IEC Journal

Defense Industry Ethics Group Selects New Leader

New Ethics Gig for Ex-OFPP Chief - Fedblog:

Angela Styles, a former administrator of federal procurement policy at the Office of Management and Budget during the Bush administration, was named Thursday as the new coordinator and executive director of the Defense Industry Initiative on Business Ethics and Conduct, also known as DII.
...
Changes to contractor ethics rules should keep Styles busy in the months ahead. Contractors are complying with regulations outlining mandatory disclosure of potential criminal violations and changes to personal and organizational conflicts of interest rules and revolving-door policies.

Misuse of Government computer

Surfing for pornography from a government computer is getting some publicity.  It was considered serious enough for EC IG to mention it in its latest Congressional report.  See full article at http://www.washingtontimes.com/news/2010/feb/02/sec-workers-investigated-for-viewing-porn-at-work//print/ 

NY Governor attempt to combat corruption

Paterson Seeks Overhaul to Combat Corruption

 

New York’s governor will urge expanded ethics oversight and changes in term limits and campaign funding.

 

http://s.nyt.com/u/A17

Army mentoring deals bypass ethics laws

USAToday reports - The Army used a loophole in federal ethics law to award lucrative contracts to two recently retired generals, departing from its standard practice for hiring senior advisers, according to public records and interviews.

See full article at http://www.usatoday.com/news/military/2009-12-07-mcneill_N.htm.

Other ethics news

These news items are related but not specifically Executive Branch Government Ethics:

• Joseph L. Bruno, the former top Republican in New York State, found guilt of two counts of corruption and is facing up to 20 years and a $250,000 fine on each count. http://s.nyt.com/u/ig2

• Senator Max Bacus admits to recommending girlfriend for US Attorney slot.  The article discusses the political nature of appointment of US Attorneys.  http://www.nytimes.com/2009/12/06/us/politics/06baucus.html?scp=1&sq=US%20attorney&st=cse

NASA scientists avoids jail

NASA scientist avoids jail in procurement case. 

A prominent NASA scientist, who has admitted directing thousands of dollars in sole-source agency contracts to his wife's company and failing to report the income on a financial disclosure form, has been spared a prison sentence.

See full article at 

http://www.govexec.com/dailyfed/1209/120109rb1.htm

FBI Agent Busted for Lodging Expense Fraud

A press release from the U.S. Attorney for the District of Columbia describes how an FBI agent came to violate the law:

According to plea documents, Shim, while on a temporary duty assignment from the  FBI’s Newark, N.J. office, submitted a series of false documents to FBI Headquarters for  reimbursement for claimed lodging expenses.  Shim falsely represented that he was renting a room in Beltsville, Maryland from May 2008 through July 2009, when, in fact, he was
principally residing  with his family in Olney, Maryland.  The false documents submitted by
Shim to the FBI included two fabricated “Rental Agreements” with forged signatures of a
fictitious landlord. Through the submission of these false documents, Shim unlawfully received
$41,658.57.  FBI internal controls discovered the irregularities that led to the OIG/FBI joint
investigation and, ultimately, Shim’s plea.

More on Former NASA Official Convicted of Steering Contracts

A November 6 press release from the U.S. Attorney for the District of Columbia has more information about a NASA case reported here previously:

Following a four-day trial in August, a federal jury in the U.S. District Court for the District of Columbia found Stadd guilty of one count of Acts Affecting a Personal Financial Interest, in violation of 18 U.S.C. § 208, and two counts of False Statements, in violation of 18 U.S.C. § 1001.  ...

According to facts presented at trial, Stadd, who previously served as NASA Chief of Staff and White House Liaison, returned to NASA in April of 2005 as a Special Government Employee in the Office of the Administrator.  At the same time, Stadd was also the president of a private consulting business, Capitol Solutions.  Stadd exerted his authority as a Special Government Employee to ensure that $12 million of a $15 million Congressional “earmark” for earth science applications was spent in Mississippi, where one of his clients, Mississippi State University, was located.  Mississippi State University received $9,603,428 of the “earmarked” funds from NASA.  Stadd later sent an invoice to Mississippi State University for his actions on
the “earmark” allocation and also cited those actions to support a request for a pay raise from Mississippi State University.  As part of his scheme, Stadd made false statements to NASA ethics officials concerning his participation in NASA matters involving Mississippi State University.

