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Today's Must Read

For those hoping investigations by the DOJ's Office of Professional Responsibility might shine some light on the scurrilous activities at the Bush Justice Department, today's Los Angeles Times piece doesn't offer much solace.

The OPR, a watchdog of the Justice Department's lawyers and activities, has ceased to issue regular public reports of its investigations, some of which have resulted in the exoneration of attorneys accused of professional misconduct.

From the U.S. Attorney firing scandal; to selective prosecution of Democratic political figures; to unlawful detainment of terrorist suspects, the OPR is facing increasingly weighty caseloads, and meeting their investigations with decreasing transparency.

As the Times reports, the changes in disclosure have come with a new administration:

After President Bush took office in 2001, the Justice Department reversed a decade-old policy of publicly disclosing detailed summaries of OPR investigations of department lawyers found to have committed professional misconduct. Janet Reno, attorney general since 1993, had believed that publicizing the information would bolster confidence in the department; and during her tenure she had authorized the release of two dozen public summaries of misconduct cases -- including one against then-FBI Director William S. Sessions.

The OPR also has been far behind in producing required annual public reports summarizing its activities. Last month, it released its report covering fiscal year 2005. That means many investigations undertaken during the tenure of former Atty. Gen. Alberto R. Gonzales remain under wraps.

Two weeks ago the OPR issued a report, along with the Office of the Inspector General, that found that the two attorneys in the Justice Department broke federal law when they hired new lawyers for the DOJ's Honors Program based on "political and ideological" factors.

But besides the report with the Inspector General, the OPR has failed to disclose the results of its investigations of misconduct relating to the war on terrorism.

According the documents obtained by the Times, the OPR has exonerated lawyers involved in two high-profile terrorism investigations:

According to a redacted copy of a confidential OPR report obtained by The Times, the office found that department lawyers had not engaged in misconduct in connection with the controversial practice of using special warrants to round up and incarcerate men after Sept. 11 who were considered witnesses to crimes. Human rights groups said the technique was a way to illegally detain, sometimes for months, dozens of Muslims whom the government suspected but could not prove were engaged in criminal activity.

The report, issued more than a year ago, concluded: "Department of Justice attorneys involved did not misuse the material witness statute, and thus did not commit professional misconduct or exercise poor judgment."

There's nothing sinister going on in the lack of reports, insists Associate Deputy Attorney General David Margolis. He says that the decision was merely made to conserve resources and protect the privacy of accused attorneys:

"My goal is to get fair and speedy dispositions of allegations against our attorneys," he said, "and, to the extent possible, let the public know what we did and why we did it without unnecessarily or gratuitously . . . publicly humiliating our line attorneys as individuals."

Today's Must Read

A former senior executive at UBS, who pleaded guilty to conspiring to assist a wealthy client in hiding millions of dollars from taxes, is aiding the Justice Department in their fight to force the Swiss banking giant to give up their ultra-secret client list.

As the Wall Street Journal reports today, the former UBS executive, Bradley Birkenfeld, has shed light on the shady dealings of UBS with its wealthiest clients. Birkenfeld explained how the Zurich-based banking giant coached its executives to conceal assets, from lying on customs forms to smuggling jewels in toothpaste tubes:

Mr. Birkenfeld told U.S. prosecutors that UBS holds an estimated $20 billion in assets for U.S. clients in undeclared accounts. These accounts generated $200 million a year in revenues for the bank, prosecutors said.

. . . UBS trained private bankers in techniques to avoid detection by U.S. law enforcement, including instructing them to indicate on customs forms that they were coming to the U.S. on vacation instead of business, according to court documents.

Prosecutors say Mr. Birkenfeld also explained how bankers advised clients to hide their wealth by purchasing artwork and jewels with funds from Swiss accounts. For one client, Mr. Birkenfeld told prosecutors he smuggled diamonds into the U.S. inside a toothpaste tube.

After weeks of talking with UBS and Swiss banking authorities on divulging the identity of U.S. account holders, the DOJ has finally sought a court order. The so-called "John Doe" summons is usually used by the government to investigate tax fraud "by people whose identities are unknown." It has never been used before against a non-U.S. bank.

Revealing client lists would be a huge blow to UBS and all Swiss banks, who pride themselves on the secrecy and privacy for its clients. The DOJ's filing is likely to spark a long and tedious legal battle-- something not unfamiliar to UBS:

In a 2002 memorandum to clients following UBS's acquisition of PaineWebber, UBS bankers tried to assuage clients' worries that their secrets might be breached as a result of the bank's new connection to a U.S. firm. The memo, filed in court by prosecutors, reads in part: "information relative to your Swiss banking relationship is as safe as ever..."

The memo went on to point out that UBS has been doing business in the U.S. since 1939, without having U.S. authorities gaining "jurisdiction over assets booked abroad....Please note that our bank has a successful track record of challenging such attempts."

And perhaps being caught in the DOJ bear trap has convinced UBS to gnaw off its U.S. brokerage arm, leave the U.S. and head for the safety of the Alps. As the International Herald Tribune reported, UBS is currently in talks to sell off its U.S. wealth management base, PaineWebber.


Today's Must Read

Yes, the caption at left is correct. That's Governor Jim Gibbons (R-NV), in a warm embrace with a former Playboy model who is most definitely not his wife.

Last we heard in the Gibbons v. Gibbons fiasco, the governor and the First Lady had called a truce in their acrimonious divorce proceedings.

But since that joint statement, Gibbons has been implicated in other acts of philandering: hundreds of text messages to a female "friend" and affectionate outings with younger women-- the most recent of which was caught on film.

The Nevada Appeal this morning, published a series of pictures of Gibbons and a female companion at a rodeo in Reno.

Gibbons responded in a brief statement to the Appeal:

What it shows, according to the governor, is him comforting a stressed out friend. "She was upset, crying," he said during a quick hallway interview with our reporter, who'd been trying to get a comment from the governor or his staff for two days. "She couldn't get her breath. I put my arms around her."

So who is the mystery parking lot woman seeking solace on Gibbons' shoulder?

