Category Archives: government fraud spending collusion

New Balance Sneakers vs. the Pentagon

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Enter the early consequences of the Trans Pacific Partnership

New Balance accuses Pentagon of reneging on sneaker deal

BostonGlobe: New Balance is renewing its opposition to the far-reaching Pacific Rim trade deal, saying the Obama administration reneged on a promise to give the sneaker maker a fair shot at military business if it stopped bad-mouthing the agreement.

New Balance has several Northeast factories, including in Lawrence. John Tlumacki/Globe Staff/File

New Balance has several Northeast factories, including in Lawrence.

After several years of resistance to the Trans-Pacific Partnership, a pact aimed at making it easier to conduct trade among the United States and 11 other countries, the Boston company had gone quiet last year. New Balance officials say one big reason is that they were told the Department of Defense would give them serious consideration for a contract to outfit recruits with athletic shoes.

But no order has been placed, and New Balance officials say the Pentagon is intentionally delaying any purchase.

New Balance is reviving its fight against the trade deal, which would, in part, gradually phase out tariffs on shoes made in Vietnam. A loss of those tariffs, the company says, would make imports cheaper and jeopardize its factory jobs in New England.

The administration has made the pact a priority. It could be voted on by Congress later this year, though possibly not until after the November elections.

“We swallowed the poison pill that is TPP so we could have a chance to bid on these contracts,” said Matt LeBretton, New Balance’s vice president of public affairs. “We were assured this would be a top-down approach at the Department of Defense if we agreed to either support or remain neutral on TPP. [But] the chances of the Department of Defense buying shoes that are made in the USA are slim to none while Obama is president.”

The administration says the issues of foreign tariffs and of whether the Pentagon should be required to buy shoes made domestically are entirely separate.

New Balance disagrees. Though most of the company’s shoes are made overseas, domestic manufacturing is a big priority for owner Jim Davis, a longtime Republican donor.

WH to Employers, Make them Preferred Hiring Candidates

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We have been enduring the misguided mission by the White House to release criminals early from their prison sentences ah…you know those that were based on drugs but non-violent. Pssst, the last jail break included 1/3 of them that were in prison for life sentences. Anyway, now the White House is becoming their advisors and promoters to get jobs for them, almost by force. Check this out. The corporations also have to take a pledge?

If employers spent more time implementing better hiring practices, then perhaps this wouldn’t be necessary. There are now more and more ways to find out if your new employee has a criminal record, for example, using something like https://www.nationalcrimecheck.com.au/. But, albeit, we live in a world where not everything is so straight forward.

Is this really the best use of time by the White House?

FACT SHEET: White House Launches the Fair Chance Business Pledge

“Now, a lot of time, [a] record disqualifies you from being a full participant in our society — even if you’ve already paid your debt to society. It means millions of Americans have difficulty even getting their foot in the door to try to get a job much less actually hang on to that job. That’s bad for not only those individuals, it’s bad for our economy. It’s bad for the communities that desperately need more role models who are gainfully employed. So we’ve got to make sure Americans who’ve paid their debt to society can earn their second chance.

– President Barack Obama, Rutgers University, November 2, 2015

Today at the White House, Attorney General Loretta Lynch, Senior Advisor to the President Valerie Jarrett, and other White House officials hosted 19 companies from across the American economy who are standing with the Obama Administration as founding pledge takers to launch the Fair Chance Business Pledge. The pledge represents a call-to-action for all members of the private sector to improve their communities by eliminating barriers for those with a criminal record and creating a pathway for a second chance.

Companies signing the pledge today include: American Airlines, Busboys and Poets, The Coca-Cola Company, Facebook, Georgia Pacific, Google, Greyston Bakery, The Hershey Company, The Johns Hopkins Hospital and Health System, Koch Industries, Libra Group, PepsiCo, Prudential, Starbucks, Uber, Under Amour/Plank Industries, Unilever and Xerox.

Right now, there are approximately 2.2 million Americans behind bars. The United States accounts for 5 percent of the world’s population, and 25 percent of its inmates. Each year, more than 600,000 inmates are released from federal and state prisons, and another 11.4 million individuals cycle through local jails. Around 70 million Americans have some sort of criminal record — almost one in three Americans of working age.

Too often, that record disqualifies individuals from being a full participant in their communities — even if they’ve already paid their debt to society. As a result, millions of Americans have difficulty finding employment.

Since President Obama took office, this Administration has been committed to reforming America’s criminal justice system. Last summer, the President spoke about the importance of reducing barriers facing people who have been in contact with the criminal justice system and are trying to put their lives back on track. He then became the first President to visit a federal prison where he sat down with individuals who would be returning to their communities. In November, he visited with formerly incarcerated individuals and emphasized that a smarter approach to reducing crime and enhancing public safety must begin with investing in all of our communities. He also announced new efforts by this Administration to help formerly incarcerated individuals to rehabilitate and reintegrate back into their communities, including an upcoming rule from the Office of Personnel Management that will “ban the box,” delaying inquiries into criminal history until later in the federal hiring process. One way to prevent criminals in the workplace may be to use pre-employment tests (as found at https://www.berkeassessment.com/solutions) in order to find out more about your candidates before you accept their application for the role. Berke has many options available.