Congresstional Ethics Report Leaks

WASHINGTON—The accidental leak of a congressional ethics watchdog's report offers a rare glimpse into the internal workings of one of the most secretive bodies on Capitol Hill, revealing that the panel has dealt with a far larger number of lawmakers than previously publicly disclosed.  See full article at http://online.wsj.com/article/SB125694460088919841.html

Public Integrity Chief Steps Down

A New York Times article quotes from a statement issued on behalf of departing DOJ Public Integrity chief William Welch:

While the ultimate result in the Stevens case has been highly disappointing professionally and personally," the statement said, Mr. Welch's own decisions in the case "Comported with his own and the department's highest ethical standards."

Executive Order-Federal Leadership on Reducing Text Messaging while Driving | The White House

The full text of the recent Executive Order entitled Federal Leadership on Reducing Text Messaging while Driving is available.

Former State Dept. employee pleads guilty

A former employee at the U.S. Department of State was sentenced to 12 months of probation and 50 hours of community service Friday for unauthorized computer access--illegally accessing more than 75 confidential passport application files, the U.S. Department of Justice said.  See full article at http://www.reuters.com/article/vcCandidateFeed7/idUS376313907220091023

Safavian Gets Year In Jail, Two Years Probation

Fedblog reports:

David Safavian, former head of federal procurement policy at the Office of Management and Budget under Bush, was sentenced to 12 months and 1 day in jail and 24 months probation today, according to Robert Brodsky who was at the sentencing hearing. Safavian was convicted in December of obstructing an investigation by the General Services Administration, lying on a financial disclosure form, and two counts of making false statements. Safavian is free until his wife gives birth, after which he will be required to turn himself in.

Interior IG Report on Gettysburg Superintendent

Perhaps predictably, a Washington Post story about an Inspector General report on the Superintendent of the Gettysburg National Park leads with scandalous accusations about accessing pornography on a government computer, but buries arguably more serious issues deep in the body of the story:

The inspector general's investigation noted that Latschar said the construction project would be funded by the foundation and that no taxpayer money would be used. However, as the price tag jumped from $39.3 million to $135 million, $35 million in public financing was ultimately needed to finish construction, records show.

The report also said that Latschar planned late last year to leave his [$145,000-a-year job as] superintendent to take a $245,000-a-year job as the foundation's president.

An internal Jan. 26, 2009, memo, obtained by The Post, shows that during the course of the inspector general's investigation, department ethics officials stepped in, pointing out several legal obstacles Latschar would face. The memo says post-government employment laws would prohibit him from performing many job duties, including "any communication to or appearance before an employee of the United States."

As a result, Latschar dropped his planned job move, records show.

Grand Jury issues Subpeona against former Interior Chief

GovExec article describes Federal investigation into former Interior Secretary's possible criminal conflict of itnerest dealing with the Royal Dutch Shell.  See full article at http://www.govexec.com/story_page_pf.cfm?articleid=43789&printerfriendlyvers=1

Recent news articles referencing ethical concerns

• IRS IG probe into possible misconduct by employees in issuing manual tax refunds. See http://www.forbes.com/2009/10/08/irs-tax-fraud-tigta-personal-finance-questionable-refunds_print.html
• Mutiple Polish political leaders resign over allegations of influence peddling.  See http://www.nytimes.com/2009/10/08/world/europe/08poland.html

News Articles of Interest

• Kenya's anticorruption chief resigns as a result of pressure from dipolmatic emissaries and other observers. See article:  http://www.nytimes.com/2009/10/01/world/africa/01briefs-UNDERPRESSUR_BRF.html
• Senator Ensign's former aid, and spouse of his mistress, raises ethics allegations.  See article:  http://community.nytimes.com/comments/www.nytimes.com/2009/10/02/us/politics/02ensign.html

More Ethics Reforms at Interior

Government Executive reports on a new ethics initiative at the Department of the Interior:

Secretary Ken Salazar has ordered the department's bureau chiefs to designate full-time ethics officers and provide them with the needed staff and resources to develop plans to ensure all employees have access to ethics guidelines and training.

