TPMMuckraker
July 20, 2008 - July 26, 2008

Don Young is Like a "Rat Head in a Coke Bottle"

Kate Klonick | July 25, 2008, 4:47PM

We reported earlier that Rep. Don Young (R-AK) falsely claimed that he was named "Hero of the Taxpayer" by the non-partisan reform group, Taxpayers for Commonsense.

But Taxpayers for Commonsense denies even having such an award, yet alone awarding it to Young, a long-time target of the political watchdog.

As it turns out, Young was named "Hero of the Taxpayer", by the conservative group Americans for Tax Reform, founded and run by Republican lobbyist Grover Norquist.

But now even Norquist is throwing Young under the bus, issuing a press release late this afternoon slamming the Congressman and claiming he "betrays taxpayers."

"Republicans that vote for tax increases are like rat heads in Coke bottles,"Norquist said. "They ruin the Republican brand for all members. It should be readily apparent to a former 'Hero of the Taxpayer Award' recipient that you don't vote for tax hikes."

According to the press release, Young voted for H.R. 2642, the Blue Dog Tax Hike-- a move that makes him ineligible to receive ATR's "Hero of the Taxpayer Award" in 2008.

We called Young's campaign press contact for comment, Mike Anderson, who told us that the bill was a lot more complicated than it looked.

"If you vote for the bill you vote for veterans and Alaska has 75,000 veterans, but you're also colored as pro-increasing taxes, but if he voted against the bill, he's anti-raising taxes but anti-veteran," Anderson told TPMmuckraker. "Young said that he had to take care of the veterans. Veterans have always been very important."

PERMALINK | COMMENTS (23) | RECOMMEND RECOMMEND (5)
Topics: Alaska, Don Young, Grover Norquist

Curt Weldon

Evidence-Dumping Lobbyist Pleads Guilty in Weldon Probe

Andrew Tilghman | July 25, 2008, 4:01PM

The federal investigation of former Rep. Curt Weldon (R-PA) has nabbed another one.

Pleading guilty in federal court today was Cecelia Grimes, Weldon's very good friend and a former lobbyist.

Grimes admitted to destruction of evidence and could face up to 20 years in prison, according to the U.S. Department of Justice.

The case goes back to October 2006, just after the feds began investigating Weldon for alleged nepotism, particularly concerning the lucrative lobbying contracts awarded to his inexperienced daughter.

Grimes admitted today that just a few days after the feds served her with a subpoena, she stuffed a stack of documents into a trash bag and put it on the curb outside her home for pick up. The FBI later retreived those documents, which included records of her travel plans and Weldon's campaign.

She also told a federal judge that she threw her Blackberry into a trash can at a fast food restaurant in Pennsylvania so the FBI could not recover the emails stored on it.

The court documents refer to Weldon only as "Representative A."

Weldon's chief of staff pleaded guilty last year

This federal investigation probably contributed to Weldon's failure to win reelection in 2006, But so far, none of this seems to be getting in the way of Weldon's new career as an international arms dealer.

PERMALINK | COMMENTS (3) | RECOMMEND RECOMMEND (5)
Topics: Curt Weldon, Justice Department

Don Young

Don Young's Campaign Apologizes for Ad Mistake, Will Correct

Kate Klonick | July 25, 2008, 3:14PM

As we earlier reported, Rep. Don Young (R-AK) has been running a radio ad laying claim to a fictitious award from Taxpayers for Commonsense.

In a statement released this morning, the Young camp responded with an apology in this brief press release:

In recent radio ads, we mistakenly credited the wrong organization with giving Congressman Young the Hero of the Taxpayer Award. We apologize for any inconvenience this may have caused. Please be assured that the ads are being corrected to reflect that Americans for Tax Reform awarded the Congressman with this award for his commitment to the American taxpayer and his support of legislation to decrease taxes.

The troubling text of the radio ad is transcribed below:

Now that Parnell is in the "Club for No Growth" they're running false ads accusing Don Young of pushing higher taxes on Alaskans when the opposite is true. Don Young was even presented the 'Hero of the Taxpayer Award' by Taxpayers for Common Sense. Sean Parnell ought to be ashamed, Don Young ought to be re-elected.

In our humble opinion, Don Young ought to get a fact-checker.

PERMALINK | COMMENTS (4) | RECOMMEND RECOMMEND (2)
Topics: Alaska, Don Young

John Ashcroft

Torture Memos Makes DOJ Sound Like Mob Attorney

Andrew Tilghman | July 25, 2008, 1:49PM

The more we see of the back-and-forth between the Department of Justice and the CIA regarding the torture program a few years ago, the more it becomes clear that everyone knew it was a little shady.

The American Civil Liberties Union yesterday released three previously undisclosed memos about the torture program from 2002 to 2004, which it obtained as part of its ongoing FOIA lawsuit with the DOJ seeking records on the treatment of prisoners in U.S. custody overseas.

One memo in particular appears to instruct the CIA in what agents should say if anyone raised the specter of criminal charges. For example: "To violate the statute, an individual must have the specific intent to inflict severe pain or suffering. ...absence of specific intent negates the charge of torture."

"It read like an attorney preparing a mob client for a confrontation with the police," said Jonathan Turley, a law professor at George Washington University. "Why on earth would you instruct interrogators on the meaning of 'specific intent' unless you wanted to coach them as to what to say when confronted?"

The very existence of this extensive, documented legal exchange between the DOJ and the CIA underscores the intelligence officials' concern about the legality of their own program, said Herman Schwartz, a former civil rights attorney and law professor at American University.

"The CIA people knew this was shaky stuff -- that's why they kept asking for memos from the Justice Department saying this was OK. They were very scared they would have to face up to this in some way later on," Schwartz said in a telephone interview.

An August 2002 memo from DOJ came about the same time the attorney general had laid out a definition of torture so narrow as to only involved things like "organ failure." Specifically, the CIA wanted to know, how does that apply in practice?

Then-Assistant Attorney General Jay Bybee wrote to the CIA: "You have asked for this office's views on whether certain proposed conduct would violate the prohibition against torture found ...[in] United States Code."

Virtually all of the "proposed conduct" was redacted with large black marks covering whole pages. In fact, more than 80 percent of the 23 pages released to the ACLU were blacked out, apparently concealing the names of agents involved in the program and the specific techniques in question.

The memo spells out a legal logic that rests not on the facts of what may occur during interrogation, but the "defendant's" state of mind (the defendant being anyone who may actually get charged with torture).

...If a defendant acts with good faith belief that his actions will not cause such suffering, he has not acted with specific intent. A defendant acts in good faith when he has an honest belief that his actions will not result in severe pain or suffering.

So, hypothetically, an interrogator gets up in front of a grand jury and tells them he had the "good faith" belief that a few hours of waterboarding was not going to cause "severe pain or suffering."

What if a jury doesn't buy it? The memo goes on to say: "Although an honest belief need not be reasonable, such a belief is easier to establish where there is reasonable basis for it."

About six months later, Tenet sent a memo to the Department of Justice's Office of Legal Counsel informing them that the interrogators were keeping copious records.

"In each interrogation session in which enhanced Technique is employed, a contemporaneous record shall be created setting forth the nature and duration of each technique employed, the identities of those present."

Turley called that a "C-Y-A memo."

It wasn't long after that that then-Attorney General John Ashcroft rescinded the key 2002 memos that provided hte legal foundation for the torture programs.

Maybe the most important question raised by these new memos involves the records of torture sessions that Tenet referred to.

"We know there are records of what happened. Then the next question is: Will they come to light and to what extent?" Schwartz said. "I have to wonder what would be the significance of a Democratic president? If he puts his person in as head of the CIA and he puts his person in at head of DOJ? Will they as most executives are likely to do, continue to cover up what happened because of bureaucratic imperative? Or the alternative -- to provide this to Congress?"

