Tangled Vines

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The Book of the Week is “Tangled Vines, Greed, Murder, Obsession, and an Arsonist in the Vineyards of California” by Frances Dinklespiel, published in 2015. The moral of this book’s main story is “Lawsuits followed and winemakers like Viader made mental notes never to be cavalier about the disposition of fire-damaged wine.”

According to the author, as of 2013, Americans drank the largest quantity of wine, 13% of all the wine of all the countries in the world.

In October 2005, a majorly evil crime was committed at the Wines Central warehouse on Mare Island in Vallejo. An assistant U.S. attorney for the Eastern district of California– an expert in wine fraud and arson, and an agent from the Bureau of Alcohol, Tobacco, Firearms and Explosives assessed the damage and investigated the site. The latter used an acceleration-detection canine, also called an arson dog.

The perpetrator committed: mail fraud (for shipping wine across state lines under a false name), interstate transfer of stolen property (because it wasn’t his wine to sell), arson, and tax evasion.

Fire destroyed millions upon millions of dollars’ worth of wine (stored in the warehouse) of mostly mom-and-pop wineries. As is usual in such instances, insurance claims of winemakers whose wine was covered, were denied, because the insurers contended that the wine was “in transit.”

In the single-digit 2000’s, Bill Koch of Koch family fame, didn’t spare a dime in finding out how he had become the victim of wine fraud. He employed investigators in various fields: ex-FBI agents, ex-Sotheby’s workers, a glass historian, and experts in cork and adhesives and labels. He sued the auction house and original seller of the wine.

Read the book to learn about the kinds of people who are passionate about making and selling wine, how they became victims of one especially bad actor, and a few other incidents in the life of the California wine industry.

The (Honest) Truth About Dishonesty

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The Book of the Week is “The (Honest) Truth About Dishonesty, How We Lie to Everyone– Especially Ourselves” by Dan Ariely, published in 2012.

The author presented one way human beings think about ethical behavior in a given situation: the Simple Model of Rational Crime (SMORC). It says someone would do a cost / benefit analysis in order to decide, for instance, whether to park illegally because they’re late for a meeting. Of course, a major factor in their decision-making includes how likely they are to get caught, and if they are caught, how willing they would be to bear the consequences.

The author wrote that SMORC doesn’t take emotion and trust into account, so most people wouldn’t engage in that kind of moral reasoning. With only reciprocity as the sole consideration, an individual using SMORC would require contracts for almost every ethical dilemma. He would spend most of his life in legal battles and litigation; like, Howard Hughes, Ted Turner, and Donald Trump.

Although the author failed to distinguish between guilt and shame, he cited numerous behavioral-economics studies he and other professors conducted (on mostly American subjects) to learn the causes of dishonest behavior, and ways it can be curbed.

The author realized that in a matter of weeks, even he was getting brainwashed by the propaganda of his bosses, because he was receiving generous compensation for serving as an expert witness.

Two ways to reduce cheating included:

  • Having people read or sign an honor-code document (such as the Ten Commandments, or an agreement not to cheat on an exam, or a set of rules, which, if broken, would give them an unfair advantage) before completing a particular task, taking a test, or competing.
  • Having people put their signature at the top of a document, and then fill in the info (such as on an application or tax return), rather than fill in the info and then sign at the bottom.

Read the book to learn of additional ways society can spread more ethical behavior (yes, it can be contagious!) so as to stave off the collapse of modern civilization just a little longer.

Courthouse Crock – BONUS POST

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The New York civil fraud case against Donald Trump and Trump Organization will be rearing its ugly head again soon. Here’s a recap of it thus far.

COURTHOUSE CROCK

sung to the tune of “Jailhouse Rock” with apologies to the estates of Elvis Presley and Jerry Leiber, Mike Stoller, and to whomever else the rights may concern.

Went to watch a case in New York civil court.
Judge Engoron was there.
He’s a damn good sport.

Trump’s hate speech is distracting
and his intent is to sting.
He’s desperately trying to stay “still a thing.”

It’s crock. Everybody, it’s crock.
Everybody in the GOP bloc–
on the stand was courthouse crock.

Donald Senior played the Witch Hunt card.
Eric had amnesia. He hit back hard.
Don Junior’s emails went crash, boom, bang.
Such was the nature of the Trump Org gang.

It’s crock. Everybody, it’s crock.
Everybody in the GOP bloc–
on the stand was courthouse crock.

Don Junior said to the grilling at-torney:
“My daddy’s the best artist I ever did see.
I myself am delighted with our company.
Accountants shared nothing of the numbers with me.”

It’s crock. Everybody, it’s crock.
Everybody in the GOP bloc–
on the stand was courthouse crock.

The defendants put on an irrelevant show,
when the prosecutors asked, “Where’s this gonna go?”
Judge said, “Calm down, don’t inVITE a mistrial.
Just shut your mouth, ignore Trump’s bile.”

