Bernard Madoff

SEC-er To Madoff: "It's A Big Organization, We Don't Talk To Each Other"

Zachary Roth | October 30, 2009, 7:08PM

During a 2006 examination, an SEC staffer asked Bernie Madoff for information. Madoff replied that he had already provided it to a top agency official. To which the SEC-er responded: "It's a big organization, we don't talk to each other."

That's according to Madoff's testimony to SEC investigators. The agency's inspector general's office has just released documents that were part of its probe into its failures on the Madoff affair. And they further the picture of a regulator at which the right hand didn't know what the left was doing, and which depended on inexperienced and over-matched agents to sniff out complex financial frauds like Madoff's.

You can see all the documents here. And you can see Madoff's testimony here.

Let us know in comments about anything else that jumps out.

Dick Cheney

Don't Even Point! Cheney's Extreme View Of Presidential Privilege

Zachary Roth | October 30, 2009, 6:35PM

Former Vice President Dick Cheney

It's not news that Dick Cheney takes an expansive view of executive privilege. But one passage from the just released Plame interview documents makes clear just how far he took it.

When asked if he ever advised Libby that the president had decided to declassify the NIE, the vice president declined to answer in view of his concerns about sharing potentially privileged conversations between himself and the President. it was clarified for the Vice President that he was not being asked to comment on the substance of his conversations with the President, but rather, only whether he'd ever told Libby that he'd had such a discussion with the President. In response, Vice President Cheney repeated his assertion that he must refrain from commenting to the investigators about any private and/or privileged conversations he may have had with the President.

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Dick Cheney

Cheney Wanted McClellan To Exonerate Libby As Well As Rove

Zachary Roth | October 30, 2009, 6:16PM

Former Vice President Dick Cheney

Dick Cheney told FBI investigators he wasn't happy when Scott McClelllan, then the White House press secretary, publicly told reporters that Karl Rove wasn't the source of the Plame leak.

From the just-released documents:

The Vice President was not happy about it, as it appeared that the White House press office was putting down markers for some individuals and not for others. Specifically, Vice President Cheney believed that fairness dictated that similar disqualifying statements should be made to the media on behalf of Libby and Elliot Abrams of the NSC, both of whom were the speculative targets of leak allegations by the media that week.

In other words, Cheney wanted Libby and Abrams exonerated in addition to Rove.

Of course, we now know that both Rove and Libby did leak Plame's name to reporters, though not to Novak.

Chamber of Commerce

Chamber Ripped On Its Facebook Page

Zachary Roth | October 30, 2009, 3:48PM

Chamber of Commerce President and CEO Tom Donohue

The Chamber of Commerce, whose intransigent stance on global warming has lately been in the spotlight, is now being slammed in comments on its own Facebook page.

Many of the comments, which appear on the "Just Fans" setting, accuse the Chamber of vastly inflating its membership numbers. Mother Jones reported earlier this month that the Chamber's claim to represent 3 million members is off by a factor of 10.

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Blue Cross Blue Shield

Health Insurer Lobbying Mailer Came After It Raised Rates

Zachary Roth | October 30, 2009, 12:21PM

Sen. Kay Hagan (D-NC)

Earlier this week, we reported that Blue Cross Blue Shield of North Carolina had recently sent out mailers that urged recipients to lobby Sen. Kay Hagan to oppose a public option, which it called "a slippery slope to single payer." (You can see the mailer here.)

The story was picked up by the Raleigh News & Observer, which added an additional key fact: Just before sending out the mailer, BCBS of North Carolina had informed its customers that their rates would rise by an average of 11 percent next year.

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Mary Beth Buchanan

U.S. Attorney Who Played Role In Firings Scandal To Step Down -- Congressional Bid Next?

Zachary Roth | October 30, 2009, 10:04AM

Mary Beth Buchanan

Mary Beth Buchanan, the Bush-appointed federal prosecutor who had a cameo in the U.S. attorney firings scandal and was charged with pursuing politically motivated prosecutions, is stepping down.

Buchanan, a Republican, is said to be mulling a run for Congress against incumbent Democrat Rep. Jason Altmire. In a statement yesterday, she said she was "looking forward to the next chapter of my professional career," without elaborating.

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Jeffrey Merrifield

Bush Nuclear Regulator Contacted Potential Employers With Business Before Agency

Zachary Roth | October 29, 2009, 5:41PM

A Bush administration official on the Nuclear Regulatory Commission (NRC), which oversees the safety of nuclear sites, is facing a criminal probe after an internal NRC report concluded that he broke ethics rules by approaching companies with business before the agency, and inquiring about employment.

