Open in TheBrain

Holder, Eric

<p><font face="Times New Roman" size="4">=</font></p><p><font face="Times New Roman" size="4">pearl-clutching on When they go low, kick 'em!&nbsp; ;)</font></p><p><font face="Times New Roman" size="4">hated by rw but wd not let him retire b/c refused to approve successor, back to C&B</font></p><p><font face="Times New Roman" size="4">works w/ BO on redmap; hored by CA to fight djt?</font></p><p><font face="Times New Roman" size="4"></font></p><div><font size="4" face="Times New Roman">=</font></div><div><font size="4" face="Times New Roman">
</font></div><div><font size="4" face="Times New Roman">he is pretty careful?</font></div><div><font size="4" face="Times New Roman">
</font></div><div><font size="4" face="Times New Roman"><a href="https://www.alternet.org/2022/06/eric-holder/">https://www.alternet.org/2022/06/eric-holder/</a></font></div><div><font size="4" face="Times New Roman">
</font></div><div><font size="4" face="Times New Roman">smoking gun jan 6 trump crime</font></div><div><font size="4" face="Times New Roman">
</font></div><div><font size="4" face="Times New Roman">mo brooks sends email how to sedition from trump? admin?</font></div><div><div style="background-color: rgb(255, 255, 255);"><font size="4" face="Times New Roman">
=</font></div></div><p><font face="Times New Roman" size="4">=</font></p><p><font face="Times New Roman" size="4">James Risen NYT:</font></p><h3 style="background: none rgb(255, 255, 255); margin: 0.3em 0px 0px; overflow: hidden; padding-top: 0.5em; padding-bottom: 0px; border-bottom: 0px; line-height: 1.6;"><font size="4" face="Times New Roman"><span class="mw-headline" id="United_States_v._Sterling">United States v. Sterling</span></font></h3><p style="margin: 0.5em 0px; line-height: inherit;"><font face="Times New Roman" style="background-color: rgb(255, 255, 102);" size="4"><a href="https://en.wikipedia.org/wiki/Jeffrey_Alexander_Sterling" title="Jeffrey Alexander Sterling" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration-line: none;">Jeffrey Alexander Sterling</a>&nbsp;was being investigated during the Bush administration. In 2010 he was indicted under the&nbsp;<a href="https://en.wikipedia.org/wiki/Espionage_Act_of_1917" title="Espionage Act of 1917" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration-line: none;">Espionage Act of 1917</a>, one of the few people in US history whose alleged contact with a journalist was punished under espionage law.<sup id="cite_ref-josh_gerstein1_9-0" class="reference" style="line-height: 1; unicode-bidi: isolate; white-space: nowrap;"><a href="https://en.wikipedia.org/wiki/James_Risen#cite_note-josh_gerstein1-9" style="text-decoration-line: none; background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">[9]</a></sup></font></p><p style="margin: 0.5em 0px; line-height: inherit;"><font face="Times New Roman" size="4"><span style="background-color: rgb(255, 255, 102);">Risen was subpoenaed in relation to the case in 2008.<sup id="cite_ref-10" class="reference" style="line-height: 1; unicode-bidi: isolate; white-space: nowrap;"><a href="https://en.wikipedia.org/wiki/James_Risen#cite_note-10" style="text-decoration-line: none; background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">[10]</a></sup>&nbsp;He fought the&nbsp;<a href="https://en.wikipedia.org/wiki/Subpoena" title="Subpoena" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration-line: none;">subpoena</a>, and it expired in the summer of 2009.<sup id="cite_ref-subpoena_11-0" class="reference" style="line-height: 1; unicode-bidi: isolate; white-space: nowrap;"><a href="https://en.wikipedia.org/wiki/James_Risen#cite_note-subpoena-11" style="text-decoration-line: none; background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">[11]</a></sup>&nbsp;In what&nbsp;<i>The New York Times</i>&nbsp;called "a rare step," the&nbsp;<a href="https://en.wikipedia.org/wiki/Presidency_of_Barack_Obama" title="Presidency of Barack Obama" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration-line: none;">Obama administration</a>&nbsp;renewed the subpoena in 2010.<sup id="cite_ref-subpoena_11-1" class="reference" style="line-height: 1; unicode-bidi: isolate; white-space: nowrap;"><a href="https://en.wikipedia.org/wiki/James_Risen#cite_note-subpoena-11" style="text-decoration-line: none; background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">[11]</a></sup>&nbsp;In 2011, Risen wrote a detailed response to the subpoena, describing his reasons for refusing to reveal his sources, the public impact of his work, and his experiences with the Bush administration</span><span style="background-color: rgb(255, 255, 255);">.</span><sup id="cite_ref-12" class="reference" style="background-color: rgb(255, 255, 255); line-height: 1; unicode-bidi: isolate; white-space: nowrap;"><a href="https://en.wikipedia.org/wiki/James_Risen#cite_note-12" style="text-decoration-line: none; background: none;">[12]</a></sup></font></p><p style="margin: 0.5em 0px; line-height: inherit; background-color: rgb(255, 255, 255);"><font face="Times New Roman" size="4"><b>In July 2013 US Court of Appeals from the Fourth Circuit ruled that Risen must testify in the trial of Jeffrey Sterling</b>. The court wrote "so long as the subpoena is issued in good faith and is based on a legitimate need of law enforcement, the government need not make any special showing to obtain evidence of criminal conduct from a reporter in a criminal proceeding."<sup id="cite_ref-13" class="reference" style="line-height: 1; unicode-bidi: isolate; white-space: nowrap;"><a href="https://en.wikipedia.org/wiki/James_Risen#cite_note-13" style="text-decoration-line: none; background: none;">[13]</a></sup>&nbsp;Judge&nbsp;<a href="https://en.wikipedia.org/wiki/Roger_Gregory" title="Roger Gregory" style="text-decoration-line: none; background: none;">Roger Gregory</a>&nbsp;dissented, writing "The majority exalts the interests of the government while unduly trampling those of the press, and in doing so, severely impinges on the press and the free flow of information in our society."<sup id="cite_ref-14" class="reference" style="line-height: 1; unicode-bidi: isolate; white-space: nowrap;"><a href="https://en.wikipedia.org/wiki/James_Risen#cite_note-14" style="text-decoration-line: none; background: none;">[14]</a></sup><sup id="cite_ref-15" class="reference" style="line-height: 1; unicode-bidi: isolate; white-space: nowrap;"><a href="https://en.wikipedia.org/wiki/James_Risen#cite_note-15" style="text-decoration-line: none; background: none;">[15]</a></sup></font></p><p style="margin: 0.5em 0px; line-height: inherit;"><font face="Times New Roman" size="4"><b style="background-color: rgb(255, 255, 255);">The Supreme Court rejected his appeal during June 2014,</b><sup id="cite_ref-16" class="reference" style="background-color: rgb(255, 255, 255); line-height: 1; unicode-bidi: isolate; white-space: nowrap;"><a href="https://en.wikipedia.org/wiki/James_Risen#cite_note-16" style="text-decoration-line: none; background: none;">[16]</a></sup><span style="background-color: rgb(255, 255, 255);">&nbsp;l</span><span style="background-color: rgb(255, 255, 102);">eaving Risen facing the possibility of jail depending upon whether the federal prosecutors choose to pursue his testimony. He has stated that he will continue to refuse and is willing to go to jail.<sup id="cite_ref-17" class="reference" style="line-height: 1; unicode-bidi: isolate; white-space: nowrap;"><a href="https://en.wikipedia.org/wiki/James_Risen#cite_note-17" style="text-decoration-line: none; background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">[17]</a></sup></span></font></p><p style="margin: 0.5em 0px; line-height: inherit;"><font face="Times New Roman" style="" size="4"><b style=""><span style="background-color: rgb(255, 255, 102);">In October 2014, Attorney General&nbsp;</span><span style="background-color: rgb(255, 204, 102);"><a href="https://en.wikipedia.org/wiki/Eric_Holder" title="Eric Holder" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration-line: none;">Eric Holder</a>, </span><span style="background-color: rgb(255, 255, 102);">speaking at a Washington, D.C. event, stated “no reporter’s going to jail as long as I’m attorney general.</span></b><span style="background-color: rgb(255, 255, 102);">”</span><sup id="cite_ref-18" class="reference" style="background-color: rgb(255, 255, 102); line-height: 1; unicode-bidi: isolate; white-space: nowrap;"><a href="https://en.wikipedia.org/wiki/James_Risen#cite_note-18" style="text-decoration-line: none; background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">[18]</a></sup></font></p><p style="margin: 0.5em 0px; line-height: inherit;"><font face="Times New Roman" style="background-color: rgb(255, 255, 102);" size="4">In January 2015&nbsp;<i>The New York Times</i>&nbsp;reported that Risen "will not be called to testify at a trial", which ended a seven-year legal fight over whether he could/would be forced to identify his confidential sources.<sup id="cite_ref-19" class="reference" style="line-height: 1; unicode-bidi: isolate; white-space: nowrap;"><a href="https://en.wikipedia.org/wiki/James_Risen#cite_note-19" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration-line: none;">[19]</a></sup></font></p><div id="siteSub"><font face="Times New Roman" size="4">=</font></div><div id="siteSub"><p style="box-sizing: border-box; margin: 0px 0px 10px; margin-block-start: 1em; margin-block-end: 1em; background-color: rgb(255, 255, 255);"><font size="4" face="Times New Roman">&nbsp;FoxNews.com op-ed attacking former Attorney General Eric Holder uncritically relied on, and linked to, a piece by white supremacist Jared Taylor that accused Democrats of subjecting “whites to outright racial plunder.” Fox News changed the link after&nbsp;<em style="box-sizing: border-box; font-variant-east-asian: normal; font-variant-numeric: normal;">Media Matters</em>&nbsp;contacted the network.