General David Petraeus: Too Big To Jail March 8, 2015Posted by rogerhollander in Criminal Justice, Economic Crisis, Whistle-blowing.
Tags: afghanistan surge, chelsea manning, Criminal Justice, David Petraeus, edward snowden, eric holder, General Petraeus, iraq surge, john kiriakou, paula broadwell, ray mcgovern, subprime, whistle-blowing
add a comment
Roger’s note: recently I have been posting articles about despicable human beings (Churchill, General Patton) who have become heroes in the public domain as a result of a phenomenon I refer to as “in the capitalist world for the most part the shit rises to the top.” This theory can be demonstrated in a single word: “Bush.” In our time such cretinous creatures as Henry Kissinger and Dick Cheney have wielded enormous power over long periods of time and live lives of luxurious comfort while literally millions suffer from their actions. Welcome to the Hall of Shame, General Petraeus.
While lesser Americans face years in jail for leaking secrets – even to inform fellow citizens of government abuses – retired Gen. David Petraeus gets a misdemeanor wrist-slap for exposing covert officers and lying about it
The leniency shown former CIA Director (and retired General) David Petraeus by the Justice Department in sparing him prison time for the serious crimes that he has committed puts him in the same preferential, immune-from-incarceration category as those running the financial institutions of Wall Street, where, incidentally, Petraeus now makes millions. By contrast, “lesser” folks – and particularly the brave men and women who disclose government crimes – get to serve time, even decades, in jail.
Petraeus is now a partner at KKR, a firm specializing in large leveraged buyouts, and his hand-slap guilty plea to a misdemeanor for mishandling government secrets should not interfere with his continued service at the firm. KKR’s founders originally worked at Bear Stearns, the institution that failed in early 2008 at the beginning of the meltdown of the investment banking industry later that year.
Despite manifestly corrupt practices like those of subprime mortgage lenders, none of those responsible went to jail after the 2008-09 financial collapse which cost millions of Americans their jobs and homes. The bailed-out banks were judged “too big to fail” and the bankers “too big to jail.”
Two years ago, in a highly revealing slip of the tongue, Attorney General Eric Holder explained to Congress that it can “become difficult” to prosecute major financial institutions because they are so large that a criminal charge could pose a threat to the economy – or perhaps what he meant was an even bigger threat to the economy.
Holder tried to walk back his unintended slip into honesty a year later, claiming, “There is no such thing as ‘too big to jail.’” And this bromide was dutifully echoed by Holder’s likely successor, Loretta Lynch, at her confirmation hearing in late January.
Words, though, are cheap. The proof is in the pudding. It remains true that not one of the crooked bankers or investment advisers who inflicted untold misery on ordinary people, gambling away much of their life savings, has been jailed. Not one.
And now Petraeus, who gave his biographer/mistress access to some of the nation’s most sensitive secrets and then lied about it to the FBI, has also been shown to be too big to jail. Perhaps Holder decided it would be a gentlemanly thing to do on his way out of office – to take this awkward issue off Lynch’s initial to-do list and spare her the embarrassment of demonstrating once again that equality under the law has become a mirage; that not only big banks, but also big shots like Petraeus – who was Official Washington’s most beloved general before becoming CIA director – are, in fact, too big to jail.
It strikes me, in a way, as fitting that even on his way out the door, Eric Holder would not miss the opportunity to demonstrate his propensity for giving hypocrisy a bad name.
A Slap on Wrist for Serious Crimes
The Justice Department let David Petraeus cop a plea after requiring him to admit that he had shared with his biographer/mistress eight black notebooks containing highly classified information and then lied about it to FBI investigators. Serious crimes? The following quotes are excerpted from “U.S. v. David Howell Petraeus: Factual Basis in support of the Plea Agreement” offered by the U.S. District Court for the Western District of North Carolina, Charlotte Division:
“17. During his tenure as Commander of ISAF in Afghanistan, defendant DAVID HOWELL PETRAEUS maintained bound, five-by-eight-inch notebooks that contained his daily schedule and classified and unclassified notes he took during official meetings, conferences, and briefings. … A total of eight such books (hereinafter the “Black Books”) encompassed the period of defendant DAVID HOWELL PETRAEUS’S ISAF [Afghanistan] command and collectively contained classified information regarding the identities of covert officers, war strategy, intelligence capabilities and mechanisms, diplomatic discussions, quotes and deliberative discussions from high-level National Security Council meetings, and defendant DAVID HOWELL PETRAEUS’s discussions with the President of the United States of America. [emphasis added]
“18. The Black Books contained national defense information, including Top Secret//SCI and code word information.”
