bureaucracybusters

Archive for the ‘Business’ Category

, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

WHAT AMERICA OWES THE NRA: PART ONE (OF TWO)

In Business, History, Law, Law Enforcement, Military, Politics, Social commentary on May 27, 2014 at 12:02 am

On September 11, 2001, Islamic terrorists snuffed out the lives of 3,000 Americans in New York, Washington, D.C. and Pennsylvania.

World Trade Center – September 11, 2001

But within less than a month, American warplanes began carpet-bombing Afghanistan, whose rogue Islamic “government” refused to surrender Osama bin Laden, the mastermind of the attacks.

By December, the power of the Taliban was broken–and bin Laden was driven into hiding in Pakistan.

For more than ten years, the United States–through its global military and espionage networks–has relentlessly hunted down most of those responsible for that September carnage.

On May 1, 2011, U.S. Navy SEALS invaded bin Laden’s fortified mansion in Abbottabad, Pakistan–and shot him dead.

U.S. Navy SEALs

Now, consider these statistics of death, supplied by the Brady Campaign to Prevent Gun Violence:

  • One in three people in the U.S. knows someone who has been shot.
  • On average, 32 Americans are murdered with guns every day and 140 are treated for a gun assault in an emergency room.
  • Every day on average, 51 people kill themselves with a firearm.
  • Another 45 people are shot or killed in an accident with a gun.
  • U.S. firearm homicide rates are 20 times higher than the combined rates of 22 countries that are our peers in wealth and population.
  • A gun in the home is 22 times more likely to be used to kill or injure in a domestic homicide, suicide, or unintentional shooting than to be used in self-defense.
  • More than one in five U.S. teenagers (ages 14 to 17) report having witnessed a shooting.
  • An average of eight children and teens under the age of 20 are killed by guns every day.
  • American children die by guns 11 times as often as children in other high-income countries.
  • Youth (ages 0 to 19) in the most rural U.S. counties are as likely to die from a gunshot as those living in the most urban counties.
  • Rural children die of more gun suicides and unintentional shooting deaths.
  • Urban children die more often of gun homicides.
  • Firearm homicide is the second-leading cause of death (after motor vehicle crashes) for young people ages 1-19 in the U.S.
  • In 2007, more pre-school-aged children (85) were killed by guns than police officers were killed in the line of duty.
  • Medical treatment, criminal justice proceedings, new security precautions, and reductions in quality of life are estimated to cost U.S. citizens $100 billion annually.
  • The lifetime medical cost for all gun violence victims in the United States is estimated at $2.3 billion, with almost half the costs borne by taxpayers.

In short, in one year on average:

  • More than 100,000 Americans are shot in murders, assault, suicides, suicide attempts, accidents or by police intervention.
  • 31,537 people die from gun violence.
  • 18,783 people kill themselves.
  • 584 people are killed accidentally.
  • 334 are killed by police intervention.
  • 252 die but intent is not known.
  • 71,386 people survive gun injuries.

(These statistics are based on death certificates and estimates from emergency room admissions.)

And who, more than anyone (including the actual killers themselves) has made all this carnage possible?

The National Rifle Association (NRA), of course.

But unlike the leadership of Al Qaeda, that of the NRA is not simply known, but celebrated.

Its director, Wayne LaPierre, is courted as a rock star by both Democrats and Republicans seeking NRA political endorsements–and campaign contributions.

Wayne LaPierre

He frequently appears as an honored guest at testimonial dinners and political conventions.

The largest of the 13 national pro-gun groups, the NRA has nearly 4 million members, who focus most of their time lobbying Congress for unlimited “gun rights.”

The NRA claims that its mission is to “protect” the Second Amendment to the United States Constitution, which states:

“A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.”

NRA members conveniently ignore the first half of that sentence: “A well regulated Militia, being necessary to the security of a free State….”

For the NRA, the Second Amendment is the Constitution, and the rest of the document is a mere appendage.

At the time Congress ratified the Constitution in 1788, the United States was not a world power.

A mere 26 years later, the British seized and burned Washington, D.C., after repeatedly defeating American armies.  On the frontier, settlers had to defend themselves against hostile Indians and marauding bandits.

Only after World War II did the country maintain a powerful standing army during peacetime.

But World War II ended 69 years ago, and today the United States is a far different country than it was in 1788:

  • It boasts a nuclear arsenal that can turn any country into thermonuclear ash–anytime an American President decides to do so.
  • It boasts an Army, Navy, Air Force and Marine Corps that can target any enemy, anywhere in the world.
  • Its Special Forces–Green Berets, Delta Force and Navy SEALS–are rightly feared by international terrorists.
  • American Intelligence has have come a long way since 9/11. The FBI’s top priority is to prevent another such terrorist attack, not simply investigate it afterward.
  • And waging war on criminals generally are about 836,787 full-time sworn local/state/Federal law enforcement officers.
  • If a criminal flees or conducts business across state lines, powerful Federal law enforcement agencies–such as the FBI and Drug Enforcement Administration–can put him out of business.

But apparently the NRA hasn’t gotten the word.

, , , , , , , , , , , , , , , , , , , , ,

CURBING THE ASSASSINS’ LOBBY

In Bureaucracy, Business, History, Law, Politics, Social commentary on May 26, 2014 at 12:01 am

The victims of the violence are black and white, rich and poor, young and old, famous and unknown. They are, most important of all, human beings whom other human beings loved and needed. No one – no matter where he lives or what he does – can be certain who will suffer from some senseless act of bloodshed. And yet it goes on and on.

–Robert F. Kennedy, April 4, 1968

Senator Robert F. Kennedy announcing the murder of Dr. Martin Luther King, Jr.

What should the surviving victims of the Santa Barbara rampage do to seek redress?

And how can the relatives and friends of those who didn’t survive seek justice for those they loved?

Three things:

First, don’t count on politicians to support a ban on assault weapons.

