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Paul Merrell

Court overturns $1.3B penalty against Bank of America for financial crisis - UPI.com - 0 views

www.upi.com/...1081464034724

banksters fraud BofA verdict-overturned

shared by Paul Merrell on 27 May 16 - No Cached
  • A federal appeals court on Monday dealt a blow to the Justice Department's efforts to punish big banks for contributing to the financial crisis nearly a decade ago by overturning a massive penalty against Bank of America. The U.S. Court of Appeals for the Second Circuit ruled that the federal government had not proven its case against the nation's second-largest bank -- and, accordingly, the North Carolina-based company does not have to pay the $1.27 billion penalty that stemmed from the case. The Department of Justice investigated and claimed that Bank of America had sold shoddy mortgages that contributed to the financial crisis of 2008-09. Investigators said BoA's Countrywide Financial Corp. and a program called "Hustle" focused on distributing a large number of mortgages but were careless with the quality of the loans. The company then misrepresented the mortgage loans when they were subsequently sold to Fannie May and Freddie Mac, Justice officials claimed. A jury found Bank of America liable for fraud in 2013 and ordered them to pay the massive fine. A $1 million civil penalty leveled against Countrywide executive Rebecca Mairone, one of the few individuals punished for the crisis, was also overturned by the appellate court.
Paul Merrell

Resurrecting the Dubious State Secrets Privilege | John Dean | Verdict | Legal Analysis... - 0 views

verdict.justia.com/...ubious-state-secrets-privilege

Dark-State state-secrets government secrecy Restis DoJ Holder

shared by Paul Merrell on 19 Sep 14 - No Cached
  • In an unusual move, the U.S. Department of Justice has filed a motion to make a private lawsuit simply disappear. While the U.S. Government is not a party to this defamation lawsuit—Victor Restis et al. v. American Coalition Against Nuclear Iran, Inc.—filed July 19, 2013, in the U.S. District Court for the Southern District of New York, Attorney General Eric Holder is concerned that the discovery being undertaken might jeopardize our national security.
  • The government’s argument for intervening in this lawsuit is technical and thin.
  • The strongest precedent in the government’s brief in the current case is the 1985 case of Fitzgerald v. Penthouse Intern., Ltd. Fitzgerald had sued Penthouse Magazine for an allegedly libelous article, but the U.S. Navy moved to intervene on the ground that the government had a national security interest which would not be adequately protected by the parties, so the government requested the action be dismissed, after invoking the state secrets privilege. The federal district court granted the motions and dismissed the case, which the U.S. Court of Appeals for Fourth Circuit affirmed. So there is precedent for this unusual action by the government in a private lawsuit, but the legitimacy of the state secrets privilege remains subject to question.
  • ...9 more annotations...
  • In February 2000, Judith Loether, a daughter of one of the three civilians killed in the 1948 B-29 explosion, discovered the government’s once-secret accident report for the incident on the Internet. Loether had been seven weeks old when her father died but been told by her mother what was known of her father’s death and the unsuccessful efforts to find out what had truly happened. When Loether read the accident report she was stunned. There were no national security secrets whatsoever, rather there was glaringly clear evidence of the government’s negligence resulting in her father’s death. Loether shared this information with the families of the other civilian engineers who had been killed in the incident and they joined together in a legal action to overturn Reynolds, raising the fact that the executive branch of the government had misled the Supreme Court, not to mention the parties to the earlier lawsuit.
  • Lou Fisher looked closely at the state secrets privilege in his book In The Name of National Security, as well as in follow-up articles when the Reynolds case was litigated after it was discovered, decades after the fact, that the government had literally defrauded the Supreme Court in Reynolds, e.g., “The State Secrets Privilege: Relying on Reynolds.” The Reynolds ruling emerged from litigation initiated by the widows of three civilian engineers who died in a midair explosion of a B-29 bomber on October 6, 1948. The government refused to provide the widows with the government’s accident report. On March 9, 1953, the Supreme Court created the state secrets privilege when agreeing the accident report did not have to be produced since the government claimed it contained national security secrets. In fact, none of the federal judges in the lower courts, nor the justices on the Supreme Court, were allowed to read the report.
  • Lowell states in his letter: “By relying solely upon ex parte submissions to justify its invocation of the state secrets privilege, especially in the unprecedented circumstance of private party litigation without an obvious government interest, the Government has improperly invoked the state secrets privilege, deprived Plaintiffs of the opportunity to test the Government’s claims through the adversarial process, and limited the Court’s opportunity to make an informed judgment. “ Lowell further claims that in “the typical state secrets case, the Government will simultaneously file both a sealed declaration and a detailed public declaration.” (Emphasis in Lowell’s letter.) To bolster this contention, he provided the court with an example, and offered to provide additional examples if so requested.
  • The Justice Department’s memorandum of law accompanying its motion to intervene states that once the state secrets privilege has been asserted “by the head of the department with control over the matter in question . . . the scope of judicial review is quite narrow.” Quoting from the U.S. Supreme Court ruling establishing this privilege in 1953, U.S. v. Reynolds, the brief adds: “the sole determination for the court is whether, ‘from all the circumstances of the case . . . there is a reasonable danger that compulsion of the evidence will expose military [or other] matters which, in the interest of national security, should not be divulged.’”In short, all the Justice Department need claim is the magic phrase—”state secrets”—after assuring the court that the head of department or agency involved has personally decided it is information that cannot be released. That ends the matter. This is what has made this privilege so controversial, not to mention dubious. Indeed, invocation by the executive branch effectively removes the question from judicial determination, and the information underlying the decision is not even provided to the court.
  • As Fisher and other scholars note, there is much more room under the Reynolds ruling for the court to take a hard look at the evidence when the government claims state secrets than has been common practice. Fisher reminds: “The state secrets privilege is qualified, not absolute. Otherwise there is no adversary process in court, no exercise of judicial independence over what evidence is needed, and no fairness accorded to private litigants who challenge the government . . . . There is no justification in law or history for a court to acquiesce to the accuracy of affidavits, statements, and declarations submitted by the executive branch.” Indeed, he noted to do so is contrary to our constitutional system of checks and balances.
  • Time to Reexamine Blind Adherence to the State Secrets PrivilegeIn responding to the government’s move to intervene, invoke state secrets, and dismiss the Restis lawsuit, plaintiffs’ attorney Abbe Lowell sent a letter to Judge Edgardo Ramos, the presiding judge on the case on September 17, 2014, contesting the Department of Justice’s ex parte filings, and requesting that Judge Ramos “order the Government to file a public declaration in support of its filing that will enable Plaintiffs to meaningfully respond.” Lowell also suggested as an alternative that he “presently holds more than sufficient security clearances to be given access to the ex parte submission,” and the court could do here as in other national security cases, and issue a protective order that the information not be shared with anyone. While Lowell does not so state, he is in effect taking on the existing state secrets privilege procedure where only the government knows what is being withheld and why, and he is taking on Reynolds.
  • To make a long story short, the Supreme Court was more interested in the finality of their decisions than the fraud that had been perpetrated upon them. They rejected the direct appeal, and efforts to relegate the case through the lower courts failed. As Fisher notes, the Court ruled in Reynolds based on “vapors and allusions,” rather than facts and evidence, and today it is clear that when it uncritically accepted the government’s word, the Court abdicated its duty to protect the ability of each party to present its case fairly, not to mention it left the matter under the control of a “self-interested executive” branch.
  • Lowell explains it is not clear—and suggests the government is similarly unclear in having earlier suggested a “law enforcement privilege”—as to why the state secrets privilege is being invoked, and argues this case can be tried without exposing government secrets. Citing the Fitzgerald ruling, Lowell points out dismissal is appropriate “[o]nly when no amount of effort and care on the part of the court and the parties will safeguard privileged material is dismissal warranted.”
  • No telling how Judge Ramos will rule, and the government has a remarkable record of prevailing with the deeply flawed state secrets privilege. But Lowell’s letter appears to say, between the lines, that he has a client who is prepared to test this dubious privilege and the government’s use of it in this case if Judge Ramos dismisses this lawsuit. The U.S. Court of Appeals for the Second Circuit, where that ruling would be reviewed, sees itself every bit the intellectual equal of the U.S. Supreme Court and it is uniquely qualified to give this dubious privilege and the Reynolds holding a reexamination. It is long past time this be done.
  • Paul Merrell on 19 Sep 14
     