PERMALINK | COMMENTS (13) | RECOMMEND RECOMMEND (11)
Topics: John Ashcroft, Torture

EPA

Leahy Outlines What EPA Inspector General Should Investigate

Kate Klonick | July 25, 2008, 12:55PM

As we mentioned yesterday, Senate Judiciary Committee Chairman called-off a hearing on the White House interference with EPA decision-making when EPA Administrator Stephen Johnson refused to testify.

Today, Leahy released a letter he sent to William A. Roderick the Deputy Inspector General of the EPA.

In it, Leahy requested Roderick examine the issues that would have been heard before the committee, as well as the applicability of the claim of executive privilege:

I ask you to investigate. Please include in your investigation: Whether EPA has complied with its responsibilities to provide information to Congress and the American people on environmental issues, including public health and other risks from global warming. Whether EPA's decision with respect to California's waiver from the Clean Air Act was made in accordance with the technical and legal conclusions of EPA's own staff or whether the White House improperly interfered with EPA decision-making. Whether Administrator Johnson's testimony to Congress regarding the California waiver decisions and other matters related to global warming was accurate and truthful. Finally, to the extent information has been withheld from Congress on the basis of a claim of executive privilege, please determine the factual basis for all claims of executive privilege.

So will the investigation take place The EPA Inspector General's office told TPMmuckraker, that they would "review the Chairman's request and reach out for discussion" in the near future.

PERMALINK | COMMENTS (3) | RECOMMEND RECOMMEND (5)
Topics: EPA, Senate Judiciary Committee

Don Young

Don Young Gives Self Fictitious "Hero of the Taxpayer" Award from Watchdog Group

Kate Klonick | July 25, 2008, 12:40PM

Rep. Don Young (R-AK) has been called many things in his day, but we're pretty sure a "Hero of the Taxpayer" isn't one of them.

But according to a new radio campaign ad being run by Young, he was given just such a title in an award given to him by the watchdog group Taxpayers for Common Sense.

This seemed a little odd to us, as we're pretty familiar with Taxpayers for Common Sense, and pretty sure Don Young is probably the last person to receive such a dubious honor.

And sure enough according to the group named in the ad, Young's claim is patently false.

"I wish people would let us know when we give them awards," Steve Ellis, Vice President for Taxpayers for Common Sense told TPMmuckraker. "We don't even have a 'Hero of the Taxpayer' award to start out. But we did scrub through our records and we found out that we had given him an award-- the 'Golden Fleece' award in 2003 for the Bridge to Nowhere."

According to Ellis, "The Golden Fleece Award" is given for "extreme cases of wasteful government spending."

But as it turns out, Young's claim isn't completely without merit. He was in fact named a "Hero of the Taxpayer," a few weeks ago, but not by Taxpayer for Commonsense. Americans for Tax Reform, an interest group founded by Republican lobbyist Grover Norquist, honored Young with that distinction in late June.

We've captured the radio audio for the ad. Note that Don Young "approves this message."

Click To Play

The relevant portion starts at about 33 seconds. The transcript is here:

Now that Parnell is in the "Club for No Growth" they're running false ads accusing Don Young of pushing higher taxes on Alaskans when the opposite is true. Don Young was even presented the 'Hero of the Taxpayer Award' by Taxpayers for Common Sense. Sean Parnell ought to be ashamed, Don Young ought to be re-elected.

We'll call the Young camp as soon as it's morning in Alaska.

Late update: The Young campaign released a statement that apologized for the mix-up in the attribution of the award and said they would duly revise it.

PERMALINK | COMMENTS (8) | RECOMMEND RECOMMEND (5)
Topics: Alaska, Don Young

The Daily Muck

Matt Berman | July 25, 2008, 9:49AM

Four aides to former New York Governor Eliot Spitzer have been cited by the N.Y. State Commission on Public Integrity, with misusing the New York State Police. The citations stem from a highly contentious relationship between Spitzer and former New York Senate Majority Leader Joseph Bruno and the manipulations of state police records for political gain. (Times Union)

Salim Hamdan, Osama bin Laden's former driver and the first detainee to have a military commission at Guantanamo, claimed Thursday that the U.S. let bin Laden's bodyguard go free from Guantanamo after Hamdan identified him. This information was revealed by Hamdan on the fourth day of his war crimes trial. (McClatchy)

Dickie Scruggs and his son Zach have received their prison locations, and their hopes of being locked up together have been dashed. Dickie is heading to Kentucky for his 60 months, while his son Zach is heading to Florida for his 32. Both men pleaded guilty for their roles in a plot to bribe a circuit judge. (Daily Journal)

PERMALINK | COMMENTS (0) | RECOMMEND RECOMMEND (1)
Topics: The Daily Muck

Oil

State IG to Probe Deals Between Texas Oil Firm and Iraqi Kurds

Andrew Tilghman | July 25, 2008, 9:24AM

Publicly, the U.S. State Department said it was discouraging U.S. oil companies from forging deals with Iraqi Kurds last year.

But privately, Bush administration officials may have sent different signals.

Now the State Department's Inspector General has launched an investigation into what exactly was said to whom.

The New York Times reports:

The State Department's internal watchdog division will investigate allegations that department officials did nothing to prevent a Texas oil company with close ties to President Bush from concluding an oil deal with the Kurdistan regional government that undermined both American policy and the Iraqi central government.
The Kurds' deal last year with Hunt Oil Company of Dallas -- and similar contracts between the Kurds and other energy companies -- have infuriated the Iraqi government, which has called them "illegal" attempts to usurp Baghdad's authority.

American officials have also stated publicly that the contracts undermine Baghdad's fragile central government and that they have discouraged such deals until the Iraqi government passes a national oil law.

But earlier this month a Congressional committee released internal e-mail messages and documents from the State Department and Hunt Oil that suggested that State Department officials did not try to dissuade Hunt Oil from signing the deal with the Kurds.

This week, the acting inspector general of the State Department, Harold W. Geisel, disclosed in a letter to lawmakers, which was also provided to The New York Times, that he had "initiated a review of the responses provided to the Congress recently on the issues surrounding oil contracts, oil field development and U.S. policy in Iraq."

PERMALINK | COMMENTS (5) | RECOMMEND RECOMMEND (4)
Topics: Oil

Hans von Spakovsky

Ellison Slams von Spakovsky Over Disenfranchised Nuns and U.S. Attorneys

Kate Klonick | July 24, 2008, 6:41PM

It's been a slow burn at the hearing on the 2004 elections at the House Judiciary Subcommittee on the Constitution, Civil Rights and Civil Liberties. With two separate panels, Hans von Spakovsky didn't get around to testifying until 5:00 PM ET.

But Rep. Keith Ellison (D-MN) made it all worth it.

Ellison threw tact to the wind in questioning von Spakovsky, berating him for the disenfranchisement of a group of a dozen elderly nuns and battering him with inquiries on his communications with U.S. attorneys on voter fraud prosecutions. We have video coming, but to tide you over, here's the transcript:

ELLISON: Now here's something that happened on the May 7th Indiana election. A dozen nuns and another unknown number of students were turned away from the polls Tuesday in the first use of Indiana's stringent voter ID law since it was upheld last week by the United State Supreme Court. Mr. von Spakovsky, you wanna stop nuns from voting?
VON SPAKOVSKY: [silence]

ELLISON: Why don't you want nuns to vote, Mr. von Spakovsky?

VON SPAKOVSKY: Congressman Ellison, uh-

ELLISON: I'm just curious to know.

