Archive for the ‘Legal Issues’ Category

Indefensible

Sunday, July 19th, 2015

The Book of the Week is “Indefensible” by David Feige, published in 2006. This is an autobiographical account of a public defender; an attorney who represents indigent people accused of street crime, who were assigned to him by the court.

Feige described his experiences with the people in the criminal justice system in the New York City of the 1990′s. He had to deal with the homeless, mentally ill, addicts, gang members, good people who were wrongly accused– and their family members; judges and other court personnel, and fellow attorneys. There were personality types he saw over and over again– the poorly educated jailed people trapped in the poverty cycle due to their bad choices, bad luck and a series of circumstances out of their control; good, fair judges; and unsympathetic and sadistic judges.

Feige was overworked, underpaid and his anecdotes smacked of the proverb, “Good to know the law, better to know the judge.”

Read this depressing book to get an intimate picture of the inner-city downtrodden, and the difficulties of keeping them from being jailed, even when they are innocent, due to the odds against them.

Dragon Sea

Sunday, June 14th, 2015

The Book of the Week is “Dragon Sea” by Frank Pope, published in 2007. This ebook describes the lives of sunken-treasure hunters– people who go SCUBA diving to recover material assets of ships that have sunk in prior centuries.

Such a pursuit interests marine archeologists, too. They should have knowledge of art, ancient history and the sea. The oil industry has developed the technology that allows the least expense and the fewest complications for conducting underwater research and exploitation of the seabed. However, the exploitation part is still life-threatening and very expensive. A gruesome death might await divers at any time, so they make big bucks.

Many divers take a chance by attempting to retrieve treasures from a sunken ship whose contents might be claimed by its country of origin. They risk confiscated cargoes, impounded vessels and court cases, not to mention plunder, if pirates find out what they are doing before they can finish grabbing the ceramics, coins or other valuables from the ship. Those items might end up at a big-name auction house or at a museum. Or on eBay.

Read the book to learn about the salvaging of ceramics from one particular ship– along with the dangers, complications and conflicts that arose, the equipment used, worker interactions in light of the situations they encountered, and the financial results of the project.

The Strange Case of the Mad Professor

Sunday, February 22nd, 2015

The Book of the Week is “The Strange Case of the Mad Professor” by Peter Kobel, published in 2013. This ebook recounts the sordid story of a petty, vengeful university professor who was passionate about his field of study, lemurs.

Professor John Buettner-Janusch (aka “B-J”), of German and Austrian descent, was born in 1924. He grew up in the United States, but went to jail for evading the draft during WWII. “His desire for attention was enormous, and he never seemed to care much whether that notice was admiration, disdain, or loathing.”

B-J eventually rose through the ranks of higher education while collecting a menagerie of lemurs that were subjected to primate research. People either loved him or hated him. He was like a “Dr. Jekyll and Mr. Hyde”. It became apparent that he was also a sociopath.

Starting in the late 1970′s, he was charged with serious crimes. “…But much of B-J’s pretrial testimony formed a farrago of lies and half-truths, of the incredible or incomprehensible.”

Read the book to learn what became of this colorful character.

Mule

Sunday, February 8th, 2015

The Book of the Week is “Mule, My Dangerous Life as a Drug Smuggler Turned DEA Informant” by Chris Heifner, published in 2012.

This suspenseful ebook is a personal account of someone who drove truckfuls of marijuana across state lines for tens of thousands of dollars per trip. In a college class, the author happened to meet a guy who ran a large smuggling operation. In the late 1990′s, this illegal business was booming in Texas, partly because some members of the Mexican army were accomplices. One time, when Heifner drove a load to Mexico, he witnessed the crash of a prop plane. The military rushed over to remove its contraband cargo before attending to the injured pilot.

Drug smuggling is a heartless business in which no one completely trusts anyone. Initially, the fear of getting caught was hard to stomach for the author because the punishment was so harsh, but the lure of the vast quantity of easy money was addictive. Read the book to learn what transpired when he did get caught.

