Federal Prosecutors "Reach Too Far"

In a unanimous decision, a federal court of appeals rejected the Rove Republican Racket's attempts to reinstate criminal charges against a former corporate financial officer of Bristol-Myers Squibb, a large pharmaceutical company based in New Jersey.

In this case, the U.S. Attorney's Office in New Jersey kept changing, or "morphing," the arguments and theories of their case. The case was narrowed and evidence tossed out. The Rove-Bush-Cheney  U.S. Department of Justice appealed the decision in 2008.


The Wall Street Journal reported yesterday:

The Third Circuit Court of Appeals [yesterday] rejected the Justice Department’s attempt to reinstate part of its prosecution of Frederick Schiff, former chief financial officer at Bristol-Myers Squibb, the large pharmaceuticals company.

The Third Circuit, in a unanimous decision, wrote in a 59-page opinion that prosecutors overreached in part of their case. Prosecutors from the New Jersey U.S. attorney’s office argued that Schiff had a duty to disclose an inventory-related issue in regulatory filings, such as the 10-K or 10-Q, because he had “a general fiduciary obligation of ‘high corporate executives’ to the company’s shareholders” under Rule 10b-5 of the Securities and Exchange Act.

The Third Circuit stated: “This argument reaches too far.”

In 2005 Schiff was indicted with another former executive on securities-fraud charges for their role in the company’s use of incentives to get wholesalers to buy more products than needed. The practice, known as “channel stuffing,” inflated sales by $2.5 billion and earnings by $900 million from 1999 to 2001, the government alleged.

In 2008 the trial judge, Faith Hochberg, whittled down the case against Schiff by preventing prosecutors from introducing certain evidence and arguments because their legal theories had continued to “morph” until the eve of the trial.

Tea Party Dawson

Former Assistant U.S. Attorney Tom Dawson, the dishonest former federal prosecutor from Mississippi who obtained a secret six-month (book writing?) contract from his former boss days after retiring in January of 2009, has gone stupid.

From prosecuting prominent Democrats, to having book writing discussions with a right-wing blogger while STILL SERVING as a federal prosecutor, to hiding his secret contract during live on-the-air radio interviews, Dawson is not the brightest fellow.

But now he's a founding member of the Oxford, Mississippi chapter of the Tea Party, according to a detailed posting on the blog North Mississippi Commentor. Even the Main Justice blog picked up the story.

We always knew that Dawson was a member of the Rove Republican Racket and that innocent Democrats were targeted, prosecuted and tossed in jail. But now Dawson has exhibited his true political underwear: he's a right-wing kook.

With a pile of boxes of unsold books in storage, Dawson's book about the prosecution of two Democrats, which we call "Flop of Tort," has sold miserably.

Maybe Dawson can sell them at bargain prices to his fellow right-wingers of the Tea Party brigades or better yet, dump them in the harbor like tea from the East Indies.

Million-Dollar Bingo Jackpot

Almost exactly a year ago, with the aftermath of the prosecutorial misconduct case against former U.S. Senator Ted Stevens, we introduced our readers to  Brenda K. Morris (pictured) , a Rove Republican Racket federal prosecutor in the U.S. Department of Justice, who was one of the six prosecutors accused of withholding evidence in the Stevens case.

Our post was about how Morris had to settle another prosecutorial misconduct case for $1.34 million and appeared to have had a pattern of engaging in cases shrouded with controversy or misconduct.

Now Morris has reappeared in another case shadowed with controversy and misconduct. Main Justice reports:

The lead prosecutor in the government’s botched case against former Alaska Sen. Ted Stevens has resurfaced in  a controversial federal corruption investigation in the Middle District of Alabama.

Brenda Morris, a veteran trial lawyer in the Criminal Division’s Public Integrity Section, was among a group of federal law enforcement officials who met with Alabama legislators on April 1 to inform them of the probe, which is related to a proposed amendment to the state constitution that would legalize electronic bingo.

The investigation has inflamed tensions between state Democrats and Republican-appointed U.S. Attorney Leura Canary, who prosecuted former Gov. Don Siegelman (D) and whose husband has close ties to Republican Gov. Bob Riley, who strongly opposes the amendment. Canary’s office and the Public Integrity Section are jointly investigating bingo proponents’ quest for votes in support of the amendment, which the state Senate passed on March 30.

The state House of Representatives has yet to vote. Alabama Democrats sent a letter to Lanny Breuer, the head of the Justice Department’s Criminal Division, charging that the “unprecedented” disclosure of the investigation was meant to have a “chilling effect” on state legislators who otherwise might have voted for the amendment.

