Committee Arrest Karl Rove?

by Deb Cupples |   Apparently, former presidential adviser Karl Rove is still refusing to testify before the House Judiciary Committee about the possibly political prosecution of former Alabama governor and Democrat Don Siegelman (see video here). 

MSNBC's Dan Abrams asked Judiciary Committee member Rep. Debbie Wasserman-Schultz (D-FL) if the committee would be willing to arrest Rove if he continues to ignore the committee's subpoena, which was issued last week.

Wasserman-Schultz said "Well, if that's what it takes."  Check out the video below.  Wasserman- Schultz's interview starts at about 55 seconds.

It's nice to feel proud of one of my state's representatives in Congress.  Thanks to Think Progress for pointing out this story.

Conyers Subpoenas Rove, DOJ to Investigate Questionable Prosecutions?

by Deb Cupples |  From a House Judiciary Committee press release:

"Today, House Judiciary Committee Chairman John Conyers, Jr. (D-MI) issued a subpoena to former White House Deputy Chief of Staff Karl Rove for testimony about the politicization of the Department of Justice (DOJ), including former Alabama Governor Don Siegelman's case. Yesterday, Rove's attorney, Robert Luskin, sent a letter to the committee expressing that Rove would not agree to testify voluntarily, per the committee's previous requests.

"'It is unfortunate that Mr. Rove has failed to cooperate with our requests,' Conyers said. 'Although he does not seem the least bit hesitant to discuss these very issues weekly on cable television and in the print news media, Mr. Rove and his attorney have apparently concluded that a public hearing room would not be appropriate. Unfortunately, I have no choice today but to compel his testimony on these very important matters.'

 

Step in the Right Direction: Judge Decides KBR Rape Case Should Go to Court

Yesterday, ABC News reported:

"A Houston woman [Jamie Leigh Jones]  who says she was gang raped by co-workers at a Halliburton/KBR camp in Baghdad won a major court battle late Friday when a Texas judge ordered that she can bring her case to court instead of forcing her into secretive arbitration proceedings with Halliburton and KBR.

"After months of waiting for criminal charges to be filed, Jones decided to file suit against Halliburton and KBR."

Special Counsel Stopped Investigation of Siegelman Prosecution

by D. Cupples |   While former Alabama Governor Don Siegelman was in prison, fifty-two former state attorneys General (including Republicans) asked Congress to investigate the questionable prosecution.  In October, Time Magazine published an in-depth story about it.  In February, CBS aired its 60 Minutes story (embedded below).  Siegelman was released in March, pending his appeal.

It turns out that the federal government had quietly launched an investigation and just as quietly stopped the investigation last year -- while Siegelman was still in jail.   The Associated Press reports:

Was Rezko Linked to the Fired U.S. Attorney Scandal?

Yesterday's New York Times reported:

"A prominent Illinois Republican Party leader may have tried to use his friendship with the former White House political aide Karl Rove to push for the ouster of the United States attorney in Chicago, a federal prosecutor said in court on Wednesday."

"The accusation came in the trial of a Chicago-area political fund-raiser and businessman, Antoin Rezko, who is facing bribery charges as part of a wide-ranging corruption investigation that has been a source of embarrassment to both Democrats and Republicans in Illinois."

Siegelman on the Scrushy Donation

Six weeks after CBS's 60 Minutes did a story on the questionable prosecution of Alabama Governor Don Siegelman, an appellate court released Siegelman from prison pending appeal.  He was in prison since 2006.  Below is a clip of Siegelman's discussion about the $500,000 donation from Richard Scrushy to a state lottery campaign.  Scushy, the former head of HealthSouth, is still in prison, I believe.

Mukasey Unwittingly Indicates Administration was Incompetent or Dishonest

by D. Cupples |  During a speech last week -- while trying to justify increased wiretapping powers for the Bush Administration under FISA -- Attorney General Michael Mukasey implied that 9/11 might have been prevented if the Administration had had broader wiretapping powers.  Mukasey said:

"'We knew that there had been a call from someplace that was known to be a safe house in Afghanistan and we knew that it came to the United States. We didn’t know precisely where it went. You’ve got 3,000 people who went to work that day, and didn’t come home, to show for that.'"

House Judiciary Committee chairman John Conyers pointed out the obvious implications of Mukasey's implications: that either the Bush Administration is lying now or was incompetent before 9/11.  In a letter to Mukasey, Conyers wrote:

Inspector General Investigates the DoJ's Firing of Exemplary Prosecutor

Posted by Teh Nutroots |  The lawyer herself---known for reticence about her private life--- is keeping quiet, but the DoJ's inspector general is investigating whether one of the country's top prosecutors was let go because of rumors that she was a lesbian.  I apologize for the pop culture reference but come on, you know someone's got to say it.  As a (former) Law and Order fan, I--and everyone else who remembers the episode--- will obviously have thought of the "Serena Southerlyn" character's out-of-left-field exit line ("Is it because I'm a lesbian?") upon being fired by Fred Thompson's character a few years ago.  But whereas Fred Thompson's character "Branch" fired Rohm's character for being too lenient to be a prosecutor, Leslie Hagen's record reflects that her performance was exemplary.  

Siegelman Release "A Big Win in a Very Long War" (Update)

Posted by Damozel | Siegelman has been released from prison pending his appeal.