According to the Appeal:

[W]e did a little checking on our own and now know his companion to be the ex-Playboy-model, ex-wife of an ex-Reno mayor. She is not the woman with whom he has widely been accused of having an affair of late and with whom he exchanged hundreds of text messages at all hours. But he has been seen around Reno with this woman, too. In fact, there are cell phone pictures of the two together at a Reno restaurant posted on area blogs.

Just for some context, the Appeal's photo spread comes in the midst of a huge budget crisis in Nevada.

Today's Must Read

The first in a series of inspector general reports investigating the politicization of the Justice Department is expected today, and the Washington Post has a sneak peek.

The report to be released today by DOJ Inspector General Glenn Fine will, according to the Post, chronicle how young conservative law students were favored hires in stocking the DOJ's prestigious -- and heretofore non-partisan -- Honors Program.

Under former Attorney General John Ashcroft, oversight for the Honors Program, which had traditionally been the responsibility of senior career officials, fell under the purview of Ashcroft's key political advisers.

The honors program, which each year places about 150 law school graduates with top credentials in a rotation of Justice jobs, historically had operated under the control of senior career officials. Shifting control of the program to Ashcroft's advisers prompted charges of partisanship from law professors and former government lawyers who had worked under Democratic administrations.

Critics complained that the honors program favored conservative applicants, and turned down highly qualified prospects because of left-leaning affiliations:

One Harvard Law School graduate said that when he applied for the honors program a few years ago he was warned by professors and fellow students to remove any liberal affiliations from his résumé.

Concerned Justice employees also raised alarms last year by sending a letter to lawmakers who had been examining whether political considerations led to the dismissal of nine U.S. attorneys.

Keep an eye out for Michael Elston in the report today. The former chief of staff to the deputy attorney generalwas named as a central figure in the politicization of the honors program over a year ago:

Allegations concerning political hiring for the Honors Program -- the Department's historically rigorous program for hiring entry-level lawyers -- have centered on Michael Elston, the chief of staff to the deputy attorney general. A group of anonymous Justice Department employees raised alarms with Congress last month, complaining that Elston rejected hundreds of potential applicants to the program last year seemingly based on their political backgrounds.

Today's Must Read

Yesterday we learned about the CIA's larger involvement in developing torture techniques at Guantanamo Bay -- techniques previously thought to have been developed primarily by the military.

In an epic eight-hour, three-panel hearing, the Senate Armed Services Committee examined dozens of documents and grilled former Pentagon officials involved in developing the interrogation methods introduced in 2002.

(Among several good articles on the hearings, a good place to start isSpencer Ackerman's article at the Washington Independent.)

Key to the hearings were the minutes of a meeting between CIA counter-terrorism lawyer Jonathan Fredman and a group of military and intelligence officials who convened at the base in Cuba to discuss the use of harsher interrogation techniques on detainees at Guantanamo Bay. The techniques derived from a training regimen U.S. Special Forces troops used prepare troops to withstand torture --Survival Evasion Resistance Escape, or SERE.

The SERE program -- first introduced to many by a 2005 article by the New Yorker's Jane Mayer -- is not an interrogation program. Nor is it an intelligence-collection program. Instead, it's an obscure program across the different military services' special-forces wings that teaches troops how to withstand torture if captured. Instructors subject students -- under the rigorous watch of psychologists and physicians -- to various torture techniques, including waterboarding, prolonged stress positions, sleep deprivation and sensory manipulation. Waterboarding "is an overwhelming experience that induces horror, triggers a frantic survival instinct," Malcolm Nance, a former Navy SERE instructor who was himself waterboarded, testified to Congress in November. "As the event unfolded, I was fully conscious of what was happening: I was being tortured."

On July 25, 2002, the Defense agency that oversees the SERE program, known as the Joint Personnel Recovery Agency, or JPRA, was contacted by a representative of Pentagon General Counsel William Haynes for information about SERE practices for the "exploitation process" -- that is, getting detainees to cooperate with their interrogators. The next day, JPRA's chief of staff, Air Force Lt. Col. Daniel Baumgartner, sent Haynes a lengthy memorandum explaining how the program worked.

. . . Baumgartner's memorandum was not the last time SERE techniques were introduced into the interrogation bloodstream. On the week of Sept. 16, 2002, JPRA officials invited a contingent of senior Guantanamo-based officers to a briefing session at Ft. Bragg, N.C. Haynes and his legal counterparts at the Central Intelligence Agency, Justice Dept. and the vice president's office visited Guantanamo the following week for an update on interrogations. The minutes of that meeting record that the commander of the detention facility "did take Mr. Haynes and a few others aside for private conversations."

Just the week after that, a senior CIA lawyer, Jonathan Fredman, instructed Guantanamo officers on various SERE-pedigreed torture methods, including waterboarding. "If the detainee dies," Fredman said, "you're doing it wrong." In response, the chief Guantanamo Bay attorney, Lt. Col. Diane Beaver, said, "We will need documentation to protect us."

The Washington Post today emphasized that the meeting records, specifically Feldman's statements, revealed the CIA's larger involvement in advising on the torture techniques, the creation of which was previously thought to fall mainly under the purview of the Defense Department.

Baumgarten and Beaver testified about their involvement:

Before the Senate panel, Baumgartner said he did not realize that Haynes wanted to use SERE techniques on enemy combatants. "I had no idea how it would be used," he testified. "When tasked by my higher headquarters... I can't really turn around and tell the flag officers and the senior executive service people no."
Beaver testified today for the first time since Haynes declassified her guidance in mid-2004. She said she intended for the techniques to be used under supervised and restricted circumstances. It turned out that not a single other military lawyer submitted written guidance in support of the SERE-derived techniques. "In hindsight," Beaver told the Senate panel, "I can only conclude that others chose not to write on this issue in order not to be linked to it. For me, that was not an option."

Meanwhile, Haynes attempted to distance himself from the policy.

Haynes, who retired from the Pentagon in April, after his nomination to the federal judiciary foundered, pled ignorance. "No, sir, I don't remember it at the time," Haynes said when asked if he had received Baumgartner's memorandum. "But I saw it a long time ago... it's possible I saw it at the time."

Pressed by Levin on how he could not have seen a memorandum concerning terrorism detentions and interrogations, Hayes replied, "the recipient is the Office of the Secretary of Defense General Counsel, which [was] not my precise title."

For more coverage, also see Ackerman's live blog of the hearing as it took place.

