Year In Review: Ethics
A Look Back At Obama’s Rocky Third Year Where Many Of Obama’s Ethical Lapses Have Come To Light
MAJOR SCANDALS
Obama’s Poster-Child: Solyndra
Obama’s Poster-Child For “American Ingenuity And Dynamism,” Declared Bankruptcy. “The California-based Solyndra, which employed more than 1,000 people, declared bankruptcy earlier this month. President Obama visited the company in May of 2010, saying it was a prime example of ‘American ingenuity and dynamism.’” (Alexander Mooney, “White House Beats Back Claim It Pressured Loan To Now-Bankrupt Company.” CNN, 9/14/11)
Solyndra Was Offered The First Recovery Act Loan Guarantee, Receiving $535 Million From Taxpayers In March 2009, And Went Bankrupt In August 2011. (Solyndra, “Solyndra Offered $535 Million Loan Guarantee By The U.S. Department Of Energy,” Press Release, 3/20/09; Joe Stephens And Carol Leonnig, “House Republicans Step Up Solyndra Investigation,” The Washington Post, 9/1/11; George Avalos, “Fremont Solar Tech Firm Solyndra To Shut Down, Lay Off 1,100 Workers,” The San Jose Mercury News, 8/31/11)
“The Leading Investors In Solyndra Were Two Investment Funds With Ties To George B. Kaiser, A Major Campaign Fundraising ‘Bundler’ For Obama.” (Carol D. Leonning And Joe Stephens, “Solyndra Employees: Company Suffered From Mismanagement, Heavy Spending,” The Washington Post, 9/21/11)
- George Kaiser’s Argonaut Ventures Is The “Single Largest Shareholder Of Solyndra.” “Kaiser’s Argonaut Ventures and its affiliates have been the single largest shareholder of Solyndra, according to SEC filings and other records. The company holds 39 percent of Solyndra’s parent company, bankruptcy records filed Tuesday show.” (Ronnie Greene And Matthew Mosk, “Obama Officials Sat In On Solyndra Meetings,” iWatch And ABC News, 9/9/11)
- George Kaiser Bundled Between $50,000 And $100,000 For Obama’s 2008 Campaign. (Center For Responsive Politics, opensecrets.org, Accessed 9/9/11)
The Obama Administration Ignored Warnings That Solyndra Was “Not Ready For Prime Time.” “One e-mail, uncovered by the House Energy and Commerce Committee and reported by ABC News, is from a White House budget analyst warning then-Vice President Biden’s chief of staff, Ron Klain, that the 2009 Department of Energy loan was ‘not ready for prime time.’”(Alexander Mooney, “White House Beats Back Claim It Pressured Loan To Now-Bankrupt Company.” CNN, 9/14/11)
An Obama Fundraiser, Who Obama Hired To Help Oversee The Loan Guarantee Program, Pushed For Solyndra Approval Even As His Wife’s Law Firm Was Representing The Company. “An elite Obama fundraiser hired to help oversee the administration’s energy loan program pushed and prodded career Department of Energy officials to move faster in approving a loan guarantee for Solyndra, even as his wife’s law firm was representing the California solar company, according to internal emails made public late Friday.” (Matthew Mosk, “Obama Fundraiser Pushed Solyndra Deal From Inside,” ABC News, 10/7/11)
- Steven J. Spinner: “I Have OVP And WH Breathing Down My Neck On This.” ”’How hard is this? What is he waiting for?’ wrote Steven J. Spinner, a high-tech consultant and energy investor who raised at least $500,000 for the candidate before being appointed to a key job helping oversee the energy loan guarantee program. ‘I have OVP [the Office of the Vice President] and WH [the White House] breathing down my neck on this.’”(Matthew Mosk, “Obama Fundraiser Pushed Solyndra Deal From Inside,” ABC News, 10/7/11)
Obama’s “Wall Street Guy” Loses $1.2 Billion
President Obama: Jon Corzine Is “Our Wall Street Guy.” “The rollout also provided a showcase for Corzine, the former Goldman Sachs CEO whom Obama referred to as ‘our Wall Street guy’ at a meeting of Democratic governors in Chicago on Friday.” (Claire Heininger, “Corzine Profile Rises In Obama Camp,” The Star-Ledger (NJ),6/23/08)
- President Obama: “Jon Corzine wasn’t just the first governor to pass an economic recovery plan for his state; he was an ally with the Obama administration in helping us develop a national recovery plan.” (President Obama, “Remarks By The President At New Jersey Rally For Governor Jon Corzine,” Holmdel, NJ, 7/16/09)
