Saturday, June 28, 2014

Here Comes the Judge, in Cuffs

from nytimes

In Broward County, Fla., Spate of Judges in D.U.I. Arrests





MIAMI — Lawyers gawked from office windows last month when a BMW S.U.V. swiped a parked police cruiser in the parking lot of a courthouse in Fort Lauderdale, then slammed into a gate over and over again.
A judge was at the wheel.
As lawyers used smartphones to snap pictures of the morning spectacle, Judge Lynn D. Rosenthal became the third Broward County judge in six months to be arrested on charges of driving under the influence. A colleague, Judge Gisele Pollack, had been suspended five days earlier after getting arrested on a D.U.I. charge while already on leave for taking the bench intoxicated — twice.
Even for South Florida, where absurd news events are routine and the sheriff went to prison for corruption, the spate of judicial scandals has raised serious questions about whether the arrests in Broward are a bizarre coincidence or underscore a larger systemic problem. In a county where the judiciary is known for old-school nepotism and cronyism, and judges have been caught smoking marijuana in a park and found drunk and partly naked in a hotel hallway, some lawyers find themselves wondering: At what point do isolated instances of misconduct point to something bigger?
Photo
Judge Lynn D. RosenthalCreditNBC 6 Miami
On Wednesday, WPLG, an ABC affiliate, citing anonymous sources, reported that a Broward family court judge was under federal investigation on suspicion of allowing a now-convicted Ponzi schemer to influence a case.
And this month, a former judge in Broward was disbarred for exchanging 949 phone calls and 471 text messages with the prosecutor during a death penalty case. Yet another judge was ordered removed in April after being accused of cheating clients and a co-counsel in the settlement of a civil suit she handled as a private lawyer a decade ago.
As it turns out, bad behavior by judges has become distressingly common across Florida in recent months. Judge John C. Murphy in Brevard County is on leave after he was caught on video this month threatening a public defender, who later accused the judge of punching him in the head. In the Keys, a judge who was replaced on the bench after dozing off told a local news reporter that Ambien made him hallucinate about “ ‘Fantasia’ and the dancing brooms.” Another stepped down because a blogger exposed a sexually explicit profile the judge had posted on a gay dating site.
But Broward — a heavily Democratic county of 1.8 million people with many judges who are the children, spouses, siblings and fraternity brothers of other judges and some of the region’s most powerful people — seems to be ground zero for allegations of judicial misconduct. The system’s critics say that is because Broward has a highly politicized and clannish culture that is known for protecting its own, which has led some in the judiciary to feel invincible, even as they preside over a county court system that producesthe state’s highest exoneration rate.
“I do think it belies an underlying systemic problem in Broward County,” said Howard Finkelstein, Broward’s elected public defender. “I don’t think this stunningly embarrassing fact of having all these charges pending at the same time is indicative of a judiciary with substance abuse problems, but I do think it is a manifestation of the greater problem of a circle-the-wagons mentality.”
Records posted online by the Judicial Qualifications Commission, the independent agency that investigates misconduct by state judges in Florida’s 67 counties, show that 17 percent of the 62 formal disciplinary cases filed against sitting judges since 2001 have been in Broward.
Those figures do not include two judges who were recently arrested or those who resigned before a case was made public, such as Judge Lawrence L. Korda, who, in 2007, after presiding over parts of the Anna Nicole Smith case, was caught smoking marijuana in a park. (Not to be confused with Larry S. Seidlin, the Broward judge who sobbed on the bench during a nationally televised ruling on where the reality TV star should be buried.)
Many judges accused of wrongdoing remain on the bench, such as the family court judge who took in a foster child who had appeared in his court, only for the teenager to accuse the judge years later of molesting him.
“Tell me one other courthouse that at any time ever had three judges pending criminal charges, a fourth judge disbarred by the Supreme Court and another judge awaiting removal,” Mr. Finkelstein said. “And that doesn’t include the naked judge!”
In 2001, a Broward County judge was arrested on charges of public intoxication after being found drunk and naked from the waist down at a resort that was hosting a state judicial conference. Mr. Finkelstein has been there: A recovering addict, he, too, was once arrested, after using cocaine and crashing into a police car.
William J. Gelin, a defense lawyer in Broward who runs a blog, Jaablaw.com, that chronicles courthouse antics and posted a photo of Judge Rosenthal’s arrest, noted that the Judicial Qualifications Commission only reveals cases that result in misconduct charges. Most complaints against judges remain secret, which he said adds to the perception that judges feel omnipotent.
“It’s time to shine a light on these individuals and their performance, as the founding fathers intended,” Mr. Gelin said.
Michael L. Schneider, executive director and general counsel of the commission, acknowledged that the recent run of Broward judges being arrested is unusual, but that the agency dealt with cases “one at a time” and not systemically.
“The commission isn’t a punishment group,” he said. “It’s designed to evaluate fitness of somebody to be a judge.”
Broward’s chief judge, Peter M. Weinstein, said the rash of arrests was an “anomaly” that did not reflect the hard work judges do every day at the courthouse.
“It’s a big court system — we have 103 people making decisions every single day,” Judge Weinstein said. “Over all, we have excellent judges, and nobody ever reads or hears anything about them.”
A lawyer for Judge Rosenthal, Brian Y. Silber, declined to comment.
Two of the arrested judges refused a Breathalyzer test, but the test conducted on Judge Rosenthal showed that she had not been drinking. She told the police that she had taken Ambien the night before, but after failing a field sobriety test, she refused to take urine or blood tests, according to thepolice report. The police, suspecting that she was impaired by drugs, charged her with D.U.I.

