Democratic State Senator Malcolm Smith, a close crony of embattled U.S. Rep. Gregory Meeks (D-NY), was arrested by the FBI this morning, along with several Republican party officials. According to various news reports, the arrests result from a scheme to bribe Republican officials to allow Smith to run for New York City mayor as a Republican. Smith is the former president of the State Senate.
From afar, the scheme seems bizarre, but in the context of the endemic graft in New York City, it is not far fetched at all. NLPC has played a key role in exposing a rotten political culture that is corrupt from top to bottom, and spans both parties.
In January 2010, NLPC exposed the involvement of Smith and Meeks in a charity called New Direction Local Development Corporation. The group appears to have served as a slush fund for Smith, Meeks and their associates. Among … Read More ➡
President Obama’s alternative energy “stimulus,” administered through his Department of Energy by previous Secretary Steven Chu, had already become a joke because of the failures and foibles of so many recipients of Recovery Act funds. But now – as though officially commemorating the absurdity of this historically bad U.S. government program – one of its bankrupt beneficiaries has changed its name from one of simplicity to one of mockery.
Electric vehicle battery maker A123 Systems has changed its name to B456 Systems. Incorporated.
Reporting the development, headline writers across the nation rubbed their eyes, double-checked the wire information, and then – especially realizing how close they were to April Fool’s Day – had to add extra assurance to the breaking news.
For the Boston Herald, where A123 was headquartered near MIT, it was this:
“A123 Systems changes name to B456 (seriously)”
The Milwaukee … Read More ➡
UPDATE 11:30 a.m. Friday: Reuters reports that Fisker has hired a bankruptcy attorney.
Fisker Automotive, which has received $193 million of a $529 million Department of Energy stimulus loan guarantee and apparently still wants the rest of it, stopped making its sole electric car – the $102,000-plus Karma – last July. But only now has it decided to furlough workers for a week.
“In parallel with the process of identifying a strategic partner, Fisker is, of course, continuing to manage its day-to- day operations and has recently instituted temporary furloughs for its U.S. workforce covering the final week of March,” the company said.
The announcement came this week from the company, which despite having raised more than $1.2 billion in private capital, hasn’t been able to keep the factory lines running. In its official statement, though, Fisker said that’s quite normal.
“This is a common practice, … Read More ➡
The publicity surrounding President Obama’s failed strategy to stimulate the economy, by putting clueless manager Steven Chu in charge of the Department of Energy’s lending activities, has become so bad that few “green energy economy” entrepreneurs want to accept taxpayer money any more.
That’s according to a report published earlier this month by the Government Accountability Office, which reviewed DOE’s loan programs for a briefing to both the House and Senate’s Appropriations subcommittees on Energy. Amusingly though, the Web site of DOE’s Loan Programs Office still calls itself “The Financing Force Behind America’s Clean Energy Economy.” The minor blip that undermines that premise is that DOE is having trouble getting someone to borrow $55 billion.
GAO’s director for Natural Resources and Environment, Frank Rusco, undertook an audit/investigation that evaluated three types of DOE loans: the 1703, 1705, and Advanced Technology Vehicles Manufacturing programs. The 1705 program backed … Read More ➡
There has been an important story brewing over the past several months regarding General Motors’ flawed bankruptcy process that has been widely ignored by the media. GM may have to readdress its 2009 bankruptcy settlement due to a lawsuit by a group of GM creditors against hedge funds over a settlement involving the company’s Nova Scotia debt. The creditors brought to light the fact that the company did not have its ducks in a row at the time of its 2009 bankruptcy filing and allege that GM was still in the middle of backroom negotiations with hedge funds beyond the deadline. A court decision is now imminent.
Essentially, the dealings should have been finalized and reviewed by presiding judge Robert Gerber but were not properly disclosed. This is no small matter and it is estimated that the cost to GM could be about a billion dollars, which was approximately the … Read More ➡
Apple, Inc. has grown into a widely admired and one of the most valuable companies in the world, producing terrific products that generate long waiting lines every time a new innovation is announced. You would think executive leadership would not feel the need to bow to environmental pressure groups to appear it is eco-friendly.