Building on these efforts, the White House issued a challenge to businesses to take on the Fair Chance Business Pledge. A broad array of businesses have come together to support the reforms needed to bring about this change.

By signing the Fair Chance Business Pledge, these companies are:

  • Voicing strong support for economic opportunity for all, including the approximately 70 million Americans who have some form of a criminal record.
  • Demonstrating an ongoing commitment to take action to reduce barriers to a fair shot at a second chance, including practices like “banning the box” by delaying criminal history questions until later in the hiring process; ensuring that information regarding an applicant’s criminal record is considered in proper context; and engaging in hiring practices that do not unnecessarily place jobs out of reach for those with criminal records.
  • Setting an example for their peers. Today’s announcement is only the beginning. Later this year, the Obama Administration will release a second round of pledges, with a goal of mobilizing more companies and organizations to join the Fair Chance Business Pledge.

Companies and organizations interested in joining the Fair Chance Business Pledge can so do by signing up HERE.

Building on today’s announcement, in the coming weeks, the White House and the Department of Justice will host events in Washington, D.C. and across the country to amplify leaders taking steps to provide fair chance opportunities:

  • The Justice Department has designated the week of April 24-30, 2016, as National Reentry Week and is coordinating reentry events across the country – from job fairs, to practice interviews, to mentorship programs, to events for children of incarcerated parents – designed to help prepare inmates for release. To learn more, click HERE.
  • In the coming weeks, the White House will host a Champions of Change event to honor individuals expanding fair chance opportunities. The event will highlight local leaders and programs that are improving their communities by partnering with the philanthropic and private sectors to help those who have been incarcerated rehabilitate and reintegrate. To learn more, click HERE.

THE FAIR CHANCE BUSINESS PLEDGE

We applaud the growing number of public and private sector organizations nationwide who are taking action to ensure that all Americans have the opportunity to succeed, including individuals who have had contact with the criminal justice system. When around 70 million Americans – nearly one in three adults – have a criminal record, it is important to remove unnecessary barriers that may prevent these individuals from gaining access to employment, training, education and other basic tools required for success in life. We are committed to providing individuals with criminal records, including formerly incarcerated individuals, a fair chance to participate in the American economy.

These companies put forth their pledges as follows:

AMERICAN AIRLINES: At American Airlines, our employees are the source of our success, with a clear connection between the quality of our team and the quality of the experience we can provide our customers. American is working hard to recruit, develop, retain and engage the very best people – those with unique perspectives and ways of thinking that will position us as a global leader – while recognizing the importance, in appropriate circumstances, of giving people a second chance.

To ensure we aren’t removing qualified individuals from employment consideration, we have banned the box and we don’t ask criminal history questions until someone accepts an offer. We are also conducting consistent, reliable, and fair-minded background checks as part of our hiring process.

We commend the Administration and applaud the many corporations and organizations that are taking similar actions to give all Americans a fair chance to succeed and enjoy everything our country has to offer. American Airlines is proud to take the Fair Chance Business Pledge.

THE COCA-COLA COMPANY: Fair chance policies and programs not only enhance the likelihood of success for the more than 600,000 individuals who are released annually from state and federal prisons – they also help to reknit families and rebuild communities. For these and other reasons as outlined below, The Coca-Cola Company is pleased to join the Fair Chance Business Pledge as a signatory.

The Coca-Cola Company has a long-standing commitment to equal opportunity. This spans our employment practices and development of existing employees. We are dedicated to maintaining workplaces that are free from discrimination or harassment on the basis of race, color, religion, sex, national origin, age, disability, pregnancy, veteran status, genetic information, citizenship status, marital status, sexual orientation, gender identity and/or expression, or any other reason prohibited by law. The basis for recruitment, hiring, placement, training, compensation and advancement at the Company is qualifications, performance, skills and experience.

We are particularly proud to share that The Coca-Cola Company and Coca-Cola Refreshments do not engage in background screening related to criminal history until after a decision to hire has been made. When there is a successful applicant who has a criminal history, our talent acquisition team has in place a process to review the relevancy of the history to make an informed decision. We recognize that creating a pathway for a second chance is an important first step in creating successful, sustained re-entry into mainstream society.

FACEBOOK: Facebook is a vocal supporter of equality and we are proud to stand with a growing number of companies who have chosen to ban the box. We strongly oppose hiring practices that discriminate against qualified applicants on the basis of criminal record.

Recently, Facebook collaborated with the California Department of Justice on the agency’s OpenJustice initiative, a program that promotes transparency in the criminal justice system to strengthen the public trust, enhance government accountability, and inform public policy development.