Thursday’s ruling by the United States Court of Appeals for the 11th Circuit in Atlanta said Mr. Siegelman’s larger appeal had raised “substantial questions,” and so the former governor should be released from the federal prison where he has already served nine months of a seven-year sentence. (NYT)

The Raw Story has a useful timeline of his prosecution.  Meanwhile, John Conyers and the House Judiciary Committee are keen to hear from Siegelman's story from his own lips, especially given that  it's so difficult to get anything out of the DoJ.  I'm keen to hear it too. 

Legal Abuses and FBI's Data Mining

by D. Cupples  | Last year, we learned that the FBI had made hundreds of errors (i.e., violations of laws and/or regulations) when mining for data on us Americans.  The FBI has had at least 9 months to repair its system and stop violating rules or laws.

Today, the New York Times covered a recently released report indicating that the FBI is still gathering far more private data on us Americans than the laws or the agencies'  regulations allow.  House Judiciary Committee chairman John Conyers commented:

Spitzer to Resign? More on His Predilection for Prostitutes & Why It's Got Him in Such Hot Water

Posted by Damozel | Apparently it's been going on for about 10 years, if you believe The New York Post.  Earlier they were saying six, but now the number's increased.  Meanwhile, one 22 year old call girl spoke up for him, saying, "Gov. Eliot Spitzer had been one of her customers two years ago when he was New York attorney general and that he was a nice guy who tipped well." (ABC News) 

Well, that's something in his favor I guess. She also said that she knew who he was because he made calls from the attorney general's office. (ABC News)  He spent upwards of $80,000 for them, apparently of his own money.  And therein lies a further problem that hadn't occurred to me.

House Judiciary Committee Sues over Subpoenas re: Justice Dept. Politicization

D. Cupples (photo from Judiciary Committee) |  Yesterday, the House Judiciary Committee filed a civil suit against White House Chief of Staff Joshua Bloten and ex-White House counsel Harriet Miers because they failed to comply with subpoenas regarding the committee's probe of the firing of U.S. Attorneys. (See complaint) 

Last month, the House voted to hold Miers and Bolten in contempt of Congress.  Last week, the Justice Department refused to present the contempt citations to a grand jury, which federal law requires.  A statement by Judiciary Committee chairman John Conyers sums up why this issue is important:

Spitzer Should Resign....Right After Senators Vitter and Craig

Posted by Damozel |  Apparently Spitzer is considering resignation.  At Mercury Rising, Phoenix Woman asks: 

Have either Senators Craig or Vitter resigned yet?

No?  Didn’t think so.

Then neither should Governor Spitzer.  That’s my take.

Oh, and guess how Spitzer was brought down? The bankers he’d pissed off were watching his money really closely. Normally they wouldn’t be flagging $5,000 transactions from a man of his wealth (his father is a real estate mogul), but in his case they sure did.

I think this is probably right.

Memeorandum on the resignation issue:  here.

The Spitzer Incident

Posted by Damozel | It's an all-too-familiar story.

Gov. Eliot Spitzer has been caught on a federal wiretap arranging to meet with a high-priced prostitute at a Washington hotel last month, according to a person briefed on the federal investigation.

An affidavit in the federal investigation into a prostitution ring said that a wiretap recording captured a man identified as Client 9 on a telephone call confirming plans to have a woman travel from New York to Washington, where he had reserved a hotel room. The person briefed on the case identified Mr. Spitzer as Client 9.

Mr. Spitzer today made a brief public appearance during which he apologized for his behavior, and described it as a “private matter.”  (NYT)

Mukasey Blocks Contempt Probe Against Bush Aides

posted by D. Cupples | Thursday, I wondered whether Attorney General Michael Mukasey would ignore the law or ask a federal grand jury to probe whether Harriet Miers and Josh Bolten were in contempt of Congress for refusing (under questionable White House orders) to comply with subpoenas from congressional committees investigating the fired U.S. Attorney scandal.

Apparently, Mukasey has decided to ignore the law. (see CNN via Memeorandum)

More information re: Questionable Prosecution of Siegelman (New Video) UPDATED

by  D. Cupples | The questionable prosecution of ex-Alabama Governor Don Siegelman is evidence that Congress was right track to investigate the politicization of our Department of Justice.  If well-connected operatives could turn the DoJ loose on their well-connected political enemies, how safe are politically outspoken ordinary folks?

MSNBC is actually doing its job re: Siegelman (video below).  Reportedly, his trial ended more than 18 months ago, but the court hasn't yet produced a transcript; thus, Siegelman's appeal is delayed.  White-collar criminals typically are allowed to avoid prison while waiting for appeal -- Siegelman was sent to prison immediately after trial and is there today.

It couldn't hurt to contact some members of Congress and encourage them to step up the investigation or at least let them know that you support their efforts (email links below).

MSNBC Interview: Dana Simpson on Rove, Siegelman, etc (videos)

by  D. Cupples |  If well-connected political operatives could use the U.S. Justice Department against a well-connected former governor, what's to stop them from going after ordinary citizens who politically oppose them? 

MSNBC's Dan Abrams interviewed Dana Jill Simpson, the whistle blower who testified before  the House Judiciary Committee (see transcript) about the highly questionable prosecution of former Alabama Governor Don Siegelman.  CBS's 60 Minutes also ran a story this past Sunday (video after continue-reading link).

Simpson said that Karl Rove led the effort to bring down Siegelman.  Rove seems to deny that he has ever met Simpson.  The chair of the Alabama Republican Party has reportedly denied Simpson's past involvement with the party.  Incidentally, the 60 Minutes story was "mysteriously" blacked out in parts of Alabama.