Salazar's order requires each bureau to employ a deputy ethics counselor at the GS-14 level or higher who will report directly to the bureau chief or another "appropriate senior executive." To deter violations, bureau heads must actively seek employee feedback on personal and program ethics.

The article referenced above has more information.

Ex-NY State Supreme Court Judge convicted of Bribery

Thomas J. Spargo was convicted of extortion and bribery for receipt of payments from attorneys with cases before him.  See full DOJ press release at http://www.usdoj.gov/opa/pr/2009/August/09-crm-881.html

Corrruption Indictment includes Gov Ethics implications

The newest indictment in the Jack Abramoff investigation implicates Government ethics rules relating to gifts and financial disclosures.  The former chief of staff at the Labor Department's Employment Standards Administration has been indicted on corruption charges related to his dealings with convicted lobbyist Jack Abramoff.

See GovExec article at http://www.govexec.com/story_page.cfm?articleid=43463&dcn=e_gvet

See indictment at http://www.govexec.com/pdfs/082409rb1.pdf

Fed pleads guilt to kickback scheme

A former VA employee pleads guilty to a bribery scheme relating to false veterans disability claims in excess of $1.9M.  See full DOJ Press Release at http://louisville.fbi.gov/dojpressrel/pressrel09/lo081809.htm

Drug Chief at FDA accused of Conflict

The Wall Street Journal reports the apparent conflict of interest allegagion against Janet Woodcock, Director of FDA's Center for Drug Evaluation, because of a scientific paper she co-authored with a prohibited source--allegations include providing that party special access, even where there was a recusal in place.  Perception is everything.  See full article at  http://online.wsj.com/article/SB125003545637224263.html

NY Times article on former Sec. of Treasury Paulson

Indepth article discussing appearance concerns related to former Secretary of Treasury, Henry Paulson, and his calls to and from his former employer, Goldman Sachs.  See the full article at http://www.nytimes.com/2009/08/09/business/09paulson.html?_r=1&dbk=&pagewanted=print 

Too cozy for comfort?

Updated October19 with better link to article:

Article on the appearance of impropriety of an Army procurement official and his relationship with a contractor.

The full article is available.

Ethics Related News

• Article on improperly available nonpublic information.  http://www.cbsnews.com/blogs/2009/07/29/politics/politicalhotsheet/entry5195953.shtml
• Federal Circuit uphold removal of Federal employee who misused access to Agency database.  http://www.fedsmith.com/articles/records/file/08-3335McLeod.pdf

Fed. indicted for bribery, as well as misuse of credit card, etc.

Two DHS Immigration officers were indicted for a scheme to defraud the government.  See the DOJ press release at: http://www.usdoj.gov/usao/az/press_releases/2009/2009-235(Kittson&%20Bothof).pdf

Federal Eye

The Washington Post's Federal Eye blog reports on the Federal Government, including this post on the latest developments concerning Inspectors General.

Controversy Over Ethics Pledge Waivers

A Politico story discusses the controversy over waivers of the Obama ethics pledge. Here's an excerpt:

Robert Cusick, director of the Office of Government Ethics, told POLITICO he did not know definitively how many ethics waivers had been granted, but he said “there’s been no great surge of waivers.”

Unlike waivers, which have to be approved by White House ethics lawyer Norm Eisen and are on file at the White House, letters of recusal are kept at the agency employing the official and are more difficult to track, Cusick said.

Cusick, who was appointed by former President George W. Bush in 2006 to a five-year term, said Obama’s ethics order has taxed his agency’s capacity. “We have quite a number of things that we’re required to do under the ethics executive order, which we’re still gearing up for,” he said.

Nonetheless, he disagreed with Grassley’s contention that the administration has not lived up to its promises of openness when it comes to the ethics order.

