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Over-Reaching Prosecutors Run The Country

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For the last decade or so, the news has been full of the ascension of “former Enron Task Force prosecutors” to the highest halls of the White House, the Department of Justice, and the FBI.  Why are these former prosecutors—whose actual record has been described by Business Insider as one of utter humiliation—being promoted by Presidents from both political parties?

It is well-documented that this cabal of prosecutors would do anything to win—and that’s exactly what they did.  Yet, they have all been promoted—by Presidents Bush, Obama, and now Trump.

Who are these people?

Robert Mueller, Facebook

Let’s start with Christopher Wray—just named to head the FBI.  The media has widely touted his impeccable credentials, which are impressive on their face, but we’d be remiss if we failed to waive a red flag of warning, given his role in overseeing the work of the Enron Task Force from 2003 until he left the Department in 2005.  Thankfully, Wray himself did not make it into my book, but his Task Force Director Andrew Weissmann is a lead antagonist.  Weissmann was just named to join former FBI Director Robert Mueller’s Russia “collusion” investigation.

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Let’s examine the real record of the Enron Task Force—what you never saw in the news.  Formed in early 2002, they made sweetheart deals with the actual criminals (Andrew Fastow & Michael Kopper) who stole millions and destroyed Enron; they coerced guilty pleas from people who were innocent but couldn’t continue to fight—financially, physically or emotionally—or who believed the prosecutors threats of a life in prison; and, they threatened witnesses with perjury indictments if the witnesses’ recollection of the facts differed from the “view” of the Task Force.  Some defendants successfully defended against two trials, but caved in the face of a third prosecution for the same offenses.  You thought they couldn’t do that, didn’t you?

Before Mr. Wray’s tenure in the Department of Justice as head of its criminal division, which began in 2003, the Task Force—primarily Leslie Caldwell, Andrew Weissmann and Matthew Friedrich—created a new crime and destroyed Arthur Andersen LLP and its 85,000 jobs—for nothing.  “In a trial rife with prosecutorial misconduct obviously calculated to win at any cost,” they obtained a conviction, but only after 10 days of jury deliberations.

Three years later, the Supreme Court reversed the Andersen conviction in a unanimous decision, holding that Andersen’s conduct was not criminal, and it “was shocking how little criminal culpability the jury instructions required.”  Those jury instructions had been drafted by the Task Force, then rubber-stamped and read to the jury a “law and order” Houston federal judge.  The judge was compelled to allow Mr. Duncan to withdraw his guilty plea.  Weissmann and Caldwell had coerced him into pleading guilty to something that was not a crime.

The Task Force’s tactics proved so effective in destroying Andersen, that this cabal intensified their efforts in their prosecution of four Merrill Lynch executives in the infamous “Enron or Nigerian Barge case.”  Not only did Weissmann, Friedrich, and now Kathryn Ruemmler threaten to indict Merrill in-house counsel and the former treasurer of Enron who had committed no crimes, they demanded to be present for the defense’s interviews of any Merrill employees involved in the transaction or who might want to testify for the defendants.

This tactic, of course, “chilled” (to say the least) what chance there may have been that any witness would speak with a defendant. Combined with baseless threats to indict, it completely foreclosed the defendants access to any witnesses.  Adding illegal insult to injury, they yellow-highlighted information favorable to the defense before the trial, but kept it hidden for six years.  Four innocent men spent as much as a year in prison until the Fifth Circuit reversed their convictions and later found that these prosecutors had “plainly suppressedevidence favorable to the defense.  It should be cause for concern that these tactics all occurred during Mr. Wray’s watch, and respected Houston lawyers were screaming about them.

No matter what one’s opinion of Enron’s executives Ken Lay and Jeff Skilling, incessant negative press coverage inflamed Houston’s natural outrage, and prosecutorial misconduct infected their trial as much as the others.

The truth is that every case this cabal actually took to trial was reversed in whole or in part by an appellate court.   Judges had to allow some guilty pleas to be withdrawn because of their over-reaching.  If you are a doubter, look at the courts’ decisions.[1]

For these abuses, wrongful convictions, illegal and unethical practices, the Enron Task Force cabal punched their tickets to positions of fame, fortune and great power.  Friedrich became the right hand of Attorney General Gonzales, and then Acting Assistant Attorney General for the Criminal Division of the Department of Justice.  There, Friedrich rushed to indict and micromanaged the corrupt prosecution of former Alaska Senator Ted Stevens—costing Senator Stevens his Senate seat only to have the jury’s verdict overturned and the indictment dismissed because the prosecutors hid evidence that proved Stevens was innocent.   Sound familiar?

Leslie Caldwell, who had already worked with Robert Mueller,  became a partner at Morgan Lewis—a mega firm—then was named by President Obama and Loretta Lynch to be Assistant Attorney General for the Criminal Division of the Department of Justice.  Meanwhile, Andrew Weissmann became General Counsel and Deputy Director of the FBI, with Robert Mueller.  Later, Leslie Caldwell brought Weissmann back to head the Corporate Fraud Section of the Department of Justice.  Both Caldwell and Weissmann had been Assistant United States Attorneys with none other than Loretta Lynch in New York, so naturally, she brought them both back to DOJ.

Much of this time, in between brief respites at the prestigious Latham & Watkins, Kathryn Ruemmler was also in the Department of Justice or in the White House—as she became President Obama’s longest-serving White House Counsel.

