Former U.S. Attorney David Iglesias of New Mexico, one of the seven (or eight or even nine) federal prosecutors fired by the Department of Justice in 2006, will be publishing a book, "In Justice," that discusses his career and the process by which he and the others were terminated. In the fashion of other tell-all books that leak certain details to pique our interest, a story in the McClatchey Newspapers (here) reveals that Iglesias spoke with U.S. Attorney Johnny Sutton of the Western District of Texas, the head of the U.S. Attorneys committee and a close ally of the President, to see if he could intercede to save Iglesias’ job. According to Iglesias, Sutton said that his name was on a list, and that the firings were "political." While not exactly earth-shattering, the fact that Sutton was shown the list and acknowledged the political nature of the decision shows how the decision-making process was tainted. Prior to being fired, Iglesias received a call from New Mexico Senator Pete Domenici questioning the slow progress of a corruption case involving a Democrat official, and complained about the case not moving forward quickly enough before the 2006 election. Iglesias was fired less than two months later. There are sure to be further disclosures from the book until its release in a few months. I can’t wait for the movie, and I wonder who will play Alberto Gonzales, Monica Goodling, Carol Lam, Kevin Ryan, and the rest of the crew. Iglesias was the model for Tom Cruise’s role as a Navy lawyer in "A Few Good Men," but he may not be right for the part this time. Suggestions are welcome. (ph)
Category: Media
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There is nothing quite like a high-profile scandal to attract Congressmen like moths to a flame, and the Mitchell Report on steroid and HGH use in baseball is one of the brightest flames around these days. Two Congressional Committees have scheduled hearings in January on the issue, inviting former Senator George Mitchell and MLB Commissioner Bud Selig to testify. Back in March 2005, in the first round of publicity-mongering on steroids in baseball, the House Oversight and Government Affairs Committee invited a number of major leaguers to testify about steroid use. That hearing produced Mark McGwire’s famous non-assertion of the Fifth Amendment when he proclaimed he would only talk about the future — who cares about what a retired baseball player does after his playing days — and Rafael Palmeiro aggressively asserting that he never used steroids — only to test positive a couple months later, thus ending his career.
The prospect of such enticing nuggets showing up on YouTube may well result in one or more invitations to superstar pitcher Roger Clemens to testify about his reported steroid use. Clemens is the highest profile player, perhaps after Barry Bonds, named in the Mitchell Report, and he issued the following statement denying the assertions in the Report: "I want to state clearly and without qualification: I did not take steroids, human growth hormone or any other banned substances at any time in my baseball career or, in fact, my entire life. Those substances represent a dangerous and destructive shortcut that no athlete should ever take." A USA Today story (here) quotes Representative Tom Davis as stating that no players will be subpoenaed, but they are free to appear voluntarily and testify under oath.
The source of the information about Clemens is a former trainer, Brian McNamee, who is reported to have spoken to Mitchell and his investigators pursuant to a proffer agreement with federal prosecutors that limits any subsequent use of his statements against him while requiring him to be truthful. This type of limited immunity, sometimes called a "Queen for a Day" agreement, usually is a prelude to a plea bargain with the government that will include a recommendation of leniency from prosecutors based on the defendant’s cooperation. There is no report at this point that McNamee has agreed to plead guilty to any charges, and there’s a chance prosecutors could decide not to charge him or even grant full immunity. Either way, the limited protection does not mean he is a credible witness automatically.
Given Clemens’ denial and McNamee’s statements to Mitchell, could there be much better theater than having them both appear on Capitol Hill, a surefire lead story on the evening news? While statements to the media are not subject to the perjury or false statement laws, much to the consternation of many journalists, testimony before Congress is under oath. If you were Clemens’ attorney, would you have your client testify, especially if there were others out there aside from McNamee who could provide information against him? On the other hand, given the clarity of his denial of steroid and HGH use, can counsel advise Clemens not to testify if given the opportunity? While Clemens declined to speak with Mitchell, now that his name it out in public, there will be enormous pressure on him to go to Capitol Hill. In his statement he said "I plan to publicly answer all of those questions at the appropriate time in the appropriate way." Is a Congressional hearing the "appropriate" forum, or was he thinking about perhaps going on Larry King?
