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Posts Tagged ‘ENRON’

DE-REGULATION: LET CRIMINALS BE CRIMINALS

In Bureaucracy, History, Law, Law Enforcement, Politics, Social commentary on June 20, 2025 at 12:12 am

This December 2 will mark the 24th anniversary of the collapse of Enron Corporation.

Based in Houston, Texas, Enron had employed 22,000 staffers and was one of the world’s leading electricity, natural gas, communications and paper companies.

In 2000, it claimed revenues of nearly $101 billion. Fortune had named Enron “America’s Most Innovative Company” for six consecutive years.

But then the truth emerged in 2001: Enron’s reported profitability was based not on brilliance and innovation but on systematic and creative accounting fraud.

And, on December 2, 2001, Enron filed for bankruptcy under Chapter 11 of the United States Bankruptcy  Code.

Enron’s $63.4 billion in assets made it the largest corporate bankruptcy in U.S. history—until WorldCom’s bankruptcy in 2002.

The California electricity crisis (2000-2001) was caused by market manipulations and illegal shutdowns of pipelines by Texas energy companies.

The state suffered from multiple large-scale blackouts. Pacific Gas & Electric, one of the state’s largest energy companies, collapsed, and the economic fall-out greatly harmed Governor Gray Davis’ standing.

The crisis was made possible by Governor Pete Wilson, who had forced the passage of partial de-regulation legislation in 1996. 

Enron seized its opportunity to inflate prices and manipulate energy output in California’s spot markets. The crisis cost the state $40 to $45 billion.

The true scandal of Enron was not that it was eventually destroyed by its own greed.

The true scandal was that its leaders were never Federally prosecuted for almost driving California—and the entire Western United States—into bankruptcy.

And the crisis occurred during the “liberal” administration of President Bill Clinton.

Related image

Once the news broke that Enron had filed for bankruptcy, commentators almost universally oozed compassion for its thousands of employees who would lose their salaries and pensions.

No one, however, condemned the “profits at any cost” dedication of those same employees for pushing California to the brink of ruin.

To put this in historical perspective:

  • Imagine a historian writing about the destruction of Hitler’s Schutzstaffel (Guard Detachment), or SS, as a human interest tragedy.
  • Imagine its Reichsfuhrer, Heinrich Himmler, being blamed for failing to prevent its collapse—as CEO Kenneth Lay was blamed for Enron’s demise.
  • Imagine that same historian completely ignoring the horrific role the SS had played throughout Nazi-occupied countries—and its primary role in slaughtering six million Jews during the Holocaust.  

Heinrich Himmler - World History Encyclopedia

Heinrich Himmler

Nor did the media urge the United States Department of Justice to end the extortion via RICO—the Federal Racketeer Influenced Corrupt Organizations Act.

Passed by Congress in 1970, this was originally aimed at the kingpins of the Mafia. Since the mid-1980s, however, RICO has been successfully applied against both terrorist groups and legitimate businesses engaged in criminal activity.

Under RICO, people financially injured by a pattern of criminal activity can bring a claim in State or Federal court, and obtain damages at three times the amount of their actual claim, plus reimbursement for their attorneys’ fees and costs.

Such prosecutions would have pitted energy-extortionists against the full investigative might of the FBI and the sweeping legal authority of the Justice Department.

Seal of the United States Department of Justice.svg

Consider this selection from the opening of the Act:

(1) “racketeering activity” means (A) any act or threat involving…extortion; (B) any act which is indictable under any of the following provisions of title 18, United States Code: sections 891-894 (relating to extortionate credit transactions), section 1343 (relating to wire fraud)Section 1344 (relating to financial institution fraud), section 1951 (relating to interference with commerce, robbery, or extortion), section 1952 (relating to racketeering)….

Today, two powerful social media companies—Facebook and X—play pivotal and potentially dangerous roles in the lives of millions of men, women and children.

Facebook has invaded its users’ privacy (such as via the Cambridge Analytica data scandal), manipulated elections (such as the 2016 Presidential one) and subjected its users to mass surveillance.

X has allowed trolls to abuse its followers and spread dangerous lies to millions. For five years, its chief troll was Donald Trump, who libeled hundreds while falsely claiming that COVID-19 was a hoax and that he won re-election in 2020 but was cheated by fraud.

Such lies resulted in the deaths of tens of thousands of Americans from COVID—and poisoned the American electoral system for future races. 

Yet in both cases, the Federal Government has stood by and allowed such abuses to continue unpunished. Yet it commands a wide range of agencies capable of addressing such abuses—such as the Federal Trade Commission, the Federal Communications Commission and—not least importantly, the Justice Department. 

Powerful, life-altering companies require powerful oversight—through the prism of the warning given by Niccolo Machiavelli more than 500 years ago:

All those who have written upon civil institutions demonstrate…that whoever desires to found a state and give it laws, must start with assuming that all men are bad and ever ready to display their vicious nature, whenever they may find occasion for it.  

If their evil disposition remains concealed for a time, it must be attributed to some unknown reason; and we must assume that it lacked occasion to show itself. But time, which has been said to be the father of all truth, does not fail to bring it to light. 