Signing the Fair Chance Hiring pledge allows us to reaffirm our commitment to find ways that our company can create opportunities for all to succeed. And we encourage other organizations and employers to do the same.

GOOGLE: Google has banned the box in its hiring process since 2011. In the last year alone, Google has advanced racial justice and criminal justice reform with grants to organizations and leaders totaling over $5 million. Google will continue its commitment to criminal justice reform and creating opportunities for formerly incarcerated Americans by:

  • Convening other leading technology companies to recruit more companies to ban the box and go beyond the box to support formerly incarcerated Americans re-entering the job market.
  • Conducting listening sessions with criminal justice organizations and formerly incarcerated leaders to understand what specific supports are needed and consider how Google products can be used to raise awareness of the issue of mass incarceration in America.
  • Hosting a series of regional forums on criminal justice reform with formerly incarcerated women and men.

GREYSTON BAKERY: As part of our Fair Chance Pledge, we commit to:

  • Banning the Box – by delaying criminal history questions until later in the hiring process, or not asking them at all and giving individuals a chance to prove themselves through hard work regardless of background;
  • Training human resources staff on making fair decisions regarding applicants with criminal records, and other employment barriers, and reporting data on the number of applicants through Open Hiring;
  • Ensuring jobs, internships, apprenticeships, and regular and progressive job trainings are available to individuals with criminal records and other employment barriers;
  • Keeping an open door policy for Open Hiring for anyone to sign up for a chance at a job, when one becomes available; in the meantime, accessing workforce development trainings for employment readiness;
  • Providing mentorship and “soft-skills” support once on the job to ensure retention and readiness, particularly through the apprenticeship/internship period;
  • Supporting with placement to area employers from workforce development training programs whenever possible, through matching services and providing trainings in demand;
  • Providing key worker benefits past the apprenticeship period including: subsidized childcare, access to lower-cost nutritious food, and access to affordable housing, to address the highest risk factors of low-income workers and previously incarcerated individuals in sustaining employment;
  • Working to provide a “living wage” to all our workers in addition to subsidized worker benefits, to help those with employment barriers sustainably break the cycle of poverty.

Greyston also takes action in our local community of Yonkers, NY by supporting other employers in considering Open Hiring in their businesses, de-risking fair chance employment for them by investing in workforce development and job training programs, to increase overall regional employability and job readiness, including in “soft skills” such as literacy and numeracy, mentorship, etc.

Greyston also provides other community programs such as an early childcare center, community gardens, and housing supports for both worker benefit as well as community health and well-being, to truly contribute to sustained Fair Chance employment.

THE JOHNS HOPKINS HOSPITAL AND HEALTH SYSTEM: The Johns Hopkins Hospital and Health System’s (JHHS) practice of providing access and opportunity to the returning citizens of Baltimore is not a charitable endeavor, but a strategic part of the way we conduct our business. We are not just an organization that conducts business in Baltimore, but an integral part of the community — interwoven and connected for 126 years and counting.

When Mr. Hopkins endowed the Hospital, he recognized that the service we provide can only have a positive lasting impact if all members of the community are a part of JHHS mission. We have made sure to keep Mr. Hopkins’ directives, which in many ways mirror the Fair Chance Business Pledge, at the forefront of all that we do. This is evidenced in our hiring practice, which embraces our community’s citizens who meet our hiring requirements — including returning citizens.

We have banned the box in our hiring process and have an established practice of individually reviewing applicants that have criminal background. This thoughtful, detailed process has enabled us to have a strong returning citizen hire rate over the years.

Our long standing partnerships with community based partners, particularly those that serve returning citizens, and understand our organization and the work we do, provides us with a pipeline of talented applicants. We share our practices with other Baltimore City companies and encourage dialogue on the importance of engaging all of our citizens in the employment process.

Lastly, our organizations unwavering commitment to Baltimore City and Maryland is reflected in our Institution’s leadership, managerial and supervisory staff, who understand that we have a lot of talented people in our community. We recognize that we cannot afford to let good talent get away — especially talent that might need a second chance.

KOCH INDUSTRIES AND GEORGIA PACIFIC: Koch Industries and Georgia-Pacific support the Fair Chance Business Pledge and applaud the leadership of the White House on this critically important issue. The Pledge is consistent with Koch and Georgia-Pacific’s mission to help people improve their lives and remove barriers to opportunity for all Americans, especially the least advantaged.

We believe that we shouldn’t be rejecting people at the very start of the hiring process who may otherwise be capable and qualified, and want an opportunity to work hard.