Why I Left Goldman Sachs

Sunday, January 4th, 2015

The Book of the Week is “Why I Left Goldman Sachs” by Greg Smith, published in 2012.

This career memoir details how the author experienced the change for the worse in corporate culture of stock brokerage Goldman Sachs (GS) over the course of a little more than a decade, from 2000 to early 2012. The company lost its way in terms of its mission and values, which embodied fiduciary duty and integrity.

In 2000, the author completed the selective, elitist, highly coveted summer internship program at the brokerage. He saw how principled the money managers were in recommending truly suitable transactions to their clients; not necessarily the most profitable ones.

When he began working there as a full-fledged staff member the following year, he took to the work, possessing the right combination of talents, skills and abilities to focus for long hours on conferring with clients and doing what was financially best for them. The goal was to build trust in order to foster a long-term relationship. It stands to reason that that is a more profitable course of action than seeking to rake in maximum money in the short term– which would provoke disloyalty from the client, when the client realizes he’s been taken advantage of.

Smith writes that a gradual change was occurring at his workplace around the start of 2005. At the time, he admittedly was “drinking the Kool Aid” like everyone else. The megabucks were multiplying because conflicts of interest were increasing betwen the brokerage and the government and other entities with which the brokerage was associated in various ways. The CEO and COO of GS were all for it. Their yearly letter to shareholders reasoned that such conflicts were inevitable, and were a sign that business was good. A telling example: GS netted approximately $100 million when it helped its client, the New York Stock Exchange merge with publicly traded, electronic exchange Archipelago in a $9 billion deal.

In the early 2000′s, one trend in the securities industry that would contribute to huge financial losses for the big firms including GS, was automated trading via software. The autotraders of the different firms were programmed to engage in largely the same behavior. They sought to trade in obscure, off-the-beaten path investments in markets in which it was difficult to find a buyer when it came time to sell. And they were all trying to sell at the same time. That was not a condition the autotrader creators had anticipated.

Another aspect of the big picture was that the people selling the financial products– more specifically, derivatives– did not themselves, understand what they were selling. It might be recalled that a derivatives debacle plagued the securities industry in 1994. Apparently, in 2007-2009, the greedy people involved in this rerun of a financial catastrophe failed to read their history, or had short memories. And governments of entire countries like Libya, were suffering losses of billions of dollars, thanks to GS, in 2007.

Read the book to learn much more about the outrageous occurrences borne of avarice witnessed by the author and the world during what became for him, an ordeal, characterized by the saying, “The fish rots from the head down.”

The Snakehead

Sunday, December 14th, 2014

The Book of the Week is “The Snakehead” by Patrick Radden Keefe, published in 2009. This ebook recounts the details of a pivotal human-smuggling incident involving people of Chinese descent.

In early June 1993, a boat hit a sandbar in Breezy Point in the borough of Queens (New York City) in New York State. Most of its occupants were illegal immigrants originally from China. They were “smuggled” rather than “trafficked” in that they had willingly bribed a “snakehead” to help them move to the United States without identification documents, knowing the risks of their journey full well. Trafficked individuals also have the desire for a better life, but are usually unaware that they will be sold as property.

Organized crime in Chinatown in New York City in the 1980′s was rampant, consisting of not just arrangements to further illegal immigration, but of extortion, gang warfare, conspiracy, hostage-taking and money laundering. “But there was only so much money in shakedowns, burglaries and kidnappings.” The heroin trade carried heavy prison sentences. On the other hand, there was big money (approximately $30,000 for the snakehead per person) in human smuggling and it carried light prison sentences.

At the start of the 1990′s, two major reasons that immigration laws were lenient for political asylum seekers from China were: 1) The 1989 Tiananmen Square massacre had reminded the world of oppression in China, and 2) The country had a draconian population-limiting political system, allowing women to bear only one child and thereafter be forced to have an abortion or the men, to have forced sterilization. Another factor that contributed to the arrival of an excessive number of illegals on U.S. shores around 1990 was the fact the the Immigration and Naturalization Service was a poorly treated, underfunded and understaffed agency, that competed with the customs department– whose contraband confiscations made it a political darling.

