“‘To lose a case like this is huge,’ said William B. Mateja, a former official of the Justice Department’s corporate fraud task force. ‘Arthur Andersen was the poster-child case of all the corporate fraud cases.'” The Supreme Court overturns the 2002 conviction of Arthur Andersen LLP, thus facilitating future corporate shredding binges. “More broadly, some lawyers said the court’s decision shows its sympathy for corporate America’s view that companies should be freer to engage in routine document destruction — often under the ironic title of ‘document retention policy.’“
Tag: Corporate Malfeasance
Ain’t Gonna Work on Maggie’s Farm No More.
“[F]or many investors Thatcher’s plan has fallen flat. Many investment funds charged huge commissions and fees, leaving contributors worse off than they would have been in the state system. The stock market collapse four years ago compounded their losses. Meanwhile, many private pension plans have gone bust, after companies drained those plans to pay off rising debts.” As England’s experience since Margaret Thatcher suggests, Dubya’s desired privatization of Social Security will likely cause more problems than it solves. (Somebody tell the nation’s business associations.)
Feeding the Beast.
Need a loan? Call American Airlines. By way of Drop the Hammer, a spokesman for the company rationalizes its $5000 donation to the Tom DeLay defense fund on the grounds that, despite laundering half a mill of PAC-money through his family over the past three years, the Hammer is “facing substantial legal bills that he was unable to pay personally because of their size and his limited resources.” Aw, shucks, how nice of ’em. It’s like something out of a Capra film, ain’t it? Hopefully, American will be equally generous to the 500 workers they just laid off in Kansas City.
By the way, if you haven’t been keeping up with Boss DeLay’s recent shenanigans, Lou Dubose offers a concise overview in today’s Salon, with further comment by David Paul Kuhn on the political fallout for the GOP and Joe Conason on previous DeLay family boondoggles.
Orange Crush.
A federal judge dismisses a case brought against chemical companies by Vietnamese plaintiffs for the manufacture of Agent Orange during the Vietnam War. I’m torn on this one. While the fact that the companies settled a similar lawsuit by American veterans for $180 million makes them seem rather shady, I think their reasoning is probably sound — the decision for the defoliant’s use was ultimately made by the US Government. (If it can be proven that these companies covered up the harmful side effects of Agent Orange to the US, then the government should be bringing the suit against them — either way, though, it seems to me the responsibility for deployment of Agent Orange rests in Washington.)
As Dangerous Meta similarly noted, Judge Weinstein’s argument that Agent Orange wouldn’t be included in the Geneva prohibition against chemical weapons seems like a reach. “‘The prohibition extended only to gases deployed for their asphyxiating or toxic effects on man,’ said the decision…’not to herbicides designed to affect plants that may have unintended harmful side-effects on people.’” Hmmm…so long as side-effects of a given chemical are “unintended” (which itself is an open question regarding Agent Orange), it can be used in the field? That opens the door to a lot of horrible and underhanded trickery in wartime. Despite what some Dubya-appointed freakshows might think, we should be trying to make the international restriction against chemical weapons more, not less, stringent.
Raking over the Muckrakers.
“The reasons for the companies’ actions are not hard to find: They face potentially massive liability claims on the order of the tobacco litigation if cancer is linked to vinyl chloride-based consumer products such as hairspray. The stakes are high also for publishers of controversial books, and for historians who write them, because when authors are charged with ethical violations and manuscript readers are subpoenaed, that has a chilling effect. The stakes are highest for the public, because this dispute centers on access to information about cancer-causing chemicals in consumer products.” Twenty chemical companies, including Dow, Monsanto, Goodrich, Goodyear, and Union Carbide, attempt to deflect a lawsuit landslide by subpoenaing peer reviewers of the recent book Deceit & Denial and by hiring a gunner — Phillip Scranton of Rutgers University — to defame the scholarship of its authors, historians David Rosner and Gerry Markowitz (the former of whom I took a class with several years ago.) The official Markowitz-Rosner response is here.
Scranton’s major allegation? Like every other historian and/or author in the business, Rosner and Markowitz suggested some possible reviewers to their publisher. (It seems they figured it might help to know something about carcinogens.) Otherwise, the pair appear to be guilty of making an argument that flies in the face of corporate profits and of letting their sources speak for themselves — Says AHA Vice-President Roy Rosenzweig of Deceit & Denial: “In my opinion, the book represents the highest standards of the history profession.” For his part, Scranton refused to comment for Jon Wiener‘s article for The Nation above, but if I were him, I’d start talking…because right now he comes off as the lowest of corporate stooges.
Send back the blood-stained money.
“‘I’m sorry, sir,’ he said to me. ‘I’m sorry for what she’s done.” As pointed out in lecture this afternoon, today’s NY Times includes an editorial on the corporate divulging of ties to Antebellum slavery, spurred by this recent letter of apology at JP Morgan-Chase: “We all know slavery existed in our country, but it is quite different to see how our history and the institution of slavery were intertwined. Slavery was tragically ingrained in American society, but that is no excuse. We apologize to the American public, and particularly to African-Americans, for the role that Citizens Bank and Canal Bank played during that period.” Interesting…research projects into corporate complicity such as this one will hopefully add further impetus for the creation of a National Slavery Museum in the relatively near future — As a whole, we Americans should do a better job in recognizing and remembering our national Original Sin, and I think such a museum would be a great step in that direction. (In fact, the museum really should be on the Mall, not in Fredericksburg, VA.)
Top of the Food Chain.
Kenny Boy, Your pants, your pants are falling. Ken Lay, former Enron CEO and Bush’s prime corporate sponsor, is indicted on 11 counts of fraud. Says Lay’s lawyer, “Obviously, Andy [Fastow] and his group were not telling the boss that they were stealing from Enron. That’s as obvious as can be . . . It was done by stealth and deceit and of course, in a company as big as Enron, you have to trust someone and obviously trust was placed in the wrong place.” Ok, then explain why Lay dumped $24 million in Enron stock while telling his employees to buy. Throw the book at him, already. (But, by all means, let him speak his mind first.) Update: Dubya can’t handle the truth.
Youa Culpa.
Former Enron chief Ken Lay attempts damage control in the New York Times. “‘If anything, being friends with the Bush family, including the president, has made my situation more difficult,’ Mr. Lay said in a recent interview, ‘because it’s probably a tougher decision not to indict me than to indict me.’” Yeah, ok, buddy.
California Scheming.
Transcripts emerge of Enron officials bragging about “stealing money from California…to the tune of a million bucks or two a day.” Whatsmore, it appears that former chairman and Bush buddy Ken Lay, who has not yet been charged with any Enrongate malfeasance, knew full well that his company was extorting millions from the likes of “Grandma Millie from California.” Shady.
The Other Shoe Drops.
Perhaps content that Saddam’s “resurgence” has snuffed out media coverage of Enrongate for the time being, Dubya tries to gut the SEC’s budget increase, making it impossible for the agency to fulfill the requirements of the recently-signed Sarbanes-Oxley Act. Absolutely shameful. And, as per usual, I think we can guess who’s the brains behind these latest shenanigans.