Politicians–with rare exceptions–have only two goals:

  1. Get elected to office, and
  2. Stay in office.

And too many of them fear the economic and voting clout of the National Rifle Association to risk its wrath.

Second, don’t expect the mental health profession to prevent such future tragedies.

There is simply no definitive way to predict who is likely to commit mass murder.

And even if such a method were developed, it would likely be ruled unconstitutional.  A person can’t be jailed or hospitalized for fear of what he might do.

Third, those who survived the Santa Barbara rampage–and the relatives and friends of those who didn’t–should file wrongful death, class-action lawsuits against the NRA.

There is sound, legal precedent for this.

For decades, the American tobacco industry peddled death and disability to millions and reaped billions of dollars in profits.

  • The industry vigorously claimed there was no evidence that smoking caused cancer, heart disease, emphysema or any other ailment.
  • Tobacco companies spent billions on slick advertising campaigns to win new smokers and attack medical warnings about the dangers of smoking.
  • Tobacco companies spent millions to elect compliant politicians and block anti-smoking legislation.
  • From 1954 to 1994, over 800 private lawsuits were filed against tobacco companies in state courts. But only two plaintiffs prevailed, and both of those decisions were reversed on appeal.

  • In 1994, amidst great pessimism, Mississippi Attorney General Mike Moore filed a lawsuit against the tobacco industry.  But other states soon followed, ultimately growing to 46.
  • Their goal: To seek monetary, equitable and injunctive relief under various consumer-protection and anti-trust laws.
  • The theory underlying these lawsuits was: Cigarettes produced by the tobacco industry created health problems among the population, which badly strained the states’ public healthcare systems.
  • In 1998, the states settled their Medicaid lawsuits against the tobacco industry for recovery of their tobacco-related, health-care costs.  In return, they exempted the companies from private lawsuits for tobacco-related injuries.
  • The companies agreed to curtail or cease certain marketing practices.  They also agreed to pay, forever, annual payments to the states to compensate some of the medical costs for patients with smoking-related illnesses.

The parallels with the NRA are obvious:

  • For decades, the NRA has peddled deadly weapons to millions, reaped billions of dollars in profits and refused to admit the carnage those weapons have produced: “Guns don’t kill people.  People kill people.”  With guns.
  • The NRA has steadfastly defended the right to own Teflon-coated “cop killer” bullets,” whose only purpose is to penetrate bullet-resistant vests worn by law enforcement officers.

  • The NRA has bitterly fought background checks on gun-buyers, in effect granting even criminals and the mentally ill the right to own arsenals of death-dealing weaponry.
  • The NRA has spent millions on slick advertising campaigns to win new members and frighten them into buying guns.

  • The NRA has spent millions on political contributions to block gun-control legislation.
  • The NRA has spent millions attacking political candidates and elected officials who warned about the dangers of unrestricted access to assault and/or concealed weapons.

  • The NRA has spent millions pushing “Stand Your Ground” laws in more than half the states, which potentially give every citizen a “license to kill.”
  • The NRA receives millions of dollars from online sales of ammunition, high-capacity ammunition magazines, and other accessories through its point-of-sale Round-Up Program–thus directly profiting by selling a product that kills about 30,288 people a year.

  • Firearms made indiscriminately available through NRA lobbying have filled hospitals–such as those in Santa Barbara–with casualties, and have thus badly strained the states’ public healthcare systems.

It will take a series of highly expensive and well-publicized lawsuits to significantly weaken the NRA, financially and politically.

The first ones will have to be brought by the surviving victims of gun violence–and by the friends and families of those who did not survive it.  Only they will have the courage and motivation to take such a risk.

As with the cases first brought against tobacco companies, there will be losses.  And the NRA will rejoice with each one.

But, in time, state Attorneys General will see the clear parallels between lawsuits filed against those who peddle death by cigarette and those who peddle death by armor-piercing bullet.

And then the NRA–like the tobacco industry–will face an adversary wealthy enough to stand up for the rights of the gun industry’s own victims.

Only then will those politicians supporting reasonable gun controls dare to stand up for the victims of such needless tragedies as the one in Santa Barbara, California.

, , , , , , , , , , , , , , , , , , , , , , , , , , ,

MERCS FOR HIRE: PART TWO (END)

In Bureaucracy, Business, History, Military, Politics, Social commentary on May 15, 2014 at 12:33 am

The 1960 Kirk Douglas epic, Spartacus, may soon prove to be more than great entertainment. It may also turn out to be a prophecy of the end of the American Republic.

Throughout the movie, wealthy Romans assume they can buy anything–or anyone.  When seeking a favor, Marcus Licinius Crassus (Laurence Oliver) says bluntly: “Name your price.”

Today, “Name your price” has become the password for entry into America’s Intelligence community.

Althugh not portrayed in Spartacus, one of the reasons for the fall of the Roman empire lay in its reliance on foreign mercenaries.

Roman citizens, who had for centuries manned their city’s legions, decided to outsource these hardships and dangers to hired soldiers from Germany and Gaul (now France).

Although Germans and Gauls had proven capable fighters when defending their own countries, they proved highly unrelible as paid mercenaries.

Niccolo Machiavelli, the father of political science, drew heavily on ancient history for his examples of how liberty could best be preserved within a republic.

Niccolo Machiavelli

Fully aware of the Romans’ disastrous experience with mercenaries, Machiavelli believed that a nation’s army should be driven by patriotism, not greed.  Speaking of mercenaries, he warned:

“Mercenaries…are useless and dangerous. And if a prince holds on to his state by means of mercenary armies, he will never be stable or secure; for they are disunited, ambitious, without discipline, disloyal; they are brave among friends, among enemies they are cowards.”

Americans–generally disdainful of history–have blatantly ignored both the examples of history and the counsel of Machiavelli.  To their own peril.