Read the book to learn: why, around 1990, there was also a shift in the transportation method, routes and entry points for illegal smuggling; which perpetrators got caught and their fates; and the valid arguments on both sides of the debate over the legal and ethical issues on people’s entering a nation without the legal means to do so.

Bonus Post

Tuesday, October 21st, 2014

This blogger skimmed the ebook, “The Law of the Jungle” by Paul M. Barrett, published in 2014.  This is the story of a decades-long court case involving oil contamination in the Amazonian rain forest of northeastern Ecuador, to which a number of cliches apply:

Pox on the houses of both the plaintiff and the defendant;

A man is known by the company he keeps; and

When you lie down with dogs, you get fleas.

Starting in 1993, the plaintiff, represented by a greedy, egotistical, loudmouthed, yet shrewd attorney– Steven Donziger– claimed that defendant, Texaco, and then successor Chevron oil company, had caused illness, deaths, and damage to the quality of life of thousands of farmers and tribesmen in Ecuador. The Amazonians were allegedly poisoned by the oil-contaminated streams where they fished, bathed and gathered drinking water. The oil company had established a presence in their villages since 1964, when it forged an agreement with the Ecuadorian government to drill on 3.5 million and later, 4 million acres in the Oriente region.

The author tells a suspenseful, controversial story that reveals valid arguments on both sides. There was evidence of serious disruption of villagers’ lives. This included cancer clusters and other health issues that plagued the Ecuadorians, pollution of the place where they lived, the unintended consequence of violent fighting for jobs and over income inequality between Indians and homesteaders, etc. directly attributable to the activities of, and inept cleanup of, oil that allowed spreading of toxic chemicals by, the petroleum companies. On the other hand, over the years, the economy of the country of Ecuador made great strides due to the companies’ building of, and heavy investment in, transportation infrastructure and the side effects of job creation and good political relations that would not have occurred but for the corporate presence in Ecuador.

According to the author, the plaintiff’s attorney went after “big oil” rather than “… a struggling national government responsible for letting down its people” because big oil had more sex appeal. It could also be that big oil had deeper pockets.

In sum, “The oil pollution suit was not unique. Ecuador’s judiciary had a well-earned reputation for corruption and chaos.”

Read the book to learn of the various sleazy tactics employed by both sides in the dispute, and to get a concise, eloquent summary of the whole story– read the “Conclusions” section of this ebook.

The Snowden Files

Sunday, August 3rd, 2014

The Book of the Week is “The Snowden Files:  The Inside Story of the World’s Most Wanted Man” by Luke Harding, published in 2014. This ebook eloquently describes how Edward Snowden became a whistleblower, and the immediate consequences of his actions.

President Barack Obama vowed to curtail intrusive collection of personal data from and on the American people during 2008. A set of policies passed after 9/11, the Patriot Act, originally allowed certain kinds of spying. The goal was to root out terrorists. Instead of curbing the program, Obama authorized the National Security Agency (NSA) of the United States government to become an all-out global spying operation. By 2009, it was collecting metadata from millions of American and English citizens, as well as numerous global government officials, through phone records and email. It teamed up with GCHQ, the United Kingdom’s governmental branch that handles intelligence, and later, elicited customer data from the major U.S. tech companies Google, Facebook, Apple and Microsoft. The NSA and GCHQ “…secretly attached intercepts to the undersea fibre-optic cables that ringed the world.”

However admirable the intentions of government officials might be– thinking they are seeking out evil and preventing incidents of terrorism, their actions are misguided. They might contend that there have been no terrorist attacks on American soil since 9/11, so therefore, the program is working. This erroneous reasoning is like the stupid joke: A man is sitting outside on a city street waving around an odd contraption. Someone walks by and asks him what it is. The man tells them it’s an elephant repellent. He is asked how he knows it’s working. He says, “It must be working. Do you see any elephants around here?”

