NLPC “blows the whistle” on government officials and interest groups engaged in questionable activities. NLPC has filed formal Complaints with a variety of authorities and regulators, including the Federal Election Commission, the Internal Revenue Service (IRS) and Congressional Ethics Committees.
NLPC supports government integrity in two additional ways: by promoting the First Amendment as the basis for campaign finance reform, and by promoting use of the Freedom of Information Act (FOIA).
Among the explanations for decades of decay in Detroit, public corruption ranks high on the list. Such was evident in a courtroom on December 8, where a federal jury convicted three persons, including Paul Stewart, formerly vice president of the Detroit Police Officers Association and a trustee of the city’s Police and Fire Retirement System, on conspiracy to commit honest services fraud through bribes and kickbacks. The cash and other gifts Stewart received weren’t enormous – they amounted to a little under $50,000 – but they were enough to induce him and other convicted co-defendants to steer pension plans toward highly risky investments that wound up losing $97 million. The case, part of a broad federal probe, is another legacy of Kwame Kilpatrick, the former Detroit mayor now serving a lengthy federal prison term on corruption charges.
The decline of Detroit is a familiar story, often accompanied by photos … Read More ➡
NLPC Associate Fellow Mark Modica was a guest on Closing Bell today on CNBC. He was joined by Kevin O'Leary of Shark Tank.
Here is a transcript:
Sara Eisen: At first it seemed like it was just another activist investors at work but our next guest says something else is in play here. We're talking about Harry Wilson, the restructuring expert who served on President Obama's auto industry task force during the financial crisis and was instrumental in bringing GM out of bankruptcy. Now Wilson is a GM activist investor and represents hedge funds holding a total of 34 million shares asking General Motors' CEO Mary Barra for a seat on the board and is pressing for a stock buyback, Simon.
Simon Hobbs: Our next guest is a former GM bondholder who says the company isn't so financially healthy, that it shouldn't burn through its reserves with buybacks … Read More ➡
Harry Wilson, the nemesis of General Motors bondholders who were wiped out in the government-orchestrated GM bankruptcy, is back on the scene. On the front page of today’s Wall Street Journal, Wilson is portrayed as an “activist” investor, who seeks to maximize shareholder value. While his suggestion that GM buy back $8 billion of common shares would give a temporary boost to share price, Wilson’s motivations may not be entirely pure. His real agenda could be to expand the already-favored position of UAW shareholders, and to bolster the political fortunes of unions in general.
Wilson was a retired banker elected to serve on President Obama’s Auto Task Force and was the driving force behind preventing old GM bondholders from receiving due process during the GM bankruptcy process. His involvement led to his current status as a “restructuring expert” and CEO of the MAEVA Group. It now seems that our
Former New York State Senator Malcolm Smith was convicted in federal court last week of bribery, wire fraud and extortion. A former majority leader in the New York Senate, Smith was defeated for re-election in 2014.
Convicted at the same time was Vincent Tabone, a former Queens Republican Party official. Smith, Tabone, and other GOP officials conspired to allow Smith, a liberal Democrat, to run for New York City mayor as a Republican in 2013, in return for $25,000.
Smith is the latest associate of U.S. Rep. Gregory Meeks (D-NY) to be convicted of crimes. Formal investigations of several New York politicians began in 2010 after the National Legal and Policy Center (NLPC) exposed corruption through stories in the New York Post, New York Times and New York Daily News.
On Monday, New York City Democratic leader Albert Baldeo was sentenced to 18 months in federal prison. He was convicted of seven counts of obstruction of justice in August of last year.
Baldeo was originally charged with three counts of fraud related to the use of straw donors to qualify for taxpayer matching funds for 2010 for his unsuccessful City Council campaign. The scheme was exposed in a New York Post story of October 11, 2011, based on information provided by the National Legal and Policy Center as part of our investigation into U.S. Rep. Gregory Meeks (D-NY) and his political network.
Baldeo was acquitted of the fraud charges but was convicted of attempting to prevent the straw donors from cooperating with the investigation.
In the 2010 City Council election, the seat was won by Ruben Mills. Mills was arrested in May 2014 for allegedly looting a nonprofit group he … Read More ➡
The trumpets sounded this morning as General Motors reported its 2014 fourth quarter earnings. GM’s bottom line earnings exceeded expectations (although revenue missed and was down from last year) and the pre-market share price of GM immediately jumped over a dollar a share. Despite the victory laps being taken by GM and its friends in the media, it would be wise for individual investors to think twice before jumping on the GM bandwagon.
GM management often exhibits a political DNA which was implanted at the company as a result of the 2009 auto bailouts when the Obama Administration manipulated a bankruptcy process to benefit UAW allies. GM’s main goal now seems to be to give the appearance of financial strength while ignoring the fact that the auto industry is highly cyclical as well as brutally competitive. The strategy has not worked to date considering that, since GM’s IPO in late … Read More ➡
Melchior’s story confirms a pattern also seen with his nonprofit groups and his political campaigns: Sharpton does not pay his bills.
Sharpton has run what are akin to “bust out” schemes. Sharpton takes in money for a project or cause. He lives lavishly on the cash flow, and then creditors, including taxation authorities, are left holding the bag.
Sharpton’s for-profit, nonprofit and political enterprises have always been hopelessly intertwined and conflated, often in violation of the law, … Read More ➡
This time the “research” was conducted at the University of Southern California and the University of California at Los Angeles. The test subjects were 20 children between the ages of 10 and 15, who were exposed to up to 300 micrograms of diesel exhaust particles via nasal spray, as part of a project that ran from 2003 to 2010. The information was uncovered in documents obtained via the Freedom of Information Act by the Energy & Environment Legal Institute and the Committee for a Constructive Tomorrow, and explained in detail at the Web site JunkScience.com.
As both organizations explained, EPA long ago made official determinations that particulate matter, such as that from diesel … Read More ➡
General Motors recently announced that it bought back preferred stock from the UAW Retiree Medical Benefits Trust and the Canadian government. The deal closed in December of 2014 and supposedly will result in a reduction to GM’s fourth quarter earnings to the tune of $800 million. GM had the option to redeem the shares at face value after December 31st of 2014. The timing of the deal brings into question the motivation behind the move and also leads us to reexamine a previous preferred share buyback that occurred in late 2013.
Sound the trumpets! Here comes the next best, all-new, electric wonder-car from General Motors. The dust had not even cleared from the rollout of the new and improved 2016 Chevy Volt when GM CEO Mary Barra announced the newest Tesla-killer from GM, the Chevy Bolt. Let’s hope that the engineers working on the Bolt put more thought into the design of the vehicle than the GM executives put into naming the car.
Seriously, the Bolt? The name sounds like something out of a Disney animated movie. I wonder if the names Ratchet or Socket were in contention. Whatever the case, the name may be new, but the hype is all too familiar.
Barra has touted the new Bolt as being “a real game changer” for GM, just like the previously-hyped Chevy Volt was. Anyone who has paid attention to the Volt debacle would know that the car has been … Read More ➡