DE-REGULATION: LET CRIMINALS BE CRIMINALS

In Bureaucracy, History, Law, Law Enforcement, Politics, Social commentary on November 10, 2022 at 12:12 am

This December 2 will mark the 21st anniversary of the collapse of Enron Corporation.

Based in Houston, Texas, Enron had employed 22,000 staffers and was one of the world’s leading electricity, natural gas, communications and paper companies.

In 2000, it claimed revenues of nearly $101 billion. Fortune had named Enron “America’s Most Innovative Company” for six consecutive years.

But then the truth emerged in 2001: Enron’s reported profitability was based not on brilliance and innovation but on systematic and creative accounting fraud.

And, on December 2, 2001, Enron filed for bankruptcy under Chapter 11 of the United States Bankruptcy  Code.

Enron’s $63.4 billion in assets made it the largest corporate bankruptcy in U.S. history—until WorldCom’s bankruptcy in 2002.

The California electricity crisis (2000-2001) was caused by market manipulations and illegal shutdowns of pipelines by Texas energy companies.

The state suffered from multiple large-scale blackouts. Pacific Gas & Electric, one of the state’s largest energy companies, collapsed, and the economic fall-out greatly harmed Governor Gray Davis’ standing.

The crisis was made possible by Governor Pete Wilson, who had forced the passage of partial de-regulation legislation in 1996. 

Enron seized its opportunity to inflate prices and manipulate energy output in California’s spot markets. The crisis cost the state $40 to $45 billion.

The true scandal of Enron was not that it was eventually destroyed by its own greed.

The true scandal was that its leaders were never Federally prosecuted for almost driving California—and the entire Western United States—into bankruptcy.

Related image

And it happened during the “liberal” administration of President Bill Clinton.

Once the news broke that Enron had filed for bankruptcy, commentators almost universally oozed compassion for its thousands of employees who would lose their salaries and pensions.

No one, however, condemned the “profits at any cost” dedication of those same employees for pushing California to the brink of ruin.

To put this in historical perspective:

  • Imagine a historian writing about the destruction of Hitler’s Schutzstaffel (Guard Detachment), or SS, as a human interest tragedy.
  • Imagine its Reichsfuhrer, Heinrich Himmler, being blamed for failing to prevent its collapse—as CEO Kenneth Lay was blamed for Enron’s demise.
  • Imagine that same historian completely ignoring the horrific role the SS had played throughout Nazi-occupied countries—and its primary role in slaughtering six million Jews in the Holocaust.  

Nor did the media urge the United States Department of Justice to end the extortion via RICO—the Federal Racketeer Influenced Corrupt Organizations Act.

Seal of the United States Department of Justice.svg

Passed by Congress in 1970, this was originally aimed at the kingpins of the Mafia. Since the mid-1980s, however, RICO has been successfully applied against both terrorist groups and legitimate businesses engaged in criminal activity.

Under RICO, people financially injured by a pattern of criminal activity can bring a claim in State or Federal court, and obtain damages at three times the amount of their actual claim, plus reimbursement for their attorneys’ fees and costs.

Such prosecutions would have pitted energy-extortionists against the full investigative might of the FBI and the sweeping legal authority of the Justice Department.

Consider this selection from the opening of the Act:

(1) “racketeering activity” means (A) any act or threat involving…extortion; (B) any act which is indictable under any of the following provisions of title 18, United States Code: sections 891-894 (relating to extortionate credit transactions), section 1343 (relating to wire fraud)Section 1344 (relating to financial institution fraud), section 1951 (relating to interference with commerce, robbery, or extortion), section 1952 (relating to racketeering)….

Today, two powerful social media companies—Facebook and Twitter—play pivotal and potentially dangerous roles in the lives of millions of men, women and children.

Facebook has invaded its users’ privacy (such as via the Cambridge Analytica data scandal), manipulated elections (such as the 2016 Presidential one) and subjected its users to mass surveillance.

Twitter has allowed trolls to abuse its followers and spread dangerous lies to millions. For five years, its chief troll was Donald Trump, who libeled hundreds while falsely claiming that COVID-19 was a hoax and that he won re-election in 2020 but was cheated by fraud.

Such lies resulted in the deaths of tens of thousands of Americans from COVID—and poisoned the American electoral system for future races.

Yet in both cases, the Federal Government has stood by and allowed such abuses to continue unpunished. Yet it commands a wide range of agencies capable of addressing such abuses—such as the Federal Trade Commission, the Federal Communications Commission and—not least importantly, the Justice Department.

Powerful, life-altering companies require powerful oversight—through the prism of the warning given by Niccolo Machiavelli more than 500 years ago:

All those who have written upon civil institutions demonstrate…that whoever desires to found a state and give it laws, must start with assuming that all men are bad and ever ready to display their vicious nature, whenever they may find occasion for it.  

If their evil disposition remains concealed for a time, it must be attributed to some unknown reason; and we must assume that it lacked occasion to show itself. But time, which has been said to be the father of all truth, does not fail to bring it to light.

DE-REGULATION: LET PREDATORS BE PREDATORS

In Bureaucracy, Business, History, Law, Law Enforcement, Politics, Social commentary on May 21, 2021 at 12:09 am

This December 2 will mark the 20th anniversary of the death of a criminal empire. An empire that almost destroyed the Western United States.