VON SPAKOVSKY: Those individuals, uh, were told, were- knew that they had to get an ID, they could have easily done so. They could have voted, uh, by absentee ballot- uh, nursing homes under the law are able to get-

ELLISON: . . . Mr. von Spakovsky, are you aware that a 98-year old nun was turned away from the polls by a-

VON SPAKOVSKY: They all had passports-

ELLISON: Excuse me.

VON SPAKOVSKY: They had expired passports which meant that they could have gotten-

ELLISON: Mr. von Spakovsky, do you know a 98-year old nun was turned away from the polls by a sister who's in her order and who knew her, but had to turn her away because she didn't have a government-issued ID? That's okay with you?

VON SPAKOVSKY: Yes. . .

And once he was done making von Spakovsky look like a guy who won't help an old lady across the street to get to her polling place, Ellison started in on his communications with the U.S. attorneys. All that and more, after the jump.

PERMALINK | COMMENTS (21) | RECOMMEND RECOMMEND (41)
Topics: Hans von Spakovsky, House Judiciary, U.S. Attorneys

John McCain

Sheunemann Helped Pakistan Get In Good Favor With U.S.

Andrew Tilghman | July 24, 2008, 4:25PM

A story in the New York Times today reports that the U.S. is planing to buy a new fleet of F-16 jet fighters for Pakistan.

Apparently the Bush administration wants to use nearly $230 million in "counter-terrorism money." That's an awfully broad definition of counter terrorism.

Nevertheless, the report underscores how U.S. relations with Pakistan have come around 180 degrees since Sept. 11, 2001, when the U.S. still had harsh words and economic sanctions for the country that had tested a nuclear bomb in 1998. Back then we used to consider President Pervez Musharraf a military dictator who'd overthrown a democratically elected government.

It was a small team of lobbyists who helped lead Pakistan back into our good graces. We told you last week that Stephen Payne was among them. And we were reminded this week that Randy Scheunemann, Sen. John McCain's top foreign policy adviser, was also helping out a few years ago, too.

Scheunemann was head of the two-man lobbying shop called Orion Strategies back in 2002 when they signed on to lobby for International Business & Energy Development Corp., a firm run by Payne.

According to lobbying disclosure reports, Scheunemann was "monitoring" a bill providing assistance to Pakistan.

Specifically, the bill -- which ultimately passed -- said any law that "prohibits direct assistance to a country whose duly elected head of government was deposed by decree or military coup shall not apply with respect to Pakistan."

These days, Scheunemann likes to talk tough about dealing with the "situation" in Pakistan.

Between 2001 and 2003, Scheunemann's firm was paid about $80,000 for its work for International Business & Energy Development Corp, lobbying disclosure reports show.

Scheunemann stopped working for Payne on Pakistan-related issues in 2003, according to Senate lobbing disclosure reports.

PERMALINK | COMMENTS (2) | RECOMMEND RECOMMEND (8)
Topics: John McCain, Randy Scheunemann, Stephen Payne

EPA

"Stonewall" Johnson Refuses to Testify to Senate Committee

Kate Klonick | July 24, 2008, 4:14PM

EPA Administrator Stephen Johnson, who has notoriously avoided congressional testimony, declined to testify to the Senate Judiciary Committee next week.

The hearing on the EPA's refusal to provide Congress with documents relating to the health risks of global warming was scheduled for July 30, but has now been cancelled by Committee Chairman Patrick Leahy (D-VT).

"Administrator Johnson declined our invitation," said Chairman Leahy in a statement. "The letter we received from the EPA this week gave no reasons for his refusal to appear before the Committee."

This week the Senate Environment and Public Works Commitee, chaired by Sen. Barbara Boxer (D-CA) heard from EPA whistleblower Jason Burnett on the White House's interference with EPA decision making.

Leahy stated that he was a referring Johnson's refusal to testify to the EPA Inspector General. "Like Karl Rove's refusal to appear before the Judiciary Committee in response to a congressional subpoena, and Josh Bolten's refusal to appear to provide documents we subpoenaed," Leahy continued in his statement. "This administration follows. . . its own imperial executive style."

Thank goodness Chairman of the House Judiciary Committee John Conyers (D-MI) is holding a hearing on the "Bush Imperial Presidency" tomorrow.

PERMALINK | COMMENTS (5) | RECOMMEND RECOMMEND (5)
Topics: EPA, Senate Judiciary Committee

Intelligence

Former Chief Spook Tapped For House Ethics Review Board

Andrew Tilghman | July 24, 2008, 3:03PM

From The Hill:

House Speaker Nancy Pelosi (D-Calif.) and Minority Leader John Boehner (R-Ohio) on Thursday announced joint appointments to a landmark ethics review board that for the first time will allow private citizens to review allegations against members.

Still, four out of six members of the board for the newly created Office of Congressional Ethics (OCE) will be former members of Congress, including former CIA Director Porter Goss (R-Fla.), who will serve as co-chairman.

The other board members include Rep. David Skaggs (D-Colo.), who will serve as chairman of the board, former Rep. Yvonne Brathwaite Burke (D-Calif.), former Rep. Karan English (D-Ariz.), former House Chief Administrative Officer Jay Eagen and Allison Hayward, the former chief of staff to Bradley Smith, a Republican-appointed former chairman of the Federal Election Commission.
...
The OCE will conduct preliminary reviews of ethics complaints and make recommendations to the full ethics committee for further investigation and action. Some watchdogs have criticized its lack of subpoena powers.

PERMALINK | COMMENTS (25) | RECOMMEND RECOMMEND (2)
Topics: Intelligence

Torture

DOJ: Torture Is Legal With "Good Faith"

Andrew Tilghman | July 24, 2008, 2:06PM

From the AP:

The Justice Department in 2002 told the CIA that its interrogators would be safe from prosecution for violations of anti-torture laws if they believed "in good faith" that harsh techniques used to break the will of prisoners, including waterboarding, would not cause "prolonged mental harm."

The newly released but heavily censored memo approved the CIA's harsh interrogation techniques method by method, but warned that if the circumstances changed, interrogators could be running afoul of anti-torture laws.

The Aug. 1, 2002 memo signed by then-Assistant Attorney General Jay Bybee was issued the same day he wrote a memo for then-White House Counsel Alberto Gonzales defining torture as only those "extreme acts" that cause pain similar in intensity to that caused by death or organ failure. That memo was later rescinded by the Justice Department.

Late Update: The ACLU has posted the memos here.

PERMALINK | COMMENTS (20) | RECOMMEND RECOMMEND (4)
Topics: Torture

BMW

Malkin's "JAW-Dropping Political Miracle" Provides Big Fees For BMW Direct

Andrew Tilghman | July 24, 2008, 12:41PM

The Devil is in the details, as they say.

Conservative columnist Michelle Malkin was breathlessly celebrating in yesterday's New York Post about how much money Republican Congressional candidate William Russell has been raising this year.

Never heard of him? You're not alone. Russell is challenging Rep. John Murtha for his Pennsylvania House seat, which is considered among the safest Democratic seats in the country.

Malkin was pointing out Russell's "JAW-dropping political miracle" in campaign fundraising. Indeed, Russel has raised almost $1 million so far this election cycle, a huge pull no doubt.

But guess who helps Russell run his massive, nationwide direct-mail fundraising efforts? Our old friends over at BMW Direct.

Russell is perfect for BMW Direct, which often raises tons of cash for candidates who look good on glossy mailers but ultimately spends nearly all the money raised on expenses related to the fundraising effort itself.

Lt. Col. William Russell is a clean-cut Army veteran who served in Iraq, the Gulf War and at the Pentagon on 9/11, according to a campaign Web site.