It’s crock. Everybody, it’s crock.
Everybody in the GOP bloc–
on the stand was courthouse crock.

The media tell us Trump’s act is a charade.
They give Trump due process. They give it in spades.
Trump thinks he’s being shifty and saying nix nix.
He wants a mistrial. He’s getting his kicks.

It’s crock. Everybody, it’s crock.
Everybody in the GOP bloc–
on the stand was courthouse crock.
on the stand was courthouse crock.
on the stand was courthouse crock.

Davos Man

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The Book of the Week is “Davos Man, How the Billionaires Devoured the World” by Peter S. Goodman, published in 2022. As the now-cliche joke goes, “You can tell Monopoly is an ancient game because there’s a luxury tax and rich people can go to jail.”

Yearly, about three thousand, super-rich people gather in Switzerland at a five-day conference called “Davos.” The least wealthy people there consist of journalists, academics, diplomats, entrepreneurs, activists and senior government officials. The billionaire-attendees (whom the author called “Davos Man”) pay lip service to the world’s social, economic and environmental problems, and behind closed doors, discuss how to profiteer in connection therewith.

In the last half century, Davos Man has enriched himself through making campaign contributions to politicians who have legislated:

  • monopolistic practices
  • tax cuts
  • excessive deregulation and
  • gutting of social programs.

The above favor powerful, rich people in Silicon Valley, New York City and Washington, D.C. Their propaganda campaigns brainwash the masses into blaming:

  • China
  • immigrants whom they believe are taking their jobs away, and
  • automation

for the working classes’ job losses.

The author argued that the common people in most industrialized nations of the world should blame DAVOS MAN and politicians, who are sometimes one and the same!

Davos Man– the modern-day Robber Barons– salve their consciences through philanthropic activities that are comprised of a tiny, tiny percentage of their businesses’ profits. Plus, the author contended that it is a Cosmic Lie that tax cuts pay for themselves by spurring spending.

During the COVID pandemic, the American Davos Man enriched himself through incestuous corporate / political relationships: “The United States had employed a Rube Goldberg contraption, with [Steven] Mnuchin’s slush fund [in the U.S. Treasury] funneled through Jamie Dimon’s bank [JPMorgan Chase], and Larry Fink’s firm [BlackRock] buying bonds on behalf of the Fed, allowing Steve Schwartzman’s private equity empire [Blackstone Group] to borrow for free.”

The English government convinced many of its people that through Brexit, their nation could decide its own financial fate. But Davos Man actually ended up collecting a boatload of their hard-earned taxes. Meanwhile, Argentina was defaulting on its loans for the tenth time in the last half-century. The aforementioned Davos Man, Larry Fink, blamed Argentina for the resulting disastrous losses of his clients at BlackRock. BUT– his firm was the sucker that lent it the money!

Anyway, read the book to learn of: Davos Man’s activities in various countries of the world– that resulted in skyrocketing wealth for him, and plummeting economic security for everyone else; why the author is still optimistic that the world can reverse the current, cold-hearted global financial climate in which inequality between rich and poor is ever-widening (hint: creative ideas on community cooperatives are in the air, but also– read Amy Klobuchar’s tome on antitrust issues); and the economic history explaining how Davos Man has become so rich and powerful.

Character & Characters / Retail Gangster

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The first Book of the Week is “Character & Characters, the Spirit of Alaska Airlines” by Robert J. Serling, published in 2008.

Alaska Airlines (AKA) came into existence in the mid-1940’s with the buyout of Star Air Service. It faced stiff competition from Northwest Airlines, and Pan American– which was already monster-sized from: its contract with the federal government to deliver the U.S. mails, and exchanging many political favors.

Mostly, AKA transported passengers between the Pacific Northwest and Alaska. In early 1949, it completed a dangerous mission, flying about 140 Jews from Yemen to the airport in Tel Aviv, while an Arab bomb could have hit the plane anytime.

In the 1950’s, top executive Charlie Willis had such passion for and loyalty and dedication to AKA, that he borrowed $100,000 using his personal house as collateral, in order to restore the pilot-pension-fund shortfall, to keep his employer from going out of business. Beginning at the dawn of the 1960’s, he enabled his second-in-command-executive to engage in deficit spending. They broke the bank to do promotional gimmicks.

In the back of its model CONVAIR 880, AKA installed a stand-up beer bar, even though it replaced eight passenger seats. AKA generated goodwill by throwing parties it couldn’t afford for industry players, such as its own employees and trade associations. In the late 1960’s, it bought hotels and a ski resort. AKA was one of the very first airlines to provide in-flight movies and music. So it hovered near bankruptcy, repeatedly unable to meet its employee payroll. For years.