LIBRA GROUP: The Libra Group believes strongly in the twin values of hope and opportunity. Investing in the community isn’t just a matter of ‘paying back’ with the fruits of commerce; it is good business in its own right. A community with hope and opportunity is one better equipped to contribute in tomorrow’s world. Part of our responsibility in running an international business is to actively give something back. We do this through a series of 10 managed programs and initiatives which are broadly linked to the themes of community support and assisting people who have been denied or have limited opportunity, including the formerly incarcerated. Some of these initiatives include:

  • Drive Change: Libra Group supports Drive Change and its mission to use the food truck workplace to run a 1-year Fellowship for young people returning home from prison so they can obtain preferred employment and educational opportunities. Our monetary and in-kind support, in the form of essential skills trainings have allowed Drive Change to:
    • Hire a part-time “Truck Coach” who will empower the young people in the program to gain the most from their entire Drive Change experience;
    • Host hospitality trainings to make sure the Fellows are receiving quality instruction that can drive their future career opportunities;
    • Support instructors in developing courses in work-place readiness, social media, marketing, money management and small business development;
    • Provide management training for Executive Staff.
  • Defy Ventures: Libra Group provides funding to Defy Ventures to support its mission of harnessing the natural talents of formerly incarcerated individuals and redirecting them towards the creation of profitable and legal business ventures.
  • Libra Internship Program: Libra Group Internships are a unique opportunity for bright, talented young people with proven leadership potential to undertake a paid placement of up to six months’ duration with the Libra Group and its subsidiaries around the world. We work with organizations such as LEDA (Leadership Enterprise for a Diverse America), SEO, Prep for Prep, Harlem Children’s Zone, Miami Dade College, Olivier Scholars and CUNY, who are dedicated to provide educational opportunities to students coming from disadvantaged backgrounds.

Through Libra’s Internship Program, we support the children of formerly incarcerated parents. We have hosted a number of students who have grown up with either one or both parents in the criminal justice system.

PEPSICO: We all have a vested interest in creating conditions that allow individuals with criminal convictions to succeed. Finding a job is often one of the biggest barriers to a second chance; that’s why PepsiCo is proud to sign the Fair Chance Business Pledge. A fair chance at a good job significantly increases an individual’s chances of successfully re-entering society while strengthening the communities we all share.

We already “ban the box” by eliminating criminal history questions on our employment applications and delaying a background check until after a conditional offer of employment has been made. In cases of a criminal background, we individually review each case to understand the relevancy of the conviction, time passed, evidence of rehabilitation and other factors. All candidates have the opportunity to tell their unique story and will not be eliminated from consideration based solely on the fact of a criminal conviction.

PepsiCo has a long history of promoting equal opportunity. We evaluate current and prospective employees solely on their qualifications, experience and performance – and we have zero tolerance for discrimination of any kind.

We will continue our efforts to create opportunities for formerly incarcerated Americans by working with community partners to provide job readiness training and support, such as Stanford Law School’s Justice Advocacy Project, an effort to assist individuals with navigating the challenges of reentry.

PRUDENTIAL FINANCIAL: Prudential Financial is proud to take the White House Fair Chance Business Pledge, building upon our long-standing commitment to equal opportunity. Our efforts to date have focused on establishing internal policies and supporting programs that rebuild communities and provide second chances to individuals and families.

Internally, Prudential is committed to inclusive hiring practices when it comes to recruiting and retaining the best talent. We post our open roles publicly and do not inquire about an individual’s criminal history until after an offer of employment is extended. If it is revealed that a candidate does have a criminal record, that does not in and of itself necessarily disqualify him/her.

Additionally, Prudential has provided nearly $50 million to support fair chance hiring policies by investing in businesses and organizations who have demonstrated a commitment to inclusive hiring practices. These practices include assisting individuals with criminal backgrounds through workforce training, which includes occupational skills training and workplace soft skills training, so that they can successfully re-enter the workforce.

STARBUCKS: Starbucks continues to encourage its partners (employees) and others to recognize the choices we, as organizations and as citizens, can each can make every day to see a different story for America. The Company believes that equal access to opportunities, for those willing to work hard and play fair, continues to be the promise of our country. In many ways, Starbucks is demonstrating responsible, compassionate ways to provide more individuals a second chance:

  • Ban the Box: Starbucks does not inquire about criminal histories on initial job applications and runs background checks only after a conditional offer of employment. The intent is to provide applicants with a criminal history the chance to be evaluated as a whole person by having their circumstances considered on a case-by-case basis.
  • Access to Opportunity: In partnership with like-minded organizations, Starbucks has come up with creative solutions to open doors for transitioning veterans, aspiring students seeking debt-free college degrees, and Opportunity Youth- 16-24 year olds who face systemic barriers to jobs and education.
  • 100,000 Opportunities Initiative: Supported by many of the country’s youth and opportunity-focused nonprofit organizations, local governments, and participating funders, the 100,000 Opportunities Initiative is an employer led coalition of over 30 companies committed to engaging at least 100,000 opportunity youth by 2018 through experiential job fairs, apprenticeships, internships, and both part-time and full-time jobs. Since August, Starbucks has already hired over 7,000 opportunity youth, and plans to host its next hiring fair in its hometown of Seattle in May.