The Enron Corporation.

Based in Houston, Texas, Enron had employed 22,000 staffers and was one of the world’s leading electricity, natural gas, communications and paper companies.

In 2000, it claimed revenues of nearly $101 billion. Fortune had named Enron “America’s Most Innovative Company” for six consecutive years.

But then the truth emerged in 2001: Enron’s reported profitability was based not on brilliance and innovation but on systematic and creative accounting fraud.

And, on December 2, 2001, Enron filed for bankruptcy under Chapter 11 of the United States Bankruptcy  Code.

Enron’s $63.4 billion in assets made it the largest corporate bankruptcy in U.S. history—until WorldCom’s bankruptcy in 2002.

The California electricity crisis (2000-2001) was caused by extortionate market manipulations and illegal shutdowns of pipelines by Texas energy companies.

California suffered from multiple large-scale blackouts. Pacific Gas & Electric, one of the state’s largest energy companies, collapsed, and the economic fall-out greatly harmed Governor Gray Davis’ standing.

The crisis was made possible by Governor Pete Wilson, who had forced the passage of partial de-regulation legislation in 1996. 

Enron seized its opportunity to inflate prices and manipulate energy output in California’s spot markets. The crisis cost the state $40 to $45 billion.

Related image

 

The true scandal of Enron was not that it was eventually destroyed by its own greed.

The true scandal was that its leaders were never Federally prosecuted for almost driving California—and the entire Western United States—into bankruptcy.

Under the pro-oil company administration of George W. Bush, no such prosecutions ever occurred. But Americans had a right to expect such redress under “liberal” President Bill Clinton.

Once the news broke that Enron had filed for bankruptcy, commentators almost universally oozed compassion for its thousands of employees who would lose their salaries and pensions.

No one, however, condemned the “profits at any cost” dedication of those same employees for pushing California to the brink of ruin.

To put this in historical perspective:

  • Imagine a historian writing about the destruction of Adolf Hitler’s Schutzstaffel (Guard Detachment), or SS, as a human interest tragedy.
  • Imagine its Reichsfuehrer, Heinrich Himmler, being blamed for failing to prevent its collapse—as CEO Kenneth Lay was blamed for Enron’s demise.
  • Imagine that same historian completely ignoring the horrific role the SS had played throughout Nazi-occupied countries—and its primary role in slaughtering six million Jews in the Holocaust.  

Nor did anyone in the media or government declare that the solution to such extortionate activity lay within the United States Department of Justice via RICO—the Federal Racketeer Influenced Corrupt Organizations Act.

Seal of the United States Department of Justice.svg

Passed by Congress in 1970, this was originally aimed at the kingpins of the Mafia. Since the mid-1980s, however, RICO has been successfully applied against both terrorist groups and legitimate businesses engaged in criminal activity.

Under RICO, people financially injured by a pattern of criminal activity can bring a claim in State or Federal court, and obtain damages at three times the amount of their actual claim, plus reimbursement for their attorneys’ fees and costs.

Such prosecutions would have pitted energy-extortionists against the full investigative might of the FBI and the sweeping legal  authority of the Justice Department.

Consider this selection from the opening of the Act:

(1) “racketeering activity” means (A) any act or threat involving…extortion; (B) any act which is indictable under any of the following provisions of title 18, United States Code: sections 891-894 (relating to extortionate credit transactions), section 1343 (relating to wire fraud)Section 1344 (relating to financial institution fraud), section 1951 (relating to interference with commerce, robbery, or extortion), section 1952 (relating to racketeering)….

With the 20th anniversary of Enron’s demise coming up, the mantra of “de-regulation” should be ruthlessly turned against those who have most ardently championed it.

Republicans have ingeniously dubbed the estate tax—which affects only a tiny minority of ultra-rich—“the death tax.” This makes it appear to affect everyone.

With the 2022 midterm elections fast approaching, Democrats should recast de-regulation thus:

“Greed Relief” 

“Greed Protection” 

“Legalized Extortion” 

And here are some possible slogans: 

“The Energy Industry: Giving You the Best Congress Money Can Buy.” 

“De-regulation: Let Criminals Be Criminals.”

The coal industry has pumped millions into TV ads touting the non-existent wonders of “clean coal.” And Chevron has spent millions assuring us that all its profits go strictly toward making the world a better place for others. (Presumably not a penny is left for its altruistic executives.)

When faced with such outright lying by the most vested of financial interests, it’s well to recall the warning given by Niccolo Machiavelli more than 500 years ago:

All those who have written upon civil institutions demonstrate…that whoever desires to found a state and give it laws, must start with assuming that all men are bad and ever ready to display their vicious nature, whenever they may find occasion for it.  

If their evil disposition remains concealed for a time, it must be attributed to some unknown reason; and we must assume that it lacked occasion to show itself. But time, which has been said to be the father of all truth, does not fail to bring it to light.

DE-REGULATION: LET CRIMINALS BE CRIMINALS

In Bureaucracy, History, Law, Law Enforcement, Politics, Social commentary on November 29, 2018 at 12:05 am

A forgotten anniversary is fast approaching: This December 2 will mark the 17th anniversary of the collapse of Enron Corporation.