</font></p><p style="box-sizing: border-box; margin: 0px 0px 10px; margin-block-start: 1em; margin-block-end: 1em; background-color: rgb(255, 255, 255);"><font size="4" face="Times New Roman">Jeremy Carl, a research fellow at the Hoover Institution at Stanford University, wrote a May 23 FoxNews.com&nbsp;<a href="https://www.foxnews.com/opinion/will-starbucks-become-americas-largest-chain-of-homeless-shelters" style="box-sizing: border-box; background-color: transparent; text-decoration-line: none; outline: none; font-weight: 700; border-bottom: 1px solid rgb(204, 204, 204);">op-ed</a>&nbsp;complaining about a Starbucks policy allowing “anyone to spend time in its stores and use restrooms regardless of whether they make a purchase.” He also criticized the company for having engaged "Eric Holder as an adviser on diversity issues,” claiming he “has a long history of making accusations of racial discrimination, often unjustified.”</font></p><p style="box-sizing: border-box; margin: 0px 0px 10px; margin-block-start: 1em; margin-block-end: 1em; background-color: rgb(255, 255, 255);"><font size="4" face="Times New Roman">As one piece of evidence against Holder, Carl&nbsp;<a href="https://web.archive.org/web/20181217150025/https://www.foxnews.com/opinion/will-starbucks-become-americas-largest-chain-of-homeless-shelters" style="box-sizing: border-box; background-color: transparent; text-decoration-line: none; outline: none; font-weight: 700; border-bottom: 1px solid rgb(204, 204, 204);">linked</a>&nbsp;to a January 2015&nbsp;<a href="https://web.archive.org/web/20180527212745/www.amren.com/features/2015/01/eric-holder-even-worse-than-you-thought/" style="box-sizing: border-box; background-color: transparent; text-decoration-line: none; outline: none; font-weight: 700; border-bottom: 1px solid rgb(204, 204, 204);">opinion piece</a>&nbsp;by Jared Taylor on the white supremacist website American Renaissance.&nbsp;<em style="box-sizing: border-box; font-variant-east-asian: normal; font-variant-numeric: normal;">Media Matters</em>&nbsp;found the May op-ed while examining media outlets that have uncritically promoted or cited research by white supremacist media.</font></p><p style="box-sizing: border-box; margin: 0px 0px 10px; margin-block-start: 1em; margin-block-end: 1em; background-color: rgb(255, 255, 255);"><font size="4" face="Times New Roman">The Southern Poverty Law Center&nbsp;<a href="https://www.splcenter.org/hatewatch/2015/09/30/anti-muslim-activist-frank-gaffney-interviews-white-nationalist-jared-taylor-his-radio-show" style="box-sizing: border-box; background-color: transparent; text-decoration-line: none; outline: none; font-weight: 700; border-bottom: 1px solid rgb(204, 204, 204);">wrote</a>&nbsp;that American Renaissance “has been one of the vilest white nationalist publications, often promoting eugenics and blatant anti-black and anti-Latino racists. In 2005 for example, after Hurricane Katrina hit New Orleans, Taylor wrote, ‘When blacks are left entirely to their own devices, Western Civilization—any kind of civilization—disappears.’” The Anti-Defamation League&nbsp;<a href="https://www.adl.org/sites/default/files/documents/assets/pdf/combating-hate/jared-taylor-extremism-in-america.pdf" style="box-sizing: border-box; background-color: transparent; text-decoration-line: none; outline: none; font-weight: 700; border-bottom: 1px solid rgb(204, 204, 204);">wrote</a>&nbsp;that Taylor “upholds racial homogeneity as the key to fostering peaceful coexistence.”</font></p><p style="box-sizing: border-box; margin: 0px 0px 10px; margin-block-start: 1em; margin-block-end: 1em; background-color: rgb(255, 255, 255);"><font size="4" face="Times New Roman">Taylor’s piece was a review of conservative commentators John Fund and Hans von Spakovsky’s book&nbsp;<em style="box-sizing: border-box; font-variant-east-asian: normal; font-variant-numeric: normal;">Obama’s Enforcer: Eric Holder’s Justice Department</em>. The review began by attacking Holder as “a devious, power-hungry, racial zealot” who is “probably the most racially committed black ever to hold a cabinet job” and concluded that while the Republican and Democratic parties are similar, Republicans “are less likely to subject whites to outright racial plunder.” &nbsp;</font></p><p style="box-sizing: border-box; margin: 0px 0px 10px; margin-block-start: 1em; margin-block-end: 1em; background-color: rgb(255, 255, 255);"><font size="4" face="Times New Roman">[scrensht]</font></p><p style="box-sizing: border-box; margin: 0px 0px 10px; margin-block-start: 1em; margin-block-end: 1em; background-color: rgb(255, 255, 255);"><font size="4" face="Times New Roman"><em style="box-sizing: border-box; font-variant-east-asian: normal; font-variant-numeric: normal;">Media Matters</em>&nbsp;contacted Fox News about the op-ed and asked if the network thought the research citation was appropriate. The company did not reply but changed the link so it now directs to the Amazon page for&nbsp;<em style="box-sizing: border-box; font-variant-east-asian: normal; font-variant-numeric: normal;">Obama’s Enforcer</em>. The site has not noted the change or posted an editor’s note (the op-ed’s timestamp reflects the update).</font></p><p style="box-sizing: border-box; margin: 0px 0px 10px; margin-block-start: 1em; margin-block-end: 1em; background-color: rgb(255, 255, 255);"><font size="4" face="Times New Roman"><em style="box-sizing: border-box; font-variant-east-asian: normal; font-variant-numeric: normal;">Media Matters&nbsp;</em>later contacted Carl, who stated: “Obviously I would not have intentionally cited American Renaissance in any article I wrote — I wrote this article on a very fast same-day deadline at Fox News’ request and simply missed the sourcing.&nbsp;I suspect I missed it because the article was discussing work by Hans Von Spakovsky from Heritage, whom I do know and whose work I trust. I likely simply erred in assuming it was by Von Spakovsky.”</font></p><p style="box-sizing: border-box; margin: 0px; margin-block-start: 1em; margin-block-end: 1em; background-color: rgb(255, 255, 255);"><font size="4" face="Times New Roman">Carl, who agreed with Fox's decision to change the citation, also claimed “Holder has a history of numerous racist statements and actions is beyond doubt. I don’t apologize for saying that — then or now. One doesn’t need to link to American Renaissance to make that point, and obviously I would not have intentionally done so.” He additionally suggested that because&nbsp;<em style="box-sizing: border-box;">Media Matters</em>&nbsp;chose to contact Fox directly first rather than the author, it was evidence we are engaging in the “harassment of a critic of leftism" instead of a "pursuit of truth.”</font></p></div><div id="siteSub"><font face="Times New Roman" size="4"></font></div><p><font face="Times New Roman" size="4"></font></p><p><span style="font-family: " times="Times" new="New" roman="Roman" font-size="font-size" large="large" background-color="background-color" rgb="rgb"><font size="4" face="Times New Roman">covington and b, don siegelman eric h don siegelman atticus v the arch</font></span></p><p><span style="font-family: " times="Times" new="New" roman="Roman" font-size="font-size" large="large" background-color="background-color" rgb="rgb"><font size="4" face="Times New Roman">fired whistleblower rnc</font></span></p><p><font face="Times New Roman" size="4"></font></p><p><font face="Times New Roman" size="4">&nbsp;interview with Democracy Now!, Rolling Stone journalist Matt Taibbi talked about former <span style="background-color: rgb(255, 255, 102);">U.S. Attorney General Eric Holder rejoining his old law firm </span>whose clients include many of the banks linked to the finanicial crisis. Taibbi described the move as probably the<span style="background-color: rgb(255, 255, 102);"> biggest single example of the revolving door. "He spent six years essentially guiding all of these Wall Street firms," he said, "which many of them are clients of this company that he’s now working for—he guided them all back to profitability. He allowed bankers to escape prosecution. And now he’s going right back to that firm, where he’s going to enjoy a very lucrative partnership, whether he ever works again, you know, for the rest of his life."</span></font></p><p><font face="Times New Roman" size="4">Below is an interview with Taibbi, followed by a transcript:</font></p><p><font face="Times New Roman" size="4">