Before his term expired in mid 2007, Jeffrey Merrifield contacted the Shaw Group, Westinghouse, and G.E. about jobs. Twice, he voted on issues that could have affected the financial fortunes of those companies, according to the report by the NRC's inspector general. The case has been referred to the Justice Department.

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Global Warming

Could Coal Lobby Chief Be Probed For Perjury?

Zachary Roth | October 29, 2009, 4:49PM

CEO of ACCCE Steve Miller

Could apparently false statements made by the head of a coal-industry lobby group before Congress this morning end up being referred to the Justice Department for a criminal perjury probe? Congressional investigators aren't ruling it out.

As we reported, Steve Miller, the director of the American Coalition for Clean Coal Electricity (ACCCE), appears to have twice misled Congress while under oath during his testimony this morning over those forged letters sent on the coal lobby's behalf by Bonner and Associates.

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Chamber of Commerce

Yes Man: Chamber Lawsuit Is "A Comedy And A Travesty"

Zachary Roth | October 29, 2009, 3:57PM

The Chamber of Commerce's lawsuit against the Yes Men is "a comedy and a travesty," according to one member of the prankster group and a target of the suit.

"All they care about is taking money out of ordinary people's pockets and putting it in the pockets of the super rich," Mike Bonanno told TPMmuckraker in an interview this afternoon.

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Evan Bayh

Report: Bayh's Wife Made Millions As Board Member For Health Insurer

Zachary Roth | October 29, 2009, 2:15PM

Sen. Evan Bayh (D-IN)

Yesterday, Sen. Evan Bayh joined his colleague Joe Lieberman in suggesting that he may oppose health-care reform, citing concerns about the deficit. Bayh has long been one of the more conservative members of the Democratic caucus. But is his stance also affected by the fact that his wife has reportedly earned at least $2 million over the last six years as a member of the board of a major health insurer?

Susan Bayh's affiliation with Indianapolis-based WellPoint isn't news. But a new report on TheStreet digs into the details. It also finds that last year, Susan Bayh sat on four other corporate boards, in addition to WellPoint's. She received over $656,0000 in cash and stock for all her board work, around half of which came from WellPoint.

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Ed Markey

Markey To Coal Lobby: You Should Have Told Lawmakers About Forged Letters

Zachary Roth | October 29, 2009, 12:23PM

Rep. Ed Markey is putting blame for the forged letters episode where it ultimately belongs: on the coal lobby.

"You're responsbility was to ensure that the members of Congress knew that this information was fraudulent," Markey tells ACCCE chief Steve Miller.

Miller had just said he assumed that Bonner himself would have notified the affected lawmakers. But Markey adds that Bonner was very far down the food chain.

ACCCE

Inslee: Bonner Phone Script Is "Wholly Wrong And Fraudulent"

Zachary Roth | October 29, 2009, 11:11AM

Jack Bonner

Both lawmakers and the other witnesses are now lambasting Bonner on two of his claims: that he didn't know when the vote was, and that he didn't know which members of Congress were swing votes on the issue.

One witness from a community group points out that any grassroots lobbying firm worth it's salt would know these things, and calls Bonner's claims "disingenuous."

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Astroturf

Bonner Testimony

Zachary Roth | October 29, 2009, 10:58AM

Jack Bonner

Here's Jack Bonner's complete testimony about those forged letters.

In a nutshell: we should have checked resumes closer. And we shouldn't hire liars.

Jack Bonner

Bonner: We Should Have Notified Lawmakers Right Away

Zachary Roth | October 29, 2009, 10:54AM

Jack Bonner

Perhaps Bonner's biggest problem here is that he learned about the forged letters before the vote on global warming legislation, but didn't notify the affected lawmakers until after.

Here's what Bonner said in his testimony on that point:

While our immediate focus upon learning of this fraud was to reach out and apologize to the organizations whose names were used without authorization, on July 1, 2009, we contacted the offices of two of the three Members of Congress who received fabricated letters. After numerous attempts and the intervening Congressional recess, it was not until July 13, 2009, that one of our staff finally succeeded in directly speaking with Congressional staff for Rep. Perriello and Rep. Dahlkemper about this matter although it appears that Rep. Carney's office, which received one letter, was not contacted. In retrospect, we should have immediately contacted all three offices and apologized in person.