Malkin claims there's been a "great media wall of silence around Russell's upstart campaign." OK, let's break that silence and take a close look.

In the most recent quarter Russell raised $669,534, almost all from out-of-state donors who presumably are on BMW Direct's list of self-styled conservatives with a good track record of responding to direct-mail fundraising.

At the same time, he spent $442,990, almost all of it on expenses related to the direct mail effort and paid to BMW Direct and its affiliates (some of which share the same downtown Washington office).

The only expenses that appear to be spent on an actual campaign totaled about $20,000 for Web site design, a low-budget video and a campaign consultant based in Pennsylvania rather than Washington.

He reports having $269,953 in cash on hand. But he also reports debts totaling $242,521 -- almost all for direct mail expenses to BMW Direct and its vendors.

So that leaves him only about $27,431 ahead -- not much for a guy who's raised a total of nearly $1 million this election cycle.

Meanwhile, Malkin suggests that Murtha is in trouble since he only "scraped together a measly $119,000." But Murtha isn't running a direct mail campaign with BMW Direct, so he actually has money left over to spend on things like renting a campaign office back in the 12th District.

PERMALINK | COMMENTS (51) | RECOMMEND RECOMMEND (14)
Topics: BMW

The Daily Muck

Matt Berman | July 24, 2008, 9:51AM

Rep. Charles Rangel (D-NY) admitted yesterday to seeking donations to his academic center namesake with personal entreaties to foundations and corporations. This comes after several ethics violation accusations and Rangel's multiple declarations that he did nothing wrong. (Washington Post)

A former U.S. counter-narcotics official claimed Wednesday that Afghanistan's president, Hamid Karzai, is standing in the way of the fight against the country's drug trade. The former top official, Thomas Schwich, claimed that Karzai's government is corrupt and protecting drug lords for political reasons. (AP)

A federal grand jury in Los Angeles is set to probe Countrywide, IndyMac, and New Century Financial Corp. The investigation will examine whether fraud and other crimes have contributed to the current mortgage crisis. (LA Times)

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Topics:

AEY, Inc.

Prosecutors Level New Charges Against Florida Arms Dealer AEY

Andrew Tilghman | July 23, 2008, 6:49PM

Federal prosecutors in Miami have stepped up their case against AEY Inc. and the 22-year-old arms dealer accused of selling shoddy and illegal ammo to the U.S. government to supply the Afghan Army.

Prosecutors have filed a superseding indictment, adding a stack of wire fraud charges to the initial case that led to the arrest of Efraim Diveroli and three other business associates on June 19 for violations of the Arms Control Export Act.

There's no new allegations from the previous indictment, but the U.S. attorney in Miami decided to hang wire fraud charges on each of the money transfers the firm received from the U.S. Army.

Diveroli now faces 13 counts of wire fraud, which under federal law carry a possible sentence of up to 20 years in prison.

This all makes getting arrested for drunk driving and accused of domestic violence seem like no big deal.

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Topics: AEY, Inc., Efraim Diveroli

John Sweeney

Somebody's Snitching To The Feds For John Sweeney Probe

Andrew Tilghman | July 23, 2008, 6:39PM

There's no doubt that the federal investigation of former Rep. John Sweeney (R) and his lobbying pal from upstate New York is delving into the time Congressman Kick-Ass spent on the House Appropriations Committee.

And freshly unsealed court papers show the prosecutors have a key informant who's helping to build their case. Who that is remains unclear.

The new disclosures came after the Albany Times Union convinced a federal judge to unseal documents related to the raid conducted on Powers & Company, the lobbying firm, in June.

Investigators appear to be looking for evidence that Sweeney may have steered federal money toward Powers' clients or that Powers provided favors for Sweeney's ex-wife, Gayle Sweeney, who worked for the lobbying office when Sweeney was in the House.

The search warrant affidavits show prosecutors are digging through Sweeney-related records dating back to 2001, when he landed a coveted seat on the appropriations committee. Others from that committee have been targeted in the broader investigation of convicted lobbyist Jack Abramoff, who was one of Sweeney's travel buddies at the time.

And the fact the raid was orchestrated through the Department of Justice's Washington-based Public Integrity Unit rather than the local U.S. Attorney in New York gives a further clue into what the focus might be.

The DOJ didn't fight release of papers showing what the FBI agents seized. But they did urge the judge to block release of their initial request for the search warrant, which spelled out their justification for the raid -- and named their informant.

"Unsealing the affidavit would reveal the identify of a cooperating witness whose help is important to the ongoing investigation," wrote Public Integrity Unit Chief William Welch II in a letter to the Albany judge.

The federal agents in the raid seized documents and computer equipment with records dating back to January 2001. Specifically, they were looking for "communications in any form" between Powers' office and Sweeney, his Congressional office or staffers.

The warrants also sought "any thing of value paid to or received by Gayle Sweeney or John Sweeney ... (including) gifts, loans, offers of employment, contracts, billings, financial transactions, travel, tickets, souvenirs or photographs of sporting or entertainment events, or dining at restaurants."

The documents also suggest that prosecutors had previously received materials from Powers & Company and may have suspected some sort of tampering. The agents sought "the author, timing, extent and purpose of modifications of electronic data provided to the FBI on our about March 28, 2008'".

Also listed among the items seized was a letter from Sweeney to President Bush. What was that doing in Bill Powers' office?

PERMALINK | COMMENTS (0) | RECOMMEND RECOMMEND (3)
Topics: Jack Abramoff, John Sweeney

Hans von Spakovsky

Hans von Spakovsky and Ken Blackwell Set to Testify Tomorrow

Kate Klonick | July 23, 2008, 6:07PM

The thorn in the FEC's side, Hans von Spakovsky, will be testifying tomorrow in front of the House Judiciary Committee on the 2004 Elections.

And who will be joining him? None other than Ohio's controversial former Secretary of State Kenneth Blackwell (R).

The hearing starts at 1:00 PM ET tomorrow, and we'll be here, doing what we do best. . . which is to say watching an inordinate amount of CSPAN.

PERMALINK | COMMENTS (6) | RECOMMEND RECOMMEND (4)
Topics: Hans von Spakovsky, House Judiciary, U.S. Attorneys

House Judiciary

Mukasey: Gitmo Detainees are Coming for Your Children

Kate Klonick | July 23, 2008, 5:24PM

We posted on Monday about Attorney General Michael Mukasey's controversial suggestion that Congress pick up the slack for the federal courts on detainee rights.

But one of the other interesting things that came out of Mukasey's speech, was his scare-mongering on what would happen if was up to the courts alone to deal with the detainees . . . they could be released! . . . in the United States! . . . [cue horror music]

In his testimony before the House Judiciary Committee today, he broached this topic again during questioning by Rep. Dan Lungren (R-CA):

LUNGREN: . . .It seems to me those are unsettled questions- whether the court would be able to order the government to bring detainees in the United States and release them here. Uh, clearly that has not been decided, yet I believe the court is inviting the Congress to outline the parameters of that and I would suggest- make it impossible for that to happen.
MUKASEY: The Court has left that matter open, and the fact- it has said that at the end of the day it must be open to a decsion maker to direct release. Now, um, the fact is that all of these people, every single one of them are aliens captured abroad, in essentially battle conditions um, who had absolutely no right to be here, and there's no good reason to have a court bring somebody here for purposes of release and release them to our communitities- people who could pose a significant danger. Um, we want that particular possibility cut off. Um, we don't want to face it, we shouldn't have to face it.

PERMALINK | COMMENTS (7) | RECOMMEND RECOMMEND (0)
Topics: Detainees, Guantanamo, House Judiciary, Michael Mukasey

John Cowdery

Indicted AK Senator Steps Down From Leadership Post

Kate Klonick | July 23, 2008, 4:27PM

The cookie continues to crumble for Alaska State Sen. John Cowdery (R), who was indicted on two federal charges of bribery and conspiracy earlier this month.