Continue reading the main storyContinue reading the main storyContinue reading the main story
Judge Pollack was suspended without pay, despite a request from her lawyer, J. David Bogenschutz, that her alcoholism be considered a disability. She has sought treatment and hopes to return to the bench, Mr. Bogenschutz said.

“Where a judge has the same problem 5,000 other people have, it makes news,” he said. “They are not supposed to have human feelings and human failings.”

Mr. Bogenschutz, who has represented dozens of Florida judges, recently married one of his clients. His wife, Ana Gardiner, is the former Broward judge who was disbarred by the Florida Supreme Court this month for lying about an “emotional relationship” with a prosecutor during a 2007 case. (The defendant was granted a new trial and is now serving a life sentence instead of being on death row, as Ms. Gardiner had ruled.)
“You shouldn’t get special treatment because you’re a judge, and you shouldn’t be treated more harshly if you are a judge,” said Marc Shiner, who represents Judge Cynthia G. Imperato, who was arrested in November for driving under the influence. “They are trying to make an example out of her.”

Wednesday, June 4, 2014

BlackRock’s Fink Says Housing Structure More Unsound Now

from bloomberg

  May 20, 2014 2:48 PM PT


BlackRock Inc. (BLK)’s Chief Executive Officer Laurence D. Fink said the U.S. housing market is “structurally more unsound” today than before the financial crisis because it depends more on government-backed mortgage companies such as Fannie Mae and Freddie Mac.
“We’re more dependent on Fannie and Freddie than we were before the crisis,” Fink said today at a conference held by the Investment Company Institute in Washington, noting that he was one of the first Freddie Mac bond traders on Wall Street.
Fink co-founded BlackRock in 1988 after a career at First Boston Corp., now part of Credit Suisse AG, where he was known for his work slicing and pooling mortgages and selling them as bonds. Fink, who has built New York-based BlackRock into a $4.4 trillion money manager, said today that with strong underwriting standards, ownership of affordable homes can again become a foundation for American families.
The U.S. Senate Banking Committee is working to overhaul the housing-finance system, after casting a narrow vote this month to advance a bill that would wind down Fannie Mae (FNMA) and Freddie Mac. Current shareholders of Fannie Mae and Freddie Mac would be in line behind the U.S. for compensation from the wind-down.
Photographer: Jason Alden/Bloomberg
Laurence Fink, chief executive of BlackRock Inc., listens during a panel session on day...Read More
Restructuring the mortgage market is the largest piece of unfinished U.S. business from the 2008 credit crisis, when regulators seized Fannie Mae and Freddie Mac as they neared insolvency. The companies, which buy mortgages and package them into securities, were bailed out with $187.5 billion from the Treasury and backed a growing share of mortgages as private capital dried up.
Only recently did they return to financial health as the housing market recovered, sparking calls from private shareholders including Bruce Berkowitz’s Fairholme Capital Management and hedge fund Perry Capital LLC to share in profits now going to taxpayers.
To contact the reporters on this story: Christopher Condon in Boston at ccondon4@bloomberg.net; Mary Childs in New York at mchilds5@bloomberg.net
To contact the editors responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.netSree Vidya Bhaktavatsalam


