Securities and Exchange Commission

SEC IG To Probe Potential Coordination With White House On Goldman Suit

Zachary Roth | April 23, 2010, 5:28PM

Rep. Darrell Issa (R-CA)

We told you earlier about the tireless -- and often fruitless -- efforts of Rep. Darrell Issa (R-CA) to find a scandal to stick to the Obama administration. Well, today he had some luck.

It's not the Pentagon Papers, but SEC inspector general David Kotz just announced on Fox News that he will launch an internal investigation into whether there was improper coordination with the White House over the recent decision to file a lawsuit against Goldman Sachs. "We need to understand what led to the decision to announce or bring the case on that day," Kotz told Neil Cavuto. "See if there was any undue influence involved and so we'll look very carefully to investigate that and see what we determine."

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Stop Too Big To Fail

Shady Anti-Financial Reform Group Using Ad Agency That Worked For Swift Boat Vets

Justin Elliott | April 23, 2010, 1:54PM

The group Stop Too Big To Fail, which is employing a liberal-sounding message to fight the Wall Street reform legislation, is working with an advertising agency whose past clients include the Swift Boat Veterans for Truth and myriad GOP campaigns.

Stop Too Big To Fail this week announced a $1.6 million ad buy in Missouri, Nevada, and Virginia. The ads warn of a "bailout fund" and call on senators to "vote against this phony 'financial reform.'" The agency behind that ad is Mentzer Media, according to Kristen Waskie, a staffer at TeleRep, a Philadelphia firm which represents local TV stations and which has placed the financial reform ads in local markets. Waskie tells us the Stop Too Big To Fail ads came out of Mentzer, which is based in Towson, Maryland.

You've probably never heard of Mentzer, -- which describes itself as "expert at zeroing in on the correct audiences, the right markets, identifying the right media, [and] locking in at the right times" -- but in the world of political professionals, it's quite well known.

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Scott Bloch

Bloch Attorney: I Am Pleased 'Unnecessary' Inquiry Is Over

Justin Elliott | April 23, 2010, 1:21PM

Former U.S. Special Counsel Scott Bloch

The attorney for former Bush Administration official Scott Bloch, who was charged with contempt of Congress yesterday in the "Geeks on Call" case, just sent over this statement:

"I am pleased that this unnecessary five year inquiry is over for Scott, and that it confirmed his commitment to public service, as well as the many accomplishments he achieved as United States Special Counsel. Now it is time for Scott to move forward and to pursue the best interests of his private clients with the same vigor he displayed in promoting the welfare of the citizens of the United States," said Attorney William Sullivan of Winston & Strawn in Washington.

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Michael Steele

Touchy Subject: Steele Slammed For Criticizing GOP's Southern Strategy

Zachary Roth | April 23, 2010, 1:16PM

RNC Chairman Michael Steele

Michael Steele's charge this week that the GOP's southern strategy has "alienated" minority voters may not have provoked as many headlines as a trip by young Republicans to a lesbian bondage club. But in the long run it could cause just as much trouble for him.

During a speech at DePaul University, Steele declared:

For the last 40-plus years we had a "Southern Strategy" that alienated many minority voters by focusing on the white male vote in the South. Well, guess what happened in 1992, folks, "Bubba" went back home to the Democratic Party and voted for Bill Clinton.

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Ileana Ros-Lehtinen

GOP Rep. Promises Donors: 'I Would Turn To You For Advice'

Zachary Roth | April 23, 2010, 10:17AM

Rep. Ileana Ros-Lehtinen (R-FL)

Rep. Ileana Ros-Lehtinen (R-FL) has canceled a fundraiser after questions were raised about her promise of special access to donors.

The conservative lawmaker sent out an email last week inviting potential donors to "serve as a member of my advisory group by attending my April 27 dinner," and making a $2,500 contribution. It continued: "When the GOP regain[s] the majority, I would turn to you for advice on pertinent issues affecting our nation."

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Terrence Lakin

Court Martial Charges Brought Against Birther Army Doc

Justin Elliott | April 23, 2010, 9:21AM

Lt. Col. Terrence Lakin

Formal court martial charges have been brought against Lt. Col. Terrence Lakin, the Army doctor who believes President Obama may not be a natural born citizen, for failing to follow orders, the military said today.

