Assistant city manager in patronage flap resigns

An assistant city manager at Fort Worth City Hall resigned in October 2011 after Fort Worth Star-Telegram Watchdog columnist Dave Lieber revealed that she had helped orchestrate secret pay raises for a select few employees and top managers.

Her boss, the interim city manager, didn’t even know about most of them.

At the time, most city employees had gone three years without a raise.

Karen Montgomery had served with the city since August 2006.

Former assistant city manager Karen Montgomery

City officials declined to say whether the raises or any other issue led to her resignation, according to the Star-Telegram.

Read about Montgomery’s role here at Watchdog Nation. (Note these stories originally appeared in the Dave Lieber Watchdog column in the Star-Telegram.

Part I: A City Hall human resources director faces a lonely battle against patronage

Part II: When 100 City Hall workers out of 4,500 get raises, that’s patronage at its finest

 

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Rick Perry’s plane trips: An example of Sarah Palin’s crony capitalism?

Update: On Jan. 3, 2012, the Securities and Exchange filed suit against Life Partners accusing it and top three executives of defrauding shareholders by overvaluing the life insurance policies it buys from its customers, AP reported.

The SEC also accused Life Partners president Brian Pardo of insider trading. Pardo and the company quickly denied the charges.

Original story follows:

Commission Sarah Palin blasted “corporate crony capitalism” in an Iowa September 2011 speech to supporters. Many interpreted this as an attack on Gov. Rick Perry’s pay-to-play political machine.

Maybe this is an example of the type of thing Palin is talking about:

As first reported in the Wall Street Journal and then Dave Lieber’s Watchdog column in the Fort Worth Star-Telegram, when Texas Gov. Rick Perry and his family flew to South Carolina in August 2011 to announce his presidential run, he rode on a private jet owned by a contributor facing major troubles from federal and state regulators.

Brian Pardo, chief executive of Life Partners Holdings of Waco, gave $50,000 in 2010 to Texans for Rick Perry, records show. He’s a pioneer in the life-settlement investment industry, where investors buy death bonds. They pay for portions of strangers’ life insurance policies, pay the premiums and collect after a person dies. If the people exceed life-expectancy estimates, the investments go bad.

At the federal level, the Securities and Exchange Commission notified Life Partners this year that it intends to file an enforcement action related to accounting and disclosure practices.

At the state level, the Texas State Securities Board, part of the executive branch, has investigated Life Partners for more than a year. Recently, the board — working with the Texas attorney general’s office — filed a court petition seeking to force the company to honor its state-issued subpoenas for company records. In court papers, the board says the company engaged in fraudulent business practices.

Life Partners refuses to give information to state securities regulators. Company lawyers say the financial products are not securities and shouldn’t be regulated as such.

AP PHOTO

No federal or state charges have been brought against the company, which has denied wrongdoing. But Life Partners also faces a slew of lawsuits from shareholders and disgruntled customers.

The governor’s rides in Pardo’s airplane — one to Iowa in addition to the South Carolina trip — were first reported on the front page of The Wall Street Journal.

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Life Partners didn’t respond to a request for an interview, but in an e-mail to the Journal, Pardo wrote, “I did not discuss the SEC investigation with the governor, to the best of my recollection.”

Perry spokesman Mark Miner told The Life Settlements Report website, “Mr. Pardo was not on the airplane with Governor Perry.” It wasn’t clear which of the two flights he was referring to.

Pardo told the newspaper that the Perry campaign paid for both trips, as required by federal election law.

Neither the governor’s office nor his campaign responded to a request for information from The Watchdog. The state securities board declined to comment, too.

Life Partners describes itself as a purchasing agent that matches people who can no longer afford or don’t want to continue paying their life insurance premiums — or people who bought policies to resell — with investors who buy fractional interests in the policies.

Life Partners’ estimates on when the original policyholders will die have been inaccurate, with many living longer than expected. The Life Settlements Report, an industry newsletter, said that for 262 deaths reported by the company, life expectancy was double the company’s estimates.

The company’s former life-expectancy estimator, a Reno, Nev., doctor, handled up to 200 individual medical reports a week. His job was to guess how long each person would live. By one estimate, he spent nine minutes per case compared with an industry standard of more than an hour reviewing a person’s health history.

Pardo is quoted in the WSJ as saying he supports Perry for president.

Is this the kind of matter that Sarah Palin is talking about?