Mark Mazzetti, author of the bestselling The Way of the Knife, chronicles how the CIA has been transformed from a primarily fact-finding agency into a terrorist-killing one.

Along with this transformation has come a dangerous dependency on private contractors to supply information that government agents used to dig up for themselves.

America’s defense and Intelligence industries, writes Mazzetti, once spread across the country, have relocated to the Washington area.

They want to be close to “the customer”: The National Security Agency, the Pentagon, the CIA and an array of other Intelligence agencies.

The U.S. Navy SEALS raid that killed Osama bin Laden has been the subject of books, documentaries and even an Oscar-nominated movie: “Zero Dark Thirty.”

Almost unknown by comparison is a program the CIA developed with Blackwater, a private security company, to locate and assassinate Islamic terrorists.

“We were building a unilateral, unattributable capability,” Erik Prince, CEO of Blackwater, said in an interview.  “If it went bad, we weren’t expecting the [CIA] chief of station, the ambassador or anyone to bail us out.”

But the program never got past the planning stage.  Senior CIA officials feared the agency would not be able to  permanently hide its own role in the effort.

“The more you outsource an operation,” said a CIA official, “the more deniable it becomes.  But you’re also giving up control of the operation.  And if that guy screws up, it’s still your fault.”

Increased reliance on “outsourcing” has created a “brain-drain” within the Intelligence community. Jobs with private security companies usually pay 50% more than government jobs.

Many employees at the CIA, NSA and other Intelligence agencies leave government service–and then return to it as private contractors earning far higher salaries.

Many within the Intelligence community fear that too much Intelligence work has been outsourced and the government has effectively lost control of its own information channels.

And, as always with the hiring of mercenaries, there is an even more basic fear: How fully can they be trusted?

“There’s an inevitable tension as to where the contractor’s loyalties lie,” said Jeffrey Smith, a former general counsel for the CIA.  “Do they lie with the flag?  Or do they lie with the bottom line?”

Yet another concern: How much can Intelligence agencies count on private contractors to effectively screen the people they hire?

Edward Snowden, it should be remembered, was an employee of Booz Allen Hamilton, a consulting/security firm.  It was through this company that Snowden gained access to a treasury of NSA secrets.

In March 2007, the Bush administration revealed that it paid 70% of its intelligence budget to private security contractors.  That remains the case today–and the Intelligence budget for 2012 was $75.4 billion.

A 2010 investigative series by the Washington Post found that “1,931 private companies work on programs related to counterterrorism, homeland security and intelligence in about 10,000 locations across the country.”

Jesus never served as a spy or soldier.  But he clearly understood a truth too many officials within the American Intelligence community have forgotten:

“For where your treasure is, there will your heart be also.”

, , , , , , , , , , , , , , , , , , , , , , ,

MERCS FOR HIRE: PART ONE (OF TWO)

In Bureaucracy, Business, History, Military, Politics, Social commentary on May 14, 2014 at 1:49 am

A movie critic, reviewing John Wayne’s 1968 gung-ho film, The Green Berets, said that Wayne had reduced the complex issues behind the Vietnam war to the simplicity of a barroom brawl.

In the same vein, the American news media displays a genius for ignoring the complexities of a major news story and focusing on just a single, sensationalistic aspect of it.

Take the Paula Deen scandal.  The media universally focused on Deen’s admitted use of the “N-word”–and utterly ignored far more important aspects of the story.

According to the complaint filed in the lawsuit, employees at the restaurant were routinely subjected to violent behavior, racial and sexual harassment, assault, bettery and sexual discrimination in pay.

Similarly, in covering the odyssey of Edward Snowden, the former National Security Agency (NSA) employee turned mass secret leaker, the media have followed the same path.

Edward Snowden

Following Snowden’s disappearance from the United States, the media focused their attention on charting the almost daily whereabouts of Snowden.

Would Snowden receive amnesty in Hong Kong?  In Russia?  In Cuba?  China?  Venezuela?  Nicaragua?

For the moment, he has settled on Russia, whose president, Vladimir Putin, is keeping a protective eye on him.

Yet even though he has momentarily obtained asylum, there’s no guarantee it will last.

Ilich Ramírez Sánchez, the international terrorist better known as “Carlos the Jackal,” can attest to that.

By 1994, he had spent almost 20 years on the run from the French Intellilgence agents.  They were seeking him for a series of terrorist attacks across France–and for the 1975 murders of two counter-intellilgence agents and their informant.

Carlos “The jackal”

After living in a series of countries that had no extradition treaty with France–such as Syria, Iraq and Jordan–he settled down in the Sudanese city of Khartoum.

He felt utterly safe, since he had been accorded official protection by the Sudanese government.  But he had misjudged his protectors.

French and American Intelligence agencies offered a number of deals to the Sudanese authorities. In 1994, Carlos was scheduled to undergo a minor testicular operation in a Sudanese hospital.

Two days after the operation, Sudanese officials warned him of an assassination plot–and moved him to a villa for protection.  They also provided him with bodyguards.

One night later, the bodyguards entered his room while he slept, tranquilized and tied him up–and slipped him into the custody of his longtime pursuers.

On August 14, 1994, Sudan transferred him to French Intelligence agents, who flew him to Paris for trial.  He is now serving two sentences of life imprisonment.

There is no guarantee that any nation that guarantees the security of Edward Snowden today won’t decide, in the future, to betray him.

And, eventually he will run out of secrets to spill.  That’s assuming that Russian and/or Chinese Intelligence agents haven’t already helped themselves to the secrets on his laptop.

As Mr. Spock once famously said during an episode of Star Trek: “Military secrets are the most fleeting of all.”

So where does the significance of the Snowden story lie?

In the fact that Americans have become too lazy or fearful to do most of their own spying.

Yes, that’s right–60 to 70% of America’s Intelligence budget doesn’t go to the CIA or the National Security Agency (NSA) or the Defense Intelligence Agency (DIA).

