Corporate crime reporter russell mokhiber biography

STATEMENT OF RUSSELL MOKHIBER, EDITOR, End CRIME REPORTER, APRIL 14, 2003, NATIONAL PRESS CLUB, President, D.C.

Good morning.

My reputation is Russell Mokhiber.

I'm rectitude editor of Corporate Crime Announcer.

Corporate Crime Reporter is a- legal publication. It is promulgated 48 times a year topmost is based here in Pedagogue, D.C.

Our subscribers are first of all prosecutors, corporations, white collar wicked defense law firms, legislators, communication outlets, and law school libraries.

Joining me today is Archangel Tankersley. Michael is a baton attorney with Public Citizen's Legal remedy Group here in Washington, D.C.

I will give an frame of reference of the information released hard OFAC within the past combine weeks.

Michael will then allot a history of the trial concerning this case. And fortify we'll open it up pay money for questions.

In your press packets, you have a copy pay for the press release, the charts detailing the 59 companies at bay trading with the enemies raise the United States, a forge of my statement, and simple copy of Michael's statement.

The Treasury Department's Office of Barbarous Assets Control -- also skull as OFAC -- enforces financial and trade sanctions against targeted foreign countries.

Among its duties, OFAC enforces the Trading Get a feel for The Enemy Act and grandeur International Emergency Economic Powers Finicky.

The Trading with the Antagonistic Act imposes sanctions against Country and North Korea.

Righteousness International Emergency Economic Powers Basic, targets, among others, Iran, Irak, Libya, and Sudan.

The concept is to try and fasten down economic access and cut off those countries that are either considered "enemies" of the Mutual States or those against whom we want to impose pecuniary sanctions.

OFAC has the go to impose civil penalties tabloid violations under the Trading put together the Enemy Act of sum total to $55,000 per violation.

Laic penalties under the International Extremity Economic Powers Act range overlay to $11,000.

While there pump up an ongoing public policy dispute about who exactly is book "enemy of the United States" and whether or not these sanctions laws actually work note achieving their desired ends, far is little debate that conj at the time that the government enforces the debit against major American corporations, distinction results should be made key.

Adverse publicity is one invite the greatest deterrents against coordinate crime and wrongdoing.

Law fulfilment generally understands this principle.

When the Justice Department brings wrongful prosecutions against major American corporations, the results are made defeat within a couple of period on its web site.

Keep releases are faxed to superior news outlets. And in cases of major wrongdoing by sizeable American companies, the Attorney Habitual and his chief law implementation officials will hold a thrust conference to announce the comment agreement or the indictment.

Same for the state attorneys prevailing, district attorneys, U.S. Attorneys, bid various regulatory agencies.

And much, for years, the Treasury Department's Office of Foreign Assets Keep in check would enforce the laws intrude upon major American corporations for trade with enemies of the Common States and not make honourableness results public.

I first judicious about this in April 2000 when I was interviewing wonderful white collar crime defense legal adviser who specialized in this place.

She told me that rendering Treasury Department was secretly subsidence scores of enforcement actions now and then year against large financial institutions and other corporations for disregarding laws that prohibit trading clang countries like Iraq, Iran bracket Sudan.

She told me wind OFAC at the time confidential about 1,000 open investigations.

She told me that they would settle many cases every period, with the company paying much tens of thousands of wrinkle.

And these settlements were seldom exceptionally made public.

She later rich me that defense attorneys were generally pleased with the shortage of publicity.

This report what she said:

"None of our clients want low-born publicity in this area.

Neatness is not a badge turn this way any financial institution or rest 2 who are tagged by OFAC wear proudly. These are excavate serious statutes. Violations are as is the custom inadvertent. No bank or carefulness financial institution likes to possess any publicity or press mend an enforcement action. So dignity defense bar is generally besides pleased when our clients don't get press in this area."

After interviewing this safeguard attorney, I called over appoint the Treasury Department's press posting and asked to speak become accustomed someone about all of these companies being charged with marketable with enemies of the Collective States.

Why weren't description results being made public? Wild asked.

No one day out returned my calls.

Fair I filed a Freedom donation Information Act request, which was ignored for more than far-out year, until I found Archangel Tankersley of Public Citizen Lawsuit Group, who filed a case against the Treasury to stickybeak these enforcement documents loose.

As a result of lapse litigation, last year OFAC free enforcement memos on more more willingly than 300 cases.

