By Michelle Malkin
MichelleMalkin.com
Attorney General Eric Holder, Team Obama’s Dirty Dozen (get your trading
cards here)
If you’ve been paying attention, you already know all about AG Eric Holder
and his DOJ staff’s national security conflict of interest as senior partner
with Covington & Burling — the prestigious Washington, D.C. law firm, which
represents 17 Yemenis currently held at Gitmo.
I first mentioned it here in
January and spotlighted the problem in chapter 4 of
Culture of Corruption.
In fact, Holder and Covington & Burling have a lucrative niche in terrorist
representation.
I’m reprinting the relevant section from Culture of Corruption so you have
it at your fingertips. All of this was known before Holder was
confirmed as AG, which, as I’ve pointed out before, makes it all the more
inexplicable that
19 Republican senators — Alexander (R-TN); Bennett (R-UT); Bond (R-MO);
Chambliss (R-Ga); Collins (R-ME); Corker (R-TN); Graham (R-SC); Grassley
(R-IA); Gregg (R-NH); Hatch (R-UT); Isakson (R-GA;) Kyl (R-AZ); Lugar (R-IN)
McCain (R-AZ); Murkowski (R-AK); Sessions (R-AL); Snowe (R-ME); Specter
(R-PA); and Voinovich (R-OH) — cast their votes for him. Now, they are reaping
what they helped sow.
Excerpted from Chapter 4: Meet the Mess – Inside the Crooked
Cabinet,
Culture of Corruption, by Michelle Malkin (see book for footnotes)
“Don’t go into corporate America,” First Lady Michelle Obama admonished
supporters on the campaign trail. Remember? She extolled the rewards of public
service over the material perks of life at a high-powered law firm. She
certainly didn’t take her own advice—and neither did her husband’s own
attorney general. If he hadn’t pulled out all the stops campaigning for the
president, raising money at lavish celebrity events, and offering his
strategic and legal advice—and if Eric Holder had an “R” by his name instead
of a “D”—he might have served as the perfect poster boy for Mrs. O’s caustic
campaign against white-shoe corporate law.
After a quarter-century as a government lawyer, Holder joined the
prestigious Covington & Burling business and corporate law firm. He
represented a gallery of the Left’s fattest targets in Big Pharma and Big
Business, defending them in fraud and discrimination cases that drove
progressives mad. Holder has served both his corporate and government masters
well—and he has the bank account and stock portfolio to prove it. His salary
jumped from under $200,000 as deputy U.S. Attorney General for the Clinton
administration to more than $2 million a year as a Covington & Burling senior
partner. During 2008, Holder spent countless hours away from his corporate
office working for the Obama campaign—raising money, fielding calls, making
speeches. “I hope the management committee is going to be real understanding
when they see my billable hours this year,” Holder joked to The American
Lawyer. It’s an investment, of course, and the law firm will get its political
dividends later.
Holder returns to a more modest $186,000 salary as Obama’s attorney
general. But parting has its perks, too. The Washington revolving door pays.
Covington & Burling will make a separation payment valued at between $1
million and $5 million, plus a repayment of up to $1 million from the firm’s
capital account, plus a retirement plan of up to $500,000. His net worth: $5.7
million. Reflecting on his past eight years raking in the dough and watching
him schmooze friends and clients from his “elegant new Manhattan offices,” an
American Lawyer profile observed: “Life is good for private citizen Eric
Holder, Jr.” President Obama and the missus, such outspoken detractors of
climbing the corporate ladder and influence-peddling, were unavailable for
comment.
One wonders what the Obamas would say about Holder’s lucrative work for
Chiquita Brands International if it had been performed by, say, John McCain’s
top lawyer? As chief counsel for the global company, Holder won a
“slap-on-the-wrist plea deal to charges that it had paid off” Colombian
paramilitary death squads. Liberal critics of Holder point out that he used
his influence as a former Clinton Justice Department official to negotiate a
sweetheart deal for Chiquita. The company pleaded guilty to illegally doing
business with the “Autodefensas Unidas de Colombia” or AUC (designated as an
international terrorist organization by the State Department in 2001).
Chiquita admitted negotiating with and forking over $1.7 million in protection
racket money to the guerillas beginning in 1997. AUC terrorists slaughtered
thousands of civilians to gain control of Colombia’s banana fields. The
company ignored the advice of outside counsel (not Holder or anyone else at
Covington & Burling) to stop the illegal payments in 2003:
• “Must stop payments.”
• “Bottom Line: CANNOT MAKE THE PAYMENT”
• “Advised NOT TO MAKE ALTERNATIVE PAYMENT through CONVIVIR”
• “General Rule: Cannot do indirectly what you cannot do directly”
• Concluded with: “CANNOT MAKE THE PAYMENT”
• “You voluntarily put yourself in this position. Duress defense can wear out
through repetition. Buz [business] decision to stay in harm’s way. Chiquita
should leave Colombia.”