UBER: Providing economic opportunities to those with certain offenses on their records is a way for Uber to help reentering citizens find a way to earn a living. Driving for the Uber platform is a great option for someone looking to get back on their feet: it’s easy to get started and completely flexible.

We believe that the right path forward is to tailor our driver screening process to focus on issues that are directly relevant to providing a safe and reliable ride. We also conduct a transparent, up-to-date, and fair assessment of who should be on the Uber platform and who shouldn’t. This ensures rider safety without excluding people who deserve a fair shot at work opportunities.

To that end, in California—where more than 100,000 people drive with Uber—we’ve committed to:

  • Notifying people who don’t pass Uber’s pre-screening process that they could be eligible for getting felonies on their records adjusted under Proposition 47 (which they only have until November 2017 to do) and pointing them to resources to help them do that.
  • Aligning our pre-screening process with Proposition 47 to give people with low-level, nonviolent convictions on their records the same economic opportunities as everyone else.
  • Referring people who still don’t qualify to Defy Ventures to get work and entrepreneurship training as well as mentoring and job placement assistance.

We look forward to making similar commitments across the country, and we’re pleased that already, our technology and our background check processes—which include screening through national, state, and local databases—are reliable and accurate without unnecessarily discriminating against minorities as fingerprint-based checks do. We’re excited to continue working with community groups and reentry organizations across the country to explore ways our policies and technology can make our screening process fair for everyone.

UNDER ARMOUR AND PLANK INDUSTRIES: Under Amour and Plank Industries want to commend the Administration for their leadership in promoting the Fair Business Pledge with employers across this country and we are proud to take the pledge across all of our businesses. This initiative serves as an important reminder that while we all seek to improve our economy and create jobs, we must also consider the barriers that prevent qualified individuals from joining the workforce.

Under Armour comes from very humble beginnings in Baltimore, Maryland. Today, we are a global brand in performance footwear, apparel and technology with nearly $4 billion in annual revenue employing 12,000 teammates in 28 offices across 18 countries. Baltimore is home to Under Armour, and as we grow, so will the opportunities in this great city.

While Under Armour continues to be a catalyst for economic activity in Baltimore, we believe there is even more we can do to grow the economy. Taking the Fair Business Pledge is just one example of how we can make our hiring practices more inclusive for some in our community. Through the Blocal initiative, we have also pledged to work with other business leaders in Baltimore to promote locally owned businesses, hire more from the local community, buy from local suppliers and continue to give back to our local communities.

As leaders in business, we all focus on creating economic opportunity. As leaders in our community, we should also consider how everyone can participate in the opportunities we create.

UNILEVER: Through the Unilever Sustainable Living Plan, Unilever is committed to enhancing livelihoods and creating a brighter future for all. We believe that businesses like ours can and should play an important role in generating wealth and jobs around the world, improving skills and offering access to markets. Fairness in the workplace is about respecting the rights of all those who work with us. Furthermore, business can only truly flourish in societies and economies where human rights are respected and upheld.

Several years ago, Unilever was one of the first companies to implement the “banning the box” policy, meaning that we no longer ask applicants to declare a criminal record prior to being invited to interview for a position. More recently, we decided that we will not conduct criminal background checks until a contingent offer has been made to a potential applicant. By taking these actions, Unilever is proud to be a signatory of the Fair Chance Business Pledge. We are committed to providing equal opportunities to individuals with criminal records a fair chance to participate in the American economy.

XEROX: Xerox is proud to join other corporate leaders in “banning the box.” Xerox is committed to fostering an environment where everyone can contribute and succeed at every level of the corporation.

Our outreach into diverse and broad employment markets for qualified individuals results in hiring our talented workforce and allows us to build and maintain an inclusive corporate culture. We strive continually to strengthen our work environment on an ongoing basis by valuing employees with different backgrounds and perspectives.

Panama Papers Snares Another Clinton Tax Haven?

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First the Panama Papers revealed the Podesta Group. John and Tony Podesta, the founders have connections to a Russian bank which is blacklisted. John Podesta is the architect of the Hillary presidential campaign.

  John Podesta, a real operative in the White House for years.

John Podesta was an Obama advisor and upon leaving that role, he said his greatest regret not revealing more about UFO’s. Sheesh…

The mailman must be real busy and overworked at the address below.

This Delaware Address Is Home to 200,000 Shell Companies—Including Hillary Clinton’s

In wake of ‘Panama Papers’ scandal, renewed interest in tax avoidance efforts

FreeBeacon: The address “1209 North Orange Street” in Wilmington, Del., has become known in recent years as the epicenter of U.S. corporate secrecy. The squat, split-level building is the official address of over 285,000 companies, many of which are looking to take advantage of Delaware’s Panama-like secrecy rules, tax incentives, and business-friendly case law.