    Interesting take on the Restis case by former Nixon White House Counsel John Dean. Where the State Secrets Privilege is at its very nastiest, in my opinion, is in criminal prosecutions where the government withholds potentially exculpatory evidence on grounds of state secrecy. I think the courts have been far too lenient in allowing people to be tried without production of such evidence. The work-around in the Guantanamo Bay inmate cases has been to appoint counsel who have security clearances, but in those cases the lawyer is forbidden from discussing the classified information with the client, who could have valuable input if advised what the evidence is. It's also incredibly unfair in the extraordinary rendition cases, where the courts have let the government get away with having the cases dismissed on state secrecy grounds, even though the tortures have been the victim of criminal official misconduct.  It forces the victims to appeal clear to the Supreme Court before they can start over in an international court with jurisdiction over human rights violations, where the government loses because of its refusal to produce the evidence.  (Under the relevant treaties that the U.S. is a party to, the U.S. is required to provide a judicial remedy without resort to claims of national security secrecy.) Then the U.S. refuses to pay the judgments of the International courts, placing the U.S. in double breach of its treaty obligations. We see the same kinds of outrageous secrecy playing out in the Senate Intellience Committee's report on CIA torture, where the Obama Administration is using state secrecy claims to delay release of the report summary and minimize what is in it. It's highly unlikely that I will live long enough to read the full report. And that just is not democracy in action. Down with the Dark State!   
Paul Merrell

Ex-CIA Rome chief gets jail term in "rendition" trial - chicagotribune.com - 0 views

www.chicagotribune.com/...1011j-20130201,0,2355801.story

rendition war & peace war crimes

shared by Paul Merrell on 03 Feb 13 - No Cached
  • An Italian appeals court on Friday sentenced a former CIA station chief to seven years in jail for the kidnap of an Egyptian Muslim cleric during the U.S. government's "war on terror" waged by former president George W. Bush. The Milan court also handed down two six-year sentences to two American officials for the same crime, the first of so-called "extraordinary rendition" operations organized by the United States. The cleric, an Egyptian imam known as Abu Omar, was snatched from a Milan street and flown to Egypt for interrogation, where he says he was tortured for seven months. He was resident in Italy at the time of the abduction.
  • Former Rome CIA station chief Jeffrey Castelli and the two other defendants were tried in their absence and are unlikely to serve their sentences, but they may be unable to travel to Europe without risking arrest. The judgment overturned a previous ruling by a lower court, which aqcuitted the three on grounds of diplomatic immunity. Castelli was among 26 U.S. nationals indicted by Italian authorities for their involvement in the 2003 kidnap. Last September Italy's highest court upheld guilty verdicts on 22 CIA agents and one Air Force pilot for the kidnapping.
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