Cowdery, who is set to be arraigned on August 11, stepped down from his post as chairman of the Legislative Council on Monday.

From the Anchorage Daily News:

Calls for him to resign rang out shortly after the indictment was made public, specifically from Republican Minority Leader Gene Therriault and [Gov. Sarah] Palin.
Therriault, who leads a five-person minority caucus that does not include Cowdery, has long called for Cowdery's resignation since former Veco executives said during the trials of other lawmakers that Cowdery was part of their inner circle.

Cowdery has not resigned, even though frequent health problems have kept him away from Juneau.

Cowdery told [Senate President Lyda] Green in a letter that he was not well enough to continue with his responsibilities as the council chairman.

"The day-to-day operations of the committee and its oversight is a time intensive job that demands the full attention of the chairman to work smoothly and efficiently," Cowdery wrote to Green on Monday. "Due to my continuing health issues I feel I cannot fulfill the duties required of me to fully accomplish the goals of the Legislative Council."

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Topics: Alaska, John Cowdery

David Iglesias

Iglesias Riffs on Predictions for Upcoming OIG Report

Kate Klonick | July 23, 2008, 4:26PM

Former U.S. Attorney David Iglesias has been giving lots of talks as he promotes his new book, In Justice, but this interview with Harper's has been one of the best so far.

Iglesias treads a lot of old ground, but he also gives an interesting look ahead. As we wait for the OIG's report on the U.S. attorney firing scandal to drop, this is a good reminder of what we have to look forward to (Iglesias' response is in italics):

The Justice Department's Inspector General (OIG) and the Office of Professional Responsibility (OPR) have been investigating the firing of eight U.S. attorneys, including yourself, and their report is now due. The OPR has been heavily criticized lately for its failure to follow through on major investigations, and it has been manipulated--sometimes overtly--by political appointees. OIG has maintained its independence and integrity, however. Have you been interviewed in connection with this probe? Did it strike you as thorough and professional? Do you expect a report to be issued shortly, and if so, what are the major conclusions you would anticipate?
Yes, I was interviewed by attorneys from both OIG and OPR. They initially interviewed me in Albuquerque in June, 2007. They called me a couple more times with follow-up questions. I viewed them as professional and thorough. I expect the report to be filed any day now. I expect them to conclude that there is sufficient evidence to show that former Attorney General Alberto Gonzales and former Deputy Attorney General Paul McNulty committed perjury in their statements before Congressional committees and investigators. They may find that former McNulty chief of staff Mike Elston intimidated witnesses based on his calls to former U.S. Attorney Bud Cummins of Arkansas. I was aware that Elston had told Cummins that "the gloves would come off" if we kept speaking out about our forced resignations. I found out after In Justice went to print that Elston also told Cummins we would be "thrown under the bus" for our speaking out. It is appalling that a former career federal prosecutor like Elston would so flagrantly violate the law against witness intimidation. There may be enough evidence to warrant a formal investigation of conspiracy and obstruction of justice charges against Gonzales, McNulty and Elston.

PERMALINK | COMMENTS (6) | RECOMMEND RECOMMEND (16)
Topics: DOJ Office Of The Inspector General, DOJ Office of Professional Responsibility, David Iglesias, U.S. Attorneys

Stephen Payne

McCain Adviser Tied To Bush Library Schemer Through Latvian Lobby

Andrew Tilghman | July 23, 2008, 3:30PM

Sen. John McCain's campaign has admitted that his top foreign policy adviser has lobbied for not two but three different firms run by cash-for-access deal-maker Stephen Payne.

But the McCain camp insists that Randy Scheunemann did not lobby McCain himself on "any issues relating to" Stephen Payne.

That might come as a relief to McCain supporters, since Payne was caught on video a few weeks ago telling a Kazakh politician he could set up high-level meetings at the White House in exchange for big donations to the future George W. Bush Presidential Library fund.

But is it true?

Let's go back to 2001. That's when Scheunemann and Payne first met, according to the McCain camp.

Scheunemann was lobbying on behalf of the government of Latvia. Latvia was seeking entry into NATO. And McCain was among the lawmakers he targeted. In fact, Scheunemann and McCain both traveled to Latvia in August 2001, where McCain met with an slew of Latvian officials and talked about NATO expansion and U.S. policy with Sheunemann, according to lobbying documents filed with the U.S. Department of Justice.

Reader DG points out that it was just a few days later that McCain announced his support for the Baltic country's admission into NATO. (It was granted admission in 2004)

And what was Stephen Payne doing in Latvia?

According to his own firms' documents, a lot. One brochure said Payne's firm, Worldwide Strategic Partners, "led Lavia's efforts to become a NATO member." Another for his related firm, Worldwide Strategic Energy, said the same thing.

Payne has been Latvia's "honorary consul" in Texas, which is among the many business activities he conducts from the same office address in suburban Houston.

It looks like Payne and Scheunemann were on the same side of the issue, trying to convince people like McCain and other U.S. lawmakers to back Latvia's bid for NATO membership.

Payne doesn't always register his work for foreign countries in the Department of Justice database maintained under the Foreign Agents Registration Act.

The McCain camp told us that Sheunemann and Payne met in Latvia in 2001. How exactly did they meet? Were they working together? Did McCain at any point meet Payne? Those are some of the questions we've asked the campaign. We'll let you know if and when they get back to us.

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Topics: John McCain, Stephen Payne

Karl Rove

EXCLUSIVE: Karl Rove Issues New Denials in Gov. Siegelman Prosecution in Written Answers to HJC

Kate Klonick | July 23, 2008, 2:08PM

Karl Rove has categorically denied any involvement whatsoever, either directly or indirectly, in the prosecution of former Alabama Gov. Don Siegelman, in written responses to questions from the ranking member of the House Judiciary Committee, entered into the Congressional record today and obtained this afternoon by TPMmuckraker.

The questions from Rep. Lamar Smith (R-TX) and the answers submitted by Rove's lawyer, Robert Luskin, are available here. More soon.

Below is a sample of the Q&A. Rove's answer is in italics, and is emblematic of his response to all 14 questions raised by Smith.

1. Before former Alabama Governor Donald E. Siegelman's initial indictment in May 2005, did you ever communicate with any Department of Justice officials, State of Alabama officials, or any individual other than Dana Jill Simpson, Esq., regarding Governor Siegelman's investigation or potential prosecution? If so, please state separately for each communication the date, time, location, and means of the communication, the official or individual with whom you communicated, and the content of the communication.
I have never communicated, either directly or indirectly, with Justice Department or Alabama officials about the investigation, indictment, potential prosecution, prosecution, conviction, or sentencing of Governor Siegelman, or about any other matter related to his case, nor have I asked any other individual to communicate about these matters on my behalf. I have never attempted, either directly or indirectly, to influence these matters.

Rove has long refused to comply with a committee subpoena about his role in the Siegelman prosecution, claiming executive privilege. Instead, he's offered to respond to written questions from the Democrat-controlled committee.

So Smith sent Rove's attorney, Luskin, a sycophantic letter on July 15, requesting that he make good on his promise and answer some questions from the committee:

The Committee majority, as before, declined your offer when it was renewed on July 9th. This unnecessarily forced up on your client the Hobson's choice of obeying the limitations placed upon him by the President or obeying the demand of the majority that he appear and testify at a July 10, 2008 hearing before the Subcommittee on Commercial and Administrative Law. The forcing of this issue did not obtain information for the Committee. Rather, it simply provoked partisan spectacle and gratuitously exposed your client to potential legal jeopardy.