Weissmann quietly left the Enron Task Force amid deafening allegations of prosecutorial misconduct during the Enron Broadband case, which ended in many counts of acquittals and a hung jury.  That case was tried by yet another member of the cabal—Lisa Monaco—who became Deputy Chief of Staff and Special Counsel to Mr. Mueller at the FBI and then President Obama’s counterterrorism advisor.  John Stossel named them “Washington Overlords.”

The real question is why all these people keep being promoted by multiple Presidents—and many with the consent of the Senate—with no question or mention about their record of these abuses?

 

[1] Arthur Andersen LLP v. United States, 544 U.S. 696, 125 S. Ct. 2129 (2005) (convictions unanimously reversed where prosecutors sought and procured unconstitutional jury instructions);

 

Hirko v. United States, 557 U.S. 930, 129 S. Ct. 2858 (2009) (vacating Fifth Circuit opinion and remanding for further consideration in light of Yeager);

 

Regents of University of California v. Credit Suisse First Boston (USA), Inc., 482 F.3d 372 (5th Cir. 2007), cert. denied, 552 U.S. 1170, 128 S. Ct. 1120 (2008) (bankers owed no civil duty to Enron or its shareholders).

 

Skilling v. United States, 561 U.S. 358, 130 S. Ct. 2896 (2010) (vacating conviction honest services conviction for prosecutorial overreaching)

 

United States v. Brown, 459 F.3d 509 (5th Cir. 2006), cert. denied, 550 U.S. 933, 127 S. Ct. 2249 (2007)(reversing 12 out of 14 counts of conviction against four ML executives);

 

United States v. Howard, 517 F.3d 731 (5th Cir. 2008) (affirming the vacating of convictions of Enron executive and grant of new trial where prosecution overreached in charging decision);

 

Yeager v. United States, 557 U.S. 110, 129 S. Ct. 2360 (2009) (reversing on the collateral estoppel arm of double jeopardy where prosecutors sought to retry defendants);

 

 

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White House

WINNING: How President Trump’s ‘Cheese In The Maze’ Strategy Worked

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About a year ago I noticed Donald Trump had developed an amazing strategy to keep the fake news media totally engrossed on meaningless stories while he did “real work” assembling his administration, getting the economy roaring, and feeling out his enemies. I called this “cheese in the maze.” It included everything from stories about feuds between various members of the administration to odd tweets from Trump himself that seemed to have nothing to do with his agenda.

It dawned on me this was all by design. Newt Gingrich had said of the media, “they are going to chase a rabbit, so you might as well give them a rabbit to chase.” And he did.

For month after month, the fake newsies pursued the most astonishing array of stories that all seemingly had one endpoint—showing that Trump’s team was in “chaos” or “collapsing” or “fighting among themselves.” Trump loved it. Even if there was genuine chaos, he is a master of navigating through waters where only he knows where he’s going. But for the most part, Trump’s “cheese” kept the fake news media rats chasing a plethora of leads from “sources” that came from the White House itself, most often deliberately.

That was not to say everything was perfectly smooth or harmonious in Trump’s White House. After all, he brought in fairly high level (and high-ego) people, including H. R. McMaster, Steve Bannon, and Rex Tillerson. It was inevitable that after a while, some, or all, of these personalities would be gone. And so they were.

But by late 2017, a different pattern began developing. As Trump stabilized his administration, purged the leakers and GOPe loyalists, and remade the government in his own image, the stories more or less stopped. Instead what took over was . . .

WINNING.

Trump’s policies took on a life of their own—almost all as he had predicted—and suddenly the economy was booming, judges were getting confirmed, enemies were coming to the negotiating table, and taxes were being cut. Although the fake news media often tried to avoid covering these stories, the fact was Trump no longer needed to generate anything for the rabbits to chase. Instead, the news cycle began to be filled with Trump news (in reality, Trump friendly news, even though the fake news media attempted to spin it differently).

So take the past week. Trump did two rallies, the Supreme Court handed him four victories, Justice Anthony Kennedy announced his retirement . . . and it’s only Wednesday! Trump’s activities and his constant stream of winning have replaced the “cheese,” feeding off their own momentum. During the campaign, Trump promised “You’ll get tired of winning.” it seems as though the Trump news that his supporters would see as positive is now falling like rain. On a single day, the Supreme Court gave him a major victory in the Janus labor union case, Justice Kennedy announced his retirement—whereupon Mitch McConnell announced that he would ensure Trump’s nominee to replace Kennedy would be confirmed—and Trump held a rally in North Dakota.

In. One. Day!

But there is something else largely hidden at work. Trump has gone from making seemingly disconnected tweets to making short announcements that, once again, the fake news media pays little attention to. These announcements are viewed as off the cuff remarks, such as when Trump announced he was planning to reform and reorganize government, or rebuild the nation’s space capability. Then, virtually nothing is said about the subject of that announcement for weeks, even months. Suddenly, seemingly out of nowhere, Mick Mulvaney emerges with a full-blown plan to . . . reorganize government. This has now become an almost reverse “cheese in the maze.” Trump is quite openly telling everyone what he plans to do, but the fake news media ignores him until it appears months later as a fully developed policy.

This was largely the story of the tax cut bill. Be honest: How many had heard most of the details of the tax bill even one week out from it being voted on? Trump has said in a comment largely ignored that we would send a manned mission to Mars. You can bet someone in NASA is working that plan right now. “Cheese in the maze” is a thing of the past. Today’s news is winning. And more winning.

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