Miers Testifies In US Attorneys Probe -- When Will Rove?

Zachary Roth | June 16, 2009, 6:06PM

Harriet Miers, the former White House counsel under President Bush, has finally testified, behind closed doors, as part of Congress's investigation of the US attorney firings, reports FOXNews.com.

That raises an obvious question: When will Karl Rove do the same? Rove's lawyer, Robert Luskin, told TPMmuckraker last month that he expected Rove to testify in early June. But today Luskin did not immediately return our call.

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Topics: George Bush, Harriet Miers, House Judiciary, John Cornyn, Justice Department, Karl Rove, U.S. Attorneys

Torture

Torture Advocates Mum On Whether They Support Waterboarding Roeder

Zachary Roth | June 8, 2009, 2:18PM

For years now, torture supporters have been using the "ticking time-bomb" scenario to argue that it's irresponsible to issue a blanket ban on torture. If we knew that a bomb was set to explode imminently, goes the argument, and that torture could help obtain information to avert the disaster and save hundreds of lives, who wouldn't do it?

This has always borne more relation to an episode of 24 than to the actual war on terror. Even torture supporters have admitted that no such ticking time-bomb case has ever occurred. But it looks like we may now be confronted with a version of it in a very different context -- and this time, it's hard not to notice that those same torture supporters don't seem to be rushing to call for the waterboard just yet.

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Topics: Dick Cheney, Eric Holder, John Cornyn, Right-wing extremism, Scott Roeder, Torture

Arlen Specter

Too True! Specter and Cornyn Oppose Truth Commission

Zachary Roth | March 4, 2009, 3:57PM

GOP senators Arlen Specter and John Cornyn are leaving no doubt where they stand on Senate Judiciary chair Pat Leahy's proposal to create a Truth Commission to look into the Bush administration's war on terror policies.

They oppose it.

In a press release the pair sent out, Specter said:

When this idea of the so-called 'truth commission' first surfaced I said it was unnecessary because you had a change of administration, you could walk in the front door, ask for directions to the relevant filing cabinet, go in and open the drawer and find out anything you wanted to know. Well that's been done. And it's being done to a greater extent. You had some rather startling disclosures with the publicity in recent days about the unusual, to put it mildly, legal opinions which were issued to justify executive action.

Cornyn added:

I oppose the creation of a so-called 'truth commission' because it is a redundant and politically divisive exercise that would distract the Executive, Congress, and the American people at a time when we should be focused on reinvigorating our economy and winning the war on terror. This roving, unaccountable inquisition into each and every grievance with a Bush Administration policy is a backward-looking proposition that is directly at odds with President Obama's stated goals of unity and moving forward. Now is not the time for government to waste more of taxpayers' money by outsourcing a core Congressional responsibility.

It appears these senators can't handle the truth.

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Topics: Arlen Specter, George Bush, John Cornyn, Pat Leahy, Senate Judiciary Committee, Torture, Wiretapping

Allen Stanford

Texas Paper On Cornyn and Sessions' Stanford Ties: "What Were They Thinking?"

Zachary Roth | March 4, 2009, 11:05AM

Are lawmakers who took those Antiguan junkets on Allen Stanford's dime paying a political price back home?

It's hard to say. But John Cornyn and Pete Sessions, the Texas GOP senator and congressman respectively, can't be psyched about this Dallas Morning News editorial.

"What were they thinking?" asks the piece in its lead, pointing out that Cornyn and Sessions must have known when they accepted those trips that Stanford would have been looking to curry favor.

The editors conclude, a bit lamely:

Sessions and Cornyn have donated $9,000 of those funds to charity. They would be wise to donate the rest - and to use better judgment next time.

The paper might have added that Sessions would also be wise to ensure that his staff doesn't misinform reporters about the nature of the congressman's relationship with Stanford.

Still, it's a start.

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Topics: Allen Stanford, John Cornyn, Pete Sessions, Stanford Financial Group

Allen Stanford

Through Obscure Non-Profit, Stanford Wooed Lawmakers

Zachary Roth | February 20, 2009, 6:58PM

By now, we've all seen those pictures of Allen Stanford hobnobbing with lawmakers in Antigua. But, with the exception of one trip by Sen. John Cornyn, it wasn't Stanford himself who picked up the tab for these jaunts -- it was an obscure outfit called the Inter-American Economic Council.