Based in Houston, Texas, Enron had employed 22,000 staffers and was one of the world’s leading electricity, natural gas, communications and paper companies.

In 2000, it claimed revenues of nearly $101 billion. Fortune had named Enron “America’s Most Innovative Company” for six consecutive years.

But then the truth emerged in 2001: Enron’s reported profitability was based not on brilliance and innovation but on systematic and creative accounting fraud.

And, on December 2, 2001, Enron filed for bankruptcy under Chapter 11 of the United States Bankruptcy  Code.

Enron’s $63.4 billion in assets made it the largest corporate bankruptcy in U.S. history—until WorldCom’s bankruptcy in 2002.

The California electricity crisis (2000-2001) was caused by market manipulations and illegal shutdowns of pipelines by Texas energy companies.

The state suffered from multiple large-scale blackouts. Pacific Gas & Electric, one of the state’s largest energy companies, collapsed, and the economic fall-out greatly harmed Governor Gray Davis’ standing.

The crisis was made possible by Governor Pete Wilson, who had forced the passage of partial de-regulation legislation in 1996. 

Enron seized its opportunity to inflate prices and manipulate energy output in California’s spot markets. The crisis cost the state $40 to $45 billion.

Related image

 

The true scandal of Enron was not that it was eventually destroyed by its own greed.

The true scandal was that its leaders were never Federally prosecuted for almost driving California—and the entire Western United States—into bankruptcy.

Under the pro-oil company administration of George W. Bush, no such prosecutions ever occurred. But Americans had a right to expect such redress under “liberal” President Bill Clinton.

Once the news broke that Enron had filed for bankruptcy, commentators almost universally oozed compassion for its thousands of employees who would lose their salaries and pensions.

No one, however, condemned the “profits at any cost” dedication of those same employees for pushing California to the brink of ruin.

To put this in historical perspective:

  • Imagine a historian writing about the destruction of Hitler’s Schutzstaffel (Guard Detachment), or SS, as a human interest tragedy.
  • Imagine its Reichsfuehrer, Heinrich Himmler, being blamed for failing to prevent its collapse—as CEO Kenneth Lay was blamed for Enron’s demise.
  • Imagine that same historian completely ignoring the horrific role the SS had played throughout Nazi-occupied countries—and its primary role in slaughtering six million Jews in the Holocaust.  

Nor did anyone in the media or government declare that the solution to such extortionate activity lay within the United States Department of Justice via RICO—the Federal Racketeer Influenced Corrupt Organizations Act.

Seal of the United States Department of Justice.svg

Passed by Congress in 1970, this was originally aimed at the kingpins of the Mafia. Since the mid-1980s, however, RICO has been successfully applied against both terrorist groups and legitimate businesses engaged in criminal activity.

Under RICO, people financially injured by a pattern of criminal activity can bring a claim in State or Federal court, and obtain damages at three times the amount of their actual claim, plus reimbursement for their attorneys’ fees and costs.

Such prosecutions would have pitted energy-extortionists against the full investigative might of the FBI and the sweeping legal  authority of the Justice Department.

Consider this selection from the opening of the Act:

(1) “racketeering activity” means (A) any act or threat involving…extortion; (B) any act which is indictable under any of the following provisions of title 18, United States Code: sections 891-894 (relating to extortionate credit transactions), section 1343 (relating to wire fraud)Section 1344 (relating to financial institution fraud), section 1951 (relating to interference with commerce, robbery, or extortion), section 1952 (relating to racketeering)….

With the 17th anniversary of Enron’s demise coming up, the mantra of “de-regulation” should be ruthlessly turned against those who have most ardently championed it.

Republicans have ingeniously dubbed the estate tax—which affects only a tiny minority of ultra-rich—“the death tax.” This makes it appear to affect everyone.

Democrats should thus recast de-regulation in terms that will prove equally popular.  For example:

“Greed Relief” 

“Greed Protection” 

“Legalized Extortion” 

And here are some possible slogans: 

“The Energy Industry: Giving You the Best Congress Money Can Buy.” 

“De-regulation: Let Criminals Be Criminals.”

Today the coal industry is pumping millions into TV ads touting the non-existent wonders of “clean coal.” And Chevron spends millions assuring us that “all those profits” go strictly toward making the world a better place for others. (Presumably not a penny is left for its altruistic executives.)

When faced with such outright lying by the most vested of financial interests, it’s well to recall the warning given by Niccolo Machiavelli more than 500 years ago:

All those who have written upon civil institutions demonstrate…that whoever desires to found a state and give it laws, must start with assuming that all men are bad and ever ready to display their vicious nature, whenever they may find occasion for it.  

If their evil disposition remains concealed for a time, it must be attributed to some unknown reason; and we must assume that it lacked occasion to show itself. But time, which has been said to be the father of all truth, does not fail to bring it to light.

A CLASH OF TITANS: RFK VS. HOFFA–PART TWO (END)

In Bureaucracy, History, Law Enforcement, Politics, Social commentary on June 9, 2015 at 12:02 am

The 1983 TV mini-series, “Blood Feud,” chronicles the decade-long struggle between Robert F. Kennedy and James R. Hoffa.

As Attorney General, Kennedy declares war–for the first time in American history–on the Mafia.  He forces longtime FBI Director J. Edgar Hoover–who has long refused to tackle the Mob–to investigate and arrest mobsters throughout the nation.