And he's now being grilled on that point by Chairman Ed Markey. "I should have personally sat there to make sure the message got through," Bonner admits.

Bonner claims he didn't know the date of the vote. But Markey seems to find that hard to believe, given the high-profile nature of the vote.

You can read Bonner's full testimony here.

Global Warming

Bonner: "This Incident Was An Anomaly"

Zachary Roth | October 29, 2009, 10:48AM

Jack Bonner

Jack Bonner is testifying now. And he's not backing down too much.

This incident was an anomaly and the result of an individual who from his first day at work, intentionally disregarded our procedures and instructions and was determined to engage in fraudulent activity.

...

Let one thing be very clear: this improper activity was undertaken without the knowledge or permission of anyone at our firm. These were the actions of one rogue temporary employee, acting against our company's policy and without the knowledge of anyone else at Bonner & Associates.

In other words, don't blame us.

CIA

Schakowsky: GOPers Who Slammed Pelosi On CIA Lie Charge Should Apologize

Zachary Roth | October 28, 2009, 6:25PM

Rep. Jan Schakowsky (D-IL)

A top Democrat on the House Intelligence committee says Republicans who criticized Nancy Pelosi's claim that the CIA lied to her now owe the Speaker an apology.

Rep. Jan Schakowsky (D-IL), who has been helping lead a committee probe into the CIA's process for briefing lawmakers, asserted yesterday that the agency had misled or outright lied to Congress five times since 2001. One of those cases, Schakowsky confirmed, concerned the 2002 torture briefing at which, Pelosi has claimed, she was lied to about waterboarding. Republicans, led by Minority Leader John Boehner, had savaged her for that charge.

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Chamber of Commerce

Chamber Vs. Yes Men: Frivolous Lawsuit, Or IP Theft?

Zachary Roth | October 28, 2009, 5:44PM

Chamber of Commerce President and CEO Tom Donohue and the Yes Men

By suing the Yes Men over a prank, the Chamber of Commerce certainly isn't doing anything to change its reputation as a greedy and humorless bunch of suits that puts corporations ahead of the little guy. But could the joke be on the Yes Men by the time this is over?

A quick recap: Last week, the Yes Men, a group of political pranksters working with the activist group Avaaz, set up a mock website that looked like the Chamber's, and held a mock press conference where they announced that the Chamber was shifting its opposition to serious efforts to address global warming. The stunt fooled Reuters and other outlets, who reported the position change, before issuing corrections. In response, the Chamber first tried to have the mock site taken down, then sued the Yes Men for trademark infringement, charging that the prank was "nothing less than commercial identity theft masquerading as social activism."

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Bill Allen

Docs: Feds Pressed Police To End Child-Sex Probe Of Bill Allen

Zachary Roth | October 28, 2009, 2:47PM

Bill Allen, former owner of VECO

Hat tip Alaska Dispatch...

Did U.S. prosecutors pressure police to end a child-sex-crimes investigation in order not to endanger the federal probe of corruption in Alaska politics, then withhold evidence about the episode? That's what court documents filed on behalf of a former state lawmaker convicted in the investigation are charging.

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Bill Sparkman

KY Police: Speculation About Sparkman Death Has Hampered Probe

Zachary Roth | October 28, 2009, 10:00AM

Bill Sparkman

Are investigators edging away from the idea that Census Bureau worker Bill Sparkman was killed in an act of anti-government violence?

Kentucky police have been largely silent for weeks now on the probe of Sparkman's case, in which the part-time Census worker was found dead in a rural area of the state, blindfolded and gagged, with a rope around his neck and the word "Fed" written on his naked chest.

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CIA

Intel Panel: CIA Misled Lawmakers On Torture, Other Issues

Zachary Roth | October 27, 2009, 5:14PM

Rep. Jan Schakowsky (D-IL)

The CIA misled Congress about its torture program and other issues, Democrats on the House Intelligence committee are asserting as the committee continues to probe the matter.

In a hearing of the House Intelligence committee this afternoon, Reps. Anna Eshoo and Jan Schakowsky, both Democrats, pointed to at least five instances going back to at least 2001 in which the C.I.A. withheld information from or lied to Congress.

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Chris Christie

Did FOIA Request On Financial Ties To Christie Prompt Top Aide's Departure?

Zachary Roth | October 27, 2009, 1:16PM

Fmr. top aide Michele Brown (inset) and NJ Gov. Candidate Chris Christie (R)

Hat tip Marcy Wheeler at Firedoglake...