Despite the sensitivity of the notebooks and existing law and regulations, Petraeus did not surrender them to proper custody when he returned to the U.S. after being nominated to become the Director of the CIA. According to the Court’s “Factual Basis,” Petraeus’s biographer/mistress recorded a conversation of Aug. 4, 2011, in which she asks about the “Black Books.” The Court statement continues:
“ [Petraeus] ‘Umm, well, they’re really – I mean they are highly classified, some of them. … I mean there’s code word stuff in there.’ … On or about August 27, 2011, defendant DAVID HOWELL PETRAEUS sent an email to his biographer in which he agreed to provide the Black Books to his biographer. … On or about August 28, 2011, defendant DAVID HOWEL PETRAEUS delivered the Black Books to a private residence in Washington, D.C. where his biographer was staying. … On or about September 1, 2011, defendant DAVID HOWELL PETRAEUS retrieved the Black Books from the D.C. private residence and returned them to his own Arlington, Virginia home.” [emphasis added]
I would think it a safe guess that Petraeus’s timing can be attributed to his awareness that his privacy and freedom of movement was about to be greatly diminished, once his CIA personal security detail started keeping close track of him from his first day on the job as CIA Director, Sept. 6, 2011.
“32. On or about October 26, 2012, defendant DAVID HOWELL PETRAEUS was interviewed by two FBI special agents. … [He] was advised that the special agents were conducting a criminal investigation. … PETRAEUS stated that (a) he had never provided any classified information to his biographer, and (b) he had never facilitated the provision of classified information to his biographer. These statements were false. Defendant DAVID HOWELL PETRAEUS then and there knew that he previously shared the Black Books with his biographer.” [emphasis added]
Lying to the FBI? No problem. As “Expose Facts” blogger Marcy Wheeler immediately commented: “For lying to the FBI – a crime that others go to prison for for months and years – Petraeus will just get a two point enhancement on his sentencing guidelines. The Department of Justice basically completely wiped out the crime of covering up his crime of leaking some of the country’s most sensitive secrets to his mistress.” [emphasis added]
Talk about “prosecutorial discretion” or, in this case, indiscretion – giving Petraeus a fine and probation but no felony conviction or prison time for what he did! Lesser lights are not so fortunate. Just ask Chelsea (formerly Bradley) Manning who is serving a 35-year prison sentence for disclosing information to the public about U.S. war crimes and other abuses. Or Edward Snowden, who is stuck in Russia facing a U.S. indictment on espionage charges for informing the people about pervasive and unconstitutional U.S. government surveillance of common citizens.
Or former CIA officer John Kiriakou who was sent to prison for inadvertently revealing the name of one Agency official cognizant of CIA torture. Here’s what Neil MacBride, U.S. Attorney for the Eastern District of Virginia, said then: “The government has a vital interest in protecting the identities of those involved in covert operations. Leaks of highly sensitive, closely held and classified information compromise national security and can put individual lives in danger.”
When, on Oct. 23, 2012, Kiriakou acquiesced to a plea deal requiring two-and-a-half years in federal prison, then CIA Director Petraeus sent a sanctimonious Memorandum to Agency employees applauding Kiriakou’s conviction and noting, “It marks an important victory for our agency … there are indeed consequences for those who believe they are above the laws that protect our fellow officers and enable American intelligence agencies to operate with the requisite degree of secrecy.” [emphasis added]
Consequences for Kiriakou but not, as we now know, for Petraeus.
If you feel no discomfort at this selective application of the law, you might wish to scroll or page back to the “Factual Basis” for Petraeus’s Plea Agreement and be reminded that it was just three days after his lecture to CIA employees about the sanctity of protecting the identity of covert agents that Petraeus lied to FBI investigators – on Oct. 26, 2012 – about his sharing such details with his mistress.
Why Did Petraeus Do It?