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</font></p><p><font face="Times New Roman" size="4">JUAN GONZÁLEZ: We turn now to the latest sign of the revolving door between Wall Street and Washington. Recently retired U.S. Attorney General Eric Holder is returning home—to the corporate law firm Covington & Burling, where he worked for eight years before becoming head of the Justice Department. <span style="background-color: rgb(255, 255, 102);">During his time at Covington, Holder’s clients included UBS and the fruit giant Chiquita. The law firm’s client list has included many of the big banks that the Justice Department under Holder’s leadership failed to criminally prosecute for their role in the financial crisis, including Bank of America, JPMorgan Chase, Wells Fargo and Citigroup.</span></font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">AMY GOODMAN: In a new interview with The National Law Journal, Eric Holder said his, quote, "appropriately aggressive," unquote, challenges to financial and corporate fraud could mean certain institutions "might not want to work with me," he said, "and ... that’s fine," unquote. However, i<span style="background-color: rgb(255, 255, 102);">n 2013, Holder testified before the Senate Judiciary Committee and suggested some banks are too big to jail.</span></font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">ATTORNEY GENERAL ERIC HOLDER: I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the national economy, perhaps even the world economy. And I think that is a function of the fact that some of these institutions have become too large. Again, I’m not talking about HSBC; this is just a more general comment. I think it has an inhibiting influence—impact on our ability to bring resolutions that I think would be more appropriate.</font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">AMY GOODMAN: Well, for more, we’re joined by Matt Taibbi, award-winning journalist with Rolling Stone magazine, who writes about Eric Holder’s time at Covington & Burling and much more in his book, The Divide: American Injustice in the Age of the Wealth Gap, which is now out in paperback.</font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">AMY GOODMAN: So you were tweeting up a storm yesterday as this news came of the former attorney general, Eric Holder, going back to Covington & Burling. Talk about the significance of this.</font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">MATT TAIBBI: Yeah, I mean, I think this is probably the single biggest example of the revolving door that we’ve ever had. And we’ve had some whoppers in our past. I think previously the worst one was probably Louisiana Congressman Billy Tauzin leaving Congress and taking a $2-million-a-year job with PhRMA, right after he helped pass the prescription drug benefit bill. But what Holder just did just blows Tauzin away. I mean, he spent six years essentially guiding all of these Wall Street firms, which many of them are clients of this company that he’s now working for—he guided them all back to profitability. He allowed bankers to escape prosecution. And now he’s going right back to that firm, where he’s going to enjoy a very lucrative partnership, whether he ever works again, you know, for the rest of his life.</font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">JUAN GONZÁLEZ: Well, Holder also sort of became a <span style="background-color: rgb(255, 255, 102);">point person for these, quote, "extrajudicial settlements."</span></font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">JUAN GONZÁLEZ: Could you explain what those are and how they worked?</font></p><p><span style="background-color: rgb(255, 255, 102);"><font face="Times New Roman" size="4">MATT TAIBBI: Yeah, Holder, in general, pioneered a number of different ways that essentially a lot of these too-big-to-fail companies were allowed to buy their way out of trouble. And one of the most notorious, I think, was that he concluded a number of the biggest settlement deals with banks like JPMorgan Chase in ways that were not reviewed by a judge. Because we did have some instances during this time period where pesky judges—I think one of the most infamous, in the eyes of Wall Street, was Jed Rakoff, who threw out a settlement with Citigroup because he thought it wasn’t harsh enough—well, to fix that problem, Holder just started striking deals and not submitting them for judicial review. So he did a $13 billion settlement with JPMorgan Chase where no judge signed off on the deal. The whole thing was done in secret. He essentially institutionalized the back room. This was just a deal where a bunch of bankers got together with a bunch of Justice Department officials, money changed hands, and that was it. The whole—all of their criminal problems went away. This is a very different way of doing business than what we’ve ever seen before, and it’s very dangerous, I think.</font></span></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">JUAN GONZÁLEZ: And he also took the term "collateral damage" into the financial world out of the military world, didn’t he, as well?</font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">MATT TAIBBI: Right, yeah. He actually predated the collateral damage idea back when he was a lawyer in the Clinton Justice Department. He wrote a memo that—you know, it’s now known as the Holder Memo, where he outlined a policy that is called <span style="background-color: rgb(255, 255, 102);">"collateral consequences," and basically all this says is that if you’re a prosecutor and you’re worried about prosecuting a company that employs a lot of people and you’re concerned that innocent people might suffer as the result of a prosecution, you may pursue noncriminal remedies when you go after this company.</span></font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4"><span style="background-color: rgb(255, 255, 102);">The problem was that when—by the time he became attorney general, the economic landscape was dotted all over with these enormous, too-big-to-fail companies, and there was a real threat that if you prosecuted these firms, that it might cause serious damage to the overall economy. Obviously we saw what happened with Lehman Brothers, for instance. So this became sort of the unofficial policy of the United States.</span> We started taking companies that had done very bad things—you know, HSBC is probably the biggest example, laundering money for drug dealers—and instead of throwing people in jail and extracting huge individual penalties from the guilty parties, we just got the banks to pony up a big fine that shareholders paid, and they got to stay in business.</font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">AMY GOODMAN: As you were tweeting your criticism yesterday, a lot of Obama supporters were also on social media pushing the line that Holder did not send anyone to jail because there were no laws broken.</font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">MATT TAIBBI: Right, yeah, and this is—this comes, I think, directly from something that <span style="background-color: rgb(255, 255, 102);">Barack Obama himself said on 60 Minutes once. He said some of the worst behavior on Wall Street was not illegal, some of the least ethical behavior was not illegal. But he crafted that phrase very carefully. He didn’t say all of it was not illegal. He said some of the worst behavior, and that’s true. But some of it was very illegal.</span></font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">And again, just to go back to some of the<span style="background-color: rgb(255, 255, 102);"> worst cases, HSBC admitted to laundering $880 million for a pair of Central and South American drug cartels, including the Sinaloa drug cartel, which is infamous all over the world for these torture videos.</span> So, we have HSBC, Europe’s largest bank, is washing hundreds of millions of dollars for people who chop people’s heads off with chainsaws. That’s a crime. I mean, there’s no—that’s the worst crime that a bank can possibly commit. And anybody who thinks that Holder didn’t send people to jail because they didn’t commit crimes is not really paying attention to what went on during this time.</font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">AMY GOODMAN: Also at Covington & Burling, Eric Holder will be reunited with Lanny Breuer. Explain who he was and the significance of them together.</font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">MATT TAIBBI: <span style="background-color: rgb(255, 255, 102);">Well, <b>Lanny Breuer </b>worked at Covington & Burling along with Eric Holder. He went to Holder to become his deputy for the early part of his tenure as attorney general. He was the head of the Criminal Division. Lanny, from the sources that I spoke to while I was researching all this material, was terrified of going to court when he didn’t have an absolute, guaranteed, sure victory. And so, what happened very early in their tenure together was that they did take one case to trial. They went to trial against a pair of guys from Bear Stearns who were accused of defrauding their clients. And they lost. It ended in an acquittal, even though they had very solid documentary evidence. From that point forward, they didn’t take anybody to court. </span>And all of these cases involving all of these banks, they went the settlement route instead, presumably because they were afraid of going into a courtroom. They were worried that juries didn’t understand this material. They were worried that it was too complicated. And so, rather than risk losing and getting a bad headline, they let off all of these people who had done very, very bad things, and so we have this legacy of cash instead of punishment.</font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">JUAN GONZÁLEZ: Can you talk also about how the Justice Department and other regulatory groups have changed the composition of the staffing, the high-level staffing, of these agencies during this period when Holder has been there?</font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">MATT TAIBBI: Yeah. This is something that I heard over and over again over the years, which is that a certain kind of person who used to work in the regulatory agencies, you know, who was a kind of a career civil servant, particularly the law enforcement types, the people who grew up through the ranks, you know, just trying to get the criminal at all costs—they’re primarily motivated by trying to extract justice from wrongdoers—that kind of person is gradually disappearing from the ranks of the regulatory bodies, and they are being replaced, increasingly, particularly at the higher levels, by people from the corporate defense community. And Holder was very profoundly a symbol of that kind of person.