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Dave Lieber, the author, is The Watchdog columnist at the Fort Worth Star-Telegram in Texas. His new book, Bad Dad, was just released and is getting dynamite reviews. It’s a true-story mystery thriller about what happens when the worst 10 minutes of your life go viral. The columnist is arrested by a police force he investigated. Learn more atwww.BadDadBook.com where you can read Chapter One. The hardcover and e-book are for sale at BadDadBook.com. Immediate shipment!

Disagreement over texting at movie theater leads to assault charge

This column about texting in movie theaters by Watchdog Nation founder Dave Lieber touched a nerve with many people when it first appeared in the Dave Lieber Watchdog column in the Fort Worth Star-Telegram. The story received more than 100,000 Internet hits and turned out to be the #1 most read story in 2011 on the newspaper’s website. You can decide for yourself how you feel about this unusual situation.

Meet Dale Fout and Brenda Godwin. One weekday in April, they both went to a movie theater in Grapevine. Sat a row apart. Didn’t know each other.

By coincidence, they were born in the same year, two days apart. Both are 54. Fout, a marketing consultant, describes himself as a 220-pound “pretty big guy. I’m broad. I’m not fat. Used to play football.” Godwin says she is a 136-pound skin care specialist. Here’s how they met in the theater.

Her side

“He had his phone out. The light was shining at me. I’m thinking, ‘He’s going to turn it off.'” But he didn’t. ‘OK, this is ridiculous.’ So I reached over and tapped him on the shoulder. It was very bright. I was only trying to get his attention. He whipped around and said, ‘Don’t ever touch me.’ I was a little taken aback. ‘I wouldn’t have touched you if you didn’t have your phone out.’

“He jumps up and whirls around towards me and says, ‘I am charging you with assault,’ and he flew out of the theater.”

His side

Dale Fout

 

“I got a text, and I responded to it because it was something important. It was something that was on a deadline situation, OK. I held it against my chest purposely where I could barely see it. … I could text but hide the majority of the light coming from the phone.

“She said something. I couldn’t make it out. That’s why I turned. She was probably saying something like, ‘Get off your phone.’ I turned, and she pushed. She just happened to push my neck at the time my neck was in an awkward position. Kinda like having a little fender bender, and you get a little whiplash in your neck, you know.”

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Police report

“Fout advised he had been assaulted and his neck was in pain,” officer Emily Hays wrote. Fout was treated for neck pain by Grapevine paramedics. “Fout said a female who was sitting behind him in Theater 8 grabbed him by the shoulder because he was texting during the movie,” Hays wrote. “Fout said he got up, walked out of the theater and asked management to call police.”

Godwin told police, Hays wrote, that “she tapped him on the shoulder with one finger to ask him to stop texting. Godwin advised the male then jumped out of his chair and ran outside of the theater.

“Fout stated he was offended by the contact and desires prosecution. Godwin was issued citation #P0039176 for assault by contact.”

Police comment

“We’re the middle person on this,” Lt. Todd Dearing says. “Assault by contact is usually not something like this. It’s usually a shove.” Because police didn’t witness the incident, a ticket was written. It’s a misdemeanor, the equivalent of a traffic ticket. “We stay neutral in these things. That’s what the courts are for.”

The legal side

The common thinking is that in Texas, unwanted touching can justify an assault charge. That’s true, but there are requirements.

The law says: “A person commits an offense if the person … intentionally or knowingly causes physical contact with another when the person knows or should reasonably believe that the other will regard the contact as offensive or provocative.”

Jeff Bellin, SMU assistant professor of law, says that a tap is not an assault but that a shove may be.

“It would be a jury question, but I think most people would agree that tapping someone on the shoulder, even if you don’t know them, is normal. We expect that kind of interaction in our everyday lives.”

A jury would have to decide which person to believe. Fout’s injury would be key. He says his neck hurts “a little bit. I’m seeing a chiropractor. It’s not like she knocked me to the floor. … The therapist said, ‘Yeah, she put a knot right there.’ A tap on the shoulder isn’t going to cause that.”

Godwin says, “If he hurt his neck, that’s probably because of the way he whipped around.”

Because Godwin lives in Richmond, Va., she said it would be too expensive to return and fight the charge. So she paid a $260 fine.

After this story appeared, Fout appeared on the local TV news to defend himself.

What should you do?

The incident occurred at Cinemark Tinseltown, whose policy is to give texters a chance to behave. If they don’t, they are removed and given a refund or a rain check.

“If they are texting, we ask them to return to the theater at a time when they are less busy and can enjoy the movie,” Cinemark spokesman James Meredith says.