Instead, it goes to private contractors who supply secrets or “soldiers of fortune.”

One such contractor is Booz Allen Hamilton–which employed Snowden and gave him access to the super-secret NSA.

The outsourcing of government intelligence work to private contractors took off after 9/11.

This was especially true after the United States invaded Iraq in 2003–and found its Intelligence and armed services stretched to their furtherest limits.

The DIA estimates that, from the mid-1990s to 2005, the number of private contracts awarded by Intelligence agencies rose by 38%.

During that same period, government spending on “spies/guns for hire” doubled, from about $18 billion in 1995 to about $42 billion in 2005.

Many tasks and services once performed only by government employees are being “outsourced” to civilian contractors:

  • Analyzing Intelligence collected by drones and satellites;
  • Writing reports;
  • Creating and maintaining software programs to manipulate data for tracking terrorist suspects;
  • Staffing overseas CIA stations;
  • Serving as bodyguards to government officials stationed overseas;
  • Providing disguises used by agents working undercover.

More than 500 years ago, Niccolo Machiavelli, the Florentine statesman, warned of the dangers of relying on mercenaries:

“There are two types of armies that a prince may use to defend his state: armies made up of his own people or mercenaries….

“Mercenaries…are useless and dangerous. And if a prince holds on to his state by means of mercenary armies, he will never be stable or secure; for they are disunited, ambitious, without discipline, disloyal.

“They are brave among friends, among enemies they are cowards.

“They have neither the fear of God nor fidelity to men, and destruction is deferred only so long as the attack is. For in peace one is robbed by them, and in war by the enemy.”

Machiavelli, on meeting Edward Snowden, would no doubt find his judgment confirmed.

, , , , , , , , , , , , , ,

THE REAL “TAKERS”: THE RICH

In Bureaucracy, Business, Politics, Social commentary on May 13, 2014 at 1:42 pm

Ann Coulter, the Republican version of the Miss America Nazi, was devastated by the November 6 defeat of Mitt Romney.

“People are suffering,” she whined. “The country is in disarray. If Mitt Romney cannot win in this economy, then the tipping point has been reached.

“We have more takers than makers and it’s over. There is no hope.”

Ann Coulter

Actually, Coulter was right–but not in the way she thought she was.

The “takers” are not the “have-nots” who depend on government for assistance.  They are the “more-than-haves” who cheat the government of billions in lost tax revenues.

In 2012, Tax Justice Network, which campaigns to abolish tax havens, commissioned a study of their effect on the world’s economy.

The study was entitled, “The Price of Offshore Revisited: New Estimates for ‘Missing’ Global Private Wealth, Income, Inequality and Lost Taxes.”

http://www.taxjustice.net/cms/upload/pdf/Price_of_Offshore_Revisited_120722.pdf

The research was carried out by James Henry, former chief economist at consultants McKinsey & Co.  Among its findings:

  • By 2010, at least $21 to $32 trillion of the world’s private financial wealth had been invested virtually tax-­free through more than 80 offshore secrecy jurisdictions.
  • Since the 1970s, with eager (and often aggressive and illegal) assistance from the international private banking industry, private elites in 139 countries had accumulated $7.3 to $9.3 trillion of unrecorded offshore wealth by 2010.
  • This happened while many of those countries’ public sectors were borrowing themselves into bankruptcy, suffering painful adjustment and low growth, and holding fire sales of public assets.
  • The assets of these countries are held by a small number of wealthy individuals while the debts are shouldered by the ordinary people of these countries through their governments.
  • Local elites continue to vote with their financial feet while their public sectors borrow heavily abroad.
  • First World countries do most of the borrowing.
  • Of the $7.3–$9.3 trillion of offshore wealth belonging to residents of these 139 countries, the top 10 countries account for 61% and the top 20 for 81%.
  • The offshore industry has many levels of protection: Private bankers, lawyers and accountants get paid handsomely to hide their clients assets and identities.  These groups also maintain influential lobbies.
  • Bank regulators and central banks of most individual countries typically view private banks as key clients.  They have long permitted the world’s top tax havens and banks to conceal the ultimate origins and ownership of assets under their supervision, especially those held in off-balance sheet trusts and
    fiduciary accounts.
  • Although multilateral institutions like the Bank for International Settlements (BIS), the IMF and the World Bank are supposedly insulated from politics, they have been highly compromised by the collective interests of Wall Street.
  • These regulatory bodies have never required financial institutions to fully report their cross-­border customer liabilities, deposits, customer assets under management or under custody.
  • All conventional measures of inequality sharply understate the levels of income and wealth inequality at both the country and global level.
  • Less than 100,000 people, .001% of the world’s population, now control over 30% of the world’s financial wealth.
  • The impact on lost tax revenue may be huge–large enough to make a significant difference to the finances of nations.
  • Assuming that global offshore financial wealth of $21 trillion earns a total return of just 3% a year, and would have been taxed an average of 30% in the home country, this unrecorded wealth might have generated tax revenues of $189 billion per year.

Summing up this situation, the report notes: “We are up against one of society’s most well-­entrenched interest groups. After all, there’s no interest group more rich and powerful than the rich and powerful.”

Yet the study reveals two bright spots for countries fed up with being bled dry by those parasites whose allegiance runs only to their wallets.

  1. A huge pile at least $21 trillion of untapped financial wealth has been discovered–monies that can be called upon to help solve the most pressing global problems.
  2. A substantial fraction of this wealth is being managed by the top 50 players in the global private banking industry.

As a result, these findings allow nations’ leaders to:

  • Prevent the abuses that have lead to off-the-books wealth accumulation in the future.
  • Make use of the huge stock of accumulated, untaxed wealth that is already there, as well as the steady stream of untaxed earnings that it generates.

It was Stephen Decatur, the naval hero of the War of 1812, who famously said: “Our country, right or wrong.”