Old soldiers like Petraeus (indeed, most aging but still ambitious men) have been known to end up doing self-destructive things by letting themselves be flattered by the attentions of younger women. This may offer a partial explanation – human weakness even in a self-styled larger-than-life super-Mensch. But I see the motivation as mostly vainglory. (The two are not mutually exclusive, of course.)
Looking back at Petraeus’s record of overweening ambition, it seems likely he was motivated first and foremost by a desire to ensure that his biographer would be able to extract from the notebooks some juicy morsels he may not have remembered to tell her about. This might enhance his profile as Warrior-Scholar-“King David,” the image that he has assiduously cultivated and promoted, with the help of an adulating neocon-dominated media.
Petraeus’s presidential ambitions have been an open secret. And with his copping a plea to a misdemeanor, his “rehabilitation” seems to have already begun. He has told friends that he would like to serve again in government and they immediately relayed that bright hope to the media.
Sen. John McCain was quick to call the whole matter “closed.” A strong supporter of Petraeus, McCain added this fulsome praise: “At a time of grave security challenges around the world, I hope that General Petraeus will continue to provide his outstanding service and leadership to our nation, as he has throughout his distinguished career.”
And Michael O’Hanlon, Brookings’ neocon military specialist who rarely gets anything right, spoke true to form to the New York Times: “The broader nation needs his advice, and I think it’s been evident that people still want to hear from him. … People are forgiving and I know he made a mistake. But he’s also a national hero and a national treasure.”
The “mainstream media” is trapped in its undeserved adulation for Petraeus’s “heroism.” It is virtually impossible, for example, for them to acknowledge that his ballyhooed, official-handout-based “success” in training and equipping tens of thousands of crack Iraqi troops was given the lie when those same troops ran away (the officers took helicopters) and left their weapons behind at the first sight of ISIL fighters a year ago.
Equally sham were media claims of the “success” for the “surges” of 30,000 troops sent into Iraq (2007) and 33,000 into Afghanistan (2009). Each “surge” squandered the lives of about 1,000 U.S. troops for nothing – yes, nothing – except in the case of Iraq buying time for President George W. Bush and Vice President Dick Cheney to get out of town without a clear-cut defeat hanging around their necks.
Many of the supposed successes of Petraeus’s Iraqi “surge” also predated the “surge,” including a high-tech program for killing top militants such as Al-Qaeda-in-Iraq leader Abu Musab al-Zarqawi and the formation of the so-called Sunni Awakening, both occurring in 2006 under the previous field commanders. And, Bush’s principal goal of the “surge” – to create political space for a fuller Sunni-Shiite reconciliation – was never accomplished. [See Consortiumnews.com’s “The Surge Myth’s Deadly Result.”]
And last, it is important to note that David Petraeus does not have a corner on the above-the-law attitudes and behavior of previous directors of the CIA. The kid-gloves treatment he has been accorded, however, will increase chances that future directors will feel they can misbehave seriously and suffer no serious personal consequence.
The virtual immunity enjoyed by the well connected – even when they lie to the FBI or tell whoppers in sworn testimony to Congress (as Director of National Intelligence James Clapper has done) – feeds the propensity to prioritize one’s own personal ambition and to delegate a back seat to legitimate national security concerns – even basic things like giving required protection to properly classified information, including the identity of covert officers.
One might call this all-too-common syndrome Self-Aggrandizing Dismissiveness (SAD). Sadly, Petraeus is merely the latest exemplar of the SAD syndrome. The unbridled ambitions of some of his predecessors at CIA – the arrogant John Deutch, for example – have been equally noxious and destructive. But we’ll leave that for the next chapter.
Full Disclosure: Petraeus has not yet answered McGovern’s letter of Feb. 3 regarding why McGovern was barred from a public speaking event by Petraeus in New York City on Oct. 30, 2014, and then was roughly arrested by police and jailed for the night. McGovern wonders if Petraeus failed to respond because he was pre-occupied working out his Plea Agreement.
Obama Did It For the Money May 7, 2013Posted by rogerhollander in Barack Obama, Economic Crisis.
Tags: anti-union, commerce secretary, Economic Crisis, hyatt hotel heiress, Obama, Penny Pritzke, Robert Scheer, roger hollander, sub-prime, subprime, superior bank
add a comment
Roger’s note: Obama strikes again: rewarding another one the architects of the economic disaster that ruined thousands of lives. But she got him elected and the banksters and the corporate blood-sucking congress-owning community will be pleased; and that is what is important to the president.
