Eric Holder

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.

We Welcome Charles Rangel Censure, But Criminal Prosecution Must Follow

Rangel & Holder photoToday's imminent censure of Rep. Charles Rangel (D-NY) is the result of Ethics Committee investigations that went much further than we expected, even after we exposed Rangel's failure to pay taxes on income from his Dominican Republic beach house and his acceptance of corporate-funded Caribbean junkets.

Rangel filed the ethics complaint against himself in late 2008. He no doubt expected the Committee to cover up for him, fulfilling the same role it has played during Rangel's 40 years in Congress. Rangel seems amazed that the accusations against him could result in his censure. Perhaps he feels betrayed by the Democratic leadership and the institution of Congress that traditionally has taken care of its own.

Congressmen Charge Black Farmer Settlement Rife With Fraud

National Legal and Policy Center more than once has called it a shakedown. Now three members of Congress are suggesting as much. Yesterday Reps. Steve King, R-Iowa, Michele Bachmann, R-Minn., and Bob Goodlatte, R-Va., held a press conference to call for a Justice Department probe of an out-of-court class-action settlement against the U.S. Department of Agriculture initiated by black farmers during the late Nineties.

Senator Murkowski Behind in Republican Primary; Voters Reject GOP Corruption?

Murkowski photoAlaska Senator Lisa Murkowski appears to be slightly behind Joe Miller, her primary challenger. AP reports that 16,000 absentee ballots were cast and will not be counted until August 31, so the winner may not be known for some time.

NLPC has been a critic of Murkowski and her relationship with associates of corrupt Alaska Republicans like the late Ted Stevens. On July 26, 2007 Murkowski announced that she would sell back an undeveloped piece of land that she purchased in 2006, one day after NLPC filed a Complaint with the Senate Ethics Committee alleging a “sweetheart deal.”

Magliocchetti Indicted But What About Members of Congress?

PMA logoFormer Murtha crony Paul Magliocchetti was indicted yesterday on 11 counts. The indictment was not unexpected and relates primarily to Magliocchetti’s rather hamhanded manuevers to evade campaign contribution limits by having family members, employees and friends make contributions for which they were paid back.

The indictment certainly relates the PMA “pay to play” scheme, but it does not address the underlying possible crimes by members of Congress who secured earmarks for PMA clients in return for campaign contributions and other benefits. It is not known to what extent, if any, the Justice Department has sought a plea bargain with Magliocchetti in return for information about members of Congress. Maggliocchetti’s son Mark is cooperating with prosecutors but it is not known if his information goes beyond his father to members of Congress.

Radical Group Seeks Federal Seizure of BP Assets

Seize BP photoThe explosion and spill from a BP deepwater drilling rig in the Gulf of Mexico has generated justifiable anger across the nation and especially in the affected coastal region. It's also generated popular backlash, one manifestation of which is an increasingly loud call for confiscating company assets. The front line of this campaign is an ad hoc group, "Seize BP," which organized anti-BP rallies in cities across America last week. The group's mission is as simple as its name: Persuade the Obama administration to seize assets of the British-based oil company and use the proceeds for compensating victims and family members for loss of life, health, and property values. Such action, however, far from delivering justice, would make a bad situation worse.

Holder Condemns Bribery But What About Sestak?

Holder/Obama photoEven as Attorney General Eric Holder has defanged the Public Integrity section of the Justice Department, and snuffed out prosecutions of members of Congress, he claimed today in Paris that “combating corruption is one of the highest priorities of the Department of Justice.”

Ironically, Holder’s remarks were delivered in support of international efforts to combat bribery. Holder bragged:

U.S. law enforcement has pursued bribe payers of all stripes: large corporations and small companies; powerful CEOs and low-level sales agents; U.S. companies and foreign issuers; citizens and foreign nationals; direct payers and intermediaries.

Congressman Mollohan Loses Democratic Primary

Mollohan photoRep. Alan Mollohan, whose finances were the subject of a four-year federal probe triggered by NLPC, was defeated yesterday in the Democratic primary in West Virginia’s first Congressional District. The 14-term Congressman was beaten 56 to 44 percent by state Senator Mike Oliverio, who made corruption the centerpiece of his campaign. Mollohan accused Oliverio of “spreading right-wing smears.”

The investigation began in February 2006 after NLPC filed a 500-page Complaint with the U.S. Attorney for the District of Columbia alleging that Mollohan failed to report millions in assets on his Congressional disclosure forms in order to conceal cozy financial relationships with recipients of earmarks he had arranged.

Lawyers, 'Black Farmers' Shake Down Taxpayers

ShakedownBlacks account for about 1.5 percent of all farm operators in this country - and apparently a lot higher share of the civil rights lawsuits against the U.S. Department of Agriculture (USDA). On February 18, lawyers for the USDA and thousands of black farmers reached a $1.25 billion class-action agreement resolving, for now, claims that the department had engaged in willful racial discrimination in managing its loan and other aid programs.  Think you've seen this headline before? You have. Back in 1999, black farmers, armed with similar claims of racial bias, snagged a federal guarantee of $50,000 per plaintiff plus loan forgiveness and tax liability offsets.

Mollohan Will Not Be Charged With Crime; Culture of Corruption Wins

Mollohan photoThe Justice Department has confirmed that it has ended its investigation of Rep. Alan Mollohan (D-WV). The probe began after NLPC filed a Complaint with the U.S. Attorney for D.C. in February of 2006 alleging that Mollohan failed to report millions in assets on his Financial Disclosure Form (FDR) in order to conceal cozy financial relationships with recipients of earmarks he had arranged.

The closing of the four-year probe by the Justice Department comes after Mollohan voted for Barack Obama’s unpopular health care plan. Has Attorney General Eric Holder now made it legal for members of Congress to earmark money to their business partners? This is a horrible precedent.

In the uproar that followed our original allegations, Mollohan “temporarily” resigned as ranking Democrat on the Ethics Committee. I doubt that Nancy Pelosi will now try to put him back. Even she realizes that Mollohan represents everything the public loathes about Congress. Holder's letting him off the hook is sure to further inflame anti-incumbent resentment.

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