</font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">And the difference was, when you have people who come from the corporate defense world, like Holder, like Lanny Breuer, they tend to approach these settlements not to get a pound of flesh out of the wrongdoers, but instead they want to emerge with a settlement that leaves everybody happy when they walk out of the room. But that’s really not a good approach to fighting crime. That’s not the kind of attitude you want in your top crime fighter in the country. And as a result, that’s how we got so many of these settlements, which, again, were concluded in secret, in the back room. And people like Jamie Dimon were walking out of these settlements, saying, "Well, this wasn’t so bad." And their share price would go up the day after these settlements were concluded. That’s really not what we want from the top cop in the country.</font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">AMY GOODMAN: And this goes to the central theme of your book, Matt Taibbi, The Divide: American Injustice in the Age of the Wealth Gap. I mean, Attorney General Eric Holder was hailed as a great civil rights hero. After Ferguson, he actually went to Ferguson. I was in the Selma church on the 50th anniversary of the Selma march just a few months ago, when he gave a powerful speech about young black men—his own son, Eric Holder III, in the front row—being killed, and kept repeating that. It reminds me of Reverend Barber in North Carolina, head of the NAACP, who, after Dylann Roof was arrested, the alleged shooter in the Charleston church, said, "The perpetrator has been arrested, but the killer is still at large." And he was talking, overall, about the system, beyond the Confederate flag, what it represents—for example, mass incarceration—and how these things have to change.</font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">AMY GOODMAN: So talk about what this means—on the one hand, a civil rights crusader, but when it comes to issues of who gets put in prison and who remains free, where Eric Holder has stood.</font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4"><span style="background-color: rgb(255, 255, 102);">MATT TAIBBI: Yeah, I mean, to be fair, Eric Holder, you know, has talked a lot about reform of prison sentencing, and according to their statistics, incarceration has actually declined under the Obama administration for the first time in I don’t know how many years—forever. But still we have these enormous problems, l</span>ike the story that you reported on in the beginning of this show. You have people who are in jail for not just for months, but years at a time, awaiting trial because they can’t afford bail. We have millions of people behind bars for crimes that are far less serious than what HSBC, for instance, was doing. And there’s this enormous dichotomy.</font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">I think, you know, this is the—the chief problem with what Holder did is that there are all of these people who are in jail for crimes because it’s easy to put away people who don’t have enough money to defend themselves, who can’t pay enormous fines. Those are the people who end up going behind bars for crimes like money laundering or drug dealing or whatever it is. But we have this rationale for companies like <span style="background-color: rgb(255, 255, 102);">HSBC or JPMorgan Chase or Credit Suisse or BNP Paribas, that are caught with doing tax evasion or money laundering or fraud or whatever it is, that somehow this class of defendants, we can allow them to pay their way out of troubl</span>e, while this other group of people has to go behind bars. And we just can’t have that. I mean, that system is totally inappropriate. And as much as Holder wants to hold himself out as a civil rights leader, and has done some good things, this dichotomy is really his legacy, and that’s an enormous problem.</font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">JUAN GONZÁLEZ: And the issue of him returning to Covington & Burling, could you talk about that particular law firm, its role in the Washington scene? And also, what are the limitations on appointed officials, in terms of once they leave office what they can or can’t do, or did the Obama administration institute particular restrictions on their appointees?</font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">MATT TAIBBI: They did. There is a two-year cooling-off period, they call it, where, you know, someone who leaves the Justice Department has to wait for two years before they can interact with the Justice Department again. This means that even though Eric Holder has gone back to work, he has to sit for 19 months during this cooling-off period and do I don’t know what. I’m sure he’s going to be compensated very handsomely during that time.</font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">JUAN GONZÁLEZ: But he can advise the lawyers that do the direct interaction.</font></p><p><font face="Times New Roman" size="4">MATT TAIBBI: Exactly, yeah. They’ll figure out some way to do it so that it’s, you know, superficially legal. But there is this cooling-off period. <span style="background-color: rgb(255, 255, 102);">Covington & Burling, what its significance is, it’s one of the biggest white-collar defense firms in America. It is notable because it has such a lengthy list of too-big-to-fail banks among its clientele. It also, very interestingly, played a very important role in helping to create the subprime mortgage crisis, because it represented a company called MERS, which was the electronic mortgage registry system, which helped create a lot of the confusion and chaos in the paperwork area of the mortgage system.</span> All these people who were trying to find out who owns their home and can’t find the note, a lot of that is chalked up to the work that MERS did to eliminate paper mortgages. So they had an enormous role in helping create this subprime mortgage market. And then, of course, Eric Holder goes, and he’s the regulator for all that activity, you know, as the attorney general. It was a little weird, to say the least.</font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">AMY GOODMAN: Can you talk about <span style="background-color: rgb(255, 255, 102);">Keir Gumbs?</span></font></p><p><span style="background-color: rgb(255, 255, 102);"><font face="Times New Roman" size="4">
</font></span></p><p><span style="background-color: rgb(255, 255, 102);"><font face="Times New Roman" size="4">AMY GOODMAN: —the man that Senator Warren has been protesting, would be put—</font></span></p><p><span style="background-color: rgb(255, 255, 102);"><font face="Times New Roman" size="4">
</font></span></p><p><font face="Times New Roman" size="4"><span style="background-color: rgb(255, 255, 102);">MATT TAIBBI: Right, who’s going to be—who’s going to be on the SEC now, yeah. I mean, this is a—they’re putting him—he’s going to be an SEC commissioner, presumably. Covington & Burling is becoming essentially a kind of shadow Justice Department now. We have six alums from the Justice Department who have just returned to Covington & Burling, and now Covington & Burling is sending another person to occupy a very high-ranking seat in the SEC. </span>You know, it’s problematic, clearly, when you have so many people from the same firm who are all going to be talking to each other. It’s kind of this secondary club. And what happens when all these people have this congenial relationship, they end up making deals that are much more favorable to their clients than they would be otherwise.</font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">JUAN GONZÁLEZ: Well, they can all regulate all of the Goldman Sachs alums that are in other agencies in the federal government.</font></p><p><font face="Times New Roman" size="4"><span style="background-color: rgb(255, 255, 102);">AMY GOODMAN: I mean, the significance of Gumbs, yes, coming from Covington & Burling, but also representing American Petroleum, he and colleagues at the firm writing a guide advising corporations on how to avoid disclosing their political spending to shareholders,</span> Senator Warren wanting the SEC to require companies to disclose that kind of spending. And the question is: Will President Obama respond to Senator Warren’s pressure?</font></p><p><font face="Times New Roman" size="4">MATT TAIBBI: Probably not, I’m guessing. You know, I mean, but this—it says a lot that this is the kind of person that they’re going to be bringing in to the SEC. And I think, you know, again, people want a different kind of person occupying these regulatory positions. They don’t want a corporate defense attorney who’s just spent however many years telling companies how to avoid punishment, how to avoid taxes, how to avoid all these problems. You know, I personally would much prefer to have a career investigator, career law enforcement official in that job.</font></p><p><font face="Times New Roman" size="4">AMY GOODMAN: Well, we want to thank you, Matt Taibbi, award-winning journalist with Rolling Stone magazine. His most recent book, The Divide: American Injustice in the Age of the Wealth Gap, now out in paperback.</font></p><p><font face="Times New Roman" size="4">
</font></p><p><font face="Times New Roman" size="4">F&F: <a href="http://peaceandjustice.org/article.php?story=20120629085031114">http://peaceandjustice.org/article.php?story=20120629085031114</a>