Thanks to Paul Bergstrand for the lead. We live or die by reader contributions, and appreciate those like Paul who help us keep this site fresh and useful.

IG Independence Allegations

The Washington Post reports that Senator Grassley and his staff are looking into allegations of infringement on Inspector General independence at some federal agencies.

Australian Def. Minister quits over Std of Conduct breach

The minister quit after allowed his brother to use a gov't office for a commercial meeting.  The underlying suggestion is that he misused his public office for the private benefit of his brother's employer, allowing them special access to gov't officials and inferring some form of preferential treatment.  See full article at  http://www.bloomberg.com/apps/news?pid=20601081&sid=aPPicSOAGh0c&refer=australia .  But that isn't all, he also failed to properly report gifts received from foreign businesswoman. 

Kerik Indicted for False Statements to White House Vetters

A New York TV station reports:

According to the new indictment, Kerik, in 1999 and 2000 when he was NYPD commissioner, spoke to city regulators on behalf of contractors who were seeking one or more permits to do business in and with the city.

The contractors then spent more than $255,000 renovating Kerik's apartment in Riverdale. In 2004, when Kerik was under consideration by the White House for the Homeland Security position, he gave false and misleading answers to questions by White House officials about his relationship with the contractors.

The indictment alleges that Kerik falsely denied that there was any possible concern the president should have about his relationship with the contractors, and that as a public official he had had any financial dealings with individuals seeking to do business with the City.

It also alleges Kerik sent an e-mail to a White House official containing false and misleading statements concerning the renovations to the apartment in Riverdale.

Recovery Act Restrictions on Lobbyists

The President's memo on implementing the Recovery Act contains the restrictions below on lobbyists. OMB has issued interim guidance, and OMB Watch's analysis is also available.

Sec. 3. Ensuring Transparency of Registered Lobbyist Communications. (a) An executive department or agency official shall not consider the view of a lobbyist registered under the Lobbying Disclosure Act of 1995, 2 U.S.C. 1601 et seq., concerning particular projects, applications, or applicants for funding under the Recovery Act unless such views are in writing.

(b) Upon the scheduling of, and again at the outset of, any oral communication (in-person or telephonic) with any person or entity concerning particular projects, applications, or applicants for funding under the Recovery Act, an executive department or agency official shall inquire whether any of the individuals or parties appearing or communicating concerning such particular project, application, or applicant is a lobbyist registered under the Lobbying Disclosure Act of 1995. If so, the lobbyist may not attend or participate in the telephonic or in-person contact, but may submit a communication in writing.

(c) All written communications from a registered lobbyist concerning the commitment, obligation, or expenditure of funds under the Recovery Act for particular projects, applications, or applicants shall be posted publicly by the receiving agency or governmental entity on its recovery website within 3 business days after receipt of such communication.

(d) An executive department or agency official may communicate orally with registered lobbyists concerning general Recovery Act policy issues; provided, however, that such oral communications shall not extend to or touch upon particular projects, applications, or applicants for funding, and further that the official must contemporaneously or immediately thereafter document in writing: (i) the date and time of the contact on policy issues; (ii) the names of the registered lobbyists and the official(s) between whom the contact took place; and (iii) a short description of the substance of the communication. This writing must be posted publicly by the executive department or agency on its recovery website within 3 business days of the communication.

(e) Upon the scheduling of, and again at the outset of, any oral communications with any person or entity concerning general Recovery Act policy issues, an executive department or agency official shall inquire whether any of the individuals or parties appearing or communicating concerning such issues is a lobbyist registered under the Lobbying Disclosure Act. If so, the official shall comply with paragraph (d) above.