 Who said Democrats weren't still being targeted?

Morrison's Wife Beater

Embattled Acting U.S. Attorney of Southern Indiana Timothy M. Morrison has even more problems after politically helping his unscrupulous Republican friends.

Last November, Morrison let his Republican pal Timothy S. Durham, the alleged mastermind of an alleged Ponzi scheme that duped Ohio retirees, keep all his cash and assets. Durham was one of the highest donors to Republican campaigns in Indiana. Durham has since moved to California.

To add insult to injury, last January, Morrison let Durham's alleged co-conspirator and partner, James F. Cochran (pictured) conduct an estate sale in Florida even though a Congressman and investors pleaded with Morrison to block the sale.

Now Cochran has returned the favor in the most embarrassing way. Independent Station Channel 6 of Indianapolis reports:

The business partner of embattled investment manager Tim Durham is accused of hitting his wife and son during a domestic dispute. James F. Cochran, 54, was arrested at the family's McCordsville home [last month] on preliminary charges of battery resulting in bodily injury and domestic battery.Susan Cochran told police that she and her husband were arguing when he grabbed her by the arms and threw her into a wall, causing her to hit her head.The couple's son, James R. Cochran, 21, said he came into the room to try and protect his mother, and that his father pushed him and punched him in the eye, telling him "I'm going to [expletive] kill you." James F. Cochran, who appeared to have a cut to the face in his mug shot, denied that any assault took place, and told police that he tripped and fell.

Tripped and fell? Please!

As the world crumbles around them, Jimmy appears to have resorted to violence against those closest to him: his family. Yet, Morrison continues to let these "esteemed" pals run free.

Alaska Six Probe Wrapping Up

The Rove Republican Racket's prosecutorial misconduct derailed their case against former U.S. Senator Ted Stevens of Alaska.  U.S. Attorney General Eric Holder, "horrified" by the misconduct, vacated the conviction and withdrew the charges last year.

Now the probe of the six Justice Department attorneys involved in the fiasco is wrapping up. Main Justice reports:

The special prosecutor investigating the Justice Department lawyers involved in the government’s case against former Sen. Ted Stevens (R- Alaska) has completed interviews, signaling that the yearlong probe is nearing its conclusion, said two people familiar with the matter.Meanwhile, the Justice Department’s ethics unit is close to finishing a separate investigation of the six lawyers, which will culminate in a report on whether their failure to turn over critical evidence to Stevens’ defense team amounted to professional misconduct, the people said. Special prosecutor Henry Schuelke III, whose investigation began in April 2009, is expected to make his recommendation first. U.S. District Judge Emmet Sullivan, who presided over the Stevens trial, tapped Schuelke to determine whether department lawyers sought to conceal the evidence in violation of criminal contempt statutes or whether they withheld it by mistake.

Happy Easter!

To our readers, wishing you and your families a Happy Easter!

Political Manipulation at the Highest Level of Government

The Miami Herald had an interesting story Tuesday about how government operatives smeared, spied-on, and then manipulated government Inspector General reports about a fellow government agent for political purposes.

What is bothersome is that this occurred at the highest level of government involving the U.S. Department of State, the CIA and the DEA.

Later, Karl Rove and his henchmen became great manipulators of the U.S. Department of Justice. They successfully targeted, prosecuted and incarcerated Democrats and others who didn't toe the political line.

Who says it cannot be done? Who says Big Brother can't mess with you? Who dismisses the fact that the Rove Republican Racket operated viciously from California to Maine?

Read this, drink your coffee, and think twice, three times about it.

An unhappy federal judge on Tuesday approved a $3 million settlement with a former narcotics officer who said the CIA spied on him overseas. The approved settlement caps a 16-year fight for former Drug Enforcement Administration agent Richard A. Horn and California attorney Brian Leighton. It also leaves the judge grumbling over how the government handled the long-secret case. It does not appear that any government officials have been held accountable for this loss to the taxpayer," U.S. District Judge Royce Lamberth wrote. "This is troubling." Driving his point home, Lamberth further noted that "there is disturbing evidence in a sealed motion that misconduct occurred in the Inspector General offices at both the State Department and the Central Intelligence Agency." After noting that the case "has already consumed too much time and too many resources for everyone concerned," however, Lamberth agreed to drop potential disciplinary proceedings against CIA officials. He'll formally do so once he has been assured that the allegations have been referred to congressional intelligence committees and the inspector general offices.

Read the full story here.