October 31st: Jon Corzine’s Wall Street Firm, MF Global, Filed For Bankruptcy. “Broker-dealer MF Global, headed by former New Jersey governor and Goldman Sachs chairman John Corzine, has filed for bankruptcy protection, apparently because of holdings of European debt.” (“Broker-Dealer MF Global Files For Bankruptcy,” USA Today, 10/31/11)
- The Eighth Largest Bankruptcy In US History “Has Shaken Faith In The Markets.” “The case — the eighth-largest bankruptcy in U.S. history — has shaken faith in the markets and put business on hold for many owners of the roughly 38,000 securities and commodities trading accounts at the firm, from big-city traders to heartland farmers.” (James O’Toole, “The MF Global Money Chase,” CNN Money, 12/6/11)
Up To $1.2 Billion Is Missing From Customers Of Jon Corzine’s Firm. “The court-appointed trustee overseeing MF Global’s bankruptcy says up to $1.2 billion is missing from customer accounts, double what the firm had reported to regulators last month.” (Marcy Gordon, “MF Global Trustee Says $1.2B Or More Missing,” The Associated Press, 11/21/11)
- “The Money May Be Gone Forever” If MF Global Used It To Cover Losses On Its Own “Risky Bets.” “It is unclear what MF Global did with this money or whether it can be recovered. Investigators are checking whether MF Global used some of the cash to pay off its own debts, which means the money could be sitting in an account at another firm. But if the firm used it to cover losses on some of its risky bets, the money may be gone forever.”(Ben Protess, “MF Global Is Said To Have Used Customer Cash Improperly,” The New York Times,11/17/11)
“The Firm’s Primary Regulator At The Exchange Level, CME Group Inc., Has Suggested Mr. Corzine Knew About Certain Transfers Of Funds That May Have Been Improper.” (Aaron Lucchetti And Scott Patterson, “Corzine Knew Of Fund Transfer,” The Wall Street Journal, 12/16/11)
Corzine Played A “Central Role” In Obama’s Wall Street Fundraising Efforts. “His new legal troubles, sparked by the bankruptcy filing of his investment firm, MF Global, could complicate the president’s efforts to raise money from the financial community given Corzine’s central role in those efforts.” (Michael Isikoff, “Corzine, Top Obama Fundraiser, Under FBI Investigation,” MSNBC, 11/2/11)
- Jon Corzine Has Bundled Over $500,000 For Obama’s Reelection Campaign. (Center For Responsive Politics, Opensecrets.Org, Accessed 10/31/11)
Siga
Obama’s Department Of “Health And Human Services Awarded Siga A No-Bid Contract Worth Nearly $433 Million.” “In May 2011, Health and Human Services awarded Siga a no-bid contract worth nearly $433 million to develop and produce 1.7 million doses of an anti-viral smallpox drug called STS-246. The drug would augment the existing supply of smallpox vaccine now in U.S. control.” (David Fitzpatrick and Drew Griffin, “E-Mails Questioned Huge Contract For Firm With Ties To Obama Administration,” CNN, 12/8/11)
The Price Per Dose Charged By Siga Is “Well Above” A Price That Was Considered To Be “Reasonable” By Government Specialists. “The contract calls for Siga to deliver 1.7 million doses of the drug for the nation’s biodefense stockpile. The price of approximately $255 per dose is well above what the government’s specialists had earlier said was reasonable, according to internal documents and interviews.” (Dave Willman, “Cost, Need Questioned In $433-Million Smallpox Drug Deal,” Los Angeles Times, 11/13/11)
Siga’s Return On Investment For The Contract Is “An Overwhelming 180 Percent.” “But internal e-mails obtained exclusively by CNN show a contracting officer assigned to manage price negotiations between HHS and Siga was alarmed at the cost. Siga’s return on investment, one e-mail said, was ‘an overwhelming 180 per cent.’” (David Fitzpatrick and Drew Griffin, “E-Mails Questioned Huge Contract For Firm With Ties To Obama Administration,” CNN, 12/8/11)
Ronald Perelman Is The “Controlling Shareholder Of Siga,” A “Longtime Democratic Party Activist And Fundraiser,” And “A Particular Friend Of The Obama White House.” “Ronald Perelman is controlling shareholder of Siga Technologies and a longtime Democratic Party activist and fundraiser. He’s also a large contributor to Republicans, but has been a particular friend of the Obama White House.” (David Fitzpatrick and Drew Griffin, “E-Mails Questioned Huge Contract For Firm With Ties To Obama Administration,” CNN, 12/8/11)