Lakin was charged Thursday "with one specification of a violation of Article 87, Missing Movement and four specifications of a violation of Article 92 (three specifications of Failure to Obey a Lawful Order, and one Specification of Dereliction of Duty)," said Chuck Dasey, spokesman at Walter Reed Army Medical Center in Washington, where Lakin is assigned.

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Darrell Issa

No Let Up: Darrell Issa's Tireless Quest For Scandal

Zachary Roth | April 23, 2010, 8:35AM

Rep. Darrell Issa (R-CA)

Remember the 1990s, when Newt Gingrich, Dan Burton and co. managed to create a steady stream of outrage by playing up every Clinton administration "scandal," no matter how minor? Or how about the last years of the Bush administration, when Rep. Henry Waxman (D-CA) seemed to function as a one-man investigative machine, making sure that no Bush administration wrong-doing went unexamined?

Today that role is being played by Rep. Darrell Issa (R-CA), the ranking Republican on the House Oversight committee. But despite the steady stream of made-to-order conspiracy theories coming from Fox News and the Tea Party crowd, it's a much harder job. That's largely because Issa's party is in the minority, so he doesn't have the power to compel testimony or subpoena documents. And it's perhaps also because, though the Obama administration is far from squeaky clean, Issa just hasn't had the kind of material to work with that his predecessors did.

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Scott Bloch

Former Bush Official Charged With Contempt Of Congress In Geeks On Call Case

Justin Elliott | April 22, 2010, 4:41PM

Geeks On Call and former U.S. Special Counsel Scott Bloch

Former U.S. Special Counsel Scott Bloch was charged today with criminal contempt of Congress in connection with his notorious use of Geeks On Call to scrub his computer while under investigation for misusing his office, according to a court filing in federal court in Washington.

The "information" filed today alleges that, responding to a request from the House oversight committee, Bloch failed to "state fully and completely the nature and extent of his instructions that Geeks On Call perform 'seven level wipes' on his [Office of Special Counsel]-issued computers" and the computers of two other appointees in the office. That was in late 2006.

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Eric Massa

Massa Probe Focusing On Dems' Responses

Zachary Roth | April 22, 2010, 1:28PM

Former Rep. Eric Massa (D-NY)

The House Ethics committee's probe into the Eric Massa affair appears to be focused on whether other members or Hill staffers acted appropriately after receiving complaints about Massa's behavior.

After Majority Leader Steny Hoyer's office was made aware of the allegations against Massa in February, Massa aides were given 48 hours to notify the ethics committee. Hoyer met yesterday with investigators for the panel and released a statement noting that he has "moved to strengthen protections for staff in the wake of this incident."

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Jack Abramoff

Casino Jack Delivers Sweeping View Of Abramoff Scandal

Justin Elliott | April 22, 2010, 1:14PM

Early in the new documentary Casino Jack, a young Ralph Reed appears wearing a camouflage trucker hat, overcome with anti-Communist fervor at a rally in support of the Nicaraguan contras. Later on there is a beturbaned Rep. Dana Rohrabacher (R-CA) posing with his mujahideen friends in Afghanistan in the late 1980s. And there is Jack Abramoff at a meeting of freedom fighters hosted by rebel leader (and human rights abuser) Jonas Savimbi in Angola.

The best part of Casino Jack is the archival footage that puts the disgraced super-lobbyist in the context of the conservative movement stretching back to his years at the helm of the College Republicans in the early 1980s.

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Jim Gibbons

Accuser Charges: Gibbons Threatened To Rape Me

Zachary Roth | April 22, 2010, 12:34PM

Gov. Jim Gibbons (R-NV)

A document filed in a lawsuit brought by a former Las Vegas cocktail waitress against the governor of Nevada contains a shocking allegation.

Chrissy Mazzeo brought suit in 2008 against Jim Gibbons, alleging that he sexually assaulted her in a Vegas parking garage in 2006, then covered it up. Earlier this year, lawyers for Gibbons, a Republican seeking re-election this fall despite a host of personal problems, filed a motion to have the case dismissed for lack of evidence. Yesterday, Mazzeo's lawyers responded with a filing of their own.