• “[T]he company should not continue to make the Santa Marta payments, given
the AUC’s designation as a foreign terrorist organization[.]”
• “[T]he company should not make the payment.”
Even after disclosing the payments to the Justice Department in the spring
of 2003, Chiquita continued funneling money to the terrorists. According to
the Justice Department: “From April 24, 2003 (the date of Chiquita’s initial
disclosure to the Justice Department) through February 4, 2004, Chiquita made
20 payments to the AUC totaling over $300,000.” And yet, despite knowingly and
repeatedly breaking the law, not a single Chiquita official was prosecuted or
jailed. The $25 million criminal fine was written off as the cost of doing
business. And, stunningly, the plea agreement forged by Holder and the DOJ
succeeded in protecting the identities of the executives involved in the
bloody terrorist payoffs.
Putting on the best terrorist defense is a Covington & Burling specialty.
Among the firm’s other celebrity terrorist clients: 17 Yemenis held at the
Guantanamo Bay detention facility. The law firm employed dozens of radical
attorneys such as David Remes and Marc Falkoff to provide the enemy combatants
with more than 3,000 hours of pro bono representation. Covington & Burling
co-authored one of three petitioners’ briefs filed in the Boumediene v. Bush
detainee case, and secured victories for several other Gitmo enemy combatants
in the U.S. Court of Appeals for the D.C. Circuit. Falkoff went on to publish
a book of poetry, Poems from Guantanamo: The Detainees Speak, which he
dedicated to the suspected terrorists: “For my friends inside the wire,
Mahmoad, Majid, Yasein, Saeed, Abdulsalam, Mohammed, Adnan, Jamal, Othman,
Adil, Mohamed, Abdulmalik, Areef, Adeq, Farouk, Salman, and Makhtar. Inshallah,
we will next meet over coffee in your homes in Yemen.”
How sweet. One of the class of Yemeni Gitmo detainees that Falkoff
described as “gentle, thoughtful young men” was released in 2005—only to blow
himself up (gently and thoughtfully, of course) in a truck bombing in Mosul,
Iraq, in 2008, killing 13 soldiers from the 2nd Iraqi Army division and
seriously wounding 42 others.
The Senate shrugged at the glaring conflict of interest Attorney General
Holder presents in handling Gitmo legal issues. Lieutenant Colonel Gordon
Cucullu, author of Inside Gitmo: The True Story Behind the Myths of Guantanamo
Bay, makes the ethical problem plain:
As a senior partner, he undoubtedly had significant input on what kind of
charity cases his firm picked up. He surely knew that dozens of lawyers from
his firm were among the 500-plus civilian lawyers representing the 244 or so
remaining detainees (on top of military-court-appointed defenders). Even now,
his Covington colleagues continue to allege rampant torture at Gitmo. They’re
fighting hard to have detainees tried through the US court system—essentially
given the same rights as US citizens. And their arguments and plans hinge
largely on having Holder issue a bad report card.
Recent polls indicate that at least half of Americans disagree with
affording the detainees legal rights on US soil. Will they have the same
access to Holder’s ears as his former colleagues do?
The White House says that Holder will formally recuse himself from charging
decisions and prosecutions affecting any of Covington & Burling’s clients, but
he will have unfettered oversight over Obama’s order to close the facility
within a year. Moreover, there’s a gaping loophole in the Obama administration
ethics rules that will allow Holder to participate in decision-making despite
his conflicts of interests if he can show that his participation in a matter
outweighs an appearance or actual conflict of interest. If you think Holder’s
professional connections won’t have any influence on the outcome of these
decisions, I have a Colombian banana farm to sell you.
Among the other eyebrow-raising cases Holder took on at Covington &
Burling:
*Signing up to assist then Illinois Governor Rod Blagojevich in a casino
license battle in 2004. The state’s gaming board had approved the construction
of a disputed casino, overruling the recommendation of the board’s staff.
Rank-and-file investigators had qualms over the casino developer’s alleged mob
ties and over Blago’s appointment of a crony fund-raiser to oversee the
state’s deal-making with the casino. The fund-raiser, Christopher Kelly,
turned out to be a business partner of convicted Obama/Blago confidante and
real estate mogul Tony Rezko. The Chicago Sun-Times reported that Rezko “held
an option to lease a hotel site next to the proposed casino site.” Holder held
a public press conference with Blago to announce his role as a special
“independent” investigator into the matter. The dog-and-pony show produced no
report, but Holder and his law firm had contracted to conduct the probe for a
tidy $300,000. Somehow, the foul-smelling case slipped Holder’s mind; he
failed to mention it in his Senate Judiciary Committee questionnaire.