He also brings new charges against Hoffa–and, once again, is outraged to see Hoffa acquitted.

But under the unrelenting pressures of being in the crosshairs of the FBI, Hoffa begins to crack.  He tells a trusted colleague, Edward Grady Partin (Brian Dennehy) how easy it would be to assassinate Kennedy with a rifle or a bomb.

Later, Partin gets into a legal jam–and is abandoned by the Teamsters.  Hoping to cut a deal, he relays word to the Justice Department of Hoffa’s threats against the Attorney General.

Now working for the Justice Department, Partin sends in reports on Hoffa’s juror-bribing efforts in yet another trial.  Hoffa again beats the rap–but now Kennedy has the insider’s proof he needs to put him away for years.

Meanwhile, the Mafia despairs of the increasing pressure of the Justice Department. At a swanky restaurant, several high-ranking members agree that “something” must be done.

[Although this scene is fictional, it’s clearly based on an infamous outburst of Carlos Marcello, the longtime Mafia boss of New Orleans.

Carlos Marcello

In 1962, Marcello–who had been deported to Guatemala by RFK, then illegally re-entered the country–flew into a rage when a business colleague mentioned Kennedy.

“Take the stone out of my shoe!” he shouted, echoing a Sicilian curse.  “Don’t you worry about that little Bobby sonofabitch.  He’s going to be taken care of!”

When his colleague warned that murdering RFK would trigger the wrath of his brother, President John F.Kennedy, Marcello replied: “In Sicily they say if you want to kill a dog you don’t cut off the tail. You go for the head.”

Marcello considered President Kennedy to be the head.  And he added that he planned to use a “nut” to do the job.]

On November 22, 1963, President John F. Kennedy is assassinated in Dallas.  “Blood Feud” clearly implies that the Mafia was responsible.

[The House Assassinations Committee investigated this possibility in 1978, and determined that Marcello had the means, motiva and opportunity to kill JFK.  But it could not find any conclusive evidence of his involvement.]

Even with the President dead, RFK’s Justice Department continues to pursue Hoffa.  In 1964, he is finally convicted of jury tampering and sentenced to 13 years’ imprisonment.

Hoping to avoid prison, Hoffa phones Robert Kennedy, offering future Teamsters support if RFK runs  for President. To prove he can deliver, he tells Kennedy that the Teamsters have even penetrated the FBI.

Kennedy confronts J. Edgar Hoover, accusing him of illegally planting wiretaps in Mob hangouts all over the country.

J. Edgar Hoover and Robert F. Kennedy 

Hoover retorts that this had been the only way to obtain the prosecution-worthy intelligence Kennedy had demanded: “You loved that flow of information.  You didn’t want it to stop.”

Kennedy: Why did you keep the FBI out of the fight against the Mob for decades?

Hoover: “Every agency that came to grips with them got corrupted by their money.”

[So far as is known, Hoover never made any such confession.  Historians continue to guess his reason for leaving the Mob alone for decades.]

RFK then mentions the CIA’s plots to employ the Mob to assassinate Cuban dictator Fidel Castro

[The agency had wanted to please President Kennedy, and the Mafia had wanted to regain its casinos lost to the Cuban Revolution.]

“The CIA, doing business with the Mob,” says Kennedy. “The FBI, leaking information to its enemies [the Teamsters].”  Then, sadly: “I guess it’s true–everyone does business with everyone.”

[So far as is known, the FBI did not pass on secrets to the Teamsters.  But during the 1970s, the Mafia  penetrated the Cleveland FBI office through bribes to a secretary. Several FBI Mob informants were  “clipped” as a result.]

In 1967, Hoffa goes to prison.  He stays there until, in 1971, President Richard Nixon commutes his sentence in hopes of gaining Teamsters support for his 1972 re-election.

Kennedy leaves the Justice Department in 1964 and is elected U.S. Senator from New York.  In 1968 he runs for President.  On June 5, after winning the California primary, he’s assassinated.

Hoffa schemes to return to the presidency of the Teamsters–a post now held by his successor, Frank Fitzsimmons.  He runs the union in a more relaxed style than Hoffa, thus giving the Mob greater control over its pension fund.

And the Mafia likes it that way.

On July 30, 1975, Hoffa disappears from the parking lot of the Machus Red Fox Restaurant near Detroit.  He had gone there to meet with two Mafia leaders.

Forty years later:

  • Labor unions are a shadow of their former power.
  • The threat they once represented to national prosperity has been replaced by that of predatory  corporations like Enron and AIG.
  • The war RFK began on the Mafia has continued, sending countless mobsters to prison.
  • Millions of Americans who once expected the Federal Government to protect them from crime now believe the Government is their biggest threat.
  • The idealism that fueled RFK’s life has virtually disappeared from politics.

A CLASH OF TITANS: RFK VS. HOFFA–PART ONE (OF TWO)

In Bureaucracy, History, Law Enforcement, Politics, Social commentary on June 8, 2015 at 12:01 am

Forty-seven years ago today, Senator Robert Francis Kennedy was laid to rest in Arlington Cemetary, only feet away from the grave of his elder brother–President John Fitzgerald Kennedy.