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Florida Republican Party

Report: Feds Eyeing Crist Role In Probe Of Florida GOP Spending

Justin Elliott | April 22, 2010, 10:05AM

Florida Governor Charlie Crist (R)

Earlier this week we learned that federal authorities are investigating Florida Senate candidate Marco Rubio. Now, the St. Petersburg Times reports that investigators are interested in the role of Rubio's opponent, Gov. Charlie Crist, in the seemingly ever-expanding scandal over lavish spending at the state GOP.

The paper, which has been on a roll with this story, talked to a GOP fundraiser named Al Hoffman, who says he was interview by the FBI last month:

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Mark "Thor" Hearne

GOP Vote Suppression Expert Now Handling Anti-HCR Lawsuit

Zachary Roth | April 22, 2010, 9:37AM

Mark Hearne

A Republican operative who was behind a sophisticated effort to make it harder for poor people and minorities to vote is back in the news. He's handling Missouri's lawsuit against the health-care reform law.

Mark "Thor" Hearne has been hired by Missouri Lt. Gov. Peter Kinder to challenge the law's constitutionality. Several other states are bringing similar claims. Kinder is mounting a fundraising effort -- even launching a website -- to pay for the challenge to the law because the state's Democratic attorney general has declined to get involved.

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Stop Too Big To Fail

Maddow Tackles Anti-Financial Reform Group 'Stop Too Big To Fail' (VIDEO)

Justin Elliott | April 22, 2010, 8:53AM

Rachel Maddow

Last night Rachel Maddow took on the anti-financial reform group with a liberal-sounding message, Stop Too Big To Fail, with a special focus on DCI Group, the Washington astroturf specialists who have links to Stop Too Big To Fail.

Maddow notes that DCI used to work for the anti-health reform Coalition to Protect Patients' Rights, and DCI execs' were previously at R.J. Reynolds setting up so-called Smokers' Rights Groups.

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Simon Johnson

'Stop Too Big To Fail' Group Yanks References To Economist From Website

Justin Elliott | April 21, 2010, 5:46PM

A screen shot from a previous version of the Stop Too Big To Fail website

The group Stop Too Big To Fail, which TPMmuckraker profiled earlier, has pulled all references to respected economist Simon Johnson from its website.

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Eric Massa

Report: Feds Open Corruption Probe Of Massa

Justin Elliott | April 21, 2010, 4:16PM

Former Rep. Eric Massa (D-NY)

Fresh off the announcement that the House ethics panel is looking into former congressman Eric Massa, the Washington Post drops a bombshell: the FBI is now investigating Massa as part of a corruption inquiry.

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John Kasich

Stanford Lobbyist, Bush Admin. Medicare Bamboozler Host Kasich Fundraiser

Zachary Roth | April 21, 2010, 3:29PM

Ohio gubernatorial candidate John Kasich, Alston & Bird attorney Tom Scully (left inset), and Ripon Society President Jim Conzelman (right inset)

Two of the hosts of a fundraiser for Ohio GOP gubernatorial candidate John Kasich have some interesting items on their resumes: One was a senior executive and top lobbyist for alleged Ponzi schemer Allen Stanford, while another is a former Bush administration official who threatened to fire a subordinate if he revealed to Congress the true cost of a major bill.

This afternoon, Washington's tony Capitol Hill Club was the scene of a fundraiser for Kasich, the former Ohio congressman who is the presumptive Republican nominee to take on the incumbent Democratic governor, Ted Strickland, this fall. According to an invitation obtained by TPMmuckraker, the 15-person host committee includes Jim Conzelman and Tom Scully.

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Stop Too Big To Fail

Rent-A-Front: New Group Wages Stealth Battle Against Wall Street Reform

Justin Elliott | April 21, 2010, 2:50PM

Consumers for Competitive Choice President Bob Johnson (inset)

In the last few weeks, a new player entered the financial reform fray with a $1.6 million ad buy, a respected economist on board, a blitz of opinion columns on left-leaning websites, and a message, cooked right into the group's name -- Stop Too Big To Fail -- that liberals could love.

But as TPMmuckraker has looked into the group, every indication is that Stop Too Big To Fail is an astroturf operation funded by corporate interests to give the appearance of grassroots opposition to reform.

The group's leader has a long history running a rent-a-front operation: offering up his services to large corporations who are willing to pay top dollar for a "consumers group" that will engage in stealth advocacy on behalf of industry. The group refuses to divulge its funding sources. The respected economist whose support the group touts now says he was deceived. And Stop Too Big To Fail has links to DCI Group, one of Washington's best-known astroturf operators.