Today's Must Read

Brad Schlozman, the former Justice Department official who left the Department in August 2007 after he openly admitted to "boasting" about his hiring of conservative Republicans, is the focus of a new turn in the DOJ's investigation into the 2006 U.S. attorneys firing scandal.

You might remember Schlozman as the head of the DOJ's Civil Rights Division-cum-U.S. attorney in Kansas City, and most recently, his work at Main Justice. Schlozman famously talked of replacing Clinton appointees with "good Americans" and keeping tabs on a lawyer who he had heard, "didn't even vote for Bush."

The Wall Street Journal reports today that lawyers have filed for a grand jury referral, which could lead to criminal charges, in order to investigate Schlozman's involvement in improper prosecutions during his time running the DOJ's civil-rights division in general. The referral appears specifically tied to possible perjury in his 2007 congressional testimony.

The Journal, summarizes Schlozman's past role in the investigation:

In testimony before the Senate Judiciary Committee, Mr. Schlozman conceded boasting to associates about the number of Republicans he managed to hire at the department. The allegations against him helped feed months of scandal that eventually forced the resignation of Attorney General Alberto Gonzales in August.

. . . At a Senate hearing last June, Democrats zeroed in on allegations that Mr. Schlozman was part of an effort by Republican political officials to pursue vote-fraud investigations in important swing states as a way to gain electoral advantage.

Mr. Schlozman's promotion to the U.S. attorney's office in Kansas City came after the department asked his predecessor, Todd P. Graves, to resign. Mr. Graves was among several U.S. attorneys who had shown reluctance to bring vote-fraud-related cases, according to testimony and documents gathered by Senate investigators last year.

After Mr. Schlozman's arrival in Kansas City, prosecutors filed charges against workers from a left-leaning activist group, Acorn. The workers eventually pleaded guilty to violations related to voter registration. The timing of the indictment, five days before a close Senate election, drew criticism from Democrats.

Schlozman filed a clarification of his Congresional testimony, in which he had first stated that he was "directed" to pursue the timely prosecution of the voting group by superiors. In his later revision he took "full responsibility" for prosecutorial discretion:

"I want to be clear that, while I relied on the consultation with, and suggestions of, the Election Crimes Branch in bringing the indictments when I did, I take full responsibility for the decision to move forward with the prosecutions related to Acorn while I was the interim U.S. Attorney," he said in the clarification.

DOJ inspectors are hoping to complete the investigation in the coming weeks:

Separate investigations into the department's handling of the prosecutor firings and related issues, which are being conducted by the Justice Department's Office of Professional Responsibility and the Inspector General, are expected to be completed within the next few weeks, lawyers familiar with the probe said. Both want to abide by department guidelines aimed at clearing up politically sensitive investigations well before the elections, to avoid accusations they could influence the outcome.

Today's Must Read

A convicted hedge fund manager, set to start his 20-year prison term next week, disappeared into the night, in what investigators suspect is a faked suicide.

The Wall Street Journal reports this morning that Samuel Israel III, the former chief of Bayou Management LLC, disappeared on Tuesday. His car was found near Bear Mountain Bridge over Hudson River, with an enigmatic message written in dust on his car: "suicide is painless."

Despite the ominous note, no body has been recovered and no witnesses saw anyone jump from the bridge:

[Bruce] Cuccia, [a New York state police investigator] said that, since 1980, more than 40 people have jumped to their deaths from the bridge, which marks one of the deepest points of the Hudson River. He said it would be impossible to survive the 150-foot fall.

The bodies of almost all jumpers are found quickly, Mr. Cuccia said. "I will be satisfied in a few days that if the body doesn't come up, he didn't jump," he said.

U.S. Marshalls have taken over the case and launched an international manhunt, a sign that Israel is indeed the latest white-collar criminal to go on the run:

Police in 2006 found one fugitive money manager, Kirk Wright, 37, living in Miami Beach. He had disappeared after his hedge fund collapsed, costing investors $150 million. A federal jury recently found him guilty of defrauding thousands of investors in International Management Associates, including many professional football players.

Mr. Wright had claimed the fund was performing well, when it was actually losing money, and he was spending client's money on jewelry, real estate, cars and a wedding. Over Memorial Day weekend, shortly after being brought to an Atlanta jail, he hanged himself.

In another instance, in January 2006, shortly before being sentenced for stealing at least $27 million from investors, hedge-fund manager Angelo Haligiannis had double-parked his Jeep Cherokee in Manhattan, cut off his ankle monitor and fled. Last fall the 35-year-old was arrested in a luxurious resort on the Greek island of Crete, vacationing with his wife and daughter.

Also last year, Michael Berger, who defrauded clients of his Manhattan Investment Fund, was arrested by Austrian police, driving toward Salzburg five years after he had originally disappeared. Betting that technology and Internet stocks would fall in the late 1990s, Mr. Berger lost roughly $400 million when his hedge fund collapsed in 2000.

If Israel did not in fact jump from the bridge, this will be the second faked suicide attempt for Bayou. Early in the federal investigation, a note was found in the empty offices of the company by a beleaguered investor. The note, penned by Daniel Marino the firm's chief financial officer, began: "This is my suicide note and confession." Marino never attempted suicide.

Police have recently recovered $100 million of the $400 million lost by investors through Bayou. Both Israel and Marino were convicted on fraud charges in 2005 and sentenced to 20 years in prison.

Today's Must Read

Jeremy Scahill, author of Blackwater: The Rise of the World's Most Powerful Mercenary Army reports for The Nation on the shadowy Blackwater's growing foray into the world of private espionage.

The privatization of intelligence has grown dramatically under President Bush, with Washington paying $42 billion annually in private intelligence contracts, compared to just $17.5 billion in 2000. As Scahill points out, it means that 70% of the U.S. intelligence budget is going to private companies, which creates an interesting market for government operatives.

Erik Prince, founder of Blackwater, started Total Intelligence Solutions in April 2006 in order to capitalize on this growing demand for privatized intelligence services:

"Total Intel brings the...skills traditionally honed by CIA operatives directly to the board room," [Blackwater's vice chair Cofer] Black said when the company launched. "With a service like this, CEOs and their security personnel will be able to respond to threats quickly and confidently -- whether it's determining which city is safest to open a new plant in or working to keep employees out of harm's way after a terrorist attack."