- Andrew Stern, The Former President Of The SEIU – A “Wellspring Of Campaign Money” – Is On Siga’s Board. “In June 2010, Siga further heightened its presence in Washington by naming to its board Andrew Stern, former head of the Service Employees International Union and a frequent visitor to the Obama White House. The union is a wellspring of campaign money and volunteers for Democratic candidates.” (Dave Willman, “Cost, Need Questioned In $433-Million Smallpox Drug Deal,” Los Angeles Times, 11/13/11)
SHADES OF PAY TO PLAY
Meetings With Donors On The Economy In The Blue Room
Just Before Announcing For Reelection, Obama Brought Two Dozen Wall Street Executives And Long-Time Donors To The White House. “A few weeks before announcing his re-election campaign, President Obama convened two dozen Wall Street executives, many of them longtime donors, in the White House’s Blue Room.” (Nicholas Confessore, “Obama Seeks To Win Back Wall St. Cash,” The New York Times, 6/12/11)
- Obama “Opened The Floor” For The Donors To Talk To Him “On Hot Issues.” “The guests were asked for their thoughts on how to speed the economic recovery, then the president opened the floor for over an hour on hot issues like hedge fund regulation and the deficit.” (Nicholas Confessore, “Obama Seeks To Win Back Wall St. Cash,” The New York Times, 6/12/11)
- All 30 Attendees Had Donated To Obama’s 2008 Campaign. “All 30 guests were donors to Obama’s 2008 campaign, according to Federal Election Commission records. Most have some tie to Wall Street or high finance.” (Josh Gerstein, “All At DNC Blue Room Meeting With Obama Were Donors,” Politico’s “Under The Radar,” 6/26/11)
Bundlers In The Spotlight
The Sunlight Foundation Said Obama’s Bundler List Is “A Veritable Rolodex Of The Rich And Powerful Across The Country.” “The Sunlight Foundation, which tracks campaign contributions, called Mr. Obama’s bundler list ‘a veritable Rolodex of the rich and powerful across the country — among them you’ll notice a C.E.O., editor, former politician and even a former lobbyist.’” (Michael D. Shear, “Obama’s Haul: Big Money From Big Donors,” The New York Times, 7/15/11)
“Big Bundlers” Are Replacing Big Donors As The Ones Who Get “Special Access And Influence.” “’It used to be before we had contribution limits, that it was people who gave very large contributions who got special access and influence,’ said Fred Wertheimer, president of the group Democracy 21. ‘The big donors have been replaced by big bundlers.’” (Byron Tau And Ben Smith, “Many Bundlers Have Administration Business Ties,” Politico, 7/21/11)
Bundling For Obama “Offers Executives Another Path To Top-Level Access.” “Though Obama has refused to take contributions from lobbyists or political action committees, the rise of bundlers – the key players in contemporary fundraising – offers executives another path to top-level access.” (Byron Tau And Ben Smith, “Many Bundlers Have Administration Business Ties,” Politico, 7/21/11)
Obama’s 2012 Bundler List “Features A Number Of People Involved In The Business Of Influencing Government.” “A list of Obama’s own top fundraisers features a number of people involved in the business of influencing government, including the head of a lobbying and public relations firm, the corporate executive who oversees Comcast’s lobbying efforts and the chairwoman of pharmaceutical giant Pfizer’s political action committee, among others.” (Michael Scherer, “No Registered Lobbyists Among Top Obama Fundraisers, But Influence Seekers Abound,” Time’s “Swampland,” 7/20/11)
Obama Is Ignoring His Pledge To Not Take Money From Lobbyists, Raising Millions From “Prominent Supporters Who Are Active In The Lobbying Industry.” “Despite a pledge not to take money from lobbyists, President Obama has relied on prominent supporters who are active in the lobbying industry to raise millions of dollars for his re-election bid.” (Eric Lichtblau, “Obama Backers Tied To Lobbies Raise Millions,” The New York Times, 10/27/11)
- At Least 15 Of Obama’s Bundlers Are In The Lobbying Industry And Have Raised Over $5 Million For Obama’s Reelection Campaign. “At least 15 of Mr. Obama’s ‘bundlers’ — supporters who contribute their own money to his campaign and solicit it from others — are involved in lobbying for Washington consulting shops or private companies. They have raised more than $5 million so far for the campaign.” (Eric Lichtblau, “Obama Backers Tied To Lobbies Raise Millions,” The New York Times, 10/27/11)