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Eric Massa

Ethics Panel Probing Massa Allegations

Zachary Roth | April 21, 2010, 1:58PM

Former Rep. Eric Massa (D-NY)

The House Ethics committee has opened a "full and complete investigation" into the sexual harassment and improper payment allegations involving former congressman Eric Massa, it just announced.

The allegations surrounding Massa "are serious and warrant a full and complete investigation," the committee announced. The New York Democrat stepped down last month amid allegations that he sexually harassed staffers. Since then, questions have been raised about a $40,000 payment made to Massa's top aide, Joe Racalto. Racalto had confronted Massa about the harassment allegations, and last week filed a complaint charging that he too had been sexually harassed.

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John Ensign

Ensign's PAC Has Not Raised A Single Dollar This Year

Zachary Roth | April 21, 2010, 1:13PM

Sen. John Ensign (R-NV)

We already told you that Sen. John Ensign's campaign has raised only $50 -- all from one contributor -- this year. But his political action committee is doing even worse.

The Nevada Republican's Battle Born PAC has taken in a grand total of $0 so far this year, according to FEC records examined by TPMmuckraker. By comparison, the PAC for Ensign's fellow conservative GOP senator, Jon Kyl of Arizona, has raised $38,000 in 2010, records show. Both men would face re-election in 2012.

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John Ensign

Sole Ensign Donor: 'All Men Are Dogs'

Zachary Roth | April 21, 2010, 11:49AM

Sen. John Ensign (R-NV)

The only person to contribute to Sen. John Ensign's re-election campaign this year says he thinks the scandal-plagued lawmaker is "a really good guy."

"He did some bad things with his personal life," Robert Donald, a Las Vegas retiree, told TPMmuckraker. "But as a senator, he's doing the right thing. He votes the right way."

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Young Eagles

RNC: Young Eagles Still Grounded

Zachary Roth | April 21, 2010, 10:59AM

Clockwise from top-left: Italo Zanzi, Ryan Morfin, John Roby Penn IV, and Penn with others at an event in Washington, D.C.

It looks like J. Roby Penn IV and his high-living friends will have a freer schedule for the forseeable future. The Republican National Committee is knocking down speculation that it had planned to reconstitute the Young Eagles.

That's the group of young donors that was grounded last month after flying too close to the sun by putting the tab for a trip to an L.A. bondage club on the RNC's tab. In the wake of that news, the RNC fired the staffer who oversaw the program, and said the group's events had been placed on hold.

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John Ensign

Ensign Campaign's Haul Last Quarter: 50 Bucks

Zachary Roth | April 21, 2010, 9:40AM

Sen. John Ensign (R-NV)

Sen. John Ensign's re-election campaign took in just $50 in contributions, from one contributor, during the first quarter of 2010, according to FEC reports. The paltry take comes as more bad news for the scandal-tarred Nevada Republican, who would run for re-election in 2012.

Disclosure reports examined by TPMmuckraker show that Robert Donald, a Las Vegas retiree, was the sole contributor to the "Ensign for Senate" committee between January and March. Donald gave two separate $25 contributions.

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Allen Stanford

Private Regulator -- Where Current SEC Chair Was Top Official -- Also Fell Down On Stanford Job

Zachary Roth | April 20, 2010, 5:46PM

Allen Stanford

A good catch by the government watchdog group POGO...

We told you yesterday about that internal SEC report on the Allen Stanford matter, which slammed the agency for failing to act on credible allegations that the banker was a fraud. But it wasn't just the SEC that appears to have fallen down on the job.

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Kwame Kilpatrick

Judge: Kwame Kilpatrick Violated Probation

Justin Elliott | April 20, 2010, 3:50PM

Former Detroit Mayor Kwame Kilpatrick

Disgraced former Detroit mayor Kwame Kilpatrick, now living in north Texas and working as a salesman for a tech company, may be headed for jail after a Michigan judge ruled today he violated his probation by not disclosing assets as required under a plea deal.