Published on Tuesday, May 7, 2013 by TruthDig.co
The love fest between Barack Obama and his top fundraiser Penny Pritzker that has led to her being nominated as Commerce secretary would not be so unseemly if they both just confessed that they did it for the money. Her money, not his, financed his rise to the White House from less promising days back in Chicago.
“Without Penny Pritzker, it is unlikely that Barack Obama ever would have been elected to the United States Senate or the presidency,” according to a gushing New York Times report last year that read like the soaring jacket copy of a steamy romance novel. “When she first backed him during his 2004 Senate run, she was No. 152 on the Forbes list of the wealthiest Americans. He was a long-shot candidate who needed her support and imprimatur. Mr. Obama and Ms. Pritzker grew close, sometimes spending weekends with their families at her summer home.”
But don’t sell the lady short; she wasn’t swept along on some kind of celebrity joyride. Pritzker, the billionaire heir to part of the Hyatt Hotels fortune, has long been first off an avaricious capitalist, and if she backed Obama, it wasn’t for his looks. Never one to rest on the laurels of her immense inherited wealth, Pritzker has always wanted more. That’s what drove her to run Superior Bank into the subprime housing swamp that drowned the institution’s homeowners and depositors alike before she emerged richer than before.
Pritzker and her family had acquired the savings and loan with the help of $600 million in tax credits. She became the new bank’s chairwoman and ended up as a director of the holding company that owned it. Under her leadership, Superior specialized in subprime lending, hustling folks with meager means and poor credit into high interest loans that were bundled into the toxic securities that wrecked the U.S. economy.
As federal regulators began to move in on her bank after it had dangerously inflated the value of its toxic assets, Pritzker assured its employees: “Our commitment to subprime has never been stronger.” Two months later, the bank was pronounced insolvent. At the time, the Federal Deposit Insurance Corp.‘s inspector general report concluded, “The failure of Superior Bank was directly attributable to the board of directors and executive management ignoring sound risk diversification principles, as evidenced by excessive concentration in residual assets related to subprime lending. …”
No biggie. In announcing her appointment, Obama joked, “For your birthday present, you get to go through confirmation. It’s going to be great.” It’s the same sort of joke he could have cracked in appointing Citigroup alum Jack Lew to be Treasury secretary.
It is deeply revealing that in the midst of the continuing cycle of misery brought on by the chicanery of the financial community two key Cabinet positions dealing with business practices will likely be occupied by people who specialized in those financial rip-offs.
For Pritzker, as with the confirmation of Lew, the fix is in. The Republicans don’t dare push back too hard on shady business practices that their deregulation legislation endorsed, and Democrats will go along with anything the president wants.
The same restraint will be exhibited in exploring the offshore tax havens that have protected the Pritzker family’s immense wealth. Back in 2008, when she had been rumored for this same Cabinet post, Pritzker was queried about avoiding the sort of taxes most ordinary folks are obligated to pay, and she replied in writing: “I am a beneficiary of some non-U.S. situs trusts which were established about 50 years ago (when I was a child) and are administered by a non-U.S.–based financial institution as trustee. I do not control how those assets are administered.” If the Republicans challenge that canard, the Democrats will smugly remind them of Mitt Romney’s tax havens, as if that excuses tax avoidance within their own ranks.
Certainly the Republicans will not raise questions about the anti-union practices that helped create the Hyatt fortune in the first place and continue to this day. Nor will the Democrats, who embrace unions only at national convention time.
“There is a huge unresolved set of issues in the Democratic Party between people of wealth and people who work,” noted Andy Stern, former president of the Service Employees International Union, which attempts to organize the miserably paid workers that produced Pritzker’s wealth. “Penny is a living example of that issue.”
But it’s payback time, and even normally progressive Democrats like Pritzker’s home state Sen. Dick Durbin are prepared to roll over. Treating the appointment of billionaire Pritzker as a victory for women everywhere, the senator said she’d “broken through the glass ceiling with her extraordinary intelligence and business acumen.”
Right, Pritzker will be a fine role model for those women working at the Asian factories that she’ll be touring as Commerce secretary extolling the virtues of the American business model.