As Scahill writes, Total Intel's leadership "reads like a Who's Who of the CIA 'war on terror'":

In addition to the twenty-eight-year CIA veteran Black, who is chair of Total Intelligence, the company's executives include CEO Robert Richer, the former associate deputy director of the agency's Directorate of Operations and the second-ranking official in charge of clandestine operations.

From 1999 to 2004, Richer was head of the CIA's Near East and South Asia Division, where he ran clandestine operations throughout the Middle East and South Asia. As part of his duties, he was the CIA liaison with Jordan's King Abdullah, a key US ally and Blackwater client, and briefed George W. Bush on the burgeoning Iraqi resistance in its early stages.

Scahill points out there are drawbacks to this kind of free-market approach to national security and intelligence:

In Iraq, Blackwater has banked on the idea that it is a sort of American Express card for the occupation. But for the future, Prince has a different corporate model, as he indicated in his speech. "When you send something overseas, do you use FedEx or the postal service?" he asked.

There are serious problems with this analogy. When you send something by FedEx, you can track your package and account for its whereabouts at all times. You can have your package insured against loss or damage. That has not been the case with Blackwater. The people who foot the sizable bill for its "services" almost never know, until it is too late, what Blackwater is doing, and there are apparently no consequences for Blackwater when things go lethally wrong. "We are essentially a robust temp agency," Prince told his fans in Michigan. He's right about that one. A temp agency serving the most radical privatization agenda in history.

Today's Must Read

Phase II, the 200+ page Senate intelligence committee's report on pre-war intelligence in Iraq, has revealed the disconnect between what was espoused by Bush Administration officials in the days building up to the war in Iraq, and what was actually known. Besides the simple absence of intelligence, it has also been revealed that the Administration advanced arguments in contradiction of what the intelligence actually showed, in making its case for war.

We've covered Rumsfeld's false testimony to the House Armed Services Committee, and the general outcry from both sides of the aisle over the report.

Today, the LA Times has a good summary of excerpts from the report, which highlight the chasm between what was said by the President and Vice President, and what was actually known:

Statements in dozens of prewar speeches and interviews created the impression that Baghdad and Al Qaeda had forged a partnership. But the report concludes that such assertions "were not substantiated by the intelligence" being shown to senior officials at the time.

Claims that Sept. 11 hijacker Mohamed Atta had met with an Iraqi agent in Prague, for example, were dubious from the beginning and subsequently discounted. The idea that Iraqi President Saddam Hussein had provided chemical and biological weapons training to Al Qaeda hinged on intelligence from a source who soon was discredited.

Bush officials strayed even further from the evidence in suggesting that Hussein was prepared to provide weapons of mass destruction to Al Qaeda terrorist groups -- a linchpin in the case for war.

In October 2002, for example, Bush warned in a key speech in Cincinnati that "secretly, and without fingerprints, [Hussein] could provide one of his hidden weapons to terrorists, or help them develop their own." The threat was repeated frequently in the run-up to war but was "contradicted by available intelligence information," the committee says.

On post-war prospects, the report contrasts the rosy scenarios conjured by Cheney and others with more sober intelligence warnings that were being presented to senior officials.

Cheney's prediction that U.S. forces would "be greeted as liberators" was at odds with reports from the CIA and the Defense Intelligence Agency, which warned nearly a year earlier that invading U.S. forces would face serious resistance from "the Baathists, the jihadists and Arab nationalists who oppose any U.S. occupation of Iraq."

Other findings show that it seems Pentagon officials were duped by known Iranian counterintelligence. From McClatchy:

A small group of Pentagon officials collected dubious intelligence on Iraq and Iran from Iranian exiles whom Defense Department counterintelligence investigators said might have "been used as agents of a foreign intelligence service ... to reach into and influence the highest levels of the U.S. government," the Senate Intelligence Committee reported Thursday.

The revelation raises questions about whether Iran may have tried to use a small cabal of officials in the Pentagon and in Vice President Dick Cheney's office to feed bogus intelligence on Iraq and Iran to senior policymakers in the Bush administration who were eager to oust the Iraqi dictator and who remain determined to combat what President Bush this week called an "existential" threat from Iran.

A 2003 report by the Pentagon's Counterintelligence Field Activity, the Senate committee said, concluded that Michael Ledeen, the American civilian who brokered the contacts through Manucher Ghorbanifar, an Iranian exile whom the CIA in 1984 labeled a "fabricator," and other Iranians "was likely unwitting of any counterintelligence issues related to his relationship with Mr. Ghorbanifar." [Emphasis ours.]

Today's Must Read

As the Bush years wind to a close, and administration officials slink back to jobs in the private sector, the road ahead of Daniel Gonzalez, the chief of staff for Kevin J. Martin, chairman of the Federal Communications Commission, seems bleak.

From the New York Times:

Hoping to pursue a career in an entirely different field from telecommunications, Mr. Gonzalez invested in a small energy company three years ago and then joined the company's board in 2006. The company, law enforcement officials say, turns out to have been a fraudulent venture that took more than $54 million from investors.

In what looks to be a Ponzi scheme, Gonzalez personally guaranteed bank loans to the company of over $10 million, even though his personal worth was only in the hundreds of thousands, the banks allege. Gonzales disputes that allegation.

The energy company, MCube Petroleum, was founded by Robert Miracle, who appears to have a more checkered past than he presented to investors. Gonzalez's involvement with the company, began when he was introduced to Miracle by a childhood friend.

Mr. Miracle, who was born in 1960, represented himself as a seasoned businessman. In a company overview, he said he had more than 20 years of experience at Toyota and NASA and served as an adviser to Frank G. Wells, the former president of Disney.

But an affidavit by a criminal investigator for the Internal Revenue Service said that Mr. Miracle had never worked for Mr. Wells, and that in 1994, Mr. Miracle had been convicted of felony theft in Oregon for stealing textbooks from a community college. The affidavit said that, rather than working at Disney, Mr. Miracle might have been involved in reselling textbooks from universities.

Through his lawyer, Miracle denies any wrongdoing:


Mr. Miracle's lawyer, Greg Hollon, denied that his client had committed fraud. "We are confident that when the whole story is heard, and all of the facts of this matter properly understood, he will be vindicated," Mr. Hollon said. He added he could not discuss the details of the case because of the pending criminal investigation.