Luskin, graciously accepted the request, and conveyed his bafflement at the committees' prosecution in his cover letter with his client's answers:

We simply cannot understand the Committee's interest in provoking a confrontation with Mr. Rove while the precise legal issue that is presented by his subpoena is subject to a pending action in District Court. We have struggled instead to find a method by which Mr. Rove could answer the Committee's questions while at the same time respecting the prerogatives of the President. We thank you for providing such an opportunity, and we trust that Mr. Rove's answers will assist the Committee in resolving these utterly unfounded allegations.

Late Update: The majority of the Q&A refutes the affidavit of attorney Jill Simpson, not that that's anything new. As you might remember, Simpson spoke before the HJC in October of last year and testified to Rove's involvement of Siegelman's prosecution. From what I can tell, the documents spend nine pages detailing the ways in which Rove does not know Simpson.

For the record, Karl Rove has never "communicated, directly or directly with Simpson." He does not and has "never known Simpson personally." He has "never worked with her." He is "not the Karl referenced" in the email on the FEMA contract. He never told Simpson to take "compromising pictures" of Siegelman.

PERMALINK | COMMENTS (49) | RECOMMEND RECOMMEND (19)
Topics: Don Siegelman, House Judiciary, Karl Rove

House Oversight

Mukasey Quotes Socialist Eugene Debs on Discussion National Security Issues

Kate Klonick | July 23, 2008, 1:37PM

Attorney General Michael Mukasey is having a lovely time in front of the House Judiciary Committee today, bantering about college football with Rep. Steve Cohen (D-TN) and quoting America's archetypal socialist during questioning with Rep. Ric Keller (R-FL):

KELLER: Back to my original questions. You've got less than six months on the clock here with the end of the Bush administration, uh, will you commit today to sitting down with our congressional leaders to try to fashion a compromise relating to these national security issues that would ultimately result in you being able to reccomend that the president sign the bill or in the alternative is there no bill that you would recommend being signed?
MUKASEY: Um, I'm in the same position as, um, a Socialist candidate for president named Eugene Debs who said, "I'll talk to anybody who'll talk to me." I'll sit down with anybody that wants to sit down and have a serious conversation about what can be done and what can't be done, but first we need to talk about what's there and what's there is not acceptable.

Before that, Keller asked the AG some questions about the Media Shield Bill -- which is a really, really, really bad idea according to Mukasey. Not even ten angels could save it, nevermind presidential candidates Sens. Barack Obama and John McCain:

KELLER: . . . Obama and Senator McCain said they would sign the bill and I think we can agree that one of those two men is going to be the president of the United States. And so, you would agree with all three of those facts?
MUKASEY: I would agree with all of those facts and I would also agree that ten angels swearing on bibles that that bill was harmless would not change the provisions that are in it.

PERMALINK | COMMENTS (1) | RECOMMEND RECOMMEND (0)
Topics: House Oversight, Michael Mukasey

Pentagon

Auditors Sought To Cover-Up Defense Contractor's Overbilling

Andrew Tilghman | July 23, 2008, 12:54PM

From the Washington Post:

Auditors at an oversight agency of the Pentagon were pressured by supervisors to skew their reports on a major defense contractor's work, hiding wrongdoing and charges of overbilling, according to an 80-page report from the Government Accountability Office.

The Defense Contract Audit Agency, which is charged with overseeing contractors for the Defense Department, made an upfront agreement with "a major aerospace company" to limit the scope of work and basis for an audit, the report said.

When the contractor, who is not named in the report, objected to the draft findings of the DCAA audit, managers at the audit agency assigned a new supervisor to the case and threatened the senior auditor with personnel action if "he did not delete findings from the report and change the draft audit opinion to adequate," according to the GAO report.

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Topics: Pentagon

Michael Mukasey

Mukasey Testimony Free and Easy Without Oath

Kate Klonick | July 23, 2008, 12:33PM

In a rather odd bit of procedural maneuvering, House Judiciary Committee Chairman John Conyers (D-MI), neglected to swear Attorney General Michael Mukasey before he testified to the committee today.

Mukasey seemed perplexed, and mentioned the omission before questioning began by Rep. Jerrold Nadler (D-NY):

CONYERS: The Chair recognizes, to begin the questioning, the Chairman of the Subcommittee on the Constitution, Jerry Nadler of New York.
MUKASEY: I'm sorry, um, Mr. Chairman, I don't mean to raise a matter that's none of my business, but I haven't been placed under oath. Did you want me to take an oath?

CONYERS: No, I do not require that.

We're no strangers to hearings here at TPM, but we're not quite sure what's going on with this. Our best guess? Conyers is trying to ensure quality testimony from Mukasey by relaxing the hearing. Readers have any other guesses?

PERMALINK | COMMENTS (17) | RECOMMEND RECOMMEND (3)
Topics: House Judiciary, John Conyers, Michael Mukasey

Surveillance

Massive Domestic Spying Investigation Coming Soon?

Andrew Tilghman | July 23, 2008, 10:37AM

After Democrats failed to muster any substantive opposition to the Bush White House's overhaul of domestic spying laws just a few weeks ago, it would be a striking turn of events if the House leadership launched into a massive, multi-decade investigation of how the government has been monitoring its own citizens since the Cold War.

But that's what Salon speculates about today in a far-reaching report from Capitol Hill.

While reporting on domestic surveillance under Bush, Salon obtained a detailed memo proposing such an inquiry, and spoke with several sources involved in recent discussions around it on Capitol Hill. The memo was written by a former senior member of the original Church Committee; the discussions have included aides to top House Democrats, including Speaker Nancy Pelosi and Judiciary Committee chairman John Conyers, and until now have not been disclosed publicly.

That's pretty interesting. This Democratic leadership doesn't seem to have done anything over the past couple years to suggest it is about to launch a broad, sweeping investigation into highly sensitive national security-related issues. (They haven't even really questioned the president on his hugely unpopular Iraq policies).

Reporter Tim Shorrock reaches as far back as the Regean Administration and culls evidence of a secret and potentially illegal database maintained by the National Security Administration called "Main Core." The existence of such a database has been the subject of speculation for years, but never confirmed. This database would presumably be the focus of any large-scale congressional investigation.

The investigation under consideration would be rare in its scope, potentially encompassing both Republican and Democratic administrations.

During one recent discussion on Capitol Hill, according to a participant, a senior aide to Speaker Pelosi was asked for Pelosi's views on a proposal to expand the investigation to past administrations, including those of Bill Clinton and George H.W. Bush. "The question was, how far back in time would we have to go to make this credible?" the participant in the meeting recalled.
That question was answered in the seven-page memo. "The rise of the 'surveillance state' driven by new technologies and the demands of counter-terrorism did not begin with this Administration," the author wrote. Even though he acknowledged in interviews with Salon that the scope of abuse under George W. Bush would likely be an order of magnitude greater than under preceding presidents, he recommended in the memo that any new investigation follow the precedent of the Church Committee and investigate the origins of Bush's programs, going as far back as the Reagan administration.

It's hard to think of any examples of a Congressional probe of the scope described here.

The Salon report notes that Democrats on the Hill may be reluctant to green-light the investigation because of their own party's complicity in approving certian surveillance techniques. Key lawmakers declined to comment for Salon's story, including Pelosi, Patrick Leahy (D-VT) and Russ Feingold (D-WI).

However skeptical we may be, the idea sounds fascinating. It's hard to think of much more exciting than a parade of witnesses on Capitol Hill revealing how the government has been spying on all of us since the Cold War. We'd be sure to cover that gavel-to-gavel.