In the wake of the recent “Panama Papers” scandal, this unassuming brick office has received renewed scrutiny from the Washington Post, the New York Times, the Telegraph, and advocates for corporate tax reform.

But one of its tenants may come as a surprise—a company owned by Democratic presidential frontrunner Hillary Clinton.

Hillary and Bill Clinton quietly set up two shell companies listed at “1209 North Orange Street” in 2008 and 2013, the Washington Free Beacon has found. The names of the companies, but not their location, were first made public in tax filings released by Hillary Clinton last year.

According to records, one of the Clintons’ “1209 North Orange Street” companies is WJC, LLC, which was set up by Bill Clinton in 2008 as a pass-through for his consulting fees.

Another company at the same location, ZFS Holdings, LLC, was set up in February 2013, one week after Hillary Clinton left the State Department. Hillary Clinton received $5.5 million from her book publisher, Simon & Schuster, through the company.

The “1209 North Orange Street” building is the headquarters for the Corporation Trust Company. The firm acts as a registered agent for thousands of corporations that are not actually located in Delaware, including the Clintons’ companies.

Anti-secrecy advocates say the building is prime evidence that Delaware has become a corporate haven that’s comparable to more well-known, offshore locales.

“If you imagined a building with 1,000 corporations in it, you’d imagine a building like the Empire State building,” said Richard Phillips, a senior policy analyst with Citizens for Tax Justice. “But apparently 285,000 companies claim [1209 North Orange Street] is their address.”

“What this shows is this is not really the address of companies that are doing real business. This is the address of a lot of companies that are just shell companies,” he added. “In this case, it doesn’t even look like they have mailboxes. They just claim that address as the places they’re doing business, even though they’re not doing business there.”

Similar registered agents have come under scrutiny in recent years. While campaigning in 2008, President Obama slammed the “Ugland House,” a five-story building in the Cayman Islands that is reportedly home to over 18,000 companies.

“That’s either the biggest building in the world, or the biggest tax scam on record,” said Obama.

The Clinton campaign declined to comment on why the Clintons, who live in New York and have no evident residential ties to Delaware, set up companies in the state. But the presidential candidate isn’t alone. Experts say Delaware is the most popular place to register a company in the United States, due in part to its established system of business case law and tax incentives for intellectual property and real estate holdings.

One of the biggest draws may be the state’s lack of disclosure requirements—businesses can be created completely anonymously, allowing the owners to avoid public detection and even hide income from U.S. authorities.

According to advocates for corporate tax reform, Delaware’s laws rival well-known secrecy havens like the Cayman Islands and Panama.

“General secrecy laws and the ability of these corporations to hide the identities of those who own it, that’s what makes [Delaware] an onshore tax haven, and that’s what makes it just as bad as the Cayman Islands,” said Phillips.

Hillary Clinton has promised to crack down on tax havens on the campaign trail. Referring to the Panama Papers last Wednesday, Clinton condemned “outrageous tax havens and loopholes that super-rich people across the world are exploiting in Panama and elsewhere.”

The Clinton Foundation also has three shell companies in Delaware, according to its amended financial disclosures released last year.

One is the Acceso Fund, LLC, which was registered by the Corporation Trust Company at 1209 North Orange Street in 2009. The Clinton Foundation has used the company to channel money to its Colombia-based private equity fund, Fondo Acceso.

The private equity fund, which is run out of the Clinton Foundation’s Bogota office, has invested in telecom and food processing companies in Colombia, the Free Beacon reported last November.

Another Clinton Foundation company, Acceso Worldwide Fund, Inc., was registered in 2013 by the Corporation Services Company, located in Wilmington, Delaware.

A third company, the Haiti Development Fund, LLC, was registered in 2010 by National Corporate Research, Ltd, located in Dover.

In Delaware, limited liability companies such as WJC, LLC, and ZFS, LLC, are not required to file annual statements disclosing their directors or owners. The Clintons also registered both companies in New York after they were established.

There is no evidence the Clintons are using the entities for any nefarious purposes, and it is perfectly legal for non-residents to set up corporations in Delaware. But even if corporations stay within the law, critics say Delaware shell companies can sometimes be used to legally circumvent taxes in other states.

According to a report published last December by the Institute on Taxation and Economic Policy, Delaware’s popularity as a hub for shell companies is “responsible for the loss of billions of dollars in revenue in other U.S. states.”

“It’s legal tax avoidance,” said Phillips. “We would say it’s immoral, or not the best thing for the country.”

Anti-secrecy advocates also say the laws make it easier for criminals to evade federal taxes or finance terrorism, all under the radar of the public and U.S. authorities.

“Some anonymous shell companies have financed terrorism and supported corruption and human trafficking and Delaware is a traditional hub for creating these fake companies,” said Andrew Hanauer, campaign director at the Jubilee USA Network.