While it seems possible that Gonzalez was the victim of a con by Miracle, the question of why he would ever personally guarantee $10 million in company loans remains unknown.

Friends and colleagues are puzzled about why he took such a large risk. Asked why his client would guarantee a promissory note of $10 million when his net worth was so much smaller, Mr. Willey said, "I cannot give an answer."

Today's Must Read

Nevada Gov. Jim Gibbons' still has two years left in office.

But Gibbons' divorce is getting nastier by the day, and many GOP operatives are getting more concerned about saving their party than his marriage.

The Las Vegas Sun reports on the latest in the court battle:

Wednesday's filing by Dawn Gibbons' attorney Cal Dunlap, a former district attorney who is said to love a public fight, is ostensibly an argument to open the now-sealed divorce filing. In fact, however, it's clearly part of an aggressive media strategy to paint the governor as a cold, philandering liar.

"Despite his disingenuous, shallow, and transparent protestations that his relationship with another man's wife is a mere friendship, his infatuation and involvement with the other woman is the real, concealed and undisclosed reason for his voluntary departure from the marriage," the court filing states.

Gibbons has been refusing to comment about the divorce proceedings. A judge has sealed the case, but Dawn Gibbon's attorney released her filings because of the "importance of the First Amendment and the public's right to have open access to the courts and court proceedings."

The court documents did not identify the woman Gibbons is accused of having an affair with. But local reporters in Nevada did. The Las Vegas Review Journal reports:

The woman is Kathy Karrasch, said several sources who requested anonymity, the wife of Reno podiatrist C. Craig Karrasch.

Recent phone records obtained by the Review-Journal show a single call placed from the governor's cell phone to Kathy Karrasch's cell phone on Jan. 10.

A family member who answered the cell phone Wednesday said Kathy Karrasch and her husband have separated for reasons unrelated to the governor.

The Reno Gazette-Journal offers more details about the relationship.

Karrasch lives a few blocks away from the Gibbonses' Reno home. ... Jim Gibbons was seen having dinner with Karrasch and three other people May 10 at the Atlantis Sky Terrace Oyster and Sushi Bar. He also attended the Galena High School play on May 1 to see Karrasch's daughter perform.

Although he attended the play alone, he spent the second half standing with Karrasch in the back of the room while she filmed her daughter, according to video footage provided to the Reno Gazette-Journal.

Gibbons' spokesman Ben Kieckhefer said the governor attended the play at the invitation of an unnamed neighbor.

In previous interviews, Gibbons has maintained he and Karrasch are "friends."

We've been reporting Gibbons' run of embarrassing political moves in recent months. The investigation of his ties to a defense contractor still lingers. But the locals in Nevada say the final straw was when Gibbons tried to get his wife evicted from the governors' mansion.

The Sun reports:

Republicans say serious discussions are taking place around the state among political and business leaders about how to extricate the party from the increasingly messy divorce proceeding between Dawn and Jim Gibbons. They say Jim Gibbons has handled the matter poorly by attempting to evict the first lady from the mansion and not settling the matter quickly and quietly.

And the implications could reach far beyond Nevada, one Republican tells the New York Times

"This absolutely could depress Republicans who are already depressed," said Chuck Muth, a Republican political consultant and blogger. "This could hurt McCain's ability to hold on to Nevada. It could also affect the chances of (Rep.) Jon Porter (R-Nev.) to get re-elected."

[Late Update: The previous version of this post referring to Gibbons as a practicing Mormon has been corrected. Gibbons was raised in the Church of Jesus Christ of Latter-day Saints, but has described himself as a non-observant Mormon.]

Today's Must Read

John McCain's go-to economics adviser isn't holding up very well under close scrutiny.

Phil Gramm, the former Texas senator and economist, is taking a lot of heat after reports that up until April 18 he was a registered lobbyist for UBS, the Swiss bank that is the world's largest manager of private wealth.

A former economics professor at Texas A&M, Gramm has long advocated for tax cuts, supply-side economics and less government regulation. But as David Corn over at Mother Jones reports in "Foreclosure Phil?" Gramm also played an integral role in the financial scandal commonly known as the "subprime meltdown."

Read more »

Today's Must Read

Criticisms leveled in former White House spokesman Scott McClellan's new memoir are sure to get a lot of attention over the next few days.

What separates McClellan's account from other tell-all books from former Bush Administration officials is the personal tone. McClellan followed Bush from Texas and left the White House on good terms. But he's obviously not pleased with some decisions that were made -- and the way he was treated at times.

To some degree, McClellan's book tells us a lot of things we already know.

From today's Washington Post:

Bush is depicted as an out-of-touch leader, operating in a political bubble, who has stubbornly refused to admit mistakes.

But he also takes a swipe at the Bush public persona that exudes confidence.

"A more self-confident executive would be willing to acknowledge failure, to trust people's ability to forgive those who seek redemption for mistakes and show a readiness to change," he writes.

Among the most interesting stories McClellan recounts is his role in the CIA leak investigation that led to Scotter Libby's conviction for obstruction of justice last year. Here is where McClellan seems to get personal.

"I could feel something fall out of me into the abyss as each reporter took a turn whacking me," he writes of the withering criticism he received as the story played out. "It was my reputation crumbling away, bit by bit."

Intriguingly, he recounts his suspicions about a previously undisclosed West Wing meeting between Rove and Libby:

"There is only one moment during the leak episode that I am reluctant to discuss," he writes. "It was in 2005, during a time when attention was focusing on Rove and Libby, and it sticks vividly in my mind. ... Following [a meeting in Chief of Staff Andy Card's office], ... Scooter Libby was walking to the entryway as he prepared to depart when Karl turned to get his attention. 'You have time to visit?' Karl asked. 'Yeah,' replied Libby.

"I have no idea what they discussed, but it seemed suspicious for these two, whom I had never noticed spending any one-on-one time together, to go behind closed doors and visit privately. ... At least one of them, Rove, it was publicly known at the time, had at best misled me by not sharing relevant information, and credible rumors were spreading that the other, Libby, had done at least as much. ...

