The Ethical Barometer

“You might have crossed a few ethical lines if you plan to dole out $100 million in bonuses whilst on the government dole.”

Monday, March 16th, 2009

The Barometer supposes that the fear is palpable, that if you withheld $100 million in bonuses from these crackerjack AIG executives that they would hit the road in response to the job offers at their fingertips. (more…)

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You might have crossed a few ethical lines if you are a member of the House from New York and claim Maryland residency . . .

Saturday, March 14th, 2009

Rep. Eliot Engel (D. Bronx) has been elected to the House from the state of New York five times. During that ten-year span of public service, Mr. Engel and his wife, who have been lifelong residents of the Bronx, listed their primary residence on their tax returns as one located along the Potomac in Maryland. The effect of having the Potomac home as their primary residence was that the state of Maryland gave the couple $7,000 in tax credits (just over the past 4 years). The credits required: (1) at least six months residence in Maryland; (2) Maryland driver’s licenses; and (3) Maryland income tax returns. (2) and (3) were out — the Engels have licenses in New York and file with the state of New York. (1) we don’t know because Engel had no comment. The Barometer does. You might have crossed a few ethical lines if you are an elected representative in one state but claiming residential property credits in another! Does Turbo Tax have a screen for public figures that offers, “To disregard tax rules and maximize refund, click here”?

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“You might have crossed a few ethical lines if you work in the court system in Luzerne County, PA.”

Saturday, February 21st, 2009

The Barometer needs a flow chart just to keep track of the characters. Last week, a former judge in Luzerne County, Pennsylavnia entered a guilty plea to taking part in a kickback scheme for verdicts. Then a local newspaper filed documents alleging the same judge fixed a verdict in a defamation case against the paper. Another case charges a county probation official with obstruction of justice for altering a public record. Still other parts of the story accuse two judges of accepting $2.8 million to send two juveniles to a private detention center for their youthful indiscretions. There is also an undercurrent of an alleged organized crime figure crossing in and out of the various goings on. Poor William Penn and his Quaker virtues never imagined public corruption cases at the pace of whirling fan blades.

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You might have crossed a few ethical lines if you dismiss a case in which the defendant is represented by your son’s law firm.

Wednesday, February 18th, 2009

Federal Judge Richard H. Kyle, Minneapolis, failed to disclose that Medtronic, a defendant in a massive product liability action, was represented by the firm in which his son is a partner. Judge Kyle dismissed the 700 cases five weeks ago, determining that federal regulation of medical devices pre-empted the state-law, tort-based product liability action. The suits involved Medtronic’s heart device wires, Sprint Fidelis defibrillator leads. “I never thought about it. I don’t see that I have a conflict.” (more…)

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Madoff Lost His Mittens

Thursday, January 8th, 2009

When the court freezes your assets,keep your mittens. Bernard Madoff, the current $50-billion-Ponzi-scheme-king, whilst free on $10 million in bail, has been sending off gifts to relatives and friends, including $200 mittens, watches, cuff links,brooches, necklaces, and bracelets. Total value of the booty mailed to Madoff’s brother and another family? $1,000,000! Madoff’s lawyer, Ira Sorkin, was quick on his feet, “To Mr. and Mrs. Madoff, the value of these items was purely sentimental.” Most of us could live on that kind of sentiment for years to come. As one lawyer commenting on the case noted, “It’s pretty ballsy.” Here’s a safety tip: When you are out on bail, under house arrest, and the court has frozen your assets, you may not want to ship out the jewelry to Florida.

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You might have crossed a few ethical lines if you are the Washington Post and are accepting payments from companies for access at dinners to the publisher’s house

Saturday, January 3rd, 2009

It was a close call. A marketing flier for the Post offered companies, in exchange for $25,000 per ”collegial evening” or $250,000 for all 11 (a real bargain), access to the publisher, advocates, administration officials, and dinner and all at the home of the publisher. Then politico.com reported on the collegial evenings and Post staffers as well as journalism ethicists began flying twice backwards around their cages. The evening was canceled. Why, said the Post ombudsman, “This comes close to a public relations disaster.” (more…)

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You might have crossed a few ethical lines if you report the cost of a $70,000 trip as $2,500.