Stephen Decatur

Billionaire tax-cheats like those uncovered in the above-cited report have coined their own motto: “My wallet–first and always.”

, , , , , , , , , , , , , , , , , , ,

PAULA DEEN’S REAL LAGACY: PART THREE (END)

In Bureaucracy, Business, Law, Social commentary on April 16, 2014 at 12:38 am

In 2012, Celebrity Chef Paula Deen was sued by a former employee for sexual/racial harassment. For Deen, the deposition she filed in May, 2013, proved to be the worst mistake of her life.

Interrogated by Matthew C. Billips, the attorney for the plaintiff, Lisa Jackson, Deen responded as follows:

Q.  Are you aware of [your brother, Earl “Bubba” Hiers] admitting that he engaged in racially and sexually inappropriate behavior in the workplace?

A.  I guess. Q.  Okay.

A.  If I was sitting here I would have heard it.

Mistake #13:  She admits once again to having been apprised of her brother’s offensive behavior.

Earl “Bubba” Hiers

Q.  Okay.  Well, have you done anything about what you heard him admit to doing?

A.  My brother and I have had conversations.  My brother is not a bad person.  Do humans behave inappropriately?  At times, yes. 

I don’t know one person that has not.  My brother is a good man.  Have we told jokes?  Have we said things that we should not have said, that–yes, we all have.  We all have done that, every one of us.

Mistake #14:  She admitted to having talked with her brother about his offensive behavior–but she did not say she did anything to stop it or punish him for it.

Q.  You said you have had such conversations with [your brother]. When did you do so?

A.  When Karl told me he was stealing, I addressed that with Bubba.

Q.  And as a result of Mr. Hiers stealing, he received a pay increase and the money he had taken was recharacterized as wages, is that correct?

A.  I don’t know how it was settled.  I know that Karl was paying Lisa Jackson more than my brother was being paid, so if there was a salary increase, it would have been long overdue.

Mistake #15:  She admitted that even though she learned that one of her employees was stealing from her, she had nevertheless retained him. 

Speaking of her employee, Karl Schumacher, Deen said:

A.  Karl is the most judgmental person I know.  And out of every team member on our team, he is certainly the most prejudice.

Mistake #16:  She admitted that she had retained an employee who was openly prejudiced toward a wide range of people.

MackWorks, a business consulting firm, conducted an investigation of Uncle Bubba’s, which was owned by her brother, Earl “Bubba” Hiers. A

.  I didn’t read the report.

Q.  Okay.  And what, if any, investigation have you done to determine if it is your brother who is lying, as opposed to Miss Jackson and Mr. Schumacher and the people at MackWorks?

A.  I know my brother.  I know his character.  If I ask him something, he would not lie to me, nor would I to him.  There was nothing to investigate.

Mistake #18:  After an independent consulting firm gives her a scathing report about her brother’s restaurant, she didn’t read it.  

Mistake #19:  She admitted she didn’t read it.

Mistake #20:  She admitted she took no action to discover the truth for herself: “There was nothing to investigate.”

* * * * *

The media has focused its attention on Deen’s admission to having used the “N-word.”

  But clearly she was running a dysfunctional operation–replete with alcoholism, racial prejudice, sexual harassment and theft.

Much has been made of Deen’s serving as an ambassador of Southern culture and cooking.

But if only some of the accusations made against her hold up, she must also serve as an ambassador of a South decent Americans want to forget–and forever put behind them.

That was definitely an era when blacks knew their place–which was as slaves in the kitchens or fields of the Southern planter class who owned them.

According to Jackson, those are the days Deen would love to return to.

Deen has given lip service to knowing that the days of Southern racism are past.  But according to the complaint filed against her by her former employee, Lisa Jackson, that past remained very much alive:

  • Requiring black employees to use separate bathrooms and entrances from whites.
  • Holding black employees to “different, more stringent standards” than whites.
  • Allowing her brother, Earl “Bubba” Hiers, to regularly made offensive racial remarks.
  • Allowing Hiers to make inappropriate sexual comments.
  • Allowing Hiers to force the plaintiff, Lisa Jackson, to look at pornography with him.
  • Allowing Hiers to often violently shake employees.
  • Allowing Hiersto come to work in “an almost constant state of intoxication.”
  • Enabling Hiers’ behavior by ignoring Jackson’s efforts to discuss his behavior.
  • Holding “racist views herself.”

Many of Deen’s supporters have claimed she is the victim of anti-Southern prejudice. But the truth appears that only in the South could she have run so gigantic and lucrative an empire for so long in such prejucial and dysfunctional fashion.

The wonder is not that the Food Network refused to renew her contract after June, 2013.  The wonder is that she has managed to stay in business this long.

, , , , , , , , , , , , , , , , , , ,

PAULA DEEN’S REAL LAGACY: PART TWO (OF THREE)

In Bureaucracy, Business, Law, Social commentary on April 15, 2014 at 12:07 am

There are many lessons to be learned from the deposition Paula Deen gave in May, 2012, during a lawsuit filed against her for sexual/racial harassment lawsuit.

Interrogated by Matthew C. Billips, the attorney for the plaintiff, Lisa Jackson, Deen responded as follows:

Q.  Now, does [your brother’s] sense of humor include telling jokes about matters of a sexual nature?

A.  We have all told off-colored jokes.

Q.  Okay.  Does his sense of humor include telling jokes of a racial nature?

A.  I’m sure those kind of jokes have been told.  Every man I’ve ever come in contact with has one.

Mistake #3:  Deen acknowledged that off-color jokes were told in her workplace, and that she was clearly aware of it.

Mistake #4:  Deen made light of the telling of jokes that the vast majority of employers would not tolerate in their workplaces.

Q. Okay.  Miss Deen, have you told racial jokes?

A.  No, not racial.

Q.  Okay, have you ever used the N-word yourself?

A.  Yes, of course.

Mistake #5:  She knew that the charge of racial discrimination stood at the very heart of the lawsuit facing her. 