&nbsp;</font></p>

<div><font face="Times New Roman" size="4">By Alex Pareene</font></div>

<div><font face="Times New Roman" size="4">Salon.com</font></div>

<div><a href="http://www.salon.com/2012/06/28/why_eric_holder_was_held_in_contempt_of_congress/"><font face="Times New Roman" size="4" color="#000000">http://www.salon.com/2012/06/28/why_eric_holder_was_held_in_contempt_of_congress/</font></a></div>

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<p style="margin: 15px 0px; padding: 0px; border: 0px; outline: 0px; vertical-align: baseline; list-style: none; line-height: 20px; text-align: left;"><font face="Times New Roman" size="4">Attorney General Eric Holder&nbsp;<a href="http://www.washingtonpost.com/politics/fast-and-furious-house-plans-vote-on-holding-eric-holder-in-contempt/2012/06/28/gJQAznlG9V_story.html" style="margin: 0px; padding: 0px; border: 0px; outline: 0px; vertical-align: baseline; list-style: none; text-decoration: none;">has been held in contempt of Congress</a>&nbsp;for three reasons: because he refused to release to House Republicans some documents related to “Fast and Furious,” an ATF operation that did not go well; because Democrats were very mean to Attorneys General Ashcroft and Gonzales and Republicans are now attempting to win payback; and because Republicans intensely hate Attorney General Eric Holder, because he refuses to prosecute the New Black Panthers.</font></p>