Kilpatrick has been slowly paying $1 million in restitution to Detroit as part of a 2008 settlement related to misdeeds, including lying about an affair with a staffer, according to the AP. But, the wire service reports, Kilpatrick hasn't exactly been living on the cheap:

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FBI

Former Hoboken Mayor Pleads Guilty To Corruption Charge

Rachel Slajda | April 20, 2010, 2:24PM

Hoboken City Hall

The former mayor of Hoboken, Peter J. Cammarano III, pleaded guilty today to a corruption charge, admitting that he had accepted a $25,000 bribe from an undercover informant.

Cammarano was the youngest mayor in the city's history and had only been in office for three weeks when he was arrested last summer in a wide-sweeping corruption and money-laundering sting that netted other public officials and rabbis. One man from Brooklyn was also charged with trying to sell a human kidney.

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John Kline

GOPers Now Slam Mine Safety Agency -- But Skipped Recent Mine Safety Hearing

Zachary Roth | April 20, 2010, 2:13PM

Rep. John Kline (R-MN)

In case you needed a reminder of just how shameless congressional Republicans can be...

The GOP members of the House Education and Labor committee, led by Rep. John Kline, last week put out a press release that slammed the "enforcement failures" of the Mine Safety and Health Administration, suggesting that the agency's failure to increase oversight of the Upper Big Branch Mine in West Virginia had helped lead to the deadly explosion that killed 29 miners earlier this month. The release, which did not mention the mine's owner, Massey Energy, asked: "Why didn't federal officials enforce the law to the fullest extent?"

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Eric Massa

Conservative Group Files FEC Complaint Against Massa

Zachary Roth | April 20, 2010, 12:35PM

Former Rep. Eric Massa (D-NY)

A conservative legal group that previously has targeted Rep. Charles Rangel (D-N.Y.) now is going after another Democrat -- Eric Massa.

The National Legal and Policy Center (NLPC) yesterday filed a complaint with the Federal Election Commission, charging that payments from the former New York congressman's campaign -- one to a former top aide, and another for a car -- broke campaign laws.

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Norm Coleman

Norm Coleman's New Group Plans Ad Blitz To Take Advantage Of Citizens United Ruling

Zachary Roth | April 20, 2010, 11:37AM

Former Sen. Norm Coleman (R-MN), American Action CEO

Less than a year after the conclusion of his marathon Senate contest against Al Franken, Norm Coleman is back. He's teaming up with other GOP heavy-hitters on a new group that will likely take advantage of the Citizens United Supreme Court decision to pour money into congressional races this fall.

Coleman is the CEO of American Action, which launched in February, billing itself as an "action tank" -- thinking without action is for liberals, it seems -- that will act as a center-right version of the Center for American Progress. That's the John-Podesta-run operation that has proven adept both at incubating progressive policies and at shaping the day-to-day political debate. The yearly budget for the new venture has been reported at around $4 million.

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Terrence Lakin

Attorney For Birther Army Doc Hints At Using Discovery To Further Birther Cause

Justin Elliott | April 20, 2010, 10:56AM

G. Gordon Liddy and Lt. Col. Terrence Lakin

Appearing on the G. Gordon Liddy radio show today, the attorney for Lt. Col. Terrence Lakin, the Birther Army doctor who is said to be facing a court martial for refusing orders, suggested that if his client is court-martialled, he will use discovery to try to further the Birther crusade.

One week ago, the military announced that Lakin is under investigation after he refused to report for a second tour in Afghanistan. Lakin believes that President Obama may not be a natural-born citizen, and therefore that military orders are invalid.

Today, Lakin appeared on Liddy's show with his attorney, identified as Paul Jensen.

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James Cole

Report: AIG Monitor To Get DOJ Number 2 Post

Zachary Roth | April 20, 2010, 10:08AM

Attorney James Cole

The corporate lawyer who acted as the Justice Department's inside man at AIG is reportedly set to take the number two spot at DOJ.

James Cole, an attorney with Bryan Cave, was placed as a government monitor inside AIG -- reporting back to DOJ and SEC -- as part of a 2004 deferred prosecution agreement after AIG had been charged with helping a client, PNC Bank, avoid taxes. AIG also paid an $80 million fine as part of that deal.

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Blackwater

Feds: Blackwater Gifted Weapons To King Of Jordan --- Then Lied To Govt. About It

Zachary Roth | April 19, 2010, 2:15PM

King Abdullah II of Jordan and Blackwater troops on the company's compound in Moyock, N.C.