Watchdog tip: Although Cinemark says it sends employees into each theater every 20-30 minutes to check behavior, why wait? Go outside and talk to a staffer about the problem. Let that person do the deed.

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Public officials’ use of social media sparks debate

You thought Facebook and Twitter were ways to tell the world what you had for breakfast? Or that cellphone texting means you can ask your spouse what’s for dinner?

Well, what about school board and City Council members who use those social media and communication tools to subvert the concept of open government?

The council member who text-messages another member during a meeting and asks, “How am I supposed to vote?”

The school board members who use Facebook’s private chat to decide which contractor should get hired for a multimillion-dollar job.

According to state law, officials are not supposed to deliberate or discuss public matters at any unannounced meeting held in private. And the public has a right to inspect or copy many government records, which can include e-mail and other electronic postings.

The Texas attorney general’s office is strict about that.

But the new communication tools have become “second nature” to everyone, including public officials in Texas, said William McKamie, a San Antonio lawyer who serves as city attorney for several municipalities. People feel more uninhibited about communicating when using them, he said.

That can lead to trouble.

It did lead to two debates Friday in Fort Worth at the annual meeting of the State Bar of Texas.

McKamie suggested that state lawmakers clarify rules about social media for public officials, and he bristled at the idea that elected officials should be so limited in discussing public business.

Sitting beside him on an open-government panel, Wanda Garner Cash, a University of Texas journalism professor, had a different view. The Texas Public Information Act, she said, should apply to all forms of communication. That includes, as an example, smartphones regardless of who owns or is paying for them, she said.

“I disagree with that,” McKamie said.

Cash cut him off: “Public communication is public communication.” Even if an official uses a personal cellphone to discuss public business, it’s still subject to the state law, she said.

But McKamie said public officials “don’t give up their First Amendment rights when they get elected to an office.”

“It has nothing to do with First Amendment rights,” Cash countered. “It has to do with conducting business — whether it’s done on your home phone or your office phone.”

The debate is no longer just theoretical.

Several Texas cities and public officials (including Arlington City Councilman Mel LeBlanc) have sued to remove the criminal penalties in the state’s Public Information Act. A trial is scheduled for fall in a Pecos federal courtroom.

As Rod Ponton, Alpine city attorney and a lead lawyer on the case with Houston attorney Dick DeGuerin, explained it at a second panel discussion Friday: “The First Amendment was written more than 200 years ago and, of course, we didn’t have Twitter. We didn’t have e-mail. We didn’t have electricity. But the idea was that political speech should be protected.”

Ponton said the state law has had a chilling effect on elected and appointed officials’ communication because they are afraid that they could go to jail for up to six months if caught breaking the law.

State Rep. Carol Kent, D-Dallas, also on the panel, said that during her five years as a Richardson school board member, the threat of a criminal conviction “certainly yanks your chain a little bit, and it gets your attention.”

“When you come into office and you take the oath, you know you’re going to face a higher level of scrutiny for the conversations that you have.

“You have to behave differently. You’re going to have to be more careful about the things you do, the things you say.”

Ponton called that unfair. “Public officials shouldn’t lose their rights to speak,” he said.

Hardly, according to panelist Keith Elkins, executive director of the Freedom of Information Foundation of Texas. He said his group could find only one example in 40 years where a Texas elected official was convicted and served jail time in such a case.

“I don’t think there is a real rush to the courthouse where overzealous prosecutors are trying to put elected officials in jail. … We hear pretty much hear the opposite.”

People contact a district attorney for help when they believe that their elected officials violated the open-meetings law with private deliberations, but prosecutors don’t want to take the case, he said.

What’s more, “if you only had one violation, something must be working.”

But Ponton said the use of social media may lead to more prosecutions. “Because if tweets go around, or e-mail or Facebook, the discussion of public matters is not posted,” he said. “Now you have an electronic trail which proves there has been political discussion among a quorum, and they could be indicted.”

Kent agreed that it was “chilling in a sense” but said that it was also “being ethically responsive to the notion that the public has a right to know what a school board is thinking about or discussing.”

While McKamie called for state lawmakers to rewrite rules, Cash said little needs to change. Whether you’re conducting public business “in an official meeting or on the hood of a pickup truck,” she said, it’s still the people’s business.

What do you think?

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Want to learn more and see the documents involved? Click on this WatchdogNation.com link to read an earlier post.

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Dave Lieber, The Watchdog columnist for The Fort Worth Star-Telegram, is the founder of Watchdog Nation. The new 2010 edition of his book, Dave Lieber’s Watchdog Nation: Bite Back When Businesses and Scammers Do You Wrong, is out. Revised and expanded, the book won two national book awards in 2009 for social change. Twitter @DaveLieber

Dave Lieber book that won two national awards for social change.

