IEC Journal

Ex-S.E.C. Official Settles Conflict-of-Interest Case - NYTimes.com

The NY Times reports on a conflict of interest case at the SEC:

A former enforcement official for the Securities and Exchange Commission who was accused of blocking or closing at least three investigations into the activities of the Stanford Financial Group, which the authorities claim was a $7 billion Ponzi scheme, has settled civil charges brought by the Justice Department accusing him of violating conflict-of-interest rules by later representing Stanford before the commission.

Thanks to Rosa Koppel for the tip.

Changing of Guard at SEC OIG

Government Executive's story on the departure of SEC OIG David Kotz included some laudatory comments:

His emphasis on the value and inviolability of whistleblowers impressed Sen. Chuck Grassley, R-Iowa, who issued a statement saying, "The agency has a big job and faces ongoing challenges to stay on top of fraud . . . David Kotz produced strong, conclusive reports, even as critics claimed he was too aggressive. An aggressive, independent inspector general is best for the agency in the long run, even if that's uncomfortable for management . . . Go-along-to-get-along just doesn't get the job done. You need someone who tells it like it is."

Kotz also drew praise from Danielle Brian, executive director of the nonprofit Project on Government Oversight. "Kotz did what IGs should do: he was very engaged with the Congress and wasn't afraid to point out clearly when his agency wasn't doing its job," she told Government Executive. "He came in at a time when the SEC was in need of a tough critic -- and his investigations had some real impact." She noted that the Justice Department recently announced that it had fined a former SEC enforcement official "who went through the revolving door" to work for indicted financier Allen Stanford after delaying investigation into Stanford's alleged Ponzi scheme, a conflict exposed by Kotz's team.

via www.govexec.com

Former CIA employee indicted for disclosing classified information

"A former CIA officer, John Kiriakou, was charged today with repeatedly disclosing classified information to journalists, including the name of a covert CIA officer and information revealing the role of another CIA employee in classified activities, Justice Department officials announced."  See the full DOJ press release at: http://www.justice.gov/opa/pr/2012/January/12-ag-083.html.

United Nations Development Programme vacancies

• Director, Ethics Office in New York.  See announcement at http://jobs.undp.org/cj_view_job.cfm?cur_job_id=27530.  Vancancy closes: Feb. 8, 2012.
• Assistant Resident Representative (Governance) in Vientiane, LAO PDR.  See announcement at http://jobs.undp.org/cj_view_job.cfm?cur_job_id=27657.  Vacancy closes: Feb. 3, 2012.

• Social Scientist (statistical analysis) for survey data covering more than 100 countries from five continents. The position is based at the University of Strathclyde in Glasgow. See more information at: http://corruptionresearchnetwork.org/marketplace/resources/research-associate-school-of-government-and-public-policy-1

Potential Ethics Issues for Former Congressman

The New York Times reports that former Representative William D. Delahunt of Massachusetts, who started his own lobbying firm when he left government service last year, will earn $15,000 a month for helping the town of Hull, Mass. develop a wind energy project.  The potential issue arising from the deal is that, while he was in Congress, Mr. Delahunt earmarked $1.7 million for the same energy project.  His lobbying firm will be paid with money he created through Department of Energy grants during his final term in office. 

Documentary Inspires Economist Ethics Rules

The Wall Street Journal reports that the "Inside Job," a documentary about the 2007-2008 financial crisis, provided additional public pressure on economists to implement conflict of interest rules.  The new rules will require economists to disclose financial ties and other potential conflicts of interest in papers published by academic journals.  Because many economists serve as consultants for government, companies and other groups outside of their formal academic work, the argument is that the relationships formed through consulting may have influenced the economists' work, causing them to initially miss the signs of the impending financial crisis and to recommend policy prescriptions that served their clients' interests, at the expense of the economy as a whole. 

February 2nd Meeting

Our February 2nd meeting topic is professional responsibility for Government employees.  Our speaker will be Jack Marshall, the founder and president of ProEthics, Ltd., and the primary writer and editor of the ethics community blog, "Ethics Alarms" (www.ethicsalarms.com).  His articles and essays have appeared in numerous national and regional publications, and he has spoken on leadership and ethics topics before a variety of audiences in both the private and public sectors.  We are pleased to have Mr. Marshall with us for our February meeting, and are certain that, whether litigators or administrative attorneys, we'll all benefit from attending this session.

We will meet at the United States Access Board, 1331 F Street, N.W. (between 13th and 14th Streets, near Metro Center station) from 12:15 - 1:30.  As always, individuals who are on the IEC roster need not pre-register.  Ethics officials who are not on our roster but who wish to attend this meeting can pre-register by contacting Patrick.Carney@fcc.gov not later than Monday, January 30th.  Those who are neither on the roster nor pre-registered can still be admitted by showing a Government ID upon arrival at USAB.

Alleged Conflicts With FDA Drug Approval Panels

A Washington Monthly article discusses perceived problems with FDA drug approval procedures. Here is an excerpt:

Last month, the U.S. Food and Drug Administration convened a committee of medical experts to weigh new evidence concerning the potential dangers of drospirenone, a synthetic hormone contained in popular birth control pills including Bayer AG’s Yaz and Yasmin. In a decision that helped ensure the continued presence of these drugs on American pharmacy shelves, the committee concluded by a four-vote margin that the benefits of drugs with drospirenone outweigh the risks. However, an investigation by the Washington Monthly and the British medical journal BMJ has found that at least four members of the committee have either done work for the drugs’ manufacturers or licensees or received research funding from them. The FDA made none of those financial ties public.

...

Bayer spokesperson, Rosemarie Yancosek, said in an e-mailed statement: “Bayer had no input on who serves on the U.S. FDA Advisory Committee panel as the FDA has its own process for selecting panel members. Furthermore, it is Bayer’s understanding that the FDA has a procedure for determining conflicts of interest for potential panel members.” 

The FDA does indeed have such a procedure, but critics argue that its guidelines define conflicts of interest too narrowly and provide too much flexibility in how they are applied. The guidelines are technically “suggested or recommended, but not required” provisions (http://www.fda.gov/downloads/RegulatoryInformation/Guidances/UCM125646.pdf). Whether an advisor can participate depends on “whether the discussion at the meeting or outcomes of the meeting will have a direct and predictable effect on the individual’s interest.” For instance, someone who was previously involved in another role for a manufacturer, or whose university received money from a manufacturer, may be allowed to participate. Even having a contract for $100,000 over a five-year period would not necessarily exclude an advisor, according to the guidelines.

 

 

National Park Service ethics official vacancy (GS-14)

Department Of The Interior, National Park Service, has a vacancy for a GS-14 Deputy Ethics Officer.  Vacancy announcement: NPSWASO-HQ-12-586121.  Closes: January 19, 2012.

See USAJobs hyperlink at: http://www.usajobs.gov/GetJob/ViewDetails/306288400.

New York Times Editorial on Ethics and the Supreme Court

The New York Times recently published an editorial regarding ethics and the Supreme Court.