Justice Department

GM and NHTSA Elude Accountability in Failed Fire Risk Recall

It has now been more than three months since news broke that General Motors, once again, failed to properly protect owners of its vehicles from risks resulting from shoddy quality control. The latest incident involves about 1.4 million GM vehicles that were at risk of erupting into flames due to engine oil seepage. The at-risk vehicles were previously recalled by GM years ago, but the quick-fix remedy offered by GM did not solve the underlying problem.

Justice Dept. Assails VW as Barra is Elevated to GM Chair

The Obama Administration’s Justice Department is now suing Volkswagen for “up to $90 billion for allegedly violating environmental law.” Politically-favored General Motors was fined $900 million, or 1% of that amount, for covering up an ignition switch defect that led to the deaths of at least 124 people. At last count, the number of people who lost their lives as a result of emissions' tampering by VW stood at zero.

Meanwhile, the GM board unanimously elected CEO Mary Barra as its Chairman, demonstrating that it is still not independent of political influences, even years after the 2009 bankruptcy process.

No Justice for General Motors’ Victims

The response of the Justice Department to General Motors’ ignition switch defect cover-up was announced last week. GM’s failure to address the deadly defect led to the loss of lives of at least 169 people. Any hopes for the families of the victims that the crony status of GM would not stand in the way of justice were squashed as the company was given a slap on the wrist by its friends at the Obama Administration.

Will Criminal Charges Bring Justice for GM Victims?

The New York Times reports that the Justice Department has concluded that there was criminal wrongdoing by General Motors as the company covered-up a deadly ignition switch defect for years. That defect has now been blamed for causing the deaths of at least 107 motorists. While many observers may have been able to come to the conclusion that GM was guilty long before the Justice Department’s recent epiphany, the bigger question now is, what’s next?

Mary Barra's Veracity on Trial in GM Lawsuits

Depositions for General Motors’ executives, including CEO Mary Barra, will begin in May, according to the Detroit News. The testimonies will be at the center of class-action lawsuits (set for trial in January, 2016) against GM for its ignition switch defect cover-up and are slated to conclude in early October of this year. It will not be the first time Barra has testified under oath about the recall debacle which is now blamed for having caused 74 deaths.

Is GM's Ignition Switch Defect Cover-Up About to Unravel?

The death toll for General Motors’ defective ignition switch cover-up has reached 67. Up to now, you were more likely to hear crickets chirping than you were to hear calls for justice for those who died as a direct result of GM’s actions (or inaction) in the case.

That may finally be coming to an end as major news outlets are reporting today that GM has officially been accused of a huge cover-up, and that the proof is still being hidden from the public.

Taking the Bait on Menendez Story

Commentators on both the Left and the Right are suggesting that the impending indictment of Senator Robert Menendez (D-NJ) is retribution against Menendez for his recent criticisms of Obama administration foreign policy. While we concur that almost everything that Attorney General Eric Holder does is tainted by politics, a few points about the Menendez case are in order:

1) The reported charges against Menendez, that he tried to interfere with a Medicare fraud investigation of his largest donor, Dr. Salomon Melgen, and that he went to bat for Melgen in the Dominican Republic port security deal, were not cooked up by the political operation at the White House.

Senator Robert Menendez Facing Criminal Indictment?

CNN is reporting that Senator Robert Menendez (D-NJ) will be indicted on charges related to favors he provided to his largest campaign contributor, Dr. Salomon Melgen, a Miami-area eye doctor.

The probe was reportedly initiated after media reports that Menendez intervened on Melgen's behalf with government officials regarding a Medicare billing dispute and a port security deal in the Dominican Republic. Based on information provided by NLPC, the New York Times first reported on February 1, 2013 that Menendez went to bat for the Dominican port security deal that would have resulted in a "highly lucrative windfall" for Melgen.

Is Justice Dept. Covering Short-Seller Tracks in For-Profit College Scheme?

Holder photoBeginning in 2009, the Department of Education -- mightily aided by Senator Tom Harkin's HELP Committee and a coterie of Wall Street short sellers -- laid siege to the for-profit college sector in a knock-down, drag-out battle to the finish. Their strategic objective was to seriously hobble the profitability of career schools that had devised a competitive, career pathway for predominantly at-risk, low-income, non-traditional and minority students. On June 2, in the infamous Battle of the Beltway, the Department issued its (you should excuse the expression) 'Gainful Employment' rule, which was heralded as a major blow to career schools, whose recruitment rates have since dropped precipitously.

Blagojevich Conviction Only Partly Reveals Culture of Corruption

Blagojevich photoLast August, things looked sunny for former Illinois Democratic Governor Rod Blagojevich. He and his lawyers had just obtained a hung jury on 23 of 24 corruption charges. But Justice Department prosecutors, confident they had their man, continued to pursue the case - and this time with different results. Last Monday, June 27, a Chicago federal jury, after nine days of deliberation, found the man known as "Blago" guilty on 17 of 20 charges, nearly a dozen of them related to his attempts during the fall of 2008 to fill the pending Senate vacancy left by President-Elect Barack Obama in return for campaign cash.

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