Yet, when asked if she had ever used the “N-word,” she replied, “Yes, of course,” as if this were the most natural thing in the world.

Q.  Okay.  In what context?

A.  Well, it was probably when a black man burst into the bank that I was working at and put a gun to my head.

Q. Okay, and what did you say?

A.  Well, I don’t remember, but the gun was dancing all around my temple.  I didn’t…feel real favorable towards him.

Q.  Okay.  Well, did you use the N-word to him as he pointed a gun in your head at your face?

A.  Absolutely not.

Q.  Well, then, when did you use it?

A.  Probably in telling my husband.

Mistake #6:  What is discussed between husband and wife is protected legally as marital privilege.  Her attorney should have objected and told her not to answer the question. 

If she had not admitted to using it privately with her husband, she might not have been asked if she had used it since then.

Q, Okay.  Have you used it [the “N-word”] since then?

A.  I’m sure I have, but it’s been a very long time.

Mistake #7:  Having admitted she used it in the past, she compounds her mistake by admitting she had used it since. 

Mistake #8:   There is an entirely legal way to avoid incriminating oneself–and being prosecuted for perjury.  It’s contained in the words: “Not that I can recall.”

Q. Can you remember the context in which you have used the N-word?

A.  No.

Q.  Has it occurred with sufficient frequency that you cannot recall all of the various context in which you’ve used it?

A.  No.

Q.  Well, then tell me the other context in which you’ve used the N-word.

A.  I don’t know, maybe in repeating something that was said to me.

Q.  Like a joke?

A  No, probably a conversation between blacks.  I don’t–I don’t know.

Mistake #9:  The vast majority of restaurant kitchens are staffed by blacks or Hispanics, whose exchanges are often obscene and homophobic. 

If Deen had said she had quoted such a conversation between employees, she could have legitimately claimed she did so entirely for the sake of accuracy. 

She could have blamed them for using the N”-word,” and cast herself strictly in the role of reporter.

Q.  Okay.

A.  But that’s just not a word that we use as time has gone on.  Things have changed since the 60s in the South.  And my children and my brother object to that word being used in any cruel or mean behavior.

Q.  Okay.

A.  As well as I do.

Q.  Are you aware that your brother has admitted to using that word at work?

A.  I don’t know about that.

Mistake #10:  She had previously admitted to attending her brother’s deposition, where he admitted to, among other offenses, using the N-word in the workplace. 

So this is a direct contradiction of her earlier admission.

Q  Okay.  Now, if you had learned of Mr. Hiers engaging in racially or sexually inappropriate behavior in the workplace, what, if any, actions would you have taken?

A.  I certainly would have addressed it.

Mistake #11:  Previously she had been asked: “Did any of the things that your brother admitted to doing, including…using the N-word in the workplace, did any of that conduct cause you to have any concerns about him continuing to operate the business?” 

And she had replied: “No.”  So this amounts to yet another contradiction.

Q.  Have you ever addressed Mr. Hiers’ racially or sexually inappropriate conduct?

A. No.

Mistake #12:  She admitted to having learned about her brother’s use of the “N-word” in the workplace–and then admitted to having never addressed it.

Q.  And you are aware of his admitting to engaging in racially and sexually inappropriate  behavior in the workplace in his deposition in this case?

A.   No.

Mistake #12:  This directly contradicts her previous admission that she had learned of his engaging in such behavior during his deposition.

, , , , , , , , , , , , , , , , , , ,

PAULA DEEN’S REAL LAGACY: PART ONE (OF THREE)

In Bureaucracy, Business, Law, Social commentary on April 14, 2014 at 12:00 am

The purpose of this blog is to highlight the ways public and private bureaucracies actually operate–as opposed to how they usually want others to believe they operate.

Occasionally, a case comes along that is so filled with blatant violations of law and common sense that it offers a road map of what others should do to avoid similar disaster.

Such a case is that of celebrity chef Paula Deen.

On April 3, Uncle Bubba’s Seafood and Oyster House closed without warning.

The Savannah, Georgia, restaurant lay at the center of the infamous Paula Deen lawsuit.

And, in keeping with the mistreatment she had long tolerated against her employees, Deen closed Uncle Bubba’s without a trace of class.

Yes, Paula Deen thought so little of her employees that she didn’t even tell them beforehand.  She let them show up to work, only to find kitchen appliances being removed from the restaurant.

Employees collected their severance checks in the parking lot.

Insead, the restaurant posted the following announcement on its Facebook page:

“Since its opening in 2004, Uncle Bubba’s Oyster House has been a destination for residents and tourists in Savannah, offering the region’s freshest seafood and oysters.

“However, the restaurant’s owner and operator, Bubba Heirs, has made the decision to close the restaurant in order to explore development options for the waterfront property on which the restaurant is located.

“At this point, no specific plans have been announced and a range of uses are under consideration in order realize the highest and best use for the property.

“The closing is effective today, Thursday, April 3, 2014. Employees will be provided with severance based on position and tenure with the restaurant.

“All effort will be made to find employees comparable employment with other Savannah restaurant organizations.” 

In 2013, Deen became the subject of nationwide controversey when Lisa Jackson, a former employee of Uncle Bubba’s, filed a sexual/racial harassment lawsuit against her.

In a deposition, Deen was asked if she had used the word “nigger” and she replied: “Of course.”

Suddenly, she lost her cooking show on the Food Network.  Several of his business partners–including Sears, JC Penney and Kmart–also gave hr the heave-ho.

The lawsuit was eventually dismissed, but, by then, the damage was done.

Commentators focused obsessively on Deen’s admission that she used the word “nigger.”  Entirely ignored was the longtime mistreatment she had allowed to be dished out to her employees.

Paula Deen

Deen, her brother Earl “Bubba” Hiers, her company, and the corporations that operated a pair of restaurants she owns in Savannah, Georgia, were sued by former employee Lisa Jackson.