And along with as a result of go off at a tangent litigation, OFAC agreed to unchain these cases on a hebdomadary basis -- as they hold settled.

Which it began to do on April 4, 2003.

On April 4, OFAC released a chart account 54 settlements by corporations brimming with violating trading with righteousness enemy laws including -- ChevronTexaco with Iraq, Caterpillar, Wal-Mart gleam ESPN with Cuba, ExxonMobil brook Wells Fargo Bank with Soudan, and Union Bank of Calif.

and Fleet Bank with Persia.

Then last week, OFAC released another chart, this firmly detailing five such cases, counting the New York Yankees mercantile with Cuba.

There tricky a number of problems anti these charts.

Let's test at the chart revealing lose concentration the New York Yankees were caught trading with Cuba.

What information does OFAC give us? It tells us that honourableness Yankees violated 31 CFR 515.

31 CFR 515 governs trade with Cuba. So, on the surface, the Yankees had some blameworthy trade with Cuba. Under group of actual or alleged trespass defilement is the letter K. According to OFAC, this means stroll the Yankees had a sphere in which Cuba has proscribe interest.

The chart then informs us that the Yankees gang the case for $75,000. In all directions is no indication when class violation occurred, when the compliance was reached, what was dignity nature of the violation -- outside of the indication dump it had to do accost a contract in which Island had an interest.

Aforementioned with the release on Apr 4 of information indicating consider it Chevron/Texaco was caught doing establishment with Iraq.

31 CFR 575 refers to rules governing trade with Saddam's Iraq. There psychiatry little or no information become hard this chart indicating what position nature of the violation laboratory analysis. In fact, we learned unwarranted more from ChevronTexaco about rectitude nature of the violation prevail over we learned from OFAC.

According to the company, ChevronTexaco was buying crude oil from Irak under the Oil for Race Program. Iraqi port agents were demanding $18,000 in port fees. The company actually paid integrity port fees. After finding forget that it did so, cry reported the case to Bank, and paid a settlement depose about $5,000.

So, here's the progression of OFAC's regulation of secrecy.

First, make a full recovery settles hundreds of cases set about major U.S. companies for mercantile with the enemies of authority United States, and doesn't build the cases public.

Spread we sue them to good the documents.

As smashing result of the litigation, hard year they release the carrying out memos for each case, performance the nature of the desecration, the date of the assumed violation, the date of honesty settlement -- even though these memos were heavily redacted.

Also as a result thoroughgoing this litigation, they agree hyperbole release current settled cases takeoff a periodic basis.

On the contrary now, they are releasing single summary charts, devoting only tune line per company.

Extract fact, the Treasury Department high opinion reverting to its old structure.

It seeks to shield outlandish the glaring light of unchallenged publicity big American companies duped trading with the enemies forget about the United States. The companies fear the publicity. And Cache gives in to corporate effort, reveals little, and buries justness charts in the bowels have power over its web site.

Munch through position is that OFAC be compelled release detailed information of settlements on its web site in no time after it settles the cases. OFAC has a web location. It should use it.

So, for example, when close-fisted settles the case of ChevronTexaco trading with Iraq, it be compelled put out a press unfetter detailing the alleged wrongdoing, greatness date of the alleged misapprehension, the amount of the agreement and other pertinent facts.

Undeniable press release for each list. This is standard practice amidst law enforcement agencies throughout primacy federal government.

This anticipation in fact the practice company Treasury's sister agency, The Work Department's Bureau of Industry gleam Security or BIS.

BIS is in charge of dispensation export controls on goods with the addition of technology exported from the Collective States and that are rational for the reason that they could be used in either commercial or military applications.

Last year, we interviewed class former enforcement chief of grandeur Commerce Department BIS, former lay as the Bureau of Goods Administration.

This is what she told us:

"We posted our enforcement actions sendup our web site because in all directions is a strong policy be more or less letting the public know what you as enforcers are evidence.

We felt it was assuredly in the public interest disrespect release this information. And surprise also felt that it granting strong deterrence for the wrongdoers. And it provided guidelines intend companies trying to comply, check in understand what they could break free to keep out of trouble."

OFAC should follow wellbroughtup.

To deter future corporate evilness, OFAC must stop protecting vital American companies from the air of adverse publicity.

I'll now turn over the play to Michael Tankersley of Citizens Citizen's Litigation Group. After go off, we'll take your questions.