And taking a closer look at the IAEC, and its ties to Stanford, sheds some light on how the Texas billionaire gained access to all those members of Congress -- and what he hoped to gain by doing so.

The IAEC's website says that the Washington-based group was founded in 1999 and that it aims to "provide senior Government Officials, leading Business Executives, and Academic Professionals the opportunity to engage in a dialogue about current and future economic strategies in the Hemisphere." And in 2003, the Associated Press reported (via Nexis) that, according to IAEC president Barry Featherman, the organization "relies mostly on contributions from U.S. corporations."

But the group appears to have remarkably close ties to Stanford himself. In this 2006 report, Bloomberg described Stanford as a "principal backer" of the organization. And Stanford Financial told Bloomberg that it had "donated the use of its aircraft" to the IAEC for one 2006 trip to Jamaica that four Democratic lawmakers went on.

That same year, the IAEC gave Stanford its "Excellence in Leadership" award. A press release put out by the group (since removed from its website) declared that Stanford "has strongly supported the work that the IAEC is doing in Latin America and the Caribbean."

Stanford also appears to have taken advantage of IAEC-funded events by showing up personally to schmooze lawmakers. We already posted these shots of current or former lawmakers including Katherine Harris, Pete Sessions, Tom Feeney, James Clyburn, and John Sweeney chilling with Stanford and Caribbean dignitaries in Antigua in 2005.

But there's also another set of interesting shots from the previous year, showing Stanford breaking bread with, and addressing, lawmakers -- including former GOP congressman Bob Ney (since jailed for taking bribes from Jack Abramoff) -- at an IAEC-sponsored event in Washington.

(You can see the slideshow of photographs from that event here.)

What was Stanford talking to lawmakers about? An IAEC press release from (via Nexis) from the event gives a hint. It says that in his speech, Stanford "addressed the need to streamline regulatory regimes that make it difficult for investors to take advantage of all of the opportunities that exist in the region."

And that same year, Newsday reported (via Nexis) on an IAEC-sponsored trip to Jamaica that included Democratic congressman Gregory Meeks. The IAEC, said the paper, hoped to "ease Patriot Act restrictions on offshore banking," and that according to Meeks, "the trip was an effort by the Inter-American Economic Council to explain the hardships the act has imposed on Caribbean banks."

In other words, Stanford and the IAEC used these events to try to convince lawmakers not to crack down on tax loopholes that work to benefit offshore banking -- exactly the loopholes that allowed Stanford to operate his alleged multi-billion-dollar scam, free from regulatory scrutiny, for so long .

In fact, the IAEC even seems to have used its clout to create a new congressional caucus -- the Caribbean Caucus -- made up of may of the lawmakers who went on the IAEC-backed trips.

After one such trip in 2003, attended by then-Rep. Phil Crane (R-IL), among others, Featherman, the IAEC president, revealed that "Congress is expected to form an informal, bipartisan Caribbean caucus to focus on issues of interest to the region," according to the AP (via Nexis).

The Caribbean Caucus would at various times include, among others, Ney, Meeks, Sweeney, Sessions, Feeney, Charlie Rangel, Mel Watt, Donald Payne, Phil English, Steve Chabot, Donna Christensen, Diane Watson, and Al Wynn, all of whom went to events on IAEC's dime.

Indeed, Stanford seems to have had some sway not only over the IAEC, but over the membership of the Caribbean Caucus itself. That Bloomberg story from 2006 reports that it was Stanford himself who asked Sessions to become a member of the caucus. Sessions seems to have agreed.

The IAEC is staying mum about its relationship to Stanford -- it hasn't returned either of TPMmuckraker's calls over the last few days. And the office of Rep. Payne, who was at one time listed as a co-chair, along with Ney, of the Caribbean Caucus, declined to make anyone available to answer TPMmuckraker's questions.

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Topics: Allen Stanford, Bob Ney, Charles Rangel, Jack Abramoff, John Cornyn, John Sweeney, Katherine Harris, Pete Sessions, Stanford Financial Group, Tom Feeney

Allen Stanford

Stanford Pitched Sessions On Protecting Off-Shore Loopholes

Zachary Roth | February 20, 2009, 11:16AM

Earlier this morning, we caught the office of GOP congressman Pete Sessions falsely telling a reporter that Sessions didn't know Allen Stanford personally. (Check out this pic for the evidence he did.)

And here's another interesting example of Sessions and Stanford crossing paths.