PERMALINK | COMMENTS (21) | RECOMMEND RECOMMEND (8)
Topics: Nancy Pelosi, Surveillance

The Daily Muck

Matt Berman | July 23, 2008, 10:09AM

Tom Delay's lawyers have ruled out asking President Bush for a pardon. Delay was indicted over two years ago on charges of money laundering, and is still in the middle of legal proceedings in Washington and Texas. Delay's lawyers insist he has not committed a crime, and therefore has no use for a pardon. (The Hill)

The Federal Emergency Management Agency is asking for immunity from lawsuits filed by victims of the Katrina and Rita hurricanes who claim they were exposed to harmful fumes while living in FEMA trailers. A U.S. district judge is set to hear FEMA's request today. (AP)

A new Government Accountability Office report reveals that the Information Sharing Environment which is responsible for sharing information on terrorism has achieved limited success. The ISE is faulted in the report for putting too much emphasis on "activities accomplished rather than results achieved". (AP)

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Topics: The Daily Muck

Michael Mukasey

Play It Again, Mike, Once More, For Old Time's Sake

Kate Klonick | July 23, 2008, 9:58AM

In what looks to be his final appearance on the Hill, Attorney General Michael Mukasey is set to testify today before the House Judiciary Committee Hearing on Oversight at the Department of Justice.

It starts at 10:15 AM ET, and we'll be watching diligently and bringing you all the latest from Conyers and his gang.

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Topics: House Judiciary, Michael Mukasey

Stephen Payne

McCain Adviser Found To Have Lobbied For Third Group Tied To Stephen Payne

Andrew Tilghman | July 22, 2008, 6:38PM

More evidence of ties between John McCain's top foreign policy adviser and Stephen Payne, the guy caught on video offering to arrange meetings with top White House officials in exchange for big donations to the future George W. Bush Presidential Library Fund.

We knew that Randy Scheunemann had worked for two of Payne's firms in recent years. Now the AP reports on a third:

International Business & Energy Development Corp., is the third of Payne's firms to emerge as paying money to Scheunemann. The payments from mid-2001 to mid-2003 totaled $80,000, for issues ranging from monitoring legislation concerning global energy developments to lobbying on a bill authorizing Bush to provide assistance to Pakistan and India, according to the Senate filings. The post-Sept. 11 legislation lifted the last remaining economic sanctions against Pakistan.

That brings the total paid by Payne's firms to McCain's adviser to about $130,000 since 2001.

The McCain campaign said Scheunemann has had no business relationship with Payne since July 2006 and has no knowledge of Payne's business activities since that time.

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Topics: Stephen Payne

Congress Freezes Funding For Cuba Group Accused of Theft

Andrew Tilghman | July 22, 2008, 5:14PM

From the Miami Herald:

Congress has put the U.S. Agency for International Development's $45 million Cuba program's 2008 funding on hold, following a series of troubling audits and cases of massive fraud, The Miami Herald has learned.

In a quest to get the funding hold lifted, U.S. AID on Friday ordered a bottoms-up review of all its Cuba democracy programs and suspended a Miami anti-Castro exile group that spent at least $11,000 of federal grant money on personal items.

Rep. Howard Berman, D-Calif., ordered a hold on the U.S. AID Cuba program funding last month, in part in response to a $500,000 embezzlement at the Center for a Free Cuba in Washington disclosed earlier this year, federal officials said.

Rep. Howard Berman continued to amp up the pressure today, saying the amount embezzled amounts to $700,000.

Berman's been pushing for a "fresh ideas" in the U.S. policy toward Cuba.

PERMALINK | COMMENTS (3) | RECOMMEND RECOMMEND (1)
Topics:

Stephen Payne

Investor Document Says Payne Was Key Bush Campaign Operative

Andrew Tilghman | July 22, 2008, 2:45PM

We've gotten a hold of a new document from Worldwide Strategic Energy, one of the numerous firms run by Stephen Payne.

We've been writing a lot about Payne since he was caught on video offering to arrange meetings with high-level Bush administration officials conditioned on big donations to the future George W. Bush Presidential Library fund.

This 44-page document, which was previously obtained by the Times of London and the blog Majikthise, was distributed to investors about two years ago and outlines the people involved with Worldwide Strategic Energy and how they planned to make money.

Payne is listed as the president and chief executive officer and touts some connections to the Bush administration that we hadn't heard before.

Spending hundreds of days on the road for the Bush/Cheney Campaign in 2000 and 2004, Mr. Payne was part of a small team of five Bush operatives, including former White House Chief of Staff Andy Card, who coordinated the campaigns' efforts for the three Presidential debates held that year.

The document includes a photo, above, showing Payne in traditional Kazakh garb alongside Timur Kulibayev, a billionaire and chairman of the board for KazMunaiGaz, the Kazakh oil and gas company (Kulibayev is also the Kazakh president's son-in-law), and Togrul Baglrov, executive vice president with the Moscow International Petroleum Club.

This particular document also offers some insight into what Payne and his business partners do. In short, they go into politically unstable countries and forge political deals for leasing the rights to drill for oil or natural gas. Once those deals are secured, they form "joint ventures with developing and drilling companies."

It's big money they are looking for:

In order to begin our lease acquisition phase of operations, WSE is seeking an Angel Investor round of funding of between $3,000,000 and $5,000,000.

If successful, investors can expect a massive return for the expected 20-year lifespan of a well, the document says. One example suggests a total of $773 million in total revenue (and that's calculated with oil at $50 a barrel).

The document is not dated, but appears to be no older than March 2006, based on its sources and references.

There are big players involved, according to this document.

One is a current White House official. Bush appointed Spencer E. Geissinger last year as Deputy Assistant to the President for Advance and Operations. Geissinger also served in a similar White House position under President George H.W. Bush as a Special Assistant to the President for Advance.

For Payne's firm, Geissinger is listed as an "advisory board member." A call to Geissinger's White House office was not immediately returned.

The firm Bracewell and Giulinai, which includes the former New York City mayor and has an office in Kazakhstan, is listed as the "Outside Strategic and Legal Counsel." A spokeswoman for the international law firm has not responded to our request for further information.

And, in keeping with our reporting from yesterday, the document also lists Sen. John McCain's top foreign policy adviser, Randy Scheunemann, among its "executive team." The McCain camp responded yesterday.

Josh Crescenzi is also reported to have worked with the White House advance team under the current President Bush. For Worldwide Strategic Energy, Crescenzi is listed as a "Vice President, Administration and Controller." Crescenzi did not return a call for comment.

PERMALINK | COMMENTS (11) | RECOMMEND RECOMMEND (11)
Topics: Stephen Payne

The Daily Muck

Matt Berman | July 22, 2008, 9:40AM

The judge presiding in Guantanamo over the first military commission since World War II threw out some evidence because it was obtained under "highly coercive" conditions. The discarded evidence were statements made by the detainee, Salim Hamdan, Osama Bin Laden's driver, while he was held captive in Afghanistan. (Washington Post)

The Indian Health Service has lost millions of dollars worth of equipment according to a new report by the Government Accountability Office. The goods, such as laptops, tractors, vehicles, and cameras, have reportedly been either mismanaged by the agency or stolen. (Washington Post)

House Judiciary Committee Chairman John Conyers (D-MI) has announced an investigation into the Office of Special Counsel, and its head, Scott Bloch. Conyers wants to speak with Bloch's top deputy, Jim Byrne, who resigned recently, citing "political agendas". (Congress Daily)

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Topics:

Stephen Payne

McCain Camp Plays Down Foreign Policy Adviser's Links To Cash-For-Access Dealmaker

Andrew Tilghman | July 21, 2008, 7:12PM

John McCain's campaign responds to the AP regarding McCain aide Randy Scheunemann's previous work with Stephen Payne, the guy caught on video offering to set up meetings with White House officials in exchange for big donations to the George W. Bush Presidential Library fund.