Jubilee USA Network and other groups have been advocating for legislative reform. Sen. Sheldon Whitehouse (D., R.I.), Rep. Peter King (R., N.Y.), and Rep. Carolyn Maloney recently put forward legislation that would force U.S. companies to disclose their actual owners.

The Clinton campaign did comment on whether Hillary Clinton supports the legislation. The campaign also did not comment on whether she or Bill Clinton have any other companies registered in Delaware.

But the concerns over corporate secrecy and tax avoidance have trickled into the Democratic presidential race, with Sen. Bernie Sanders incorporating it into his stump speeches. Clinton has also railed against tax havens on the trail and vowed to take action.

“Some of you may have just heard about these disclosures about outrageous tax havens and loopholes that super-rich people across the world are exploiting in Panama and elsewhere,” said Clinton during a campaign event last Wednesday.

“Now some of this behavior is clearly against the law, and anyone who violates the law anywhere should be held accountable,” she added. “But it’s also scandalous how much is actually legal.”

Recall the Chatter About Being Prosecuted as a Climate Changer Denier?

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The standing is being set for this to happen. How did we get here?

Subpoenaed Into Silence on Global Warming

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Bloomberg: The Competitive Enterprise Institute is getting subpoenaed by the attorney general of the U.S. Virgin Islands to cough up its communications regarding climate change. The scope of the subpoena is quite broad, covering the period from 1997 to 2007, and includes, according to CEI, “a decade’s worth of communications, emails, statements, drafts, and other documents regarding CEI’s work on climate change and energy policy, including private donor information.”

My first reaction to this news was “Um, wut?” CEI has long denied humans’ role in global warming, and I have fairly substantial disagreements with CEI on the issue. However, when last I checked, it was not a criminal matter to disagree with me. It’s a pity, I grant you, but there it is; the law’s the law.

(I pause to note, in the interests of full disclosure, that before we met, my husband briefly worked for CEI as a junior employee. We now return to our regularly scheduled programming.)

Speaking of the law, why on earth is CEI getting subpoenaed? The attorney general, Claude Earl Walker, explains: “We are committed to ensuring a fair and transparent market where consumers can make informed choices about what they buy and from whom. If ExxonMobil has tried to cloud their judgment, we are determined to hold the company accountable.”

That wasn’t much of an explanation. It doesn’t mention any law that ExxonMobil may have broken. It is also borderline delusional, if Walker believes that ExxonMobil’s statements or non-statements about climate change during the period 1997 to 2007 appreciably affected consumer propensity to stop at a Mobil station, rather than tootling down the road to Shell or Chevron, or giving up their car in favor of walking to work.

State attorneys general including Walker held a press conference last week to talk about the investigation of ExxonMobil and explain their theory of the case. And yet, there sort of wasn’t a theory of the case. They spent a lot of time talking about global warming, and how bad it was, and how much they disliked fossil fuel companies. They threw the word “fraud” around a lot. But the more they talked about it, the more it became clear that what they meant by “fraud” was “advocating for policies that the attorneys general disagreed with.”

New York Attorney General Eric Schneiderman gave the game away when he explained that they would be pursuing completely different theories in different jurisdictions — some under pension laws, some consumer protection, some securities fraud. It is traditional, when a crime has actually been committed, to first establish that a crime has occurred, and then identify a perpetrator. When prosecutors start running that process backwards, it’s a pretty good sign that you’re looking at prosecutorial power run amok.

And that approaches certainty when attorneys general start sending subpoenas to think tanks  that ExxonMobil might have supported. What exactly would the subpoena prove? That ExxonMobil supported opinions about climate change? That the opinions tended to be congruent with its own interests? That this opinion might have been wrong, and if so, might have encouraged wrong beliefs in others? This is a description of, roughly, every person or organization in the history of the world, not excluding attorneys general. It’s also not illegal. Especially since, as the New York Times points out, “the company published extensive research over decades that largely lined up with mainstream climatology.” This isn’t preventing consumers from buying into a Ponzi scheme; it’s an attempt to criminalize advocacy.

I support action on climate change for the same reason I buy homeowner’s, life and disability insurance: because the potential for catastrophe is large. But that doesn’t mean I’m entitled to drive people who disagree with me from the public square. Climate activists have an unfortunate tendency to try to do just that, trying to brand dissenters as the equivalent of Holocaust deniers.

It’s an understandable impulse. It seems easier to shut down dissenters than to persuade people to stop consuming lots and lots of energy-intensive goods and services.

But history has had lots and lots of existentially important debates. If you thought that only the One True Church could save everyone from Hell, the Reformation was the most existentially important debate in human history. If you thought that Communist fifth columnists were plotting to turn the U.S. into Soviet Russia, that was also pretty existentially important. We eventually realized that it was much better to have arguments like these with words, rather than try to suppress one side of them by force of law.