"The confidential meeting also occurred at a moment when I was being battered by the press for publicly vouching for the two by claiming they were not involved in leaking Plame's identity, when recently revealed information was now indicating otherwise. ... I don't know what they discussed, but what would any knowledgeable person reasonably and logically conclude was the topic? Like the whole truth of people's involvement, we will likely never know with any degree of confidence."

McClellan writes in a way suggesting he really didn't see this at the time. Really?

Today's Must Read

Looks like the 'crackdown' against illegal immigrants crossing over the Mexican border has been a boon for corrupt border guards.

Federal officials say their decision to dissolve the Internal Affairs unit at Customs and Border Protection unit a few years ago was a bad idea (go figure), and now the Department of Homeland Security is reconstituting it. Reborn with a whopping five investigators last year, the unit is projected to grow to 200 by the end of this year.

The New York Times reports this morning that a growing number of border patrol guards are under investigation for taking bribes from smugglers and letting vehicles packed with drugs and people pass into the U.S. unchecked.

There's a lot of money out there for border agents on the take:

In another recent case, Margarita Crispin, a customs inspector in El Paso, Tex., began helping smugglers just a few months after she was hired in 2003, according to prosecutors. She helped the smugglers for four years before she was arrested and sentenced to 20 years in prison and ordered to forfeit up to $5 million.

The number of border patrol agents has almost doubled since 2001, swelling the force to nearly 20,000. But the smugglers are savvy.

The smugglers use any ruse available to lure border workers but seem to favor deploying attractive women as bait. They flirt and charm and beg the officers, often middle-aged men, to "just this once" let an unauthorized relative through. And then another and another.

In recent years, Texas has seen the most corruption investigations, with California a close second.

One law enforcement expert describes "policing the border as 'potentially one of the most corruptible tasks in law enforcement' because of the solitary nature of much of the work and the desperation of people seeking to cross."

Today's Must Read

Maybe we'll eventually get to the bottom of just what the Pentagon was up to when it cultivated the TV networks' supposedly independent military analysts as part of a massive PR push to support Bush Administration policy in Iraq. Well, it's pretty obvious what it was up to. But maybe we can better learn the full scope of the domestic PR effort undertaken.

The New York Times' April expose on the massaging of public opinion through "message force multipliers" (a term only the Pentagon could come up with) has now prompted at least two investigations. The program was suspended following the initial NYT report.

The Department of Defense inspector general announced last Friday that it was undertaking a investigation of the program, and the Congress' own General Accountability Office has "already begun looking into the program and would give a legal opinion on whether it violated longstanding prohibitions against spending government money to spread propaganda to audiences in the United States."

The investigations come after the House last Thursday passed an amendment to this year's military authorization bill mandating investigations by the DOD IG and the GAO. Democrats argued that the program amounted to illegal domestic propaganda. Rep. Rosa DeLauro (D-CT) called the program part of "a military-industrial-media complex" (with apologies to Eisenhower).

Meanwhile, the TV networks have remained largely silent, as their credibility and transparency have been tarnished by the revelations about the program. As Media Matters has documented, the military analysts named in the Times piece appeared or were quoted more than 4,500 times on broadcast networks, cable news channels, and NPR. One minute they were giving ostensibly objective analysis, the next they were fawning over Rummy in private as "the leader."

Today's Must Read

It all depends on what your definition of "exclusive" is.

At the heart of the debate over warrantless wiretapping is whether FISA, by its own terms, is the exclusive means for the government to undertake electronic surveillance in counterespionage and counterterrorism cases.

The plain language of the FISA statute seems clear, stating that FISA is the "exclusive means by which electronic surveillance . . . and the interception of domestic wire, oral and electronic communications may be conducted."

But nothing is ever that simple with the Bush Administration.

This week Sens. Sheldon Whitehouse (D-RI) and Dianne Feinstein (D-CA) released a declassified sentence from one of John Yoo's notorious memos, written while he was serving in the Justice Department's Office of Legal Counsel. In it, Yoo managed to rationalize away the exclusivity provision of FISA in order to justify a warrantless wiretapping program outside of the FISA framework, without judicial oversight or regular reports to Congress:

"Unless Congress made a clear statement in the Foreign Intelligence Surveillance Act that it sought to restrict presidential authority to conduct warrantless searches in the national security area -- which it has not -- then the statute must be construed to avoid [such] a reading."

Poof! Just like that, exclusivity disappeared and the Bush Administration was free to pursue warrantless wiretaping with the official blessing of the OLC. (Former OLC attorney Jack Goldsmith has described his office's memos as "advance pardons").

The Bush Administration says it no longer relies on the Yoo memo as the legal underpinning for warrantless wiretapping, pointing instead to perhaps an even weaker rationale, the post-9/11 AUMF:

The Justice Department told the senators it no longer relies on Yoo's FISA memo. "The 2001 statement addressing FISA does not reflect the current analysis of the department," wrote Brian A. Benczkowski, principal deputy assistant attorney general in the Office of Legislative Affairs.

He "respectfully" requested that if the senators "wish to make use of the 2001 statement in public debate," they refer to the administration's current position, which pins the authority to choose non-FISA procedures on a law that Congress actually passed, not merely its failure to rule out alternatives.

When Congress approved the Authorization for Use of Military Force of Sept. 18, 2001, it "confirmed and supplemented the President's Article II authority to conduct warrantless surveillance to prevent catastrophic attacks on the United States," Benczkowski said.

Exclusivity remains a key sticking point in passage of a new FISA law. Democrats are demanding language that erases whatever doubt there might be (although in fact there is none). The White House is balking.

Today's Must Read

The focus of the news coverage of the report released yesterday by Justice Department Inspector General Glenn Fine has been on what involvement the FBI had, if any, in the "enhanced interrogations" undertaken by the Bush Administration -- and to a lesser extent how the FBI's concerns were ignored at the highest levels of government.

Here's the Wall Street Journal's lede:

A Justice Department inquiry lauded Federal Bureau of Investigation agents for refraining from harsh interrogations of terror suspects but found fault with how senior officials handled agents' concerns about alleged abuses.