A complaint filed in the U.S. District Court for the Southern District of Georgia in November, 2012, claimed that Jackson was subjected to “violent, sexist, and racist behavior” during her five years’ employment by Deen.

It was for that reason that she left Uncle Bubba’s Oyster House, which was run by Hiers, in August, 2010.

Jackson’s complaint alleged that:

  • Black employees were required to use separate bathrooms and entrances from whites.
  • Black employees were held to “different, more stringent standards” than whites.
  • Hiers regularly made offensive racial remarks.
  • Hiers made inappropriate sexual comments.
  • Hiers forced Jackson to look at pornography with him.
  • Hiers often violently shook employees.
  • Hiers came to work in “an almost constant state of intoxication.”
  • Dean enabled Hiers’ behavior by ignoring Jackson’s efforts to discuss his behavior.
  • Deen “holds racist views herself.”

The allegation that black employees were ordered to use separate bathrooms and entrances harkens back to the ugly days of the pre-civil rights South.

That was an era where most blacks knew their place–or were murdered by the Ku Klux Klan.

In May, 2013, Deen gave her own deposition in the case.

She denied many of the allegations against Hiers-–but ended up admitting that she was aware of his offensive behaviors:

Q.  Okay.  Are you aware–-you were here during your brother’s deposition, right?

A.  Yes.

Q.  So you are aware of the things that he’s admitted to?

A.  Absolutely.

Q.  Did any of the things that your brother admitted to doing, including reviewing–-reviewing pornography in the workplace, using the N-word in the workplace, did any of that conduct cause you to have any concerns about him continuing to operate the business?

A.  No.  My brother and I, 25 years ago…each started a business and we each had $200 to start that business. 

My brother built the most successful long-service business in Albany, Georgia, with his $200.  My brother is completely capable unless he’s being sabotaged.

Mistake #1:  Deen acknowledged that, if she hadn’t known about her brother’s behavior prior to his deposition, she was present during this and thus learned about it then.

Mistake #2:  Deen acknowledged that even after she officially became aware of his behavior, she did not feel there was any reason to sever him from the company.

, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

“A TEAM PLAYER”: PART TWO (END)

In Bureaucracy, Business, History, Law, Law Enforcement, Politics, Social commentary on April 9, 2014 at 12:01 am

In 1959,, J. Edgar Hoover, the legendary director of the FBI, declared war on the Mafia.

He set up a Top Hoodlum Program and encouraged his agents to use wiretapping and electronic surveillance (“bugging”) to make up for lost time and Intelligence.

But Hoover also imposed a series of restrictions that could destroy an agent’s professional and personal life.

William E. Roemer, Jr., assigned to the FBI’s Chicago field office, was one of the first agents to volunteer for such duty.

In his memoirs, Man Against the Mob, published in 1989, Roemer laid out the dangers that went with such work:

  1. If confronted by police or mobsters, agents were to try to escape without being identified.
  2. If caught by police, agents were not to identify themselves as FBI employees.
  3. They were to carry no badges, credentials or guns–or anything else connecting themselves with the FBI.
  4. If they were arrested by police and the truth emerged about their FBI employment, the Bureau would claim they were “rogue agents” acting on their own.
  5. Such agents were not to refute the FBI’s portrayal of them as “rogues.”

If he had been arrested by the Chicago Police Department and identified as an FBI agent, Roemer would have:

  1. Definitely been fired from his position as an FBI agent.
  2. Almost certainly been convicted for at least breaking and entering.
  3. Disbarred from the legal profession (Roemer was an attorney).
  4. Perhaps served a prison sentence.
  5. Been disgraced as a convicted felon.
  6. Been unable to serve in his chosen profession of law enforcement.

Given the huge risks involved, many agents, unsurprisingly, wanted nothing to do with “black bag jobs.”

The agents who took them on were so committed to penetrating the Mob that they willingly accepted Hoover’s dictates.

In 1989, Roemer speculated that former Marine Lieutenant Colonel Oliver North had fallen victim to such a “Mission: Impossible” scenario: “The secretary will disavow any knowledge of your actions….”

In 1986, Ronald Reagan’s “arms-for-hostages” deal known as Iran-Contra had been exposed.

To retrieve seven Americans taken hostage in Beirut, Lebanon, Reagan had secretly agreed to sell some of America’s most sophisticated missiles to Iran.

During this operation, several Reagan officials–including North–diverted proceeds from the sale of those missiles to fund Reagan’s illegal war against the Sandinistas in Nicaragua.

In Roemer’s view: North had followed orders from his superiors without question.  But when the time came for those superiors to step forward and protect him, they didn’t.

They let him take the fall.

Roemer speculated that North had been led to believe he would be rescued from criminal prosecution.  Instead, in 1989, he was convicted for

  • accepting an illegal gratuity;
  • aiding and abetting in the obstruction of a congressional inquiry; and
  • ordering the destruction of documents via his secretary, Fawn Hall.

That is how many employers expect their employees to act: To carry out whatever assignments they are given and take the blame if anything goes wrong.

Take the case of Wal-Mart Stores, Inc., the world’s biggest retailer.

In March, 2005, Wal-Mart escaped criminal charges when it agreed to pay $11 million to end a federal probe into its use of illegal aliens as janitors.

Agents from Immigration and Customs Enforcement (ICE) raided 60 Wal-Mart stores across 21 states in October, 2003.  The raids led to the arrest of 245 illegal aliens.

Federal authorities had uncovered the cases of an estimated 345 illegal aliens contracted as janitors at Wal-Mart stores.

Many of the workers worked seven days or nights a week without overtime pay or injury compensation. Those who worked nights were often locked in the store until the morning.

According to Federal officials, court-authorized wiretaps revealed that Wal-Mart executives knew their subcontractors hired illegal aliens.