Inadequate regulations hurt economic recovery

Have you ever heard of Ravi Batra? He’s a Southern Methodist University Professor of Economics.


Ravi Batra


I’ve never met the man, but I’m familiar with his work.

He was one of few U.S. economists who predicted the Great Recession. He also predicted the rise of Islam and the rise of a charismatic leader (Barack Obama).

Now when he gazes into his crystal ball, he sees more doom and gloom.

And his predictions make sense.

With all the billions of government dollars poured into the U.S. economy, the recovery is still as weak as a patient stuck in intensive care.

According to Gayle Reaves, the top editor at Fort Worth Weekly, Batra now worries about the lack of government regulation.

Reaves writes that, in the professor’s opinion, “the financial reforms being pushed through Congress aren’t enough, that the economic team brought on board by Obama represents just more of the same old stuff, and that too many of the big bankers and other architects of the last crisis are still in power.”

She continues, “Almost no one likes his ideas — except thousands of regular folks, business leaders, and admirers across a spectrum of professional disciplines, who may not agree with Batra on every point but who believe that his theories out to be included in the global debate now going on over how to fix the economy.”

I found Reaves’ profile of Batra very thought provoking and highly recommend that you spend a few minutes reading it. Find  “The U.S. Economy: Still a House of Cards” right here.

The scariest part of the profile? Reaves writes, “Continuation of old policies and old ways of looking at the economy, he says, are going to lead America — and thus the world — to another crisis soon, probably later this year. If and when that happens, Batra says, there will be little capacity left for any more taxpayer bailouts — and with unemployment still at near-record levels, the pain for the country could be much worse even than last time.”

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Dave Lieber, The Watchdog columnist for The Fort Worth Star-Telegram, is the founder of Watchdog Nation. The new 2010 edition of his book, Dave Lieber’s Watchdog Nation: Bite Back When Businesses and Scammers Do You Wrong, is out. Revised and expanded, the book won two national book awards in 2009 for social change. Twitter @DaveLieber

Dave Lieber's new award-winning book helps American save time and money.

Goodfellas: Bernard Madoff and Mafia Boss Carmine Persico

In prison, Bernard Madoff is best buds with reputed Mafia Crime Boss Carmine Persico.

Does this bother you?

It bothers WatchdogNation.com. We can’t stop imagining the ramifications. Somebody says something terrible about Bernie, and Carmine makes a phone call.

Remember this scene from Goodfellas?

So how’s that working for you when the Greatest Thief in History has the Mafia tentacles at his beck and call? How’s that for “putting somebody away and throwing away the key?” Can’t these two dudes be separated?



Watchdog Nation looks at the Madoff-Persico friendship.



Carmine Persico



This nugget of information was buried on the bottom of a well-reported story in the March 18, 2010 Wall Street Journal, “Madoff beaten in prison” by Dionne Searcey and Amir Efrati.

Duh.

When Bernie disappeared to the prison infirmary at the North Carolina medium security prison where he is serving a life sentence, everyone said he slipped and fell. Well, it ain’t so.

But buried near the bottom of the lengthy piece is the best part: Bernie is still giving financial advice in prison.

“He gave me ideas on my index funds,” a former inmate told the WSJ.

Quoting the WSJ:

“Mr. Madoff advised him to diversify, saying he should invest in funds that track the S&P 500 index of stocks ‘where my money would be in all the stocks instead of putting my eggs into one basket,’ the former inmate said.

“He said Mr. Madoff also warned him off of day trading. ‘I was trying to get into day trading and he’s like, ‘That’s not for you. That’s for individuals like me with millions to spare,’ ‘ he said.”

Then in the second to the last graph, buried, was this:

“Both inmates said Mr. Madoff also socialized with reputed Columbo crime-family boss Carmine Pesico, whose attorney couldn’t be reached.”

We called the U.S. Bureau of Prisons to discuss this, but as of this posting, no one has returned our call.

And so it brings to mind that legendary food preparation scene in Goodfellas. See it above from youtube.com.

Just change the names to Bernie and Carmine. And don’t put too many onions in the sauce.

# # #

Dave Lieber, The Watchdog columnist for The Fort Worth Star-Telegram, is the founder of Watchdog Nation. The new 2010 edition of his book, Dave Lieber’s Watchdog Nation: Bite Back When Businesses and Scammers Do You Wrong, is out. Revised and expanded, the book won two national book awards in 2009 for social change. Twitter @DaveLieber

Dave Lieber book that won two national awards for social change.

