What Is Corruption?

Now what could these 2 gonifs have in common?

I think when most people think about corruption they think about predatory crooks and lone wolves like Bernie Madoff or, to stay current, Rajat Gupta, another Goldman Sachs financial services manipulator who, unlike 99% of them, got caught with his fat fingers in the cookie jar. In wrapping up the prosecution's case Wednesday, Assistant U.S. Attorney Richard Tarlowe told jurors in Manhattan federal court that there is “overwhelming evidence” Gupta passed secret information to Galleon Group LLC co-founder Raj Rajaratnam, the hedge-fund manager now serving an 11-year prison sentence for insider trading. “Gupta abused his position as a corporate insider by providing secret company information to his longtime business partner and friend, Raj Rajaratnam,” Tarlowe said. These leaks allowed “Rajaratnam and his criminal associates at Galleon” to make millions of dollars through illicit trades, he said.

But the most pernicious corruption is the systemic kind that's built into the fabric of society. Corrupt politicians-- both parties, of course-- have redefined "bribery," for example, to exclude the basic way they finance their political careers and, in many cases-- perhaps most-- their lifestyles. We've talked a lot recently about how Buck McKeon has traded on his position as House Armed Services Committee chair to wring "contributions" for himself and his family members from armaments makers and war contractors. McKeon's behavior, unfortunately, while extreme, isn't out-of-the-ordinary. It's what makes DC go round and round-- and unspeakably corrupt.

International organized crime magnate Sheldon Adelson has invested in $10 million stake in the Romney takeover of the U.S. government and says he'll give as much as is needed. Currently he's trying to fight off 5 prosecutions involving the Foreign Corrupt Practices Act-- and he's trying to get permission to build a casino in New York City.

Wednesday we heard one of the only Members of the Senate who refuses to take any bribes from Wall Street, Bernie Sanders (I-VT), assert that Wall Street regulates Congress, rather than Congress regulating Wall Street. And earlier today we looked at a video clip of Bill Moyers and Thomas Frank yucking it up about how blatant the corruption is between Congress and Wall Street banksters. Frank closed with a "how it really works" anecdote about revolving doors in DC:

“Staffers know they could drop what they’re doing and go work for a lobby firm and make fantastic money. They want to please these companies-- even when they don’t work for those companies--  because that’s their future employer and everybody knows it.”

Going back to our friend Buck McKeon, this week investigative journalist Lee Fang reported that as soon as McKeon took over the House Armed Services Committee, he hired a Northrop Grumman lobbyist and vice president, Thomas MacKenzie, as a staffer. Since he would have to take a paycut, Northrop Grumman "generously" handed him a half million dollar good-bye check. Is it even illegal? We'll probably never find out and it'll be up to voters in Santa Clarita, Simi Valley and the Antelope Valley, though, to hold McKeon accountable. But McKeon is far from the only Member of Congress up these kinds of tricks with lobbyists. WrongFor California just happened to take up the case of another blatantly corrupt California Member, this one Brian Bilbray.

In a town like Washington, D.C., lobbyists jockey for position to turn the ear of elected representatives who can be instrumental in advancing their client’s interests. Access for a lobbyist is power. Representative Brian Bilbray would know, he’s a former lobbyist.

A little known fact about Bilbray is that he was a registered lobbyist before being elected to represent his current district in the San Diego area.

As a lobbyist for the far-right anti-immigration group the Federation for American Immigration (FAIR), Bilbray no doubt partook in closed door wheeling and dealing with little to no transparency.  He was also tied to notorious lobbyist Jack Abramoff who pleaded guilty to conspiring to bribe members of Congress.

In 2006, when the time came for Bilbray to run for office again, he worked hard to prevent being listed as a lobbyist on the ballot. He succeeded. After much negotiation he was able to list himself as an "immigration reform consultant," shedding the lobbyist title that would have made running for disgraced Congressman Randy "Duke" Cunningham’s seat an uphill climb.

But one of the facets of congressional corruption that has always most intrigued me is how they're able to take federally regulated campaign contributions and skirt the rules that insist the money not be used as personal piggy banks. The most corrupt members-- like McKeon, again, but members of both parties-- have figured out all sorts of ways (like paying and overpaying wives, sons, brothers, etc as consultants.

This week CREW did a wonderful report about how are lawmakers who go on to become lobbyists-- as so many of them do-- use leftover campaign funds differently from other ex-congressmen.

[M]embers of Congress-turned-lobbyists spend more of their excess campaign funds on political contributions than their non-lobbying counterparts after leaving office. In all, CREW examined the campaign and political action committee (PAC) spending of 57 members of the 110th Congress who did not return for the following Congress.

Highlights of the report include:

• Former members spent nearly $3 million in leftover funds on campaign contributions, more than any other expense;

• House Speaker John Boehner (R-OH) received $110,000 from former members who became lobbyists;

• Even dead members continue to spend money. 

“At the end of their congressional careers, many members have no qualms about using leftover campaign and PAC money for access and influence,” said CREW Executive Director Melanie Sloan. “A slush fund helps smooth the transition from public service to lobbying.”

CREW also found that remaining campaign money frequently benefitted former members, their families, and staff, often for years after the member left office. For example, the campaign treasurer for now-deceased Rep. Tom Lantos (D-CA) directed his campaign committee to pay nearly $150,000 over the past four years to a company that shares an address with her house. After retiring in 2008, Rep. Dave Weldon’s (R-FL) campaign committee paid his wife and daughter over $9,000, while also picking up a $525 hotel bill at the Ritz Carlton in Washington, DC on Valentine’s Day in 2011. Additionally, Rep. Marty Meehan (D-MA) maintains an essentially endowed campaign committee that collects thousands of dollars in interest to replenish any spending. Nine former members also contributed more than $150,000 to family members’ political campaigns.

“The Federal Election Commission should step up and make sure former members aren’t misusing leftover contributions,” continued Sloan. “Perhaps Congress should add ‘wind down your campaign committee’ to the list of tasks exiting members must complete in addition to cleaning out their desks.”

My personal favorite definition of bribery, by the way, comes from the master of DC bribery, Republican lobbyist Jack Abramoff who wrote a book while he was in prison, Capitol Punishment: "[C]ontributions from parties with an interest in legislation are really nothing but bribes. Sure, it's legal for the most part. Sure, everyone in Washington does it. Sure it's the way the system works. It's one of Washington's dirty little secrets-- but it's bribery just the same..."

Anyone think Buck McKeon has read Abramoff's book?