Did Chris Christie's top aide resign as a top prosecutor this summer in order to prevent information about her financial ties to Christie from becoming public? Let's look at the facts:

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Chamber of Commerce

Chamber Suing Yes Men For "Commercial Identity Theft"

Zachary Roth | October 27, 2009, 9:57AM

Chamber of Commerce President and CEO Tom Donohue

Calling last week's hoax by the Yes Men "nothing less than commercial identity theft masquerading as social activism," the Chamber of Commerce is suing the prankster group and its allies for trademark infringement, unfair competition and false advertising, reports Mother Jones.

The Yes Men -- actors Jacques Servin and Igor Vamos (who also use the names Andy Bichlbaum and Mike Bonanno, respectively), last week held a fake press conference in Washington DC, along with activists from the Avaaz Action Factory, in which they impersonated Chamber executives and announced that the group had shifted its opposition to real efforts at tackling global warming. A press release announcing the event fooled Reuters and other news outlets into reporting that the Chamber had changed its stance.

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Media

Asa Hutchinson Recorded Robocalls For Anti-Reform Rallies Featuring Fox's Stossel

Zachary Roth | October 26, 2009, 6:25PM

FOX News' John Stossel and Fmr. Rep. Asa Hutchinson (R-AR)

We told you last week that John Stossel of Fox News is participating in rallies against health-care reform organized by a conservative activist group.

But now it looks like Stossel's decision to get involved with the effort ties him in not just with the conservative anti-reform movement, but with the Republican Party itself. That's because former Arkansas GOP congressman Asa Hutchinson has recorded robocalls promoting the upcoming rallies in his state.

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Chamber of Commerce

Chamber CEO: Climate Change Flap Is Working Out Great For Us

Zachary Roth | October 26, 2009, 4:40PM

Chamber of Commerce President and CEO Tom Donohue

Chamber of Commerce CEO Tom Donohue is trying to spin the flap over his lobby group's stance on global warming in his favor -- but he won't even admit that climate change is real.

"Is the science right? Is science not right? I don't know," Donohue said during a seventy-five minute sit-down with business-friendly Politico.

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Denny Rehberg

Not Guilty Plea In Rehberg Boat Crash

Zachary Roth | October 26, 2009, 1:50PM

Rep. Denny Rehberg (R-MT)

The Montana Republican who was driving a boat that crashed while carrying Rep. Denny Rehberg and four other passengers has pleaded not guilty to three felony charges related to the August incident.

Prosecutors allege that State Sen. Greg Barkus had a blood alcohol content twice the legal driving limit nearly two hours after the crash. All five passengers -- the two elected Republicans, as well as Barkus's wife and two Rehberg staffers -- were injured in the crash.

Rehberg has said that Barkus "didn't appear to be impaired" when driving the boat, and that he is cooperating with the investigation.

Health Care

NC Health Insurer Asks Voters To Lobby Hagan Against Reform

Zachary Roth | October 26, 2009, 12:47PM

Sen. Kay Hagan (D-NC)

Health insurers are using every tool at their disposal to pressure senators into opposing a public option.

The latest example: Blue Cross Blue Shield of North Carolina has sent a mailer -- obtained by TPMmuckraker -- to voters in the state, warning that a public option will lead to "a single payer system," and urging recipients to send a postcard to Sen. Kay Hagan that asks her to "oppose government-run health insurance."

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Republican National Committee

RNC Mailer Appears Designed To Look Like Census Survey

Zachary Roth | October 26, 2009, 11:39AM

RNC Chairman Michael Steele

Michele Bachmann may be raising outlandish fears about the Census -- but Michael Steele's operation seems to be more than happy to associate its political efforts with the national survey.

The Republican National Committee is sending a mailer to GOP voters that aims to gather information and raise money. Nothing wrong with that. But the mailer appears clearly designed to mislead recipients into thinking that it's an official Census Bureau survey, which people are required by law to fill out.

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Liz Cheney

Major GOP Fundraiser Behind New Liz Cheney Group

Zachary Roth | October 26, 2009, 9:56AM

Liz Cheney and GOP fundraiser Mel Sembler

A nice little scoop from Newsweek:

Mel Sembler, the heavy-hitting Republican fundraiser and Florida real-estate magnate, plans to support Liz Cheney's new pro-war group, Keep America Safe (KAS).

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