Will U.S. consumers get the protection we need?

President Barack Obama’s proposal to create a Consumer Financial Protection Agency came in with a bang. But it appears to be going out with a whimper.

Before the proposal was introduced in Congress last year, Treasury Secretary Tim Geithner said of the economic meltdown. “This crisis was caused, in part, by a lack of consumer protections.”

And?

Watchdog Nation checked in with several Washington, D.C., sources last week to learn what’s happening to the proposal in Congress.

The answer? Not much.

The bill passed the House but is stuck in the Senate.

capitol

“Opposition to financial reform is intense, coming in particular from big banks and other monied interests that seek to protect the status quo,” the Consumer Federation of America said in a recent statement.

The U.S. Chamber of Commerce says a new agency would hurt small-business owners that rely on credit cards, home-equity loans, auto-title loans and other sources of consumer lending to finance their businesses.

“The idea sounds great on its face, but we need to have a serious discussion about what the CFPA would actually do and what authority it would have,” Ryan McKee of the chamber told me. “The potential for unintended consequences is great.”

US Chamber of Commerce logo

The CFPA would give federal regulators power to oversee mortgage companies, mortgage brokers, finance companies, payday lenders and other nonbank providers. Businesses would be blocked from offering financial products that charge prepayment penalties, unjustified fees and excessive interest rates.

Supporters say the agency would provide the public with better information about how to avoid so-called abusive lending and credit problems, and would improve disclosure to borrowers.

It would merge the enforcement divisions of several government agencies into the new agency.

The chamber says it worries that small businesses would lose access to credit, something they already struggle with because they are either too small or too new. The predicted result? Business closures, fewer startups, slower growth and the loss of jobs.

The chamber is also concerned that the proposal would ban products that are abusive but doesn’t clearly define abusive, said McKee, senior director for the chamber’s Center for Capital Markets Competitiveness.

Another sticking point for the chamber: The bill requires “too much disclosure” to consumers.

“Having too much disclosure is like having no disclosure at all,” McKee said, adding: “We need to simplify the disclosures so people get straightforward information.”

The chamber’s solution: Close gaps in existing laws that kept regulators from finding major problems; increase authority for regulators to enforce existing rules; and make sure regulators from various agencies communicate better.

The proposal for a CFPA was first floated in 2007, a year before the meltdown, by Harvard Law School professor Elizabeth Warren. She noted that federal regulators won’t allow a toaster that could burst into flames to hit the market. But mortgages and other “dangerous financial products,” she wrote, are not similarly regulated.


Elizabeth Warren

Elizabeth Warren


With questionable loans, she wrote, families can suffer from “wiped-out savings, lost homes, higher costs for car insurance, denial of jobs, troubled marriages, bleak retirements and broken lives.”

Warren is considered a strong candidate to head the agency — if it ever comes into existence.

Sen. Chris Dodd, D-Conn., chairman of the Senate Banking Committee, is carrying the ball for the CFPA. But he’s running into a strong defense put up by Sen. Richard Shelby of Alabama, the top Republican on that panel. Shelby has called the proposal “a folly and dangerous.”

It all comes down to whether Dodd and Shelby can agree on a compromise.

“We have reached an impasse,” Dodd said this month. “While I still hope that we will ultimately have a consensus package, it is time to move the process forward.” Dodd says he hopes to release a new proposal this month.

Sen. Richard Durbin, D-Ill., explained last year why he believes it’s tough to get a proposal through: “The banks — hard to believe, in a time when we’re facing a banking crisis, that many of the banks created — are still the most powerful lobby on Capitol Hill. And they frankly own the place.”

Susan K. Weinstock, director of financial reform for the Consumer Federation, said she views that as the major hurdle.

“How much are senators hearing from individual consumers about this? How much do consumers know about this?”

Consumer Federation of America logo

What do you think? I’m most interested in your comments on this.

Better yet, contact your congressional representatives and let them know what you think. If you don’t know who they are, visit www.votesmart.org and type in your zip code — and you’ll quickly find out.

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Do you want to learn more?

House Resolution 4173, known as the Wall Street Reform and Consumer Protection Act, is now in the Senate.

It merges regulatory powers of the Federal Reserve, Office of Thrift Supervision, the Federal Deposit Insurance Corporation, the Office of Comptroller of the Currency, the Federal Trade Commission and the National Credit Union Administration.

Here is where you can read more about the actual bill.