Legislation of Interest

At today's meeting two new legislative efforts were notified of interest of the ethics community:

• S. 49 - Public Corruption Prosecution Improvements Act (Reported in Senate) was introduced by Senate Judiciary Committee Chairman Patrick Leahy (D-VT) and committee member John Cornyn (R-TX).  It was recently approved by the panel and is awaiting Senate action.  It is intended to provide new tools to help prosecutors target corruption among public officials.  It would rewrite and expand the "illegal gratuities" statute ( 18 USC 201) by eliminating the requirement that there be a linkage between a gift and an official action by a public official.  Under this provision, the gratuities statute would be violated whenever a gift is given to a public official "for or because of the official's or person's official position," regardless of whether any official action was taken.  It would effectively overrule Sun-Diamond holding. http://thomas.loc.gov/cgi-bin/query/D?c111:2:./temp/~c111J85Vvd::

• HR 2128 was reintroduced.  This bill would require Public Financial Disclosure Report filers to report their residence and mortgage. http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.2128:

WH Special Counsel May 5 Presentation on Ethics

Norm Eisen, White House Special Counsel for Ethics and Government Reform, recent presentation at the George Washington University on May 5, 2009.  See video at: http://undertheinfluence.nationaljournal.com/2009/05/white-house-ethics-adviser-lob.php (approx. 13 minutes long).

Interesting Article on Improving the Ethics Pledge

In this commentary in the Washington Examiner, Gary Bass of OMB Watch offers 4 steps the President can take to address problems with the Pledge, if there was clearer WH guidance on implementation (e.g., clear principles on waivers).

See full article at http://www.washingtonexaminer.com/opinion/columns/More-OpEd-Contributors/How-to-improve-Obamas-ethics-and-lobbying-executive-order-44482042.html.

DOD Policy on Ethics Pledge & Holdovers

Thanks to Paul Bergstrand for alerting us to a Government Executive story about the Department of Defense's application of the Obama ethics pledge to Bush Administration holdovers. A senior DOD official explained in an April 7 e-mail to them:

Those who choose not to sign the ethics pledge and leave before April 30, 2009 (or those who choose to sign the pledge and are replaced after April 30, 2009), will be asked to submit their resignations, and the department will treat their separations as involuntary.

Effects of Stevens Reversal

A Washington Post article suggests that the decision to request dismissal of charges against former Senator Ted Stevens could lead to changes at the Department of Justice's Public Integrity Section:

Holder's decision invites tough new scrutiny of a unit that polices corrupt officials, and it could foreshadow a shakeup in the way the government prosecutes those crimes, according to lawyers who work on such cases.

Current and former department lawyers predict an overhaul that will sweep aside senior leaders in the Public Integrity Section, two of whom were cited for contempt of court by the Stevens trial judge. That ruling triggered an internal ethics probe that has produced an awkward situation in which prosecutors and FBI agents who worked side by side on the case are pointing fingers at each other, sources said.

The Public Integrity Section in recent years has lagged in personnel and investigative firepower, veterans of the office say. Its work has produced acquittals and second-guessing from judges, which may intensify after the Stevens debacle.

Former VA employee pleads guilty

Former Director of VA's Consolidated Mail Outpatient Pharmacy in Hines, Ill, plead guilty to conspiracy to defraud the Government, in addition to wire fraud, which deprived the VA and the public of his honest services.  See full article at http://www.usdoj.gov/opa/pr/2009/March/09-at-263.html.

NY State attorney losed job over misuse of Government resources

New York Division of Human Rights attorney lost his job over $530 in charges to a state credit card and use of his office computer for outside legal work.  See full article at http://www.abajournal.com/news/ny_lawyer_loses_144k_job_over_office_computer_credit_card_issues

FedBlog's Take on CIA Scandals

FedBlog's Alyssa Rosenberg has some thoughts on the CIA story referenced here recently:

To be clear, I think this is probably an overly harsh assessment of CIA agents as a whole. Just because your job involves deception doesn't make you a morally bankrupt human being. Taking on a cover doesn't mean you're suddenly free from moral constraints, and most people seem to understand this just fine. But the question of how to inculcate an ethical culture is still really relevant for all agencies across government. I was shocked about a year ago when I wrote a story about a report that showed high levels of ethical violations in the government. But I've come to see that perceptions of unfairness and mistrust are more prevalent than I initially assumed. So how do we get beyond that? How do we encourage people to do right by each other, and inculcate them with a sense that that behavior should be instinctive? I don't have the answer. But it's an important question to be asking.