<div><font face="Times New Roman" size="4"><span style="line-height: 20px; text-align: left;">The NRA decided to “score” the vote, in order to put pressure on moderate Democratic members who represent gun-owning constituents to vote to hold Holder in contempt, and while most Democrats walked off the floor in protest,&nbsp;</span><a href="http://www.dailykos.com/story/2012/06/28/1103728/-House-approves-contempt-resolution-against-Eric-Holder-Many-Democrats-walk-out-in-protest" style="line-height: 20px; text-align: left; margin: 0px; padding: 0px; border: 0px; outline: 0px; vertical-align: baseline; list-style: none; text-decoration: none;">17 of them voted yes.</a><span style="line-height: 20px; text-align: left;">&nbsp;(One of the story’s small ironies is that Republicans and the NRA are attacking Holder for the ATF’s inability or refusal to arrest people who … legally bought legal guns.) And now Holder becomes the nation’s first attorney general to be held in contempt of Congress (another big first for Holder!), and the case has been referred to the U.S. attorney for the District of Columbia, who will probably just shake his head, or maybe lightly massage his temples, while declining to prosecute.</span></font></div>

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<p style="margin: 15px 0px; padding: 0px; border: 0px; outline: 0px; vertical-align: baseline; list-style: none; line-height: 20px; background-color: transparent;"><font face="Times New Roman" size="4">As I said, the simplest way to understand this is as elaborate payback for Democrats’ investigation into the Bush administration’s U.S. attorneys firing scandal, which led to White House counsel Harriet Myers and chief of staff Josh Bolten being held in contempt of Congress. Senate Democrats attempted to hold a (symbolic) vote of no confidence against Bush’s Attorney General Alberto Gonzales, who&nbsp;<a href="http://tpmmuckraker.talkingpointsmemo.com/archives/003920.php/" style="margin: 0px; padding: 0px; border: 0px; outline: 0px; vertical-align: baseline; list-style: none; text-decoration: none;">repeatedly and blatantly lied to Congress,</a>&nbsp;but they couldn’t invoke cloture. It is also plainly the case that many conservatives loathe Holder and consider him to be, like Obama, a secret radical, intent, despite most evidence to the contrary, on rounding up whites and seizing their guns. (The Justice Department’s decision to battle immigrant-harassment and voter ID laws are, obviously, just part one of Holder’s lengthy plan to institute reparations and Shariah.)</font></p>

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<p style="margin: 15px 0px; padding: 0px; border: 0px; outline: 0px; vertical-align: baseline; background-color: transparent; list-style: none; line-height: 20px;"><font face="Times New Roman" size="4">But this particular vote was specifically supposed to be about “Fast and Furious,” the Bureau of Alcohol, Tobacco and Firearms’ utterly incompetent attempt to do something about the trail of guns from America to Mexico. The program was supposed to track the people hired by cartels to purchase guns on their behalf. It didn’t really work, at all, and the guns made their way to Mexico. There is no evidence Holder knew anything about the operation until the rest of the country learned about it on the CBS Evening News. The documents Justice wishes to prevent from being released date to just after Republicans began repeatedly asking Holder to testify before Congress, and it is likely that they involve discussion regarding what to say in his testimonies. President Obama invoked executive privilege — the first time he’s done so during his first term — on Holder’s request, in order to stop the documents from being released, which is the sort of thing everyone used to get mad at Bush (and Clinton) about, though that one time Cheney tried to invoke executive privilege for himself was funnier. (Obviously the stupid documents should be released. All documents should be released, all the time.)</font>

<font face="Times New Roman" size="4">But while we’re on the subject, did you&nbsp;<a href="http://features.blogs.fortune.cnn.com/2012/06/27/fast-and-furious-truth/" style="margin: 0px; padding: 0px; border: 0px; outline: 0px; vertical-align: baseline; list-style: none; text-decoration: none;">read this big long Fortune piece on the Fast and Furious thing?</a>&nbsp;It is … unsurprising, basically, that a not particularly accurate version of events has become the mainstream press version&nbsp;<em style="margin: 0px; padding: 0px; border: 0px; outline: 0px; vertical-align: baseline; background-color: transparent; list-style: none;">and</em>&nbsp;the official line, from the White House, which just wants this stupid thing to go away (even though no one outside of the Fox bubble cares much about it, so far)....</font></p>

<h1><font face="Times New Roman" size="4">The truth about the Fast and Furious scandal</font></h1>

<p><span class="cnnDateStamp"><font face="Times New Roman" size="4">June 27, 2012: 5:00 AM ET</font></span></p>

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<h2><font face="Times New Roman" size="4">A&nbsp;<em>Fortune</em>&nbsp;investigation reveals that the ATF never intentionally allowed guns to fall into the hands of Mexican drug cartels. How the world came to believe just the opposite is a tale of rivalry, murder, and political bloodlust.</font></h2>

<p class="manual_auth"><font face="Times New Roman" size="4">By Katherine Eban</font>

<font face="Times New Roman" size="4">&nbsp;</font>

<font face="Times New Roman" size="4">FORTUNE -- In the annals of impossible assignments, Dave Voth's ranked high. In 2009 the federal Bureau of Alcohol, Tobacco, Firearms and Explosives promoted Voth to lead Phoenix Group VII, one of seven new ATF groups along the Southwest border tasked with stopping guns from being trafficked into Mexico's vicious drug war.</font>

<font face="Times New Roman" size="4">&nbsp;</font>

<font face="Times New Roman" size="4">Some call it the "parade of ants"; others the "river of iron." The Mexican government has estimated that <b>2,000 weapons are smuggled daily</b> from the U.S. into Mexico. <b>The ATF is hobbled in its effort to stop this flow. No federal statute outlaws firearms trafficking, so agents must build cases using a patchwork of often toothless laws. For six years, due to Beltway politics, the bureau has gone without permanent leadership, neutered in its fight for funding and authority. The National Rifle Association has so successfully opposed a comprehensive electronic database of gun sales that the ATF's congressional appropriation explicitly prohibits establishing one.</b>...</font></p>

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<p><font face="Times New Roman" size="4">Voth's mandate was to stop gun traffickers in <b>Arizona, the state ranked by the gun-control advocacy group Legal Community Against Violence as having the nation's "weakest gun violence prevention laws." Just 200 miles from Mexico, which prohibits gun sales, the Phoenix area is home to 853 federally licensed firearms dealers. Billboards advertise volume discounts for multiple purchases</b>.</font>

<font face="Times New Roman" size="4">Customers can legally buy as many weapons as they want in Arizona as long as they're 18 or older and pass a criminal background check. There are no waiting periods and no need for permits, and buyers are allowed to resell the guns. "In Arizona," says Voth, "someone buying three guns is like someone buying a sandwich."</font>