Saturday, January 3rd, 2009

Members of Congress must disclose money spent on taxpayer-funded “codels.” One would think with Washington’s propensities, the folks there could choose a more phonetically sensitive term. Sen. Arlen Specter (D. Pa. nee R. Pa.) reported the cost of an 11-day, 7-country trip for four folks, including his wife, as $571 per person, or $2,500. Actual cost? About $70,000. Really, we can handle the truth. We just want it.

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You might have crossed a few ethical lines if you are driving drunk in the wee hours on your way to visit your mistress and child, all three being news to your spouse

Saturday, October 18th, 2008

Representative Vito J. Fossella (R) was convicted of drunk driving by a judge in Alexandria, Virginia. Mr. Fossella, who is married and has three children, was pulled over after he ran a red light in the wee hours of the morning on Seminary Road (there is some irony here) in Alexandria. Arresting officer Jamie Garrett indicated that Rep. Fossella’s eyes were bloodshot and his lips were stained red. He had a blood alcohol content of 0.133 measured by a breathalyzer at the roadside arrest. After his arrest, his BA level tested at 0.17. The legal limit in Virginia is 0.08. Publicity resulted in further investigation of the congressman. He was on his way to visit his mistress and their child. There had to be some tense conversations in the Fossella household that day. Mr. Fossella has wisely abandoned his re-election bid. The case was colorful. (more…)

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“A Culture of Substance Abuse and Promiscuity”

Thursday, September 11th, 2008

One would expect that kind of finding if one were doing an audit of the Mustang Ranch. However, the Barometer is quoting from the Inspector General’s report on the Minerals Management Service, a division of the Department of Interior that is responsible for oil and gas leases. Off-shore drilling takes on a whole new meaning with the report’s conclusions. Let’s just say that you may have crossed a few ethical lines as a government employee if you are doing cocaine and marijuana with oil and gas company representatives. Also, sexual relations with said representatives present a few ethical issues as well. Nineteen employees were involved in the shenanigans that also included thousands in gifts from oil and gas reps. With the networks struggling for new shows and viewers, the Barometer’s advice to networks execs is to tap into audit reports at both the state and federal levels. There’s a treasure trove here that could make the “90210″ crowd blush.

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Those Fake Federal Government Mailings Are Out Under a New Ethics Code for Student Loan Industry

Wednesday, September 10th, 2008

Seven student lenders reached an agreement with New York Attorney General Andrew Cuomo on their marketing practices. One of the forms of marketing now prohibited under the new marketing code is the use of mailings that appear to come from the federal government. Such mailings proved to be successful marketing tools because students believed the brown envelopes connoted “Feds.” The companies, Campus Door, EduCap, GMAC Bank, Graduate Loan Associates, Nelnet, NextStudent, and Xanthus Financial Services, also agreed to pay $1.4 million in the form of loan education programs for students and their parents. My Rich Uncle, a company not involved in the tactics or the resulting settlement, will support the code even though its marketing practices were deemed by Cuomo to be above board. Other industries: Take Note. Mailings that appear to be from the federal government are not fair game when it comes to marketing. Deception never is.

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Just because you have depreciation does not mean you get a pass from the IRS

Friday, September 5th, 2008

Representative Charles B. Rangel failed to report income from property he owns at the Punta Cana Yacht Club. The chair of the House Ways and Means Committee (responsible for the Internal Revenue Code) indicated that he did not know of the problem. Rep. Rangel’s accountant responded that because there was significant depreciation associated with the PCYC investment property, he doubted any federal taxes were owed. Ah, but depreciation does not a pass on reporting income give. Depreciation is something we lump in with expenses, deductions. You report the income and then subtract these things. This income/deduction thing may be one of the few clear things in the IRC. One additional glitch — the accountant needs to know how many times the Rangels used the PCYC property for vacations. Can’t have it both ways. An investment property gives you depreciation. A second home does not, and then you have income. Either way . . . there is a problem.