LESS TRANSPARENCY
WH Visitor Logs Evaded For Lobbyists
The Obama Administration Meets With Lobbyists At “A Complex Just Off The White House Grounds.” ”Caught between their boss’s anti-lobbyist rhetoric and the reality of governing, President Barack Obama’s aides often steer meetings with lobbyists to a complex just off the White House grounds – and several of the lobbyists involved say they believe the choice of venue is no accident.” (Chris Frates, “Lobbyists: W.H. Hides Meetings Off-Site,” Politico, 2/24/11)
These Lobbyists Do Not Make It Into The Visitors Log Which Is Released To The Public. ”It allows the Obama administration to keep these lobbyist meetings shielded from public view — and out of Secret Service logs collected on visitors to the White House and later released to the public.” (Chris Frates, “Lobbyists: W.H. Hides Meetings Off-Site,” Politico, 2/24/11)
Attendees Say The Meetings Are Being Kept “Off The Books – So Their Visits Wouldn’t Later Be Made Public.” “The White House scoffs at the notion of an ulterior motive for scheduling meetings in what are, after all, meeting rooms. But at least four lobbyists who’ve been to the conference rooms just off Lafayette Square tell POLITICO they had the distinct impression they were being shunted off to Jackson Place – and off the books – so their visits wouldn’t later be made public.” (Chris Frates, “Lobbyists: W.H. Hides Meetings Off-Site,” Politico, 2/24/11)
FOIAs Ignored Or Politicized
The Obama Administration Responded To Fewer FOIA Requests, Despite More Inquiries. ”Two years into its pledge to improve government transparency, the Obama administration took action on fewer requests for federal records from citizens, journalists, companies and others last year even as significantly more people asked for information.” (“Promises, Promises: Little Transparency Progress,” The Associated Press, 3/14/11)
Freedom Of Information Act Requests Are Subjected To “Secretive Reviews” By The Obama Administration’s Political Advisors. “The Homeland Security Department official in charge of submitting sensitive government files to political advisers for secretive reviews before they could be released to citizens, journalists and watchdog groups complained in emails that the unusual scrutiny was ‘crazy’ and hoped someone outside the Obama administration would discover the practice, The Associated Press has learned.” (“Gov’t Emails: Political Reviews Over Requests For US Records ‘Meddling,’ ‘Crazy’ And ‘Bananas,’” The Associated Press,3/28/11)
The “Unusual Political Vetting” Process Was Described As “Meddling” And “Nuts.” “The newly obtained versions of the same internal emails are not censored. They show that insiders described the unusual political vetting as ‘meddling,’ ‘nuts’ and ‘bananas!’” (“Gov’t Emails: Political Reviews Over Requests For US Records ‘Meddling,’ ‘Crazy’ And ‘Bananas,’” The Associated Press, 3/28/11)
Obama Even Censored Emails About His Open Government Directive. ”The Obama administration censored 194 pages of internal e-mails about its Open Government Directive that the AP requested more than one year ago. The December 2009 directive requires every agency to take immediate, specific steps to open their operations up to the public. But the White House Office of Management and Budget blacked-out entire pages of some e-mails between federal employees discussing how to apply the new openness rules, and it blacked-out one e-mail discussing how to respond to AP’s request for information ab out the transparency directive.” (“Promises, Promises: Little Transparency Progress,” The Associated Press, 3/14/11)
Whistleblowers Attacked
Obama Pursues “An Unexpectedly Aggressive Legal Offense” Against Leaks. ”The Obama administration, which famously pledged to be the most transparent in American history, is pursuing an unexpectedly aggressive legal offensive against federal workers who leak secret information to expose wrongdoing, highlight national security threats or pursue a personal agenda.” (Josh Gerstein, “Despite Openness Pledge, President Obama Pursues Leakers,” Politico , 3/7/11)
Obama’s Prosecutions May Be Having “A Chilling Effect” On Government Whistleblowers. ”But legal experts and good-government advocates say the hard-line approach to leaks has a chilling effect on whistleblowers, who fear harsh legal reprisals if they dare to speak up.” (Josh Gerstein, “Despite Openness Pledge, President Obama Pursues Leakers,” Politico, 3/7/11)