Campaigning for the Presidency in 1968, he had just won the crucial California primary on June 4–when he was shot in the back of the head.  His killer: Sirhan Sirhan, a young Palestinian furious at Kennedy’s support for Israel.

Eleven years earlier, as a young, idealistic attorney, Kennedy had declared war on James Riddle Hoffa, the president of the Mafia-dominated International Brotherhood of Teamsters Union.

As chief counsel for the Senate Labor Rackets Committee, Kennedy was appalled at the corruption he discovered among high-ranking Teamster officials.  As he saw it, under Hoffa’s leadership, the union was nothing less than “a conspiracy of evil.”

Robert F. Kennedy as Chief Counsel, Senate Labor Rackets Committee

Hoffa, in turn, held an equally unflattering view of Kennedy.  “A rich punk,” said Hoffa, who didn’t know or care about “the average workingman.”

In 1983, Blood Feud, a two-part TV mini-series, depicted the 11-year animosity between Kennedy and Hoffa.  Although it took some dramatic liberties, its portrayal of the major events of that period remains essentially accurate.

Today, labor unions are a rapidly-vanishing species, commanding far less political influence than they did 50 years ago.  As a result, young viewers of this series may find it hard to believe that labor ever held such sway, or that the Teamsters posed such a threat.

James Riddle Hoffa testifying before the Senate Labor Rackets Committee

And in an age when millions see “Big Government” as the enemy by millions, they may feel strong reservations about the all-out war that Robert F. Kennedy waged against Hoffa.

The series opens in 1957, when Hoffa (Robert Blake) is a rising figure within the Teamsters. Kennedy (Cotter Smith) is chief counsel for the Senate Labor Rackets Committee.

At first, Hoffa tries to ingratiate himself with Kennedy, telling him: “I know everybody who can help me and anybody who can hurt me.”

A wily Hoffa decides to parley Kennedy’s anti-corruption zeal into a path to power for himself.  Via his attorney, Eddie Cheyfitz, he feeds Kennedy incriminating evidence against Dave Beck, president of the Teamsters.

Robert Blake as James Hoffa

Confronted with a Senate subpoena, Beck flees the country–paving the way for Hoffa to assume the top position in the union. Hoffa believes he has solved two problems at once.

With the ousting of Beck, Kennedy should now be satisfied: “He’s got his scalp.  Now he can move on to other things while I run the union.”

But Hoffa has guessed wrong–with fatal results. Realizing that he’s been “played” by Hoffa, a furious Kennedy strikes back.

Cotter Smith as Robert Kennedy

He orders increased surveillance of Hoffa and his topmost associates.  He subpoenas union records and members of both the Teamsters and Mafia to appear before his committee in public hearings.

And he tries to enlist the aid of legendary FBI Director J. Edgar Hoover (Ernest Borgnine).  But Hoover wants no part of a war against organized crime, whose existence he refuses to admit.

Meanwhile, Kennedy’s confrontations with Hoffa grow increasingly fierce. In open hearings, Kennedy accuses Hoffa of receiving kickbacks in the name of his wife. Hoffa damns him for “dirtying my wife’s name.”

Kennedy secures an indictment against Hoffa for hiring a spy to infiltrate the Senate Labor Rackets Committee. He’s so certain of a conviction that he tells the press he’ll “jump off the Capitol building” if Hoffa beats the rap.

But Hoffa’s lawyer, Edward Bennett Williams (Jose Ferrer) puts Kennedy himself on the witness stand.  There he portrays Kennedy as a spoiled rich man who’s waging a vendetta against Hoffa.

Hoffa beats the rap, and offers to send Kennedy a parachute.  But he jokingly warns reporters: “Hey, Bobby, you better have it checked.  I don’t trust myself!”

By 1959, Kennedy’s work as chief counsel for the Senate Labor Rackets Committee is over.  But not his determination to send Hoffa to prison.

Throughout 1960, he manages the Presidential campaign for his brother, John F. Kennedy (Sam Groom).  By a margin of only 100,000 votes, John wins the election.

Hoffa thinks that his troubles are over, that “Bobby” will move on to other pursuits and forget about the Teamsters.

Kennedy moves on to another job–the office of United States Attorney General.  For Hoffa, it’s a nightmare come true.

JFK, needing someone in the Cabinet he can trust completely, browbeats Robert into becoming the the nation’s top cop.

As Attorney General, Kennedy must no longer beg J. Edgar Hoover to attack organized crime.  He can–and does–order him to do so.

Throughout the country, the Mafia feels a new heat as FBI agents plant illegal electronic microphones (“bugs”) in their innermost sanctums.  Agents openly tail mobsters–and send them to prison in large numbers.

And Kennedy sets up a special unit, composed of topflight prosecutors and investigators, to go after just one man: James Riddle Hoffa.  The press comes to call it  the “Get Hoffa” squad.

Hoffa continues to beat federal prosecutors in court.  But he believes he’s under constant surveillance by the FBI, and his nerves are starting to give way.

Convinced that the FBI has bugged his office, he literally tears apart the room, hoping to find the bug.  But he fails to do so.

What he doesn’t know is he’s facing a more personal danger–from one of his closest associates.