<font face="Times New Roman" size="4"><b>By 2009 the Sinaloa drug cartel had made Phoenix its gun supermarket and recruited young Americans as its designated shoppers or straw purchasers</b>. <span style=" background-color: #FFF200;">Voth and his agents began investigating a group of buyers, some not even old enough to buy beer, whose members were plunking down as much as $20,000 in cash to purchase up to 20 semiautomatics at a time, and then delivering the weapons to others</span>....</font>

<strong><font face="Times New Roman" size="4">MORE:&nbsp;<a href="http://money.cnn.com/galleries/2012/autos/1206/gallery.toyota-ford-rivalry.fortune/?iid=SF_F_River">10 ways Toyota is topping Ford</a></font></strong>

<font face="Times New Roman" size="4">The agents faced numerous obstacles in what they dubbed the Fast and Furious case. (They named it after the street-racing movie because the suspects drag raced cars together.) Their greatest difficulty by far, however, was convincing prosecutors that they had sufficient grounds to seize guns and arrest straw purchasers. By June 2010 the agents had sent the U.S. Attorney's office a list of 31 suspects they wanted to arrest, with 46 pages outlining their illegal acts. But for the next seven months prosecutors did not indict a single suspect.</font>

<font face="Times New Roman" size="4">On Dec. 14, 2010, a tragic event rewrote the narrative of the investigation. In a remote stretch of Peck Canyon, Ariz., Mexican bandits attacked an elite U.S. Border Patrol unit and killed an agent named Brian Terry. The attackers fled, leaving behind two semiautomatic rifles. A trace of the guns' serial numbers revealed that the weapons had been purchased 11 months earlier at a Phoenix-area gun store by a Fast and Furious suspect.</font>

<font face="Times New Roman" size="4">Ten weeks later, an ATF agent named John Dodson, whom Voth had supervised, made startling allegations on the <em>CBS Evening News</em>. He charged that his supervisors had intentionally allowed American firearms to be trafficked—a tactic known as "walking guns"—to Mexican drug cartels. Dodson claimed that supervisors repeatedly ordered him not to seize weapons because they wanted to track the guns into the hands of criminal ringleaders. The program showed internal e-mails from Voth, which purportedly revealed agents locked in a dispute over the deadly strategy. The guns permitted to flow to criminals, the program charged, played a role in Terry's death.</font>

<font face="Times New Roman" size="4">After the CBS broadcast, Fast and Furious erupted as a major scandal for the Obama administration. The story has become a fixture on Fox News and the subject of numerous reports in media outlets from CNN to the <em>New York Times</em>. The furor has prompted repeated congressional hearings—with U.S. Attorney General Eric Holder testifying multiple times—dueling reports from congressional committees, and an ongoing investigation by the Justice Department's inspector general. It has led to the resignations of the acting ATF chief, the U.S. Attorney in Arizona, and his chief criminal prosecutor.</font></p>

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<p><font face="Times New Roman" size="4">Conservatives have pummeled the Obama administration, and especially Holder, for more than a year. "Who authorized this program that was so <em>felony </em>stupid that it got people killed?" Rep. Darrell Issa (R-Calif.), chairman of the House Committee on Oversight and Government Reform, demanded to know in a hearing in June 2011. He has charged the Justice Department, which oversees the ATF, with having "blood on their hands." Issa and more than 100 other Republican members of Congress have demanded Holder's resignation.</font>

<font face="Times New Roman" size="4">&nbsp;</font>

<font face="Times New Roman" size="4">The conflict has escalated dramatically in the past ten days.&nbsp;On June 20, in a day of political brinkmanship, Issa's committee voted along party lines, 23 to 17, to hold Holder in contempt of Congress for allegedly failing to turn over certain subpoenaed documents, which the Justice Department contended could not be released because they related to ongoing criminal investigations. The vote came hours after President Obama asserted executive privilege to block the release of the documents. Holder now faces a vote by the full House of Representatives this week on the contempt motion (though negotiations over the documents continue).&nbsp;Assuming a vote occurs, it will be the first against an attorney general in U.S. history.</font>

<font face="Times New Roman" size="4">&nbsp;</font>

<font face="Times New Roman" size="4">As political pressure has mounted, ATF and Justice Department officials have reversed themselves. After initially supporting Group VII agents and denying the allegations, they have since agreed that the ATF purposefully chose not to interdict guns it lawfully could have seized. Holder testified in December that "the use of this misguided tactic is inexcusable, and it must never happen again."</font>

<font face="Times New Roman" size="4">There's the rub.</font>

<font face="Times New Roman" size="4">&nbsp;</font>

<font face="Times New Roman" size="4">Quite simply, there's a fundamental misconception at the heart of the Fast and Furious scandal. Nobody disputes that suspected straw purchasers under surveillance by the ATF repeatedly bought guns that eventually fell into criminal hands. Issa and others charge that the ATF intentionally allowed guns to walk as an operational tactic. <b>But five law-enforcement agents directly involved in Fast and Furious tell </b><em><b>Fortune</b></em><b> that the ATF had no such tactic. They insist they never purposefully allowed guns to be illegally trafficked. Just the opposite: They say they seized weapons whenever they could but were hamstrung by prosecutors and weak laws, which stymied them at every turn.</b></font>

<font face="Times New Roman" size="4">&nbsp;</font>

<font face="Times New Roman" size="4">Indeed, a six-month <em>Fortune</em> investigation reveals that the public case alleging that Voth and his colleagues walked guns is replete with distortions, errors, partial truths, and even some outright lies. <em>Fortune</em> reviewed more than 2,000 pages of confidential ATF documents and interviewed 39 people, including seven law-enforcement agents with direct knowledge of the case. Several, including Voth, are speaking out for the first time.</font>

<font face="Times New Roman" size="4"><b>How Fast and Furious reached the headlines is a strange and unsettling saga, one that reveals a lot about politics and media today. It's a story that starts with a grudge, specifically Dodson's anger at Voth. After the terrible murder of agent Terry, Dodson made complaints that were then amplified, first by <span style=" background-color: #FFF200;">right-wing bloggers, then by CBS. </span>Rep. Issa and other politicians then seized those elements to score points against the Obama administration, which, for its part, has capitulated in an apparent effort to avoid a rhetorical battle over gun control in the run-up to the presidential election</b>. (A Justice Department spokesperson denies this and asserts that the department is not drawing conclusions until the inspector general's report is submitted.)...</font>

<font face="Times New Roman" size="4">Irony abounds when it comes to the Fast and Furious scandal. But the ultimate irony is this: Republicans who support the National Rifle Association and its attempts to weaken gun laws are lambasting ATF agents for not seizing <em>enough</em> weapons—ones that, in this case, prosecutors deemed to be legal....</font>

<strong><font face="Times New Roman" size="4">The investigation begins</font></strong>

