Kwame M. Kilpatrick, Detroit’s Indicted Mayor

Mayor Kwame M. Kilpatrick has his share of legal difficulties.  He is under indictment for perjury that relates to his testimony in a wonrgful termination suit of two city employees who had thrown down the flag on the mayor’s parties and extramarital affair.  After the two employees received $6.5 million in damages, the issue of perjury surfaced because of text messages uncovered from the mayor’s phone.  The messages were between the mayor and his former chief of staff, the alleged other party in the affair. The mayor had to spend some time in jail last week for crossing the Detroit River into Canada, all in violation of his bond/release restrictions imposed during his arraignment.  Whilst the mayor cooled his heels in jail, the attorney general filed additional charges of assault against the mayor for his alleged shoving of two officers trying to serve subpoenas on some of the mayor’s friends.  Also pending is a petition by the Detroit City Council to Michigan’s governor Jennifer M. Granholm to have the mayor removed for cause.  Governor Granholm has a hearing scheduled for September 3.  The Motor City has its hands and hoosegows full. 

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You Never Know From Whence Good Information Will Come

The sordid tale makes you want to avert your eyes.  There is a terminally ill wife grappling with her husband’s public confession of an affair.  How that tugs at your heart strings!  But, you find you cannot avert your eyes because there are the journalism ethics questions, “How come The National Enquirer beat the major news sources to the story by almost nine months?  And why was it ignored until photos forced a confession?” 

The John Edwards saga has, at once, so much sadness and so much enlightenment. There are lessons to be learned from this tale of woe.  Some of the basic principles and lessons learned here could have been drawn from similar sagas that have run from Eliot Spitzer back to Grover Cleveland:  1.  Truth percolates.  It just wants out there. Behave accordingly.  And, if you slip, admit it, make amends and disclosures (particularly when in the public eye), and then move forward.  2.  Benjamin Franklin and the Hell’s Angels had it right:  “Three people can keep a secret if two are dead.” Continue reading

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“Being 99% honest is no longer enough.”

Former presidential candidate, John Edwards, admitting to an affair

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Moral Equivalency and Barry Bonds

Leave it to Sports Illustrated to not understand the Barry Bonds issue. Ben Reiter wrote, “If teams are rejecting Bonds on moral grounds, WHO ARE THEY KIDDING?” and “Still, in a sport where teams happily take late-career chances on outcasts like John Rocker and men of advanced age like Julio Franco, there should be a locker for Bonds somewhere.” [Emphasis in original article, “Will Work for What He Made in ’86,” Sports Illustrated, July 28, 2008, p. 18.

Well, there is a difference between hiring a guy who mouthed off about subway riders (Rocker) or another who is long in the tooth (Franco) and a guy who is under indictment by the feds for perjury charges related to the steroids mess (Bonds). We don’t yet indict folks for being less than PC, which Rocker was. And thanks to aging baby boomers, we love to see the old duffers out there giving it the old pre-rest-home try. Think Greg Norman at 53 giving the Scots great delight in the recent British Open. Continue reading

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“Thus we mix good and evil, right and wrong and make space for the absolute triumph of absolute Evil in the world.”

Alexander Solzhenitsyn, in a speech at Harvard in 1978.

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“[Expletive] to compliance guys.” “Business guys rule.”

Quotes from former employees of Indymac in Tripp et al. v. IndyMac et al, (C.D. Cal. 2007), including third amended complaint filed on June 6, 2008.

Indymac officials indicate that the former employees are disgruntled and that it was a victim of the downturn in the real estate and mortgage markets.

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49% of managers uncovered a lie on a résumé

A CareerBuilder.com survey

38% exaggerated their former job responsibilities

And the survey of 3,000 managers found some whoppers:  Degrees from nonexistent schools and a claimed member of the Kennedy family.  Oddly, the Kennedys had never met him. 

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“I think it ought to be written in their contracts. I don’t think they have the right to say they are or they’re not, because they are. And they ought to accept that.”

John Madden, on whether professional football players should be considered role models.

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Hasbro, Scrabulous, and the Bloggers

Scrabulous, the online knockoff of Scrabble, was shut down on July 29, 2008 because Hasbro, and rightfully so, pointed out that Scrabble, the basis for Scrabulous, was its copyrighted game.  Scrabble launched its own online game, but hackers made the authorized version inaccessible. 

Bloggers are howling about Hasbro.  Dear bloggers, proceed with caution.  Intellectual property rights exist to ensure that those who have good ideas are rewarded.  Scrabulous was nifty, but it was not original.  Hasbro may be late-to-the-electronic party, but circumvent intellectual property rights and you’ll find innovation suffers.  As I tell my students who continue their free downloads of copyrighted music, there are costs to freebies.  Don’t come running to me when all you have are merry jingles for music.  If you want angst, you must reward sweat of the brow.  If you want good games, you reward those who develop the game, not those who stand electronically on the shoulders of creators.  If it were your game, how would you feel if someone ripped it?   

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Former NBA Referee Tim Donaghy Gets 15 Months

After entering a guilty plea to accepting cash in exchange for providing gamblers with so-called “inside information” on NBA games, former NBA referee Tim Donaghy was sentenced to 15 months in prison.  The judge did not go with the recommended 33 months because Mr. Donaghy had been helpful to prosecutors in providing information on the gamblers, both former high school classmates.  His classmates got sentences ranging from 12 to 15 months.  Never trust the people you cheat with; they will throw you under the bus.

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Alaska: Land of the Midnight Sums; Senator Ted Stevens Indicted on Gifts Disclosure Charges

‘Tis not a good time to be in politics in Alaska.  Senator Ted Stevens was indicted on charges that he did not disclose gifts from oil service company, VECO Corporation, including the remodeling of his home, a Viking stove, and a 1999 Land Rover in exchange for a 1964 Mustang.  Five state legislators have entered guilty pleas or are facing trials on corruption charges related to their conduct vis-a-vis VECO.  Representative Don Young is under investigation for his VECO ties.  Governor Sarah Pallin faces an independent investigation into whether she used her authority to try and get her brother-in-law fired.  Must be the long, dark winters that cloud judgment.   

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Apple Falls Into the Either/Or Conundrum

Rumors about health, surgery, and cancer recurrence aside, Steve Jobs looks to be ailing.  Even the analysts, whose acute powers of observation found them missing most of the dot-com bust as well as the subprime air, raised the question during a recent conference call.  Apple’s position is that health is a private matter.  Analysts’ position is that if Jobs leaves then Apple’s stock drops 25%.  The SEC’s position is that companies must disclose material information.  And so we swirl.  “None of your business,” is not the stuff that puts rumors to rest.  Maybe a firm, “You can’t handle the truth,” would be less controversial.  Or maybe Apple needs to escape the either/or conundrum.  Continue reading

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Whistle-Blowers Have Highest Success Rate on Uncovering Fraud

A PriceWaterhouseCoopers study found that frauds are uncovered as follows:

  • 29% from employee tips
  • 19% from internal audit departments (down from 26% in previous surveys)
  • 14% from external tips
  • Remainder of discoveries come through enforcement activities from state and federal agencies

In the survey of 5,400 executives, 43% said that their companies had experienced at least one “significant economic crime” at their companies in the past year.

My conclusion:  Culture matters — a culture that protects, encourages, and rewards employees who come forward with concerns. 

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“Most athletes compete honestly and fairly . . . We owe it to these athletes, who train so hard, to ensure that the Games are as free of prohibited drugs as possible.”

Jacques Rogge, president of the International Olympic Committee

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