This blogger believes that the privacy violations– arguably unconstitutional– are a secondary reason why the nature of the NSA’s actions are so dangerous. One major aspect that makes the spying so dangerous is that comprehensive searches can be done on electronic-records literally at the speed of light.

Excuse the cliche, but “Absolute power corrupts absolutely.” Abuse of power is inevitable. For instance, there have been incidents involving the TSA. Throughout history, only bad publicity generated by whistleblowers who have made serious sacrifices– their livelihoods and/or their lives– has stemmed the tide of the evildoing. The same is true with this NSA/GCHQ situation. This ebook likened the spying to the East German Stasi prior to the fall of Communism. This blogger thinks eventually, absent a whistleblower, there would have emerged an individual with the mentality of Stalin or the late U.S. Senator Joseph McCarthy. Fortunately, Snowden found a way to act on the conviction of his beliefs in a mature, if illegal, way. He communicated with the right individuals at The Guardian, “… the third largest newspaper website in the world.”

A minor side effect of the collection of massive amounts of data, even if only a fraction of it is looked at– is that mistakes of honest ineptitude will be made. Lives have been greatly inconvenienced at best, due to the erroneous data in credit records, and those whose names have been mistakenly placed on a “no-fly” list, among various other cluster screw-ups of record-keeping entities.

Read the book to learn of the different media cultures in the U.S. and U.K., and the details of this suspenseful saga.

Bonus Post

Friday, June 27th, 2014

This blogger skimmed the ebook, “In the Name of Profit” by multiple co-authors, originally published in 1972. This depressing set of anecdotes on corporate greed simply reminds the reader that there is nothing new under the sun.

One theme is that through the 1950′s and 1960′s, big manufacturers such as Goodrich and General Motors had constructive knowledge that the products they sold were defective. Purchasers had bad experiences, and were seriously injured or were killed by those products. The companies’ attorneys and their employees rationalized that “‘planned obsolescence” meant progress. “But the meaning is clear: ‘Go cheapen the product so we can make more money.” In the case of drug company Richardson-Merrell, the product wasn’t cheapened, but rather, serious side effects were downplayed or hushed up and the results of FDA pre-approval testing were fabricated. Unsurprisingly, the company and its subsidiaries hired top-dollar attorneys skilled at helping businesses weasel out of legal trouble.

Another topic covered was Napalm, whose evolution began at Guadalcanal during WWII. “The Napalm fire bomb was deliberately designed as an indiscriminate terror weapon for mass destruction and death among civilians.” When people in Vietnam were harmed, Dow Chemical’s legal defense was bolstered by the fact that it had received orders by the U.S. Government to make the controversial product.

This ebook also discussed stock manipulation and corporate takeover. SEC laws were shown to be very lax in the 1950′s and 1960′s, as one particular perpetrator did jail time for various securities violations, but after his release, went right back to his old tricks. One Herbert Korholz repeatedly gamed the system with acquisitions. President of the Susquehanna corporation, he was able to bribe directors and officers in taking over another company with a secret tender offer of a share price higher than what was to be offered to the general share-owning public. “Profit-making firms can cut their taxes magnificently by merging with big losers…” One Maurice Schy, an attorney, attempted to make the government aware of Korholz’s unethical, unlawful and disgusting behavior, by filing lawsuits through the years, to no avail. Government officials were mired in conflicts of interest (favorable to Korholz’s interest) and ruled against Schy every time except one; a ruling was pending as this book was being released in 1972. Schy had finally gotten a possible break only because there was another case brought by another party against Korholz’s companies’ illegal activities.

In sum, we human beings are a mixed bag of evolutionary traits; altruism and greed among them. On many occasions, greed wins out, and we never seem to learn from those past occasions.