Commercial airlines, initially transporting wealthy passengers, employed stewardesses in sexy uniforms– with no or minimal training, and offered alcoholic beverages included with the airfare. With evolution came the organization of labor– of pilots, flight crews and ground crews. Alaska’s bush pilots who had gotten in on aviation’s ground floor, had become disenchanted with the changing times. Bob Ellis sold his tiny airline in Alaska because he was no longer having fun, was emotionally exhausted from the government’s imposition of regulations, and didn’t understand the need for union labor. He had treated his employees well.

The Civil Aeronautics Board, one of the government’s regulatory bodies, was soon to stop subsidizing the (small, financially struggling) regional airlines (including AKA) in Alaska. The consolidation of the industry in the 1960’s meant no more floatplanes, biplanes, and single-engine monoplanes. These were replaced with DC-3’s and other faster, technologically superior aircraft.

Competing airlines were growing in size, complexity, and needed economies-of-scale and scope. Bosses couldn’t afford to pay for their employees’ expensive personal problems as though they were in a small business anymore. There was backlash by the workers against this vanishing era. They no longer felt like a family.

In summer 1970, AKA’s Willis (rumored to be an alcoholic) was able to get a new air route: to the U.S.S.R. Ironically, AKA had to lease a Pan Am 707 in order to do it. Willis became a drinking buddy to his Aeroflot counterparts. The passengers, who flew to Siberia, consisted mostly of Native Americans from Alaska visiting family, missionaries, and businessmen. They were treated to flatware made of gold, caviar in their Caesar salads, wine, and Russian samovars. The flight attendants dressed in Cossacks’ attire, with bear fur hats. Unsurprisingly, the flights proved insufficiently profitable over the course of three years.

AKA suffered less disastrous financial losses when the oil industry in Alaska kicked into high gear, in the late 1960’s. Oil-pipeline construction around Prudhoe Bay in the North Slope area became all the rage. From the Seattle-Tacoma airport, the airline’s Hercules’ C-130 planes transferred cargo, including hazardous materials that could accidentally cause a lot of wrongful deaths and property damage: 25,000 pounds of dynamite, heating and fuel oil and big, heavy drilling rigs for ground vehicles, and heaters.

In the early 1970’s, many pipeline workers liked hunting, but they got drunk before they flew home. AKA allowed rifles on their planes, so they hired the equivalent of bouncers who served as ground-crew screeners, and had a locked-up special gun-rack section in the front of the plane.

Read the book to learn a wealth of additional details on Alaska Airlines’ role in the development of aviation, people, power struggles, technologies, and the tenor of its times up until the book’s writing.

The second Book of the Week is “Retail Gangster, the Insane, Real-Life Story of CRAZY EDDIE” by Gary Weiss, published in 2020.

Currently fading from Americans’ memory, is “Crazy Eddie.” Launched in the mid-1970’s, it was a retail chain of electronics stores in the northeastern United States. The company became known for a spokesman who flooded all kinds of advertising media with emotionally-charged screaming, that Crazy Eddie’s prices were insane. The repetitive repetition of this singular message worked. Eddie projected an image of success that fed on itself.

However, from the start, the store’s top executive– Eddie Antar– committed financial crimes. He had selfish, greedy intent, unlike the aforementioned Alaska Airlines executives, who were merely big spenders out of unbridled optimism and honest ineptitude.

Starting in 1984 when the company sold shares to the public, Eddie and his key employees (mostly his relatives) engaged in securities fraud. They had ongoing, frantic bursts of activity in which they: “…stuffed cash in the ceiling, stole store sales-taxes, [plus, they falsified inventory records] and defrauded insurance companies without a second thought. They did not expect to be caught, and if the Antars had any doubt on that score, they had only to look to City Hall for inspiration.” New York City’s government had committed exactly the same kinds of accounting fraud for years and years, beginning in the 1960’s. As the behavioral-economics cliche goes, “The fish rots from the head down.”

By 1987, Crazy Eddie had 2,250 workers in 32 locations from Philadelphia to New England. Read the book to learn a slew of details on the fates of Eddie, his families, and his businesses.

The Longest Race

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The Book of the Week is “The Longest Race, Inside the Secret World of Abuse, Doping, and Deception on Nike’s Elite Running Team” by Kara Goucher with Mary Pilon, published in 2023.

Born in 1978, the author grew up in New Jersey and the Duluth, Minnesota area. Goucher became a professional runner. Like many of her fellow athletes, the author– who experienced an early childhood trauma– found at a young age that competing in footraces is cathartic.

Goucher focused on her training and reaching the finish-line first, rather than getting all worked up about the numerous stressful situations she endured in everyday living. However, she rationalized away some of the wrongs committed against her, because speaking out against them would ruin her career, her marriage, her friendships, etc.