But apparently acceptance by the likes of Greenpeace, and a warm reception at Silicon Valley liberals’ cocktail parties, still ranks high in importance in the corner offices in Cupertino, Calif. – even though their boastful claims aren’t true.
The latest example surrounds Apple’s absurd assertion that its electricity-sucking data centers, which support services like cloud computing and iTunes, are powered completely by renewable energy. Why the Mac-makers would brag about a phony achievement that is so easily debunked makes you wonder how smart they really are.
“Our goal is to power every facility at Apple … Read More ➡
For weeks now the buzz about Fisker Automotive, the latest Department of Energy-funded clunker, is that two China-based automotive companies – Zhejiang Geely Holding Group (which owns Volvo) and Dongfeng Motor Corp. (which is state-owned) – were in bidding negotiations to buy an ownership stake of an unknown size. The speculation was that Fisker was following a similar path as stimulus-financed A123 Systems, which supplied the batteries for Fisker and was recently bought by Sino-owned Wanxiang Group.
But what seemed like the inevitable has been halted if a Wall Street Journal report (subscription-only) from Tuesday is to be believed. Apparently Fisker’s management still thinks it can access the remainder of a $529-million DOE loan, which it had received a portion of ($193 million) before its shortcomings forced the feds to say “no mas.” According to one of the newspaper’s sources, Fisker negotiators proposed to the Chinese … Read More ➡
Bin Laden is dead and Twinkies are alive! That might have been the rallying cry if we were in an election year and if the Bakers Union was deemed as important as the UAW to the parties seeking reelection. But the Obama Administration is not as dependent on smaller unions, like the Bakers Union, for contributions and votes. That fact allowed the Hostess bankruptcy to proceed in an unimpeded manner in which such processes were designed to.
It was recently reported that the Hostess bankruptcy would not lead to the end for brands like Twinkies, Wonder Bread, and a bunch of others. The initial filing brought speculation that Twinkies would disappear forever as panic set in for junk food enthusiasts and lead to boxes of the iconic brand being hoarded by many. The outcome can give us some insight into how the General Motors bailout could have been handled … Read More ➡
Will a state be willing to act against the Environmental Protection Agency’s practice of exposing humans to diesel exhaust emissions, when medical authorities and the courts have refused to intervene?
It may be the case in North Carolina, where doctors have conducted such experiments at EPA’s Human Studies Facility in Chapel Hill. A bill introduced at the state legislature would criminalize research that subjects human beings to the inhalation of “fine particulate matter” (called “PM2.5” in regulators’ lingo), which EPA and previous Administrator Lisa Jackson have said causes cancer and even premature deaths. A felony conviction, if the bill is passed as written, would require punishment at the same level as those found guilty of patient abuse, and assault inflicting bodily injury.
The measure was drawn up because federal Judge Anthony Trenga ruled the court had no jurisdiction in a lawsuit against EPA, because EPA’s behavior was not … Read More ➡
The Washington Post today reports that a federal grand jury is investigating Senator Robert Menendez (D-NJ) for pushing a Dominican port security deal that would have meant a windfall for Dr. Salomon Melgen, a major donor. The post security deal was first reported in the New York Times on February 1, based on information provided by NLPC.
Post reporters Carol Leonnig and Peter Wallsten cited unnamed sources for the existence of the grand jury and a related investigation. According to the story:
Last month, people with knowledge of the case said FBI agents were conducting interviews in the Dominican Republic and the United States concerning allegations against Menendez, including the role he played in advocating for the enforcement of the port-security contract.
The reporters point out:
Cases of political bribery are extremely hard to build and prove, according to ethics experts and public-corruption defense lawyers, and many such investigations
… Read More ➡