Of course, Congress would learn nothing of any importance from having Clemens testify, just like no real legislative purpose was served in 2005 when McGwire, Palmeiro, Sammy Sosa, and others were dragged in front of the Committee — but not Barry Bonds, as it turns out. The invitation is really asking Clemens to step into a perjury traps because Congressional testimony is under oath, and hence subject to a perjury prosecution. The trap is easily avoided, if Clemens is not subpoenaed to testify, because he can just decline the invitation while castigating the media. Indeed, he may already have laid the groundwork for such a position when his statement included the following: "I am disappointed that my 25 years in public life have apparently not earned me the benefit of the doubt." Perhaps he will simply ask for the benefit of the doubt, but at what cost to his credibility if there’s an open invitation to reiterate under oath what he has already said to the media. (ph)
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The Race to the Bottom blog has an interesting post here on ways to provide help for homeless veterans. (ph)
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"Corporate Representation after DOJ’s McNulty Memo: The Implications of DOJ Policy for White Collar Defenders, Internal Investigators, Civil Litigators and Everyday Business Advisors."
The program will bring together experts to explain the McNulty Memo, its background and meaning for practitioners in white-collar prosecutions, internal investigations, civil litigation, and everyday corporate practice. Our faculty will offer insight into how DOJ is actually implementing the McNulty Memo, its significance for other government agencies, how lawyers are practicing in light of it, and how critics are taking steps to achieve further restraints.
For more details see here.
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Washington Legal Foundation Program –
"Over the past year, criminal defense lawyers, civil liberties advocates, and business associations have been seeking greater protection for white collar defendants’ rights and privileges in the face of increased corporate criminalization. A series of federal court rulings on the constitutional rights of former KPMG executives have helped to fuel the drive for such reform. On Thursday, August 16 from 10:00-11:00 a.m. EST, Washington Legal Foundation will be broadcasting a live Web Seminar examining the ongoing legal drama of U.S. v. Stein and the larger debate over the attorney-client privilege, the ability of companies to pay accused employees’ legal fees, and the McNulty Memo. The discussion features National Association of Criminal Defense Lawyers’ Stephanie Martz, and Lawrence Barcella, a leading white collar crime partner from the law firm Paul, Hastings, Janofsky & Walker LLP.
"We encourage you to interact with our speakers by emailing your questions during the program to interactive@wlf.org."
For more information, see here –
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The NYTimes has an article titled, "5 Reporters Ordered to Testify About Government Sources."
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A new blog that is part of the Law Professor Blogs network is the M&A Law Prof Blog written by my colleague, Professor Steven Davidoff. For those interested in corporate mergers, acquisitions, private equity investments, and the securities markets, it is an interesting read. (ph)
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Perhaps it was inevitable that there would be a movie, and there are reports that leading man Leonardo DiCaprio will star in a movie about the demise of Enron. According to a CNN story (here), the screenplay will be based on Kurt Eichenwald’s book "Conspiracy of Fools," and DiCaprio will play a newly-hired employee who exposes the fraud at the company. I suspect the role of Sherron Watkins will be downplayed, and no doubt hints about a conspiracy involving President Bush and major energy companies will have to enliven what is an otherwise mundane story — it’s awfully hard to make the use of an off-shore special purpose entity to transfers assets to avoid the proper accounting treatment of a loan sound the least bit interesting. DiCaprio starred in Titanic, so it will be difficult to resist comparisons to that disaster, and I doubt there will be any scenes on the roof of the Enron tower in Houston. Then again, there are those who claim the government’s prosecution of Lay, Skilling, and others was a work of complete fiction anyway, the so-called "criminalization of agency costs" argument, so this story can’t be viewed as any more of a fabrication. (ph)
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The Wall Street Jrl here tells of the life Conrad Black is leading despite charges pending against him. Oftentimes those who are alleged to have committed white collar crimes remain hidden during the pendency of the case. Lord Black, however, has been on the social scene, even serving as a speaker at Toronto’s Empire Club.
The article also speaks of whether Black is trying to reinstate his Canadian citizenship in case he is convicted, thus allowing him to serve any sentence issued in Canada. Prisoner Transfer Treaties allow a person convicted in one country to serve their sentence in another country. (see here). "However, a prisoner is not eligible for transfer until the judgment and sentence in his case is final; that is, when no appeals or collateral attacks are pending." (Id.) But perhaps this entire conversation is premature as Conrad Black has only been indicted, and that does not mean the government will be successful in proving a case against him.
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In the burgeoning world of media-sponsored law blogs, the Washington Post has started one called Bench Conference (here) that is written by Andrew Cohen. Another good source of legal information and commentary in the blogging world. (ph)