But as you dig down into the 370-page report (.pdf), it's most revealing for what it shows the U.S. government was actually doing to detainees. Because of the limited jurisdiction of the DOJ inspector general, the report was focused on the FBI. But in establishing the environment in which the FBI was operating, the report paints a picture of ghastly treatment of detainees by the United States on a consistent long-term basis.

In the course of his investigation, the IG interviewed 450 FBI agents who were detailed to Gitmo at one time or another. Nearly half reported witnessing or hearing about "rough or aggressive treatment of detainees, primarily by military investigators."

The report contains a chart of the conduct FBI agents reported at Gitmo and the manner in which the agents learned of the conduct. You can click on the image for a larger view:

Read more »

Today's Must Read

EPA Administrator Stephen Johnson, perhaps the Administration's most accomplished stonewaller, goes before the House government oversight committee today to testify -- again -- about his refusal to grant a waiver for California to regulate vehicle greenhouse gas emissions despite unanimous staff support for such a waiver.

So far, Johnson has been a most reluctant witness, going so far as to schedule overseas trips to avoid attending congressional hearings. But Rep. Henry Waxman's committee staff has continued digging, reviewing thousands of documents and interviewing witnesses outside the public eye. Yesterday, in advance of Johnson's appearance, Waxman released a 20-page memo and supporting documents on what his committee has found so far.

The headliner of the memo is that a top EPA official conceded in sworn testimony that he believed that Johnson changed his mind about supporting the waiver after he talked to the White House:

In one deposition, EPA Associate Deputy Administrator Jason Burnett told congressional investigators that Johnson in August and September was "very interested in a full grant of the waiver," then said he thought a partial grant of the waiver "was the best course of action."

California has the right to enact tougher air pollution laws under the Clean Air Act but must secure a waiver from the EPA.

Johnson denied California's request in December. When asked whether the administrator communicated with the White House in between his preference to do a partial grant and the ultimate decision, Burnett said, "I believe the answer is yes."

With a flourish, the EPA dismissed the news that Johnson has initially supported the waiver. "I equate this to deciding whether to wear a red tie or a blue tie in the morning," an EPA spokesperson told Reuters. "It doesn't make much difference until I put the tie on. To go through and suggest that maybe (Johnson) had a different opinion during the process -- none of that matters."

As the Post's Juliet Eilperin notes, the details of the White House involvement remain murky:

It remains unclear how exactly senior Bush officials intervened in the decision. Burnett said he was instructed not to answer questions about the White House's involvement, and the White House maintains that Johnson was not influenced by his talks with White House officials.

"As Administrator Johnson said in his statement, he made an independent decision and his decision was based on the facts and the law," said Kristen Hellmer, spokeswoman for the White House Council on Environmental Quality.

Given Johnson's previous refusals to divulge what he and the White House discussed, don't expect Waxman to make much progress with Johnson in today's hearing. The real fireworks may be between committee Democrats and Republicans. Ranking Member Tom Davis (R-VA) called yesterday's majority memo "a knee-jerk conclusion of nefarious intent by the White House derived from a manifestly incomplete investigation."

Today's Must Read

Here's a new one to add to the federal government's blizzard of acronyms: CUI.

It stands for "Controlled Unclassified Information" and it's the latest designation the Bush Administration has chosen for a sprawling class of materials and documents that falls short of meeting the standards to be stamped as classified, but which for one reason or another is considered sensitive.

The new CUI designation was announced two Fridays ago, while the President was in Texas for Jenna's wedding, in a memorandum from the White House. Be advised: the memo doesn't make for light reading. [Late Update: It was first reported by Kos contributing editor Michael Clark.]

As Walter Pincus reports in the Washington Post, CUI replaces SBU: Sensitive But Unclassified. The SBU framework was a mess:

"Among the 20 departments and agencies . . . surveyed, there are at least 107 unique markings and more than 131 different labeling or handling processes and procedures for SBU information," Ted McNamara of the office of the director of national intelligence told the House Homeland Security Committee in April 2007.

The Archives was asked to create a single set of policies and procedures on the way materials should be marked, stored safely and disseminated. There are to be three categories of dissemination -- standard, specified and enhanced specified. The latter two require measures to reduce possible disclosure.

If the ostensible reason for the new designation is intended to regularize and standardize the system for handling that vast trove of unclassified data, there are nonetheless other reasons why the most secretive administration in history might be interested in this sweeping new designation.

For one, it may help shield information otherwise subject to FOIA from disclosure, at least indirectly. It will be a factor in determining disclosure:

The Archives will establish "enforcement mechanisms and penalties for improper handling of CUI." The "controlled" classification "may inform," but will not determine, whether information can be made public in response to a Freedom of Information Act request.

Secondly, as Steven Aftergood, a senior research analyst at the Federation of American Scientists, notes:

[Th]e definition of what information may qualify as CUI, which includes anything that "under law or policy" requires protection from unauthorized disclosure, is vague and expansive.

The saving grace may be that many of the hard decisions about how CUI will work have not been made, and likely won't be made until after President Bush leaves office. So federal officials may dodge one of the memo's more comical requirements: "oral communications should be prefaced with a statement describing the controls when necessary to ensure that recipients are aware of the information's status."

It's a requirement that leads the Post's Pincus to imagine the absurd scenario where one government official talking to another about terrorists will have to preface the conversation with: "What I am about to tell you is controlled unclassified information enhanced with specified dissemination."

Today's Must Read

For those who've been watching the Environmental Protection Agency under the Bush administration, you're familiar with the following pattern: the EPA, over the objection of its own scientists, issues a new rule that weakens environmental controls, but when pressed for an explanation, EPA officials explain that the new rule has nothing to do with easing the restrictions on polluters. No -- the change is merely a clarification, or a technical fix to some nonsense bureaucratic rule, or the inescapable conclusion drawn from a sober appraisal of the law.

And here we go again. Here's the rule change (note the dissent from EPA scientists):

The Bush administration is on the verge of implementing new air quality rules that will make it easier to build power plants near national parks and wilderness areas, according to rank-and-file agency scientists and park managers who oppose the plan.

The new regulations, which are likely to be finalized this summer, rewrite a provision of the Clean Air Act that applies to "Class 1 areas," federal lands that currently have the highest level of protection under the law. Opponents predict the changes will worsen visibility at many of the nation's most prized tourist destinations, including Virginia's Shenandoah, Colorado's Mesa Verde and North Dakota's Theodore Roosevelt national parks.