Here is where  you can watch videos and read more to learn about the U.S. Chamber of Commerce’s opposition.

Here is where you can learn about the Consumer Federation of America’s support.

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Dave Lieber, The Watchdog columnist for The Fort Worth Star-Telegram, is the founder of Watchdog Nation. The new 2010 edition of his book, Dave Lieber’s Watchdog Nation: Bite Back When Businesses and Scammers Do You Wrong, is out. Revised and expanded, the book won two national book awards in 2009 for social change. Twitter @DaveLieber

The story of Warren McGraw is a warning to all

Have you ever heard of Warren McGraw?

Probably not.

warren mcgraw

I first met him in the early 1980s when I covered him as a Statehouse reporter in West Virginia. He served as the state Senate President. He was a passionate liberal firebrand who earnestly believed in the good of working men and women.

Later, he was elected to the West Virginia Supreme Court.

But then something awful happened to him when he ran for reelection in 2004.

Don Blankenship, owner of Massey Energy, one of the largest coal companies in the world, spent an estimated $3.5 million on behalf of McGraw’s Republican opponent, Brent Benjamin.

He paid for a TV ad that criticized McGraw of voting to “free an incarcerated child rapist, and of allowing that rapist to work in a public school.”

McGraw said later, “They say our court set a child molester loose in our schools. It’s absolutely untrue. I’m embarrassed to go out in public. They’ve absolutely destroyed me.”

McGraw did not write the opinion in the case. But he was part of the majority that sent the case involving the molester back down to a lower court for further action. Yes, it was probably a mistake. But everyone in public life makes a mistake of some type. That’s part of public life. McGraw’s career in West Virginia spanned decades.

At the time of the election, everyone knew that Blankenship’s company was likely to be involved in cases before the Supreme Court during Benjamin’s subsequent 12-year term, including one supposed $77 million case.

Indeed, just three years later, Benjamin cast a crucial vote overturning a $50 million verdict — despite requests that he recuse himself because of a the obvious conflict of interest.

The loser in that case took his appeal all the way to the U.S. Supreme Court, which eventually ruled in a very important decision in 2009 “that elected judges must step aside from cases when large campaign contributions from interested parties create the appearance of bias.”

That decision found that excessive campaign contributions pose “an unconstitutional threat to a fair trial.”

So far so good.

But here’s what’s most disturbing.

The U.S. Supreme Court also ruled recently that limits on campaign contributions by corporations denied these same corporations their right to free speech.

Dave Lieber column on campaign contributions

So please, someone, anyone, correct me if I’m wrong, but here’s what I believe.

The Supreme Court ruling will open the floodgates to any corporation doing just what Don Blankenship did: paying for ads that distort the record of any candidate or incumbent whose intentions are the opposite of corporate executives.

In a half century of life on this planet, I have never seen a threat to our democracy as this.

Right now, we have a two senators from each state. But in just a few years, our senators will represent car companies, banks, coal companies, health insurance companies, etc.

Tell me if I’m wrong.

But I really do believe that because of the Supreme Court decision, our democracy is doomed.

# # #

Dave Lieber, The Watchdog columnist for The Fort Worth Star-Telegram, is the founder of Watchdog Nation. The new 2010 edition of his book, Dave Lieber’s Watchdog Nation: Bite Back When Businesses and Scammers Do You Wrong, is out. Revised and expanded, the book won two national book awards in 2009 for social change. Twitter @DaveLieber

Angry U.S. military veterans wait months for promised GI Bill education benefits

Shaylynn Lynch was an aspiring actress in high school, but when she didn’t get any college scholarships for drama in 2004, she decided to follow a family tradition and serve her country.

She joined the Navy and made a promise to herself that she would go to college later — at the government’s expense under the GI Bill.

The petty officer third class served four years, including more than a year in combat, as an aviation electronics specialist on an aircraft carrier in the Persian Gulf.

After she returned to civilian life last summer, she signed up for the new Post-9-11 GI Bill and kept her promise, studying drama and film at the University of North Texas. But money from the government to pay for tuition, books and fees and her housing allowance didn’t come for three months.

She finally received a check for some of it in November but was still owed thousands more. The 23-year-old veteran fell behind in her bills and had to take out loans to cover her expenses.

She called the Department of Veterans Affairs, she estimates, more than 30 times.

“There were no answers for months at a time,” she said. “I asked to speak to someone higher up, and they said no. I wanted a timeline, but I wasn’t getting any answers other than, ‘We’re working on it.'”

The VA was flooded with benefits requests last year when the new GI Bill went into effect in August. It couldn’t keep up.