BlackRock Lawyer Criticizes Government Mortgage-Loan Settlements

from bloomberg



To revive the U.S. mortgage-bond market, investors need more protections to restore their confidence, according to a lawyer who works on behalf of BlackRock Inc. (BLK) and Pacific Investment Management Co.
Underscoring why bond buyers are concerned that they may be disadvantaged, home-loan servicers have been able to settle U.S. government probes of their practices by agreeing to reworkmortgages backing securities owned by investors to offer better terms for borrowers, Kathy Patrick, a partner at Gibbs & Bruns LLP, said yesterday at an industry conference in Las Vegas.
“In any other universe, if a service provider did something wrong and then turned around and used somebody else’s money to pay for it, people would be astonished,” she said. “But the government has taken that approach in a number of settlements and part of the reason for that is investors have real barriers for protecting themselves.”
BlackRock, the world’s largest money manager, and Pimco, which oversees the biggest bond fund, are among investors that have criticized regulatory mortgage settlements on similar grounds. After record defaults fueled a global financial crisis in 2008 and froze issuance of home-loan securities without government backing, sales tied to new mortgages rose to less than $14 billion last year, compared with a peak of $1.2 trillion in both 2005 and 2006, according to data compiled by Bloomberg. U.S.-backed programs finance about 85 percent of new loans.

Bondholder Groups

Patrick represented bondholder groups including Pimco and BlackRock that reached a potential $8.5 billion accord with Bank of America Corp. (BAC) over bad mortgages in 2011, and proposed a $4.5 billion settlement with JPMorgan Chase & Co. (JPM) in November.
Also in November, BlackRock chastized the government for allowing JPMorgan in a separate deal to use $4 billion of consumer relief, including on investor-owned loans, to settle charges of misrepresentations in mortgage-bond sales. Pimco in 2012 called a U.S. settlement with five banks over foreclosure practices costly for bond investors including pension funds.
At the Structured Finance Industry Group conference in Las Vegas, Patrick cited Ocwen Financial Corp.’s agreement last month to provide $2 billion of principal forgiveness to homeowners to resolve claims of abuses in its handling of outstanding mortgages. Investors’ interests would be better protected if mortgage-bond trustees had fiduciary duties and if rules giving tax advantages to the trusts didn’t create hurdles to investors’ asserting their rights, she said.

Investors’ Complaints

For the private mortgage-bond market to revive as government programs get scaled back, the industry must come together to address investors’ complaints about loan servicing and the process by which sellers can be forced to buy back bad loans that fail to match their promised quality, said Eric Kaplan, a managing director at Shellpoint Partners LLC, the lender backed by mortgage-bond pioneer Lewis Ranieri.
“No voice can be left out, especially if we want a return of private capital in a meaningful size,” Kaplan said, speaking on a panel with Patrick. “The question is how do we button this up so that if you’re a bondholder you only suffer the losses that you contractually signed up to suffer?”
Patrick declined to comment further on the Ocwen (OCN) accord in an interview, except to say “it’s on my radar screen.”
She separately said that trustees last week elected to extend by 60 days a period in which they must decide whether to agree to the JPMorgan accord proposed by her clients. Hedge fund Fir Tree Partners said today in a statement distributed by PR Newswire that it was seeking to buy some of the securities covered by the agreement and would seek to continue litigation over them.
To contact the reporter on this story: Jody Shenn in New York at jshenn@bloomberg.net
To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

Tuesday, June 3, 2014

Obama adamantly defends Taliban prisoner swap that freed U.S. soldier

from latimes

CHRISTI PARSONS, MICHAEL A. MEMOLI, DAVID S. CLOUD 

Bowe Bergdahl could still face Army desertion charges
U.S. Joint Chiefs Chairman Gen. Martin Dempsey says the Army may still pursue desertion charges against Sgt. Bowe Bergdahl.


The release of America's only prisoner of war in Afghanistan in a trade for five senior Taliban commanders in U.S. custody was over in minutes Saturday. But it followed 31/2 years of secret on-and-off negotiations that produced far less than the White House had hoped.

The idea of swapping prisoners emerged in early 2011, Obama administration and congressional officials said Tuesday, when U.S. officials still sought to convince Taliban political leaders to come to the negotiating table to end the grinding war in Afghanistan.