In an effort to win business from the Jordanian government, Blackwater execs gifted Glocks, an M4 rifle, and a shotgun, among other weapons, to the King of Jordan, according to prosecutors. But, say the Feds, the execs then realized they couldn't account for the weapons -- so they falsely told the government that they had bought them as individuals.

In an indictment filed Friday against Blackwater's former president, Gary Jackson, and four other former Blackwater staffers, prosecutors write that in 2005, the company -- now known as Xe Services -- was seeking to gain favor with the government of Jordan, in order to boost its chances of doing business there.

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Spencer Barasch

SEC Enforcement Lawyer Who Quashed Stanford Probes Later Did Legal Work For Stanford

Justin Elliott | April 19, 2010, 2:01PM

Spencer Barasch (inset) and Allen Stanford (center)

The new inspector general report on the SEC's handling of the Allen Stanford alleged Ponzi scheme case paints a devastating picture of the agency's repeated failures to pursue the billionaire banker, despite a widespread belief within the SEC's Fort Worth office that he was a fraud.

At the center of the story is Spencer Barasch, the chief of enforcement at the SEC's Fort Worth office, who declined to pursue Stanford multiple times, only to later jump ship to become a partner at a big private law firm where he proceeded to represent none other than 'Sir' Allen Stanford.

The inspector general has referred Barasch to the bars of Washington and Texas, where he is licensed, for potential violation of conflict of interest rules.

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Jim Greer

Witness: To Appear Important, Ex-FL GOP Chair Had Blank Notes Brought To Him In Meetings

Zachary Roth | April 19, 2010, 12:36PM

Former Florida Republican Party Chair Jim Greer

Looking for a quick and easy way to impress people without actually doing any work? Take a lesson from Jim Greer.

Near the end of a profile of the former Florida GOP chair and Charlie Crist buddy -- who recently stepped down amid a spending scandal, and now is the subject of a criminal investigation for a contract awarded to himself and his executive director -- the Orlando Sentinel reports:

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Eric Massa

Harassment And Fraud Charges Fly Between Massa, Former Top Aide

Zachary Roth | April 19, 2010, 11:39AM

Former Rep. Eric Massa (D-NY)

What a mess...

The accusations are flying thick and fast between ex-congressman Eric Massa and his former chief of staff. Last Friday the aide, Joe Racalto, accused Massa of sexually harassing him. For his part, Massa has said that Racalto tricked other aides into approving a $40,000 payment to Racalto from Massa's campaign funds -- a charge Racalto has denied.

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Ken Cuccinelli

Religious Conservative Event Features 'Christocrat' Pastor, Controversial Evangelist -- And Ken Cuccinelli

Derek Hawkins | April 19, 2010, 10:23AM

Virginia Attorney General Ken Cuccinelli

Ken Cuccinelli has made his latest play to curry favor with the GOP's far-right wing, and to turn himself into a power player in conservative circles.

The hard-charging Virginia attorney general addressed religious conservatives Thursday night at an event sponsored by Jerry Falwell's Liberty University -- whose roster of speakers included a self-proclaimed "Christocrat", as well as an evangelist who has claimed she can cure AIDS and other diseases through prayer.

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Securities and Exchange Commission

Report Finds Catastrophic Failure By SEC In Stanford Ponzi Case

Justin Elliott | April 19, 2010, 10:19AM

Allen Stanford

In news buried by the Goldman fraud charges, the Inspector General for the SEC issued a blistering 159-page report Friday concluding that the agency's Fort Worth office knew that Texas businessman Allen Stanford was operating a Ponzi scheme in 1997 -- but didn't make a serious effort to pursue the matter for eight years, until 2005.

Stanford, a flamboyant Texas billionaire, is currently in jail facing charges of operating a $7 billion Ponzi scheme.

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Hutaree

Prosecutors: Hutaree Discussed 'Torching The Homes Of Police Officers'

Justin Elliott | April 19, 2010, 9:09AM

David Stone, Sr.

In a new court filing, prosecutors allege that Hutaree leader David Stone and other members of the Christian militia held a February live fire training session in which they discussed "ambushing police officers, killing police officers during traffic stops, torching the homes of police officers and then shooting them and their families as they fled their burning homes."

Nine alleged Hutaree members are charged on various counts in an alleged plot to kill police. The new filing argues against bail for Stone.

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