And here is the explanation -- from a former EPA official who has departed to head the the environmental strategies group at the law firm Bracewell & Giuliani (yes, that Giuliani) no less:

Jeffrey R. Holmstead... helped initiate the rule change while heading the EPA's air and radiation office. He said agency officials became concerned that the EPA's scientific staff was taking "the most conservative approach" in predicting how much pollution new power plants would produce.

"The question from a policy perspective was: Do you need to have models based on the absolute worst-case conditions that were unlikely to ever occur in the real world?" Holmstead said in an interview Thursday. "This has to do with what [modeling] assumptions you're required to do. This is really a legal issue and a policy issue."

The new rule changes how pollution levels in parks are measured -- instead of frequent measures, the new rule "would average the levels over a year so that spikes in pollution levels would not violate the law." Just a common sense fix, you might say. But as one environmental advocate explains, "It's like if you're pulled over by a cop for going 75 miles per hour in a 55 miles-per-hour zone, and you say, 'If you look at how I've driven all year, I've averaged 55 miles per hour.'"

It looks like the EPA is really competing to not only be the most politicized of the agencies in the Bush Administration, but also to create the most lasting damage.

Today's Must Read

OK, that's it! Let no one say that the administration has not handled the situation with its typical forbearance and caution. Other, rasher leaders would have shunned Ahmad Chalabi after it became apparent that his network of informants were liars and that he could not be trusted. But the U.S. has not been overly swift to act. Sure, there were suspicions that he had passed classified information to Iran, but this is not a group that rushes to judgment.

Now, however, the straw has finally broken the camel's back:

Sources in Baghdad tell NBC News that as of this week American military and civilian officials have cut off all contact with controversial Iraqi politician Ahmad Chalabi, the former favorite of Washington's once powerful neoconservatives.

The reason, the sources say, is "unauthorized" contacts with Iran's government, an allegation Chalabi denies. Iran has been accused of arming and training rebel Shiite forces in Iraq....

Since September 2007... American military officials and civilian officials working out of the U.S. Embassy had contacts with Chalabi. At that time he was installed as the head of a "services" committee for Baghdad that was to coordinate the restoration of services to the city's residents.

Gen. David Petraeus, commander of the Multi-National Forces-Iraq, even escorted Chalabi on a trip, on U.S. helicopters, to address reconstruction issues. And American officials attended meetings with him and supported his efforts.

Call it tough love.

Note: By the Charlie Black code of lobbying, it is now not OK to lobby for Ahmed Chalabi.

Today's Must Read

You'd think that an Iraqi anti-corruption crusader who testified before Congress about his travails would find no great difficulty in obtaining asylum in the United States. You'd think the U.S. would be grateful for the news that $18 billion worth of corruption had virtually "stopped" reconstruction in Iraq. But not so much.

Former State Department officials told Congress earlier this week that, though Radhi Hamza al-Radhi, the former head of the Iraqi Commission on Public Integrity, was able to get access into the U.S., he is not allowed to work and is living hand to mouth. Why has he fallen through the cracks?

It's always a toss-up between negligence/incompetence and malfeasance with this administration. On the negligence side of things, you have the disastrously impenetrable immigration system, which has allowed so few Iraqis to come to the U.S. As The New York Times reports today, U.S. soldiers have actually set up organizations to help their interpreters gain asylum, since the Iraqis, even though they face certain threat of death for collaborating with American forces, cannot navigate the system on their own. As one Army captain tells it, interpreters are required to produce a letter from a general, which he said was "like a junior associate at a Fortune 500 company asking the chief executive for a letter of recommendation."

But then there's the malfeasance side of things. One of the former officials testified that "a senior State Department official had ordered agency employees not to give al Radhi references or contact him" for help with his asylum.

That might have a lot to do with the trouble that Radhi gave Prime Minister Nouri al-Maliki and the administration. Like pointing out that corruption ran rampant under Maliki and that he'd jiggered the system so that corruption judges could not bring charges against any of his senior officials without his approval -- that was a decree on which Secretary of State Rice refused to pass judgment when she testified late last year. Rice also refused to comment on Radhi's many accusations.

Sen. Byron Dorgan (D-ND) declared at the hearing early this week that he is "going to ask the State Department what in the hell are they thinking." Somehow I don't think Rice will be any more forthcoming this time around.

Today's Must Read

Just in time to run during the Spring sweeps, the Pentagon has rolled out a slate of charges against five Guantanamo Bay detainees for conspiring in the 9/11 attacks. Kudos to the Convening Authority for beating expectations with a well-timed launch.

Unfortunately, the move does come shortly after one of the senior Pentagon officials working on the commissions was disqualified from dealing with Osama Bin Laden's alleged driver Salim Hamdan's case. For some reason, the judge didn't seem to appreciate Brig. Gen. Tom Hartmann's taste for "sexy" cases that grab the public's attention (he's obviously never tried to run a PR campaign himself). It was a black eye surely, but you know the old saying: there's no such thing as bad press. They are riding that wave.

Now, the naysayers will point to the fact that the nascent commissions are sure to drag on for possibly as much as a year before the actual trials begin. There are still plenty of kinks (allegations of torture, politicization, lack of due process, etc.). And then there's the small matter of the Supreme Court, which might overturn the applecart all over again in the near future. You can understand the frustration of the administration: they had hoped to roll out the trials before the 2006 election, and here we are in the run-up to the 2008 election, and the clock is ticking.

But all is not lost. The detainees should be arraigned in June. And there should be frequent opportunities between now and November to remind the public of what's going on down there. Finally, justice is served.

Note: The Convening Authority Susan Crawford had planned to include charges against Mohammed al Qahtani, the supposed 20th hijacker, along with the other five, but Qahtani has been struck from the charging sheet. Now, Qahtani's lawyer has immediately jumped to the conclusion that Crawford's decision to dismiss the charges affirms "that everything he said at Guantánamo was extracted through torture -- or the threat of torture," and that his treatment was "so well documented and unconscionable that he is unprosecutable.'' But I gotta figure that this crew is sharper than that. Crawford can bring those chargers against Qahtani at any time. The 20th hijacker deserves his own unique launch, to be sure. Maybe in October?

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