A 2004 press release (via Nexis), put out by the Stanford-linked Inter-American Economic Council, touts a meeting the IAEC organized with Caribbean officials and members of Congress, including Sessions.

It declares:

Mr. Allen Stanford spoke about the need for additional assistance to the nations devastated by the hurricanes. He also addressed the need to streamline regulatory regimes that make it difficult for investors to take advantage of all of the opportunities that exist in the region.

In other words, Sessions was at a meeting at at which Stanford pressed lawmakers to leave open the loopholes that benefit off-shore corporations.

A few months later, Sessions and colleagues would fly to Antigua on the IAEC's dime to talk further about the issue.

It's also worth noting that Sessions and Texas GOP senator John Cornyn, unlike a slew of other lawmakers, have declined to return Stanford's money.

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Topics: Allen Stanford, John Cornyn, Pete Sessions, Stanford Financial Group

Allen Stanford

The Daily Stanford

Zachary Roth | February 19, 2009, 11:02AM

The developments in the Allen Stanford case are coming thick and fast. Let's get up to speed:

- ABC News reported that the FBI has been investigating whether Stanford laundered money for a Mexican drug cartel.

- Bloomberg reported that the FBI is separately investigating Stanford's fraud and seems likely to bring criminal charges. (To date, Stanford has not been criminally charged.)

- The New York Times reported that both the SEC and FINRA had investigated Stanford in recent years, and merely issued a few fines, despite the existence of "major red flags" in the words of one expert. (More on that to come.)

- Some members of Congress said they'd return donations from Stanford. But others, like GOPers John Cornyn and Pete Sessions said they'd keep the loot!

- The government of Venezuela took over a local Stanford bank.

- Latin Americans and Caribbeans scrambled to get their money out of Stanford banks.

- Former Swiss President Adolf Ogi said he would resign from the board of Stanford Financial Group.

- And maybe most worryingly, the SEC has admitted it doesn't know where Stanford is.

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Topics: Allen Stanford, FBI, John Cornyn, Pete Sessions, Securities and Exchange Commission

Allen Stanford

Cornyn Took Caribbean Junket On Stanford's Dime

Zachary Roth | February 17, 2009, 2:20PM

So we already knew that Allen Stanford -- the Texas banker charged by the SEC today with running an $8 billion "fraud of shocking magnitude" -- had some pretty impressive political contacts with both parties.

But it looks like his relationship with one of his home-state senators, Republican John Cornyn, may have been especially cozy.

According to Cornyn's Senate disclosure reports -- posted on the site Legistorm.com, which tracks privately financed trips by members of Congress -- the Stanford Financial Group paid for the Texas senator and an unnamed companion to take a November 2004 trip down to Antigua and Barbuda, the tiny Carribean nation where the company has its headquarters.

The three day trip is described by Legistorm as a "financial services industry fact-finding mission hosted by constituent company with substantial operations on site."

The site adds:

Sen. Cornyn discloses expenses for himself and a companion, but does not disclose the identity of the companion.

The total cost of the trip: $7,441.00

It would be hard to blame Cornyn if financial regulation wasn't the only thing on his mind while he was in Antigua. The trip occurred right after the November 2004 election, during which Cornyn was working hard for George W. Bush. And just last Sunday, the New York Times travel section described Antigua as a group of "famously paradisiacal islands that actually lives up to the hype."

The paper continued:

An array of über-luxurious resorts have cashed in on the lush surroundings, and provide their well-heeled guests with so many hedonistic diversions that many never emerge to see what lies beyond the resort gates.

Sounds like just the spot for some fact-finding!

We've told you all about Stanford's generous record of contributions to lawmakers from both sides of the aisle -- and especially to those with authority over the banking sector. The New York Times has gone further, reporting that Stanford's contributions appear to focus "particularly on legislators considering bills that would change offshore banking rules."

Cornyn this year became a member of the Senate Finance committee, though in 2004 he was not a member.

We've put in a call to Cornyn's office to ask what he learned on the "fact-finding mission" Stanford paid for -- and who his mystery companion was -- and will update with anything we learn.

Thanks to reader B.K. for the tip.

Late Update: It looks like Cornyn's spokesman was asked by the Center for Public Integrity back in 2006 about the identity of Cornyn's companion, and responded that it was Cornyn's wife.

Interestingly, CPI said the trip was "to tour the offices of trip sponsor Stanford Financial Group."

Thanks to commenter Snig for pointing that out.