The peace talks never took place, and the prisoner exchange has now forced the White House to launch a fierce defense. President Obama and his top aides insist they did the right thing by making the trade to get Army Sgt. Bowe Bergdahl home from Afghanistan as the war winds down.

On a visit to Poland, the first stop of a three-nation trip to Europe, Obama said the United States "has a pretty sacred rule.... We don't leave our men or women in uniform behind" on the field of battle.

"This is what happens at the end of wars," he said, arguing that he had followed in the path of George Washington, Abraham Lincoln and Franklin Roosevelt.



The president's assertive defense came as questions continued to swirl around the exchange that led to Bergdahl's release: Does the swap make U.S. soldiers and civilians more likely to be taken hostage? How can the administration guarantee that the five Taliban commanders don't return to the battlefield? Did the U.S. try all other options to free Bergdahl?

The president's assertive defense came as questions continued to swirl around the exchange that led to Bergdahl's release: Does the swap make U.S. soldiers and civilians more likely to be taken hostage? How can the administration guarantee that the five Taliban commanders don't return to the battlefield? Did the U.S. try all other options to free Bergdahl?


Obama dismissed as irrelevant the concerns about how Bergdahl had disappeared. An initial Army investigation concluded four years ago that the now 28-year-old Idaho native, who had written emails suggesting he was disillusioned with the Army and the war, had walked away from his unit's base near the Pakistani border without authorization on June 30, 2009.

"Whatever those circumstances may turn out to be, we still get an American soldier back if he's held in captivity — period, full stop," Obama said. "We don't condition that. That's what every mom and dad who sees a son or daughter sent over into war theater should expect — not just from their commander in chief, but also from the United States of America."

But top Republican defense hawks made it clear Tuesday that they were not about to allow the episode to come to a quiet close, ensuring highly charged scrutiny as classified briefings and public congressional hearings are scheduled in the run-up to the midterm election this fall.

"We should have certainly made efforts to bring Bergdahl home, but this price is higher than any in history," said Sen. John McCain (R-Ariz.), who called the prisoner swap a mistake.


Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff, testifies before Congress. Pentagon officials familiar with the Bowe Bergdahl case said it wasn't clear whether the freed POW would face military charges or punishment.


Sen. James M. Inhofe (R-Okla.), ranking member on the Armed Services Committee, said the swap was illegal because Obama didn't give Congress the required 30-day notice before transferring detainees from the U.S. military prison at Guantanamo Bay, Cuba. The requirement is in the 2014 Defense Authorization Act.

"The president has released, illegally, arguably the five most vicious, serious Taliban terrorists," Inhofe said. "Sure they're happy to have him home," he said of Bergdahl's family, but "you weigh that against the circumstances that will present themselves by five terrorists out killing Americans."

Administration officials said Tuesday that they construed the law to allow a Guantanamo transfer without notice if the notice would "endanger the soldier's life."

Army investigators plan to question Bergdahl, who is in a U.S. military hospital in Landstuhl, Germany, about his capture. Pentagon officials familiar with the case said it wasn't clear whether he would face charges or punishment. And it could be months before he is questioned, they said.

"Our first priority is ensuring Sgt. Bergdahl's health and beginning his reintegration process," Army Secretary John McHugh said. "There is no timeline for this, and we will take as long as medically necessary to aid his recovery."

He said the Army would then interview Bergdahl to "better learn from him the circumstances of his disappearance and captivity. All other decisions will be made thereafter and in accordance with appropriate regulations, policies and practices."

In a video, Bergdahl has said that he was captured after falling behind on a patrol.

If the Army decides to prosecute him, he could be court-martialed on a charge of desertion or a less serious offense, such as being absent without leave.

Whatever those circumstances may turn out to be, we still get an American soldier back if he's held in captivity -- period, full stop.
- President Obama



When the U.S. side demanded the sergeant's return at the outset, Taliban negotiators demanded that the five detainees — plus another who later died — be transferred from Guantanamo.

But the administration wanted more than Bergdahl back. It viewed a prisoner exchange as a first step, a "confidence-building measure" that could pave the way for reconciliation talks between the U.S.-backed Afghan government and the Taliban.

Whether that was realistic is arguable. The U.S. set conditions for the Taliban that would have amounted to a virtual surrender: recognizing the Afghan government, repudiating Al Qaeda and renouncing violence in Afghanistan.