Tags: barbara ehrenreich, Criminal Justice, debtors prison, poverty, poverty cycle, roger hollander, subprime, usury, wage theft
add a comment
By Barbara Ehrenreich, TomDispatch | News Analysis
Thursday, 17 May 2012 10:09
Individually the poor are not too tempting to thieves, for obvious reasons. Mug a banker and you might score a wallet containing a month’s rent. Mug a janitor and you will be lucky to get away with bus fare to flee the crime scene. But asBusiness Week helpfully pointed out in 2007, the poor in aggregate provide a juicy target for anyone depraved enough to make a business of stealing from them.
The trick is to rob them in ways that are systematic, impersonal, and almost impossible to trace to individual perpetrators. Employers, for example, can simply program their computers to shave a few dollars off each paycheck, or they can require workers to show up 30 minutes or more before the time clock starts ticking.
Lenders, including major credit companies as well as payday lenders, have taken over the traditional role of the street-corner loan shark, charging the poor insanely high rates of interest. When supplemented with late fees (themselves subject to interest), the resulting effective interest rate can be as high as 600% a year, which is perfectly legal in many states.
It’s not just the private sector that’s preying on the poor. Local governments are discovering that they can partially make up for declining tax revenues through fines, fees, and other costs imposed on indigent defendants, often for crimes no more dastardly than driving with a suspended license. And if that seems like an inefficient way to make money, given the high cost of locking people up, a growing number of jurisdictions have taken to charging defendants for their court costs and even the price of occupying a jail cell.
The poster case for government persecution of the down-and-out would have to be Edwina Nowlin, a homeless Michigan woman who was jailed in 2009 for failing to pay $104 a month to cover the room-and-board charges for her 16-year-old son’s incarceration. When she received a back paycheck, she thought it would allow her to pay for her son’s jail stay. Instead, it was confiscated and applied to the cost of her own incarceration.
Government Joins the Looters of the Poor
You might think that policymakers would take a keen interest in the amounts that are stolen, coerced, or extorted from the poor, but there are no official efforts to track such figures. Instead, we have to turn to independent investigators, like Kim Bobo, author of Wage Theft in America, who estimates that wage theft nets employers at least $100 billion a year and possibly twice that. As for the profits extracted by the lending industry, Gary Rivlin, who wrote Broke USA: From Pawnshops to Poverty, Inc. — How the Working Poor Became Big Business, says the poor pay an effective surcharge of about $30 billion a year for the financial products they consume and more than twice that if you include subprime credit cards, subprime auto loans, and subprime mortgages.
These are not, of course, trivial amounts. They are on the same order of magnitude as major public programs for the poor. The government distributesabout $55 billion a year, for example, through the largest single cash-transfer program for the poor, the Earned Income Tax Credit; at the same time, employers are siphoning off twice that amount, if not more, through wage theft.
And while government generally turns a blind eye to the tens of billions of dollars in exorbitant interest that businesses charge the poor, it is notably chary with public benefits for the poor. Temporary Assistance to Needy Families, for example, our sole remaining nationwide welfare program, gets only $26 billion a year in state and federal funds. The impression is left of a public sector that’s gone totally schizoid: on the one hand, offering safety-net programs for the poor; on the other, enabling large-scale private sector theft from the very people it is supposedly trying to help.
At the local level though, government is increasingly opting to join in the looting. In 2009, a year into the Great Recession, I first started hearing complaints from community organizers about ever more aggressive levels of law enforcement in low-income areas. Flick a cigarette butt and get arrested for littering; empty your pockets for an officer conducting a stop-and-frisk operation and get cuffed for a few flakes of marijuana. Each of these offenses can result, at a minimum, in a three-figure fine.
And the number of possible criminal offenses leading to jail and/or fines has been multiplying recklessly. All across the country — from California and Texas to Pennsylvania — counties and municipalities have been toughening laws against truancy and ratcheting up enforcement, sometimes going so far as to handcuff children found on the streets during school hours. In New York City, it’s now a crime to put your feet up on a subway seat, even if the rest of the car is empty, and a South Carolina woman spent six days in jail when she was unable to pay a $480 fine for the crime of having a “messy yard.” Some cities — most recently, Houston and Philadelphia — have made it a crime to share food with indigent people in public places.