*Forging a massive settlement for Purdue Pharma, manufacturer of the
addictive painkiller OxyContin, with the state of West Virginia in 2004. The
state accused the drugmaker of deceptively marking OxyContin as safe and
effective for minor pain. The firm’s marketing practices, the state
maintained, led to West Virginia users becoming addicted to the drug. State
attorney general Darrell McGraw Jr., a Democrat, filed suit. In an article
entitled, “Why Eric Holder Represents What’s Wrong with Washington,” liberal
columnist David Corn described Holder’s pivotal role in negotiating a
settlement that spared executives a criminal trial:
This suit was a serious threat to the drugmaker, and it eventually called
in Holder. And in November 2004, the morning that the case was about to go to
trial, Holder helped negotiate a settlement. Working in the judge’s chambers
in West Virginia, he forged an agreement under which the firm would have to
pay $10 million over four years into drug abuse and education programs in West
Virginia. Purdue would not have to admit any wrongdoing. (Days earlier, the
firm had offered the state about $2 million to settle; McGraw had turned down
Purdue and had not bothered to produce a counter-offer.)
The settlement was a big win for the company. Ten million dollars was a
piddling amount compared to what Purdue was reaping from OxyContin sales. More
important, this settlement helped keep the lid on the firm’s criminal
activities. There would be no trial—and no public release of documents or
testimony about the company’s actions, which were already being investigated
by federal prosecutors. In late 2002, the feds had begun an investigation of
Purdue, with the first of what would be nearly 600 subpoenas for corporate
records related to the manufacturing, marketing, and distribution of OxyContin.
In May 2007, the company and its three top executives pleaded guilty to
federal charges of fraudulently marketing OxyContin by claiming it was less
addictive, less subject to abuse, and less likely to cause withdrawal
symptoms. Purdue and the three execs agreed to pay fines of $634.5 million.
*Brokering a settlement for pharmaceutical kingpin Merck, which had been
besieged by multiple state lawsuits over Medicaid overbilling and doctor
kickbacks involving four popular drugs. Merck admitted no wrongdoing, paying
$671 million to make whistleblowers, state probes over their pricing, and
bribery charges go away.
In his tony Manhattan offices, Holder did what any corporate lawyer worth
his multi-million-dollar salary and benefits package would do: Represent his
clients to the best of his ability. But in his first tours of duty as a
government lawyer, Holder repeatedly put politics above the national interest.
During his Senate confirmation hearing, Holder’s infamous roles in issuing
pardons to Clinton crony Marc Rich and clemency to convicted bank robbers and
bombers of the Puerto Rican terrorist group, FALN (Fuerzas Armadas de
Liberación Nacional), received the most heat. In both cases, the government
servant played a far more active role in intervening than he ever cared to
admit.
The Los Angeles Times added new information to the terrorist clemency case
by disclosing before the hearing that Holder had “repeatedly pushed some of
his subordinates at the Clinton Justice Department to drop their opposition
to” the FALN commutations. Holder, the paper determined from whistleblower
interviews and documents, “played an active role in changing the position of
the Justice Department” to facilitate President Clinton’s commutations for 16
violent terrorists from the group. The FALN had waged a bloody bombing
campaign that maimed dozens of New York City police officers and resulted in
the deaths or injuries of scores of other victims. Holder forged ahead with
his meddling on behalf of the president against the protests of the FBI, NYPD,
federal prosecutors, and victims.
The nation’s top law enforcer did not pay the bombing victims or their
families the courtesy of notifying them of the decision to release the
unrepentant terrorists until after the clemencies were publicized in the
media.
As for the Marc Rich case, former federal prosecutor Andrew McCarthy
accurately described it as “one of the most disgraceful chapters in the
history of the Justice Department.” Congressional investigators called it
“unconscionable.” Fugitive commodities trader Marc Rich, on the run for
evading nearly $50 million in taxes, found the best lawyer he could buy:
former Democratic White House counsel and intimate friend of Eric Holder, Jack
Quinn. Despite his denials, memos showed Holder knew of the pardon in advance,
failed to notify prosecutors and the FBI that it was coming, “and even gave
Quinn public-relations advice on getting out the ‘legal merits of the case.’”
The evidence clearly shows Holder and Quinn violated department protocols and
colluded to keep the Justice Department out of the pardon deal.
Appearing contrite at his Senate confirmation hearing, Holder confessed:
I’ve accepted the responsibility of making those mistakes. I’ve never tried
to hide. I’ve never tried to blame anybody else.
What I’ve always said was that, given my—given the opportunity to do it
differently, I certainly would have.
I should have made sure that everybody, all the prosecutors in that case,
were informed of what was going on. I made assumptions that turned out not
to be true. I should have not spoken to the White House and expressed an
opinion without knowing all of the facts with regard to that matter.
That was and remains the most intense, most searing experience I’ve ever
had as a lawyer. There were questions raised about me that I was not used to
hearing.
I’ve learned from that experience. I think that, as perverse as this
might sound, I will be a better attorney general, should I be confirmed,
having had the Mark Rich experience.
…It was something that I think is not typical of the way in which I’ve
conducted myself as a careful, thoughtful lawyer. As I said, it is something
where I made mistakes, and I learned from those mistakes.
Washington, alas, was determined to repeat the mistakes of the past. The
Senate, including 19 Republicans, confirmed Holder on February 2, 2009.