On Nov. 30, 2011, congressional officials said, the White House offered a highly classified briefing led by then-special envoy Marc Grossman and seven military and intelligence officials to ranking members of Congress to discuss the nascent diplomatic effort.

Among those attending, officials said, was House Speaker John A. Boehner (R-Ohio) and chairs of the House Foreign Affairs Committee, House Armed Services Committee and House Intelligence Committee, among others. The briefing included the proposed trade of Bergdahl for the five Taliban prisoners.

The lawmakers were told the briefing was classified to ensure Bergdahl's safety and because it involved sensitive diplomatic negotiations as well as intelligence sources and methods.

The House members responded with two classified letters to the White House expressing concerns about the potential release of so many senior Taliban commanders, among other questions. Then-Secretary of State Hillary Rodham Clinton responded on Jan. 13, 2012, officials said, and Grossman led a follow-up briefing for the same group on Jan. 31.

A Republican aide, who spoke on condition of anonymity in discussing sensitive material, said Tuesday that the concerns raised then were the same as those now roiling the GOP.


The briefings ended when the back-channel talks with the Taliban bogged down in 2012. The only sign of progress was that the insurgent group had been allowed to open a political office in the Persian Gulf emirate of Qatar.

That office proved crucial when talks came to life again last fall. Taliban officials, speaking through Qatari intermediaries, expressed an interest in a prisoner exchange. They still showed no interest in peace talks or renouncing terrorism, however.


Administration officials were eager to get Bergdahl back as they closed out America's 13-year war in Afghanistan. They were especially concerned when a video, released in January after the U.S. side demanded proof he was alive, showed him thinner and apparently unhealthy.

They feared that their leverage to bargain — and their ability to collect enough intelligence to possibly locate him in Afghanistan — would be reduced when U.S. troop levels drop from 32,000 to fewer than 10,000 at the end of this year.

The two sides worked out a deal to transfer the five Taliban commanders to Qatar, where they will be monitored and barred from foreign travel for a year. Obama approved the arrangement May 27, after a phone call to the emir of Qatar, and Bergdahl was handed over to special operations troops about 6 p.m. Saturday in Khowst province in Afghanistan.









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Florida judge to attorney: 'If you want to fight, let's go out back'

from latimes



Judge to lawyer: I'll whoop your (expletive)


Monday, June 2, 2014

FBI manhunt for San Francisco man surprises his PR-industry colleagues

from latimes


FBI
Man considered 'armed and dangerous' by FBI is well known in Bay Area PR circles
Bay Area public-relations expert is subject of FBI manhunt, suspected of possessing explosives
A nationwide FBI manhunt for a San Francisco man suspected of possessing explosives shocked some in the Bay Area public-relations industry where he is well known.
Over the weekend authorities announced they were looking for Ryan Kelly Chamberlain II after FBI agents raided his Russian Hill apartment Saturday and allegedly found explosive materials.
Chamberlain, 42, works in marketing and communications and has handled several Bay Area campaigns over the years, the San Francisco Chronicle reported.
"I'm worried about the guy. I'm hoping this ends without anybody getting hurt," Alex Clemens, founder of San Francisco’s Barbary Coast Consulting, told the paper. "I'm flabbergasted that this seems to be taking place."
According to Chamberlain’s website, he graduated from Iowa State University and has worked in journalism and vied for a spot on the Republican Party County Central Committee.
Building owner Martin Harband told KTVU that Chamberlain has rented an apartment in the complex for the last two years, adding that he "seemed normal" and never showed signs of unusual behavior.
But after Chamberlain was let go from his job with a sports marketing company in November, his behavior changed, one friend told the Chronicle.
"The thing is, there was a lot of strange behavior since November," the friend, Randy Bramblett, 32, said. "He stopped answering his phone. I think he became an extreme introvert."
Chamberlain should be considered armed and dangerous, the FBI said Sunday.
He was described as white, 6 feet 3 inches tall, about 225 pounds, with blue eyes and brown hair.
Authorities said Chamberlain was last seen driving a white 2008 Nissan Altima with either California or Texas license plates 7FQY085 and BX9M042, respectively.
Anyone with information regarding Chamberlain's whereabouts was urged to contact their nearest FBI office or dial 911. The FBI can be reached 24 hours a day at (415) 553-7400 in the San Francisco area. All calls are confidential. Tips can also be submitted at tips.fbi.gov.