Good-Government Activists Say Obama’s Leak Policy Does Not Follow Obama’s Pledges Of Openness And Transparency. ”Not only that, these advocates say, it runs counter to Obama’s pledges of openness by making it a crime to shine a light on the inner workings of government – especially when there are measures that could protect the nation’s interests without hauling journalists into court and government officials off to jail.” (Josh Gerstein, “Despite Openness Pledge, President Obama Pursues Leakers,” Politico, 3/7/11)
Awards, That We Were Not Supposed To Know About, Received
“President Obama Finally And Quietly Accepted His ‘Transparency’ Award From The Open Government Community This Week — In A Closed, Undisclosed Meeting At The White House On Monday.” (Abby Phillip, “Shh! Obama Wins Anti-Secrecy Award,” Politico, 3/30/11)
Obama Was Supposed To Accept The Award In Front Of The Press Pool 2 Weeks Earlier, But The Actual Acceptance Ceremony Wasn’t Disclosed On The Public Schedule And No Reporters Were Present. “The secret presentation happened almost two weeks after the White House inexplicably postponed the ceremony, which was expected to be open to the press pool. This time, Obama met quietly in the Oval Office with Gary Bass of OMB Watch, Tom Blanton of the National Security Archive, Danielle Brian of the Project on Government Oversight, Lucy Dalglish of the Reporters Committee for Freedom of the Press, and Patrice McDermott of OpenTheGovernment.org, without disclosing the meeting on his public schedule or letting photographers or print reporters into the room.” (Abby Phillip, “Shh! Obama Wins Anti-Secrecy Award,” Politico, 3/30/11)
“‘I Don’t Feel Moved Today To Say ‘Thank You, Mr. President,’’ Said Steve Aftergood, The Director Of The Project On Government Secrecy At The Federation Of American Scientists.” (Abby Phillip, “Shh! Obama Wins Anti-Secrecy Award,” Politico, 3/30/11)
Fundraisers With A Complete Lack Of Transparency
Reporters Are “Ushered Out” Before Obama Has “Intimate Moments” With The Wealthy Contributors. “Intimate moments with contributors are rarely captured on camera, and while reporters get to hear the president’s opening remarks at fundraising events, the interaction with donors occurs after reporters have been ushered out.” (Jim Kuhnhenn, “Obama’s Crossover Message, From Kitchen To Mansion,” The Associated Press, 12/14/11)
“Pres. Obama’s Re-Election Campaign Won’t Be Disclosing How Much Money Is Taken In At The Individual Fundraising Events Attended By Pres. Obama. Neither Will The Democratic National Committee.” (Mark Knoller, “Obama Campaign Won’t Reveal Fundraising Numbers,”CBS News, 4/19/11)
“A Blow To Transparency.” “Further, the WH/Obama campaign is not disclosing the amount of money raised at each fundraising event. A blow to transparency.” (Mark Knoller, Twitter Feed, 4/22/11)
Biden’s Staff Put Reporters In Closets
Biden’s Staff Put A Pool Reporter In A Storage Room “To Keep Him From Talking To The Many High-Profile Guests” During A Fundraiser For Senator Ben Nelson. “Scott Powers, a writer for the Orlando Sentinel, was serving as the pool reporter for a fundraiser in Florida, where Biden was appearing to raise money on behalf of Sen. Bill Nelson on Wednesday. But to keep him from talking to the many high-profile guests at the event, a member of Biden’s staff stuffed Powers in a storage closet and stood guard outside the door until she deemed it ‘safe’ for Powers to emerge.” (Jack Mirkinson, “Biden Team Apologizes To Reporter Scott Powers For Keeping Him In Closet During Fundraiser,” The Huffington Post, 3/28/11)
- “‘The Protocol Is They Didn’t Want Me To Talk To Anybody,’ Powers Told ‘Good Morning America’ Reporter Matt Gutman In An Interview On Monday.” (Lucy Madison, “Biden Team Apologizes To Reporter For Making Him Wait In A Closet,” CBS News, 3/28/11)
Biden’s Staff Apologized For The Choice Of Hold Room. “‘Scott – You have our sincere apologies for the lack of a better hold room today,’ wrote Vice President Biden spokeswoman Elizabeth Alexander last Wednesday to Orlando Sentinel reporter Scott Powers.” (Jake Tapper, “Biden Team Apologizes To Report For Sticking Him In Closet,” ABC News’ “Political Punch” Blog, 3/27/11)