Unfortunately those who wield the law forget that lesson, and we get cases like the CEI subpoena, intended to silence debate by hounding one side. The attorney general doesn’t even need to have the law on his side; the process itself can be the punishment, as victims are forced to spend immense amounts on legal fees, and immense time and money on complying with investigations. (And if the law were on the attorney general’s side in a case like this, then that’s a terrible law, and it should be overturned.)

Prosecutors know the damage they can do even when they don’t have a leg to stand on. The threat of investigation can coerce settlements even in weak cases.

The enemies of the Competitive Enterprise Institute and ExxonMobil should hold their applause. In a liberal democracy, every guerrilla tactic your side invents will eventually be used against you. Imagine a coalition of Republican attorneys general announcing an investigation of companies that have threatened state boycotts over gay-rights issues, and you may get a sense of why this is not such a good precedent to set.

The rule of law, and our norms about free speech, represent a sort of truce between both sides. We all agree to let other people talk, because we don’t want to live in a world where we ourselves are not free to speak. Because we do not want to be silenced by an ambitious prosecutor, we should all be vigilant when ambitious prosecutors try to silence anyone else.

He Did it, He Turned Over the Fast and Furious Documents

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  Maybe the whistleblowers will receive some vindication like Sharyl Attkisson.

Obama relents in fight over Fast and Furious documents

Politico: Four years after asserting executive privilege to block Congress from obtaining documents relating to a controversial federal gun trafficking investigation, President Barack Obama relented Friday, turning over to lawmakers thousands of pages of records that led to unusual House votes holding Attorney General Eric Holder in contempt in 2012.

In January, a federal district court judge rejected Obama’s executive privilege claim over records detailing the Justice Department and White House’s response to Operation Fast and Furious, a Bureau of Alcohol, Tobacco, Firearms and Explosives investigation that may have allowed as many as 2,000 firearms to pass into the hands of Mexican drug cartels.

In her ruling, U.S. District Court Judge Amy Berman Jackson did not turn down Obama’s privilege assertion on the merits. Instead, she said authorized public disclosures about the operation in a Justice Department inspector general report essentially mooted the administration’s drive to keep the records secret.

Both sides had until midnight Friday to file an appeal. Instead, the Obama administration turned over a set of documents to the House Oversight and Government Reform Committee.

“In light of the passage of time and other considerations, such as the Department’s interest in moving past this litigation and building upon our cooperative working relationship with the Committee and other Congressional committees, the Department has decided that it is not in the Executive Branch’s interest to continue litigating this issue at this time,” Justice Deparment legislative liaison Peter Kadzik wrote in a letter Friday to House Oversight Chairman Jason Chaffetz (R-Utah).

Justice Department spokesman Patrick Rodenbush confirmed that the administration does not plan to appeal. He argued that Jackson’s ruling validated Obama’s initial claim of privilege.

“The Department of Justice is pleased that the district court … continued to recognize that the deliberative process component of the executive privilege exists and was a valid basis for the Department to withhold certain documents when requested by the House in 2011. Although the Department disagrees with the district court’s conclusion that the privilege was overcome in this particular case by disclosures and statements made in other contexts, the Department has decided not to appeal the court’s judgment and has provided a production of documents to the House Committee on Oversight and Government Reform,” Rodenbush said in a statement.

While the House largely won in the January decision, it did file an appeal earlier Friday afternoon, apparently unaware of the administration’s plans to comply with the judge’s order. The appeal suggested that House leaders were dissatisfied with aspects of Jackson’s rulings that narrowed the set of documents the administration had to turn over.

“As we’ve long asserted, the Committee requires and is entitled to these documents,” Chaffetz said in a statement. “They are critical to the Committee’s efforts to complete meaningful oversight. The Committee has a duty to understand and shine light on what was happening inside DOJ during the time of this irresponsible operation. Yet DOJ has obstructed our investigative work for years.”

After getting word that the Justice Department was turning over records, Chaffetz updated his statement, indicating that the House plans to press its appeal to get records beyond the ones the administration is providing.

“Today, under court order, DOJ turned over some of the subpoenaed documents. The Committee, however, is entitled to the full range of documents for which it brought this lawsuit. Accordingly, we have appealed the District Court’s ruling in order to secure those additional documents,” Chaffetz said.

Guns sold by dealers or informants used in the ATF operation wound up at numerous crime scenes in Mexico and the U.S. In December 2010, two of the weapons were found at the scene of the murder of a Border Patrol agent in Arizona.

Obama’s privilege claim in the Fast and Furious fight was broad-ranging, seeking to cover not only internal deliberations about how to respond to congressional inquiries but also discussions about media strategy related to the congressional probes.

The June 2012 claim in the Fast and Furious case was the only formal assertion of executive privilege by Obama to try to defeat a congressional demand for records or testimony, though the administration has raised executive privilege concerns when declining to comply with other congressional inquiries. Most of those were resolved through negotiations. The administration has also asserted executive privilege in response to a variety of Freedom of Information Act lawsuits.