Once the raids began, Federal agents invaded the company’s headquarters in Bentonville, Ark., seizing boxes of records from the office of a mid-level executive.

Click here: Wal-Mart Settles Illegal Immigrant Case for $11M | Fox News

Of course, Wal-Mart admitted no wrongdoing in the case.  Instead, it blamed its subcontractors for hiring illegal aliens and claiming that Wal-Mart hadn’t been aware of this.

Which, of course, is nonsense.

Just as the FBI would have had no compunctions about letting its agents take the fall for following orders right from the pen of J. Edgar Hoover, Wal-Mart meant to sacrifice its subcontractors for doing precisely what the company’s executives wanted them to do.

The only reason Wal-Mart couldn’t make this work: The Feds had, for once, treated corporate executives like Mafia leaders and had tapped their phones.

Click here: Wal-Mart to review workers – Business – EVTNow

Which holds a lesson for how Federal law enforcement agencies should treat future corporate executives when their companies are found violating the law.

Instead of seeing CEOs as “captains of industry,” a far more realistic approach would be giving this term a new meaning: Corrupt Egotistical Oligarchs.

A smart investigator/prosecutor should always remember:

Widespread illegal and corrupt behavior cannot happen among the employees of a major government agency or private corporation unless:

  1. Those at the top have ordered it and are profiting from it; or
  2. Those at the top don’t want to know about it and have taken no steps to prevent or punish it.

, , , , , , , , , , , , , , , , , , , , , ,

“A TEAM PLAYER”: PART ONE (OF TWO)

In Bureaucracy, Business, History, Law, Law Enforcement, Politics, Social commentary on April 8, 2014 at 12:15 am

Recruiters for corporate America routinely claim they’re looking for “a team player.”

This sounds great–as though the corporation is seeking people who will get along with their colleagues and work to achieve a worthwhile objective.

And, at times, that is precisely what is being sought in a potential employee.

But, altogether too often, what the corporation means by “a team player” is what the Mafia means by “a real standup guy.”

That is: Someone willing to commit any crime for the organization–and take the fall for its leaders if anything goes wrong.

Consider this classic example from the files of America’s premier law enforcement agency, the Federal Bureau of Investigation (FBI).

On November 14, 1957, 70 top Mafia leaders from across the country gathered at the estate of a fellow gangster, Joseph Barbara, in Apalachin, a small village in upstate New York.

The presence of so many cars with out-of-state license plates converging on an isolated mansion caught the attention of Edgar Crosswell, a sergeant in the New York State Police.

Crosswell assembled as many troopers as he could find, set up roadblocks, and swooped down on the estate.

The mobsters, panicked, fled in all directions–many of them into the surrounding woods.  Even so, more than 60 underworld bosses were arrested and indicted following the raid.

Perhaps the most significant result of the raid was the effect it had on J. Edgar Hoover, the legendary director of the FBI.

J. Edgar Hoover

Up to that point, Hoover had vigorously and vocally denied the existence of a nationwide Mafia.  He had been happy to leave pursuit of international narcotics traffickers to his hated rival, Harry Anslinger, director of the Federal Bureau of Narcotics (FBN).

But he had been careful to keep his own agency well out of the war on organized crime.

Several theories have been advanced as to why.

  1. Hoover feared that his agents–long renowned for their incorruptibility–would fall prey to the bribes  of well-heeled mobsters.
  2. Hoover feared that his allegedly homosexual relationship with his longtime associate director, Clyde Tolson, would be exposed by the Mob.  Rumors still persist that mobster Meyer Lansky came into possession of a compromising photo of Hoover and Tolson engaged in flagrante delicto.
  3. Hoover knew of the ties between moneyed mobsters and their political allies in Congress.  Hoover feared losing the goodwill of Congress for future–and ever-larger–appropriations for the FBI.
  4. Hoover preferred flashy, easily-solved cases to those requiring huge investments of manpower and money.

Whatever the reason, Hoover had, from the time he assumed directorship of the FBI in 1924, kept his agents far from the frontlines of the war against organized crime.

Suddenly, however, that was no longer possible.

The arrests of more than 60 known members of the underworld–in what the news media called “a conclave of crime”–deeply embarrassed Hoover.

It was all the more embarrassing that while the FBI had virtually nothing in its files on the leading lights of the Mafia, the Federal Bureau of Narcotics had opened its voluminous files to the Senate Labor Rackets Committee.

Heading that committee as chief legal counsel was Robert F. Kennedy–a fierce opponent of organized crime who, in 1961, would become Attorney General of the United States.

So Hoover created the Top Hoodlum Program (THP) to identify and target selected Mafiosi across the country.

Since the FBI had no networks of informants operating within the Mafia, Hoover fell back on a technique that had worked wonders against the Communist Party U.S.A.

He would wiretap the mobsters’ phones and plant electronic microphones (“bugs”) in their meeting places.

The information gained from these techniques would arm the Bureau with evidence that could be used to strongarm mobsters into “rolling over” on their colleagues in exchange for leniency.

Hoover believed he had authority to install wiretaps because more than one Attorney General had authorized their use.

But no Attorney General had given permission to install bugs–which involved breaking into the places where they were to be placed.  Such assignments were referred to within the Bureau as “black bag jobs.”

So, in making clear to his agent-force that he wanted an unprecedented war against organized crime, Hoover also made clear the following:

Before agents could install electronic surveillance (an ELSUR, in FBI-speak) devices in Mob hangouts, agents had to first request authority for a survey.  This would have to establish:

  1. That this was truly a strategic location;
  2. That the agents had a plan of attack that the Bureau could see was logical and potentially successful; and, most importantly of all
  3. That it could be done without any “embarrassment to the Bureau.”

According to former FBI agent William E. Roemer, Jr., who carried out many of these “black bag” assignments:

“The [last requirement] was always Mr. Hoover’s greatest concern: ‘Do the job, by God, but don’t ever let anything happen that might embarrass the Bureau.”