The AP reports:

On Monday, the McCain campaign said that from 2002 to 2006, Scheunemann periodically engaged in consulting relationships with the two companies and that Scheunemann was never on the payroll of either firm, but that he was an occasional outside expert consultant.
Scheunemann did not lobby on any specific legislation on behalf of Worldwide Strategic Partners, said McCain campaign spokesman Brian Rogers.

In regard to Caspian Alliance, Scheunemann arranged several informational meetings for Payne with Department of State and NSC officials following Caspian energy issues, but Scheunemann did not lobby on specific legislation or projects, said Rogers.

Scheunemann did not lobby McCain on Caspian energy issues or any other issue related to Payne, the McCain campaign spokesman added.

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Topics: John McCain, Stephen Payne

Stephen Payne

Homeland Security Adviser Offering Cash-For-Access Deal Worked With McCain's Foreign Policy Adviser

Andrew Tilghman | July 21, 2008, 3:55PM

Before last week, we'd never heard of Worldwide Strategic Partners and Stephen Payne, the (former) Homeland Security adviser who was caught on video soliciting big donations for the future George W. Bush Presidential Library fund while offering to arrange access to top White House officials.

But Randy Scheunemann, Sen. John McCain's top foreign policy adviser, has known him -- and been working with his business associates -- for years.

Worldwide Strategic Partners was one of Scheunemann's lobbying clients back in 2002, when Scheunemann worked for the lobbying firm Orion.

And more recently, Scheunemann was lobbying for a group called the Caspian Alliance. That group was one of Scheunemann's four registered lobbying clients in 2005 and 2006, and paid him a total of $40,000.

The Caspian Alliance was formed by Payne's business associate, Houston lawyer Brian Ettinger, to "specialize in pushing the interests and advising American oil groups active in the former Soviet republics that overlook the Caspian Sea (Kazakhstan, Turkmenistan and Azerbaijan)," according to a 2006 report in the Paris-based Intelligence Online, which we found in the Nexis news database.

Ettinger has worked with Payne at Worldwide Strategic Partners along with other ventures and currently shares office space with Payne at the firm's Houston office.

And the Caspian Alliance uses the same Houston address as Payne's Worldwide Strategic Partners on lobbying forms filed with the Senate.

One lobbying form for the Caspian Alliance lists several people working on its behalf, including including Ettinger, Payne's former business partner Gary Polland and Ari Storch with Artemis Strategies.

Payne is among the founders of Atremis Strategies, a lobbying firm which has had a partnership with the Caspian Alliance. Artemis Strategies was founded in 2003 by Payne, Ettinger and others including Timothy F. Powers, formerly deputy director of the Republican National Committee's congressional affairs and strategic planning operation and member of the Bush-Cheney transition team, according to a March 13, 2003 report in the Washington Post.

Payne was recently caught bragging about his close ties with Scheunemann, according to the Times of London. The British newspaper took an undercover video of Payne talking to a Kazakh politician about a potential deal. On the tape, Payne said Scheunemann has been "working with me on my payroll for five of the last eight years," according to a report in the Times.

The Times described the Caspian Alliance as a "subsidiary" of Worldwide Strategic Energy, of which Payne is also president. TPMmuckraker found that many of the same people are involved with both the Caspian Alliance and Worldwide Strategic Partners, but could not independently verify the nature of the relationship between the two firms.

A reporter for the blog Majikthise apparently obtained a 44-page document from Worldwide Strategic Energies that featured Scheunemann prominently, including the above photo. The reporter, Lindsay Beyerstein, said the document was a prospectus distributed to potential investors and listed Schuenemann among the firm's executive team, along with Major General Lincoln Jones III, a former executive at Enron.

The Times also said it obtained a similar document.

Neither the McCain campaign nor Worldwide Strategic Partners responded to requests for comment today.

Late Update: The McCain campaign responded late Monday.

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Topics: John McCain, Stephen Payne

Michael Mukasey

Attorney General's Call to Legislate Detainee Policy Rankles Senators

Kate Klonick | July 21, 2008, 3:48PM

Attorney General Michael Mukasey angered Democratic senators when he made an unexpected call for Congress to step in and legislate detainees rights, rather than waiting for federal court proceedings.

Speaking at the American Enterprise Institute this morning, Mukasey spoke to the "unanswered questions" raised by the Supreme Court decision of Boumediene v. Bush, which stated that detainees are protected by the right to habeas corpus. Mukasey called the Court's decision a "disappointment," and said the court stopped "well short of detailing how the habeas corpus proceedings must be conducted." Currently, over 200 cases are waiting to be heard in federal court related to the Supreme Court's ruling, a problem Mukasey thinks could be circumvented by Congressional action:

Congress and the executive branch are affirmatively charged by our Constitution with protecting national security, are expert in such matters, and are in the best position to weigh the difficult policy choices that are posed by these issues.
Judges play an important role in deciding whether a chosen policy is consistent with our laws and the Constitution. But it is our elected leaders who have the responsibility for making policy choices in the first instance.

Sen. Patrick Leahy (D-VT), Chairman of the Senate Judiciary Committee, issued a statement today, slamming Mukasey for failing to consult or inform the Committee of his thoughts before his speech:

"The Committee has held a wide range of hearings on issues of detainee rights and procedures. Attorney General Mukasey's call today for Congress to create new rules for these habeas proceedings is the first I have heard from the Administration on this issue," Leahy said. "The Administration made this mess by seeking to avoid judicial review at all costs, causing years of delay and profound uncertainty."

Sen. Russ Feingold (D-WI) echoed Leahy's comments. "Our federal courts are capable of handling these cases," he said. "By repeatedly mishandling these cases, the administration has delayed justice from being served."

[Late update]: Senate Majority Leader Harry Reid (D-NV) just chimed in with a statement from the Senate floor.

"As a result of its repeated efforts to circumvent the requirements of the Geneva Conventions and the Constitution, the Bush administration has yet to bring to justice the perpetrators of the terrorist attacks of September 11," he said. "The courts are well equipped to handle this situation, and there is no danger that any detainee will be released in the meantime."

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Topics: Guantanamo, Michael Mukasey, Senate Judiciary Committee, Torture

Michael Mukasey

Mukasey to Testify Again on Hill

Kate Klonick | July 21, 2008, 11:55AM

We just received confirmation that Attorney General Michael Mukasey is set to testify before the House Judiciary Committee on Wednesday at 10:15 AM ET.

The hearing, titled "Oversight of the U.S. Department of Justice" is thought to be Mukasey's final appearance on the Hill. Chairman John Conyers (D-MI) will be presiding.

We'll be covering this on Wednesday, so make sure to check back for the final details on the head of DOJ's final oversight soliloquy.

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Topics: House Judiciary, Michael Mukasey

The Daily Muck

Matt Berman | July 21, 2008, 10:50AM

The wife of the governor of North Carolina is catching heat recently for taking first-class trips to Europe at the expense of the state. She has also received a questionable 88 percent pay increase for her job at North Carolina State University. (McClatchy)

State legislators in Alaska are considering hiring a special investigator over Governor Sarah Palin's firing of Public Saftey Commissioner Walt Monegan. Palin faces accusations of pressuring Monegan to fire Palin's sister's ex-husband from a government job. (Alaska Daily News)

William Mercer, who infamously was simultaneously a senior adviser at the Justice Department and a U.S. attorney for Montana, is one of the few U.S. attorneys to make it through all eight years of the Bush DOJ. Mercer had to resign from his job at the Justice Department, and now is only the U.S. attorney for Montana. (LA Times)