In the United States, the way runners go professional is to convince a corporate, non-governmental sponsor to pay them to race. Goucher and her husband both signed contracts with Nike, the monster-sized corporation best known for making athletic shoes. The company provided her and her fellow runners in her working group with the best, cutting-edge scientifically and technologically advanced resources for winning races.

However, the Gouchers’ status with Nike was as independent contractors, so they had less legal recourse than that of employees with regard to any illegal goings-on in their field of work. Their coach and immediate boss was the celebrity runner Alberto Salazar. In the single-digit 2000’s, he led the “Oregon Project” which was an attempt to help Americans win races again around the world; their victories had been woefully plummeting for years.

Salazar did boost Kara’s confidence and helped her perform better than she thought she could. But, his behavior and many of his training practices were inappropriate and illegal. He and his colleagues (an alleged psychotherapist and medical doctor) wielded a lot of power over the Gouchers, who owed their careers to their sponsor. Salazar’s underlings hewed to his training methods through fear and force. “He [Salazar] got testy when called out for having a third drink. I could only guess how he would react to being called out about sexual harassment.”

As a female, Kara had to deal with Nike’s double standard of suspending her pay when she ran an insufficient number of races in a specified time period pursuant to her contract. Male runners were punished this way when they got caught in doping scandals or had injuries. She was subject to those same conditions, but she couldn’t race because she was pregnant. In connection with exploring her career options, Kara wrote, “… I found myself again and again in rooms of male executives explaining women’s running to me. There seemed to be more interest in how I would look on a poster than in how the sport could evolve.”

Fighting “City Hall” in so many different areas of life is difficult. Anyone who attempted to do so in professional running in the single-digit 2000’s would have to deal with Nike. It held a near-monopoly with overwhelming power and influence over regulators. Whistleblowers would suffer doxing and death threats.

BUT, it is an age-old truism that when more and more courageous people come forward with firsthand information about wrongdoing by an institution or a particularly powerful individual– the less the harm that will be done in the future because the collective mood of the community will shift against the wrongdoer. Eventually.

Read the book to learn lots of additional details of the Gouchers’ experiences in their professional running careers– their trials, tribulations and triumphs.

Life in the Trash Lane

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The Book of the Week is “Life in the Trash Lane, A Sports Agent’s True Story” by Mel Levine, published in 1993. This sloppily edited volume described a bygone era in terms of the financial aspects of “amateur” sports in America. Only “professional” athletes could receive compensation in the form of money or gifts from work-related people and entities. College players were considered amateurs.

The author began a career as a tax attorney and business investor, but also became an agent for college football players on their way to the pros. He offered his services as an agent, CPA, lawyer, and financial planner. Initially, representing big-name athletes boosted his ego. The author hired various scouts called “bird dogs” who would help him acquire clients who had barely started college but were perceived as talented players. On the surface, sports agency looked lucrative, but it was actually a cutthroat, sleazy business.

The convention in the late 1980’s was for agents to advance expenses to the professional hopefuls, and then, if the players made the pros, the agent was paid about 5% of the athlete’s earnings. The author paid for their cars, insurance, housing, gifts for their significant others, legal fees, etc. (a clear NCAA rule violation). The author continued to run afoul of the strict NCAA rules, but he rationalized that all of the other agents were doing so, too, and he needed to stay competitive. Many times, he was almost busted.

The author was suckered into paying big bucks to numerous players he represented, but they never paid him even in cases when they made the pros. The players owed him thousands and thousands of dollars, but he developed a version of Stockholm syndrome– acting as a father figure to a few of them, and remained fiercely loyal because he felt an escalation of commitment.

In May 1986, one of the author’s clients had an accident in the expensive car paid for by the author. Two major Miami newspapers’ stories on this prompted the question of how the athlete could afford such a car. The car was likely provided by his agent, or his college– the University of Miami. If so, the NCAA violation would end the player’s career before it started, and the scandal would ruin the reputations of the agent, the school, and many others.

The author cooked up a scheme to get a slew of parties out of trouble. He shredded all the paper contracts of his rule-violating clients, and claimed he was running a car-leasing operation; the athletes’ parents were leasing the cars for them [like everyone really believed that (!)].

The author told of another client who was nothing but a boondoggle, but the author stuck by him for years, anyway. By 1987, “He was damaged goods for a [National Football League] team to expend a valuable draft choice on a kid with a bad ankle, drug problems, legal problems, and a dishonorable discharge from BYU was more than any of them would bear.”

As can be imagined, the sports agency business will keep commercial litigators in business forever, as its seamy underbelly consists of an orgy of litigation. The author dismissed yet another client’s transgressions: “At worst, he blew up a Porsche (quite by accident), got arrested in New Jersey for carrying a concealed weapon and unfortunately got into a fight or two. No big deal.”

Read the book to learn about a slew of other details of the conduct of sports agents and their clients of the late 1980’s.