Being poor itself is not yet a crime, but in at least a third of the states, being in debt can now land you in jail. If a creditor like a landlord or credit card company has a court summons issued for you and you fail to show up on your appointed court date, a warrant will be issued for your arrest. And it is easy enough to miss a court summons, which may have been delivered to the wrong address or, in the case of some bottom-feeding bill collectors, simply tossed in the garbage — a practice so common that the industry even has a term for it: “sewer service.” In a sequence that National Public Radio reports is “increasingly common,” a person is stopped for some minor traffic offense — having a noisy muffler, say, or broken brake light — at which point the officer discovers the warrant and the unwitting offender is whisked off to jail.
Local Governments as Predators
Each of these crimes, neo-crimes, and pseudo-crimes carries financial penalties as well as the threat of jail time, but the amount of money thus extracted from the poor is fiendishly hard to pin down. No central agency tracks law enforcement at the local level, and local records can be almost willfully sketchy.
According to one of the few recent nationwide estimates, from the National Association of Criminal Defense Lawyers, 10.5 million misdemeanors were committed in 2006. No one would risk estimating the average financial penalty for a misdemeanor, although the experts I interviewed all affirmed that the amount is typically in the “hundreds of dollars.” If we take an extremely lowball $200 per misdemeanor, and bear in mind that 80%-90% of criminal offenses are committed by people who are officially indigent, then local governments are using law enforcement to extract, or attempt to extract, at least $2 billion a year from the poor.
And that is only a small fraction of what governments would like to collect from the poor. Katherine Beckett, a sociologist at the University of Washington, estimates that “deadbeat dads” (and moms) owe $105 billion in back child-support payments, about half of which is owed to state governments as reimbursement for prior welfare payments made to the children. Yes, parents have a moral obligation to their children, but the great majority of child-support debtors are indigent.
Attempts to collect from the already-poor can be vicious and often, one would think, self-defeating. Most states confiscate the drivers’ licenses of people owing child support, virtually guaranteeing that they will not be able to work. Michigan just started suspending the drivers’ licenses of people who owe money for parking tickets. Las Cruces, New Mexico, just passed a law that punishes people who owe overdue traffic fines by cutting off their water, gas, and sewage.
Once a person falls into the clutches of the criminal justice system, we encounter the kind of slapstick sadism familiar to viewers of Wipeout. Many courts impose fees without any determination of whether the offender is able to pay, and the privilege of having a payment plan will itself cost money.
In a study of 15 states, the Brennan Center for Justice at New York University found 14 of them contained jurisdictions that charge a lump-sum “poverty penalty” of up to $300 for those who cannot pay their fees and fines, plus late fees and “collection fees” for those who need to pay over time. If any jail time is imposed, that too may cost money, as the hapless Edwina Nowlin discovered, and the costs of parole and probation are increasingly being passed along to the offender.
The predatory activities of local governments give new meaning to that tired phrase “the cycle of poverty.” Poor people are more far more likely than the affluent to get into trouble with the law, either by failing to pay parking fines or by incurring the wrath of a private-sector creditor like a landlord or a hospital.
Once you have been deemed a criminal, you can pretty much kiss your remaining assets goodbye. Not only will you face the aforementioned court costs, but you’ll have a hard time ever finding a job again once you’ve acquired a criminal record. And then of course, the poorer you become, the more likely you are to get in fresh trouble with the law, making this less like a “cycle” and more like the waterslide to hell. The further you descend, the faster you fall — until you eventually end up on the streets and get busted for an offense like urinating in public or sleeping on a sidewalk.
I could propose all kinds of policies to curb the ongoing predation on the poor. Limits on usury should be reinstated. Theft should be taken seriously even when it’s committed by millionaire employers. No one should be incarcerated for debt or squeezed for money they have no chance of getting their hands on. These are no-brainers, and should take precedence over any long term talk about generating jobs or strengthening the safety net. Before we can “do something” for the poor, there are some things we need to stop doing to them.
To stay on top of important articles like these, sign up to receive the latest updates from TomDispatch.com here
Barbara Ehrenreich is the author of a number of books including Nickel and Dimed: On (Not) Getting By in America and Bright-Sided: How the Relentless Promotion of Positive Thinking Has Undermined America.
Add New Comment
- Post as …