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How Was I Supposed to Know What VIP Meant?

Tuesday, August 19th, 2008

Senator Christopher Dodd, chair of the Senate Banking Committee, said he knew that he had been designated a “VIP” by Countrywide Financial CEO Angelo Mozilo (in street language he was an “FOA”, or “friend of Angelo”). However, Senator Dodd said he had no hint that he was getting special treatment.

Meanwhile, Senator Kent Conrad, chair of the Senate Budget Panel, said that when he called his old friend Jim Johnson (former CEO of Fannie Mae) for advice on a mortgage for his Delaware beach house, Johnson put Angelo on the phone. Senator Conrad said he was “unaware” of any favoritism in his loan until he read about the break he got in Portfolio magazine.

Senators, senators, when Angelo designates you a VIP and takes your call at the drop of a hat, you may have crossed a few ethical lines thereby trotting into conflicts of interest territory.

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My website is “odd and interesting,” maybe “prurient,” but not obscene like the guy’s films in the case I’m hearing.

Friday, June 13th, 2008

Ninth Circuit Court of Appeals Chief Judge Alex Kozinski has one of the country’s finest legal minds. His opinions are literature. No weak argument makes its way past him. But, Judge Kozinski had a website. And on this website were photos of naked women painted as cows. With a naked woman here, and a naked woman there, here a naked woman, there a naked woman, everywhere a naked woman. Judge Kozinski explained that he didn’t think the site was public. Then he explained that his son uploaded most of the bad stuff. Then he said he made a mistake and uploaded the wrong files. Next, the dog ate my homework. (more…)

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Dating A Suspect’s Wife May Cross a Few Ethical Lines

Saturday, May 31st, 2008

A Phoenix FBI agent was arrested this week on charges related to his having an affair with the wife of a man that the agent had once arrested. The agent saw the husband’s case through to a prison sentence. Having your paramour’s husband behind bars for 18 months does reduce the odds of trouble from the husband. However, the story alleged by the Justice Department in its indictment goes downhill from there, from a law-enforcement-integrity perspective. After the hubby was released from prison, the agent allegedly fed information to authorities on the husband’s involvement in an armed robbery of a Radio Shack. Fifteen years was the penalty for the hubby.

But the indictment just gets better and alleges more – that the agent used his position to see to it that the wife’s (and the husband’s) son, who apparently had a hand in the Radio Shack heist, could turn state’s evidence and get a favorable plea deal. Ah, the old trick of sending the husband up the river and reforming the son. It’s not the stuff of an Austen novel. But it is a conflict of interest. (more…)

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Archive for the 'You might have crossed a few ethical lines if . . .' Category

“You might have crossed a few ethical lines if you plan to dole out $100 million in bonuses whilst on the government dole.”

You might have crossed a few ethical lines if you are a member of the House from New York and claim Maryland residency . . .

“You might have crossed a few ethical lines if you work in the court system in Luzerne County, PA.”

You might have crossed a few ethical lines if you dismiss a case in which the defendant is represented by your son’s law firm.

Madoff Lost His Mittens

You might have crossed a few ethical lines if you are the Washington Post and are accepting payments from companies for access at dinners to the publisher’s house

You might have crossed a few ethical lines if you report the cost of a $70,000 trip as $2,500.

You might have crossed a few ethical lines if you are driving drunk in the wee hours on your way to visit your mistress and child, all three being news to your spouse

“A Culture of Substance Abuse and Promiscuity”

Those Fake Federal Government Mailings Are Out Under a New Ethics Code for Student Loan Industry

Just because you have depreciation does not mean you get a pass from the IRS

How Was I Supposed to Know What VIP Meant?

My website is “odd and interesting,” maybe “prurient,” but not obscene like the guy’s films in the case I’m hearing.

Dating A Suspect’s Wife May Cross a Few Ethical Lines

Featured Books by Marianne Jennings

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