RFK VS. HOFFA: A CLASH OF TITANS: PART TWO (END)

In Bureaucracy, History, Politics, Social commentary on December 11, 2014 at 12:01 am

The 1983 TV mini-series, “Blood Feud,” chronicles the decade-long struggle between Robert F. Kennedy and James R. Hoffa.

As Attorney General, Kennedy declares war–for the first time in American history–on the Mafia.  He forces longtime FBI Director J. Edgar Hoover–who has long refused to tackle the Mob–to investigate and arrest mobsters throughout the nation.

He also brings new charges against Hoffa–and, once again, is outraged to see Hoffa acquitted.

But under the unrelenting pressures of being in the crosshairs of the FBI, Hoffa begins to crack.  He tells a trusted colleague, Edward Grady Partin (Brian Dennehy) how easy it would be to assassinate Kennedy with a rifle or a bomb.

Later, Partin gets into a legal jam–and is abandoned by the Teamsters.  Hoping to cut a deal, he relays word to the Justice Department of Hoffa’s threats against the Attorney General.

Now working for the Justice Department, Partin sends in reports on Hoffa’s juror-bribing efforts in yet another trial.  Hoffa again beats the rap–but now Kennedy has the insider’s proof he needs to put him away for years.

Meanwhile, the Mafia despairs of the increasing pressure of the Justice Department. At a swanky restaurant, several high-ranking members agree that “something” must be done.

[Although this scene is fictional, it’s clearly based on an infamous outburst of Carlos Marcello, the longtime Mafia boss of New Orleans.

Carlos Marcello

In 1962, Marcello–who had been deported to Guatemala by RFK, then illegally re-entered the country–flew into a rage when a business colleague mentioned Kennedy.

“Take the stone out of my shoe!” he shouted, echoing a Sicilian curse.  “Don’t you worry about that little Bobby sonofabitch.  He’s going to be taken care of!”

When his colleague warned that murdering RFK would trigger the wrath of his brother, President John F.Kennedy, Marcello replied: “In Sicily they say if you want to kill a dog you don’t cut off the tail. You go for the head.”

Marcello considered President Kennedy to be the head.  And he added that he planned to use a “nut” to do the job.]

On November 22, 1963, President John F. Kennedy is assassinated in Dallas.  “Blood Feud” clearly implies that the Mafia was responsible.

[The House Assassinations Committee investigated this possibility in 1978, and determined that Marcello had the means, motiva and opportunity to kill JFK.  But it could not find any conclusive evidence of his involvement.]

Even with the President dead, RFK’s Justice Department continues to pursue Hoffa.  In 1964, he is finally convicted of jury tampering and sentenced to 13 years’ imprisonment.

Hoping to avoid prison, Hoffa phones Robert Kennedy, offering future Teamsters support if RFK runs  for President. To prove he can deliver, he tells Kennedy that the Teamsters have even penetrated the FBI.

Kennedy confronts J. Edgar Hoover, accusing him of illegally planting wiretaps in Mob hangouts all over the country.

J. Edgar Hoover and Robert F. Kennedy 

Hoover retorts that this had been the only way to obtain the prosecution-worthy intelligence Kennedy had demanded: “You loved that flow of information.  You didn’t want it to stop.”

Kennedy: Why did you keep the FBI out of the fight against the Mob for decades?

Hoover: “Every agency that came to grips with them got corrupted by their money.”

[So far as is known, Hoover never made any such confession.  Historians continue to guess his reason for leaving the Mob alone for decades.]

RFK then mentions the CIA’s plots to employ the Mob to assassinate Cuban dictator Fidel Castro

[The agency had wanted to please President Kennedy, and the Mafia had wanted to regain its casinos lost to the Cuban Revolution.]

“The CIA, doing business with the Mob,” says Kennedy. “The FBI, leaking information to its enemies [the Teamsters].”  Then, sadly: “I guess it’s true–everyone does business with everyone.”

[So far as is known, the FBI did not pass on secrets to the Teamsters.  But during the 1970s, the Mafia  penetrated the Cleveland FBI office through bribes to a secretary. Several FBI Mob informants were  “clipped” as a result.]

In 1967, Hoffa goes to prison.  He stays there until, in 1971, President Richard Nixon commutes his sentence in hopes of gaining Teamsters support for his 1972 re-election.

Kennedy leaves the Justice Department in 1964 and is elected U.S. Senator from New York.  In 1968 he runs for President.  On June 5, after winning the California primary, he’s assassinated.

Hoffa schemes to return to the presidency of the Teamsters–a post now held by his successor, Frank Fitzsimmons.  He runs the union in a more relaxed style than Hoffa, thus giving the Mob greater control over its pension fund.

And the Mafia likes it that way.

On July 30, 1975, Hoffa disappears from the parking lot of the Machus Red Fox Restaurant near Detroit.  He had gone there to meet with two Mafia leaders.

Forty years later:

  • Labor unions are a shadow of their former power.
  • The threat they once represented to national prosperity has been replaced by that of predatory  corporations like Enron and AIG.
  • The war RFK began on the Mafia has continued, sending countless mobsters to prison.
  • The idealism that fueled RFK’s life has virtually disappeared from politics.
  • Millions of Americans who once expected the Federal Government to protect them from crime now believe the Government is their biggest threat.