Across the nation, stories are told of veterans evicted because they couldn’t pay rent and others who dropped out of college while waiting for checks.

Lynch is one of tens of thousands of veterans waiting for benefits due them.

While VA officials say they’re working on the backlog, no one disagrees that thousands have been left — borrowing a phrase from Veterans Affairs Secretary Eric Shinseki — worrying about their finances when they should have been focused on their schoolwork.

When the program went into effect, the government processed 2,000 claims a day. Now, after hiring extra workers, the VA says it can handle 7,000 a day.


Promises made were long delays.

Promises made were long delayed by the VA.


“Our primary mission at the VA is to be an advocate for veterans,” VA spokesman Drew Brookie said. “And we fully share concerns about timeliness of benefits claims processing. No one should have an adversarial relationship with the VA.”

Veterans groups say many claims are processed by hand. The new budget proposed by President Barack Obama this week includes $44 million to complete an automated system by December for processing claims.

To help students, the VA also made advance emergency payments of up to $3,000 to claimants who desperately needed money. The VA announced last month that it has begun applying the advanced payments to student accounts.

In a noteworthy event, the VA also announced that it has closed its call centers on Thursdays and Fridays so workers can process more claims instead of handling phone calls. That means VA call centers are only open three days a week.

The VA beefed up its work force, too. In the past year, 760 people were hired and overtime was “maximized,” the VA said.

How did this happen?

The VA was forced to set up the program much quicker than usual, said Skip Kempnich, a board member for the National Association of Veterans’ Program Administrators. Confusion abounded because the VA’s instructions to college administrators were vague and kept changing, said Kempnich, who works at the University of Iowa.

Compounding the problem, the VA’s campus liaisons were called back in from the field to process claims, so campus administrators had as much difficulty as Lynch did trying to find out what was happening.

Tuition money is sent directly to schools, with the other benefits going to students. At UNT, the registrar’s office said students such as Lynch were not penalized. Officials knew the money was coming and made loans available to hold students over.

After her discharge, Lynch turned down lucrative electronics jobs to pursue her dream. She hopes to become a film director.

This week, she went to her mailbox and found a long-awaited check from the VA. But Lynch says she’s not sure whether everything has been paid. The form letter did not include a breakdown of the various benefits and their amounts.

When I pointed this out to Brookie, the VA spokesman, he agreed to fetch Lynch’s records and provide her with a breakdown.

The experience frustrates her, she said. “I don’t like asking for handouts, but this was something that was promised to me.”

Her grandfather, Air Force veteran Chuck Kedy, who first notified Watchdog Nation about the problem, said, “It really upsets me when they don’t take care of the kids when they serve their country.”

Final note: A veteran friend of mine, Anthony Martinez, a talented writer and photographer, wrote a terrific blog post recently on how to deal with the VA. And thank you Anthony for your great note: “The copy of Watchdog Nation you signed for me last year helped me get results (and write those posts). Thanks.” (That’s what Watchdog Nation wants to do!) Read Anthony’s great ideas here.

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Dave Lieber, The Watchdog columnist for The Fort Worth Star-Telegram, is the founder of Watchdog Nation. The new 2010 edition of his book, Dave Lieber’s Watchdog Nation: Bite Back When Businesses and Scammers Do You Wrong, is out. Revised and expanded, the book won two national book awards in 2009 for social change. Twitter @DaveLieber


When Navy vet Lynch finally received a months-late payment from the VA, the accompanying letter did not provide her with a breakdown of any type.

When Navy vet Lynch finally received a months-late payment from the VA, the accompanying letter did not provide her with a breakdown of any type.


In Texas, I’m worried about open government

When Lucille Drain resigned in November from the Newark City Council, she was 96 years old and the oldest serving public official in Texas. But her age wasn’t what did her in.

After 26 years on the council, she wrote in her resignation letter: “The main reason for resigning early before term ceases, I care not to work with new council members through computers with all the questions and answers cut and dried before meetings.”

As first reported in the Wise County Messenger, she said she believed that city business was being discussed by council members and the mayor via e-mails, instead of in a public forum.

“I don’t think a city can be run by computers,” she stated.

This is a Dave Lieber column on Texas open government for WatchdogNation.com.

Bless her for telling it like it is. In many towns and school districts, e-mail communication, texting, phone calls and face-to-face talk about the people’s business is conducted by public officials away from publicly announced meetings where the work of government is supposed to take place. But violations are difficult to prove.