Perspectives on Misconduct at CIA

A Washington Post article surveying recent ethics scandals at the CIA includes a quote from a former CIA assistant general counsel to the effect that:

"You want a culture that values innovation and creativity and doesn't mind violating the laws of other countries, but at the same time, you want a culture of compliance and honesty," Radsan said. "It is a built-in contradiction."

Former CIA field agent Robert Baer added his perspectives in a recent essay in Time magazine, including the following:

"[D]on't make the mistake of giving these cases importance that they don't deserve. Or worse, don't jump to the conclusion that the CIA is overrun with misfits. CIA employees are still some of the most closely and routinely scrutinized workers in government. They endure regular and intrusive security background checks and polygraphs. Also, the CIA has a history of cleaning up its own messes. It was the CIA that caught Nicholson, as it did the notorious KGB mole Aldrich Ames." Baer concludes "This country cannot afford to turn the CIA into a Boy Scout troop."

Another plans to plead guilty in Iraq bribes case

Sister of Army Major accused of orchestrating largest bribery case out of Iraq plans on pleading guilty.  See full article at http://www.mysanantonio.com/news/local_news/Another_plea_of_guility_in_Iraq_brides_case_.html

See indictment at http://www.usdoj.gov/atr/cases/f225400/225441.htm

Washington Post Profiles White House Ethics Officer

The March 13 Washington Post has an interesting above-the-fold story about Norm Eisen, the new White House ethics advisor.

18 months for accepting bribes

Ex-Federal employee gets 18 months for accepting kickbacks on construction contracts. 

AP article: http://www.google.com/hostednews/ap/article/ALeqM5i0R_1OBHcBoifwmM9vcDsKIqHdOgD96O5LI80

DOJ Press release: http://www.usdoj.gov/opa/pr/2009/March/09-crm-194.html.

Ex-CIA official sentenced for fraud

Former CIA official was sentenced to 37 months for fraud, when he steered procurement contracts to firends.  See full article at http://www.edmontonsun.com/News/World/2009/02/26/pf-8543621.html.

UF Professor accused of NASA Grant Fraud

Federal investigators allege that 59 year old Samim Anghaie, a professor at the University of Florida, and three of his family members fraudulently received millions of dollars from NASA and then laundered money to personal bank accounts, court documents show.  Full story at:

http://www.floridatoday.com/article/20090226/NEWS01/902260317/1006/news01

For more information on this alleged fraud:

http://www.mahalo.com/Samim_Anghaie

http://www.cnn.com/2009/CRIME/02/25/professor.raid/index.html

NY Family Judge censured for misuse of secretary

The New York Law Journal reports on a judge's censure for assigning her secretary to do personal tasks, including baby sitting, resulting in breach of the public trust and damages public confidence in the integrity of the judiciary.  See full article at http://biz.yahoo.com/law/090226/fb652157ebd63ef76e151482ca77d8d0.html?.v=1&printer=1

Misuse of computer is more than just ethics problem.

A report says that agency employees at the National Science Foundation were watching, downloading and e-mailing porn, sometimes for significant portions of their workdays, and over periods of months or even years. The ranking member of the Senate Finance Committee wants to put an end to the waste of time and money.  See full article at http://www.politico.com/news/stories/0109/18070.html

High Ethics Standards Help Recruiting

In the Washington Post, Joe Davidson reported on a study showing the federal government is high on many students' lists of preferred employer. One factor that helps some agencies and hurts others:

"Undergrads place great store in high ethical standards."

Ethics in the News!

• A former local federal employee who used his government credit card to steal more than $250,000 was sentenced to two years in prison today, the U.S. Attorney's office said.
  See full article at http://www.stltoday.com/stltoday/emaf.nsf/Popup?ReadForm&db=stltoday%5Cnews%5Cstories.nsf&docid=D16A59F26AE6874C8625753D006244A2.
• Hillary Rodham Clinton confirmation hearing goes smoothly, even with discussion of appearance of a conflict of interest.  See full article at http://www.google.com/hostednews/ap/article/ALeqM5gFBkJNEs-XzAOmjfMTn19T-Bg14gD95MU6402.