RFK VS. HOFFA: A CLASH OF TITANS: PART ONE (OF TWO)

In Bureaucracy, History, Law Enforcement, Politics, Social commentary on December 10, 2014 at 12:10 am

Long ago, in an America increasingly far away….

A young, idealistic attorney named Robert Francis Kennedy declared war on James Riddle Hoffa, the president of the Mafia-dominated International Brotherhood of Teamsters Union.

As chief counsel for the Senate Labor Rackets Committee, Kennedy was appalled at the corruption he discovered among high-ranking Teamster officials.  As he saw it, under Hoffa’s leadership, the union was nothing less than “a conspiracy of evil.”

Robert F. Kennedy as Chief Counsel, Senate Labor Rackets Committee

Hoffa, in turn, held an equally unflattering view of Kennedy.  “A rich punk,” said Hoffa, who didn’t know or care about “the average workingman.”

In 1983, Blood Feud, a two-part TV mini-series, depicted the 11-year animosity between Kennedy and Hoffa.  Although it took some dramatic liberties, its portrayal of the major events of that period remains essentially accurate.

Today, labor unions are a rapidly-vanishing species, commanding far less political influence than they did 50 years ago.  As a result, young viewers of this series may find it hard to believe that labor ever held such sway, or that the Teamsters posed such a threat.

James Riddle Hoffa testifying before the Senate Labor Rackets Committee

And in an age when millions see “Big Government” as the enemy by millions, they may feel strong reservations about the all-out war that Robert F. Kennedy waged against Hoffa.

The series opens in 1957, when Hoffa (Robert Blake) is a rising figure within the Teamsters. Kennedy (Cotter Smith) is chief counsel for the Senate Labor Rackets Committee.

At first, Hoffa tries to ingratiate himself with Kennedy, telling him: “I know everybody who can help me and anybody who can hurt me.”

A wily Hoffa decides to parley Kennedy’s anti-corruption zeal into a path to power for himself.  Via his attorney, Eddie Cheyfitz, he feeds Kennedy incriminating evidence against Dave Beck, president of the Teamsters.

Robert Blake as James Hoffa

Confronted with a Senate subpoena, Beck flees the country–paving the way for Hoffa to assume the top position in the union. Hoffa believes he has solved two problems at once.

With the ousting of Beck, Kennedy should now be satisfied: “He’s got his scalp.  Now he can move on to other things while I run the union.”

But Hoffa has guessed wrong–with fatal results. Realizing that he’s been “played” by Hoffa, a furious Kennedy strikes back.

Cotter Smith as Robert Kennedy

He orders increased surveillance of Hoffa and his topmost associates.  He subpoenas union records and members of both the Teamsters and Mafia to appear before his committee in public hearings.

And he tries to enlist the aid of legendary FBI Director J. Edgar Hoover (Ernest Borgnine).  But Hoover wants no part of a war against organized crime, whose existence he refuses to admit.

Meanwhile, Kennedy’s confrontations with Hoffa grow increasingly fierce. In open hearings, Kennedy accuses Hoffa of receiving kickbacks in the name of his wife.  Hoffa damns him for “dirtying my wife’s name.”

Kennedy secures an indictment against Hoffa for hiring a spy to infiltrate the Senate Labor Rackets Committee. He’s so certain of a conviction that he tells the press he’ll “jump off the Capitol building” if Hoffa beats the rap.

But Hoffa’s lawyer, Edward Bennett Williams (Jose Ferrer) puts Kennedy himself on the witness stand.  There he portrays Kennedy as a spoiled rich man who’s waging a vendetta against Hoffa.

Hoffa beats the rap, and offers to send Kennedy a parachute.  But he jokingly warns reporters: “Hey, Bobby, you better have it checked.  I don’t trust myself!”

By 1959, Kennedy’s work as chief counsel for the Senate Labor Rackets Committee is over.  But not his determination to send Hoffa to prison.

Throughout 1960, he manages the Presidential campaign for his brother, John F. Kennedy (Sam Groom).  By a margin of only 100,000 votes, John wins the election.

Hoffa thinks that his troubles are over, that “Bobby” will move on to other pursuits and forget about the Teamsters.

Kennedy moves on to another job–the office of United States Attorney General.  For Hoffa, it’s a nightmare come true.

JFK, needing someone in the Cabinet he can trust completely, browbeats Robert into becoming the the nation’s top cop.

As Attorney General, Kennedy must no longer beg J. Edgar Hoover to attack organized crime.  He can–and does–order him to do so.

Throughout the country, the Mafia feels a new heat as FBI agents plant illegal electronic microphones (“bugs”) in their innermost sanctums.  Agents openly tail mobsters–and send them to prison in large numbers.

And Kennedy sets up a special unit, composed of topflight prosecutors and investigators, to go after just one man: James Riddle Hoffa.  The press comes to call the “Get Hoffa” squad.

Hoffa continues to beat federal prosecutors in court.  But he believes he’s under constant surveillance by the FBI, and his nerves are starting to give way.

Convinced that the FBI has bugged his office, he literally tears apart the room, hoping to find the bug.  But he fails to do so.

What he doesn’t know is he’s facing a more personal danger–from one of his closest associates.