One of the few ways to enforce the Texas Open Meetings Act is the fear among officials that if they violate the law, they could get caught. The penalty is a $500 fine and up to six months in jail.

As I first reported in the Dave Lieber column in the Jan. 8, 2010 Watchdog column in the Fort Worth Star-Telegram, now there’s an attempt under way by some public officials to remove criminal penalties from the law. These officials, acting in what appears to be a highly coordinated effort, are saying that the open-meetings law is too strict.

Although 1989 was the last time a public official in Texas went to jail for this offense, some public officials claim that the law is a violation of their right of free speech. They say they want it changed because they should be allowed to talk to whomever they want to without the threat of jail hanging over their heads.

Under the law, a majority of members, or quorum, of a public board is prohibited from discussing government business outside an official meeting. According to the most widely accepted interpretation of the law, the public is not prevented from talking to government officials, but in some circumstances, officials are not allowed to fully respond in a public meeting unless the topic has been listed on a pre-published meeting agenda.

Also, the “free speech advocates” say they are afraid that e-mails can be used against them

Any movement to decriminalize the open-meetings law and roll back open government in Texas during this era of greater accountability might sound absurd on its face. Approximately 20 states tie some form of strict penalty to their open-meetings laws, open-government experts says.

However, one of Texas’ best lawyers, Dick DeGuerin of Houston, is co-counsel in a federal lawsuit filed last month in Pecos that challenges the open-meetings law on free speech grounds. Here is the lawsuit challenging Texas’ open records law.

The lawsuit states, “Citizens are afraid to talk to the officials who represent them, and those same officials are afraid to talk to the citizens, for fear of being indicted and prosecuted.”

Among those public officials listed as plaintiffs in the case: Arlington City Councilman Mel LeBlanc, who told my newspaper, the Fort Worth Star-Telegram, last month, “It’s an insult to individuals that spend a good portion of our lives in community service that if we misinterpret the Open Meetings Act in its vagueness that we can go to jail or be fined.”

At its annual conference, held in October in Fort Worth, the Texas Municipal League, which lobbies lawmakers on behalf of cities, passed a resolution submitted by the city of Sugar Land calling for decriminalization.

The resolution supports legislation next year “to amend the Open Meetings Act by replacing the criminal enforcement provisions with less restrictive penalties that balance the First Amendment right of governmental officials.” The replacement penalty most talked-about would overturn any decision made by a body if the open meetings act has been violated. This already exists as a noncriminal penalty under the current law.

Further momentum for the cause came when the 5th U.S. Circuit Court of Appeals ruled last year in a lawsuit filed by Alpine City Council members that public officials are protected by free speech even when they conduct “their official duties.”

Read the 5th Circuit’s opinion that pertains to Texas open government here.open government

That gives hope to those who want to remove the threat of a fine or jail time.

Frank Sturzl, executive director of the Texas Municipal League, says he believes that opinion shows that in the future, a federal court could rule that Texas’ law is too tough on public officials. Read his column “Texas Newspaper Lash Out At City Officials” on tml.org here.

Alpine City Attorney Rod Ponton, DeGeurin’s co-counsel in the lawsuit, told me: “We are fully in favor of open government and no ’secret deals.’ However, we favor individual First Amendment rights over government laws that censor elected officials.

“There is a balance that allows free communications and open government. Texas goes too far. Elected officials lose their free speech rights when they take office, and that violates the First Amendment.”

Sharply countering that, Texas Attorney General Greg Abbott’s office released a statement: “In this case, elected officials, municipalities and critics of open government are turning the First Amendment on its head. The First Amendment is furthered, not frustrated, by open meeting laws. And for that reason open meetings laws have been upheld under the First Amendment by every court . . . that has ever considered the issue.”

Blunt talk also comes from open-government advocate Keith Elkins, executive director of the Freedom of Information Foundation of Texas. He says, “Anybody that is having trouble following the law as it applies to open meetings of government officials should reconsider running for public office rather than trying to change the law.”

Meanwhile, momentum builds. The Wichita Falls City Council voted three weeks ago to join Alpine, Big Lake, Pflugerville and Rockport as co-plaintiffs in the current federal lawsuit.

Watchdog Nation will keep an eye on this one.

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Dave Lieber, The Watchdog columnist for The Fort Worth Star-Telegram, is the founder of Watchdog Nation. The new 2010 edition of his book, Dave Lieber’s Watchdog Nation: Bite Back When Businesses and Scammers Do You Wrong, is out. Revised and expanded, the bookwon two national book awards in 2009 for social change. Twitter @DaveLieber