<font face="Times New Roman" size="4">The ATF is a bureau of judgment calls. Drug enforcement agents can confiscate cocaine and arrest anyone in possession of it. But ATF agents must distinguish constitutionally protected legal guns from illegal ones, with the NRA and other Second Amendment activists watching for missteps.</font></p>

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<p><font face="Times New Roman" size="4">Critics have depicted the ATF as "jackbooted government thugs" trampling on the rights of law-abiding gun owners. From the deadly standoff with the Branch Davidian&nbsp;cult in Waco, Texas, in 1993 to allegations that ATF agents illegally seized weapons from suspected straw purchasers at a Richmond &nbsp;gun show in 2005, these scandals have helped cement the bureau's reputation in some quarters for law-enforcement overreach.</font>

<font face="Times New Roman" size="4">In part because of these notorious cases, the bureau has operated in a self-protective crouch. It has stuck to small single-defendant cases to the detriment of its effort to combat gun trafficking, the Justice Department's inspector general found in a review of ATF cases from 2007 to 2009. To refocus its efforts, the ATF established Group VII and the other Southwest border units to build big, multi-defendant conspiracy cases and target the leaders of the trafficking operations.</font>

<font face="Times New Roman" size="4">Of course, the ATF can be its own worst enemy. Voth arrived in Phoenix in December 2009 only to discover that his group had not been funded. The group had little equipment and no long guns, electronic devices, or binoculars, forcing Voth to scrounge for supplies...</font>

<font face="Times New Roman" size="4">Even had they all gotten along, they faced a nearly impossible task. They were seven agents pursuing more than a dozen cases, of which Fast and Furious was just one, their efforts complicated by a lack of adequate tools. Without a real-time database of gun sales, they had to perform a laborious archaeology. Day after day, they visited local gun dealers and pored over forms called 4473s, which dealers must keep on file. These contain a buyer's personal information, a record of purchased guns and their serial numbers, and a certification that the buyer is purchasing the guns for himself. (Lying on the forms is a felony, but with weak penalties attached.) The ATF agents manually entered these serial numbers into a database of suspect guns to help them build a picture of past purchases.</font>

<font face="Times New Roman" size="4">By January 2010 the agents had identified 20 suspects who had paid some $350,000 in cash for more than 650 guns. According to Rep. Issa's congressional committee, Group VII had enough evidence to make arrests and close the case then.</font>

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<strong><font face="Times New Roman" size="4">Prosecutors: Transferring guns is legal in Arizona</font></strong>

<font face="Times New Roman" size="4">This was not the view of federal prosecutors. In a meeting on Jan. 5, 2010, Emory Hurley, the assistant U.S. Attorney in Phoenix overseeing the Fast and Furious case, told the agents they lacked probable cause for arrests, according to ATF records. Hurley's judgment reflected accepted policy at the U.S. Attorney's Office in Arizona. "[P]urchasing multiple long guns in Arizona is lawful," Patrick Cunningham, the U.S. Attorney's then–criminal chief in Arizona would later write. "Transferring them to another is lawful and even sale or barter of the guns to another is lawful unless the United States can prove by clear and convincing evidence that the firearm is intended to be used to commit a crime." (Arizona federal prosecutors referred requests for comment to the Justice Department, which declined to make officials available. Hurley noted in an e-mail, "I am not able to comment on what I understand to be an ongoing investigation/prosecution.&nbsp;I am precluded by federal regulation, DOJ policy, the rules of professional conduct, and court order from talking with you about this matter." Cunningham's attorney also declined to comment.)</font>

<font face="Times New Roman" size="4">It was nearly impossible in Arizona to bring a case against a straw purchaser. The federal prosecutors there did not consider the purchase of a huge volume of guns, or their handoff to a third party, &nbsp;sufficient evidence to seize them. A buyer who certified that the guns were for himself, then handed them off minutes later, hadn't necessarily lied and was free to change his mind. Even if a suspect bought 10 guns that were recovered days later at a Mexican crime scene, this didn't mean the initial purchase had been illegal. To these prosecutors, the pattern proved little. Instead, agents needed to link specific evidence of intent to commit a crime to each gun they wanted to seize.[ hurley plan is wiretap to get evidence of intent]</font>

<font face="Times New Roman" size="4">...Ten days after the meeting with Hurley, a Saturday, Jaime Avila, a transient, admitted methamphetamine user, bought three WASR-10 rifles at the Lone Wolf Trading Company in Glendale, Ariz. The next day, a helpful Lone Wolf employee faxed Avila's purchase form to ATF to flag the suspicious activity. It was the Martin Luther King Jr. holiday weekend, so the agents didn't receive the fax until Tuesday, according to a contemporaneous case report. By that time, the legally purchased guns had been gone for three days. The agents had never seen the weapons and had no chance to seize them. But they entered the serial numbers into their gun database. Two of these were later recovered at Brian Terry's murder scene....</font></p>

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<p style=""><font face="Times New Roman" size="4">But he was not operating in a logical world. The wiretap represented the ATF's best—perhaps only— hope of connecting the gun purchases it had been documenting to orders from the cartels, according to Hurley. In Minneapolis, the prosecutors Voth had worked with had approved wiretap applications within 24 hours. But in Phoenix, days turned into weeks, and Group VII's wiretap application languished with prosecutors in Arizona and Washington, D.C.</font>

<font face="Times New Roman" size="4">No one has yet explained this delay. Voth thinks prosecutor Hurley's inexperience in wiretapping cases may have slowed the process. Several other agents speculate that Arizona's gun culture may have led to indifference. Hurley is an avid gun enthusiast<strong>, </strong>according to two law-enforcement sources who worked with him.<b> One of those sources says he saw Hurley behind the counter at a gun show, helping a friend who is a weapons dealer.</b></font>

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<b><font face="Times New Roman" size="4">DC brass approves</font></b>

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<b><font face="Times New Roman" size="4">...Voth returned to Phoenix fully expecting his team to unite for the work that lay ahead. But instead he found a minor mutiny—over the schedule for the wire, which needed to be monitored around the clock. Dodson didn't want to work weekends. Casa felt his seniority should exclude him from the effort.</font></b>

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<b><font face="Times New Roman" size="4">...</font></b>

<font face="Times New Roman" size="4">The next day, March 12, Voth sent out the wire schedule at 5:15 p.m. but got such a blizzard of complaints about the shifts that, two hours later, he sent another e-mail to the group. It read in part: "[T]here may be a schism developing amongst the group. This is the time we all need to pull together not drift apart. We are all entitled to our respective (albeit different) opinions however we all need to get along and realize we have a mission to accomplish. I am thrilled and proud that our Group is the first ATF Southwest Border Group in the country to be going up on [a] wire…I will be damned if this case is going to suffer due to petty arguing, rumors or other adolescent behavior…I don't know what all the issues are but we are all adults, we are all professionals, and we have an exciting opportunity to use the biggest tool in our law enforcement tool box. If you don't think this is fun you're in the wrong line of work—period!<strong> </strong>This is the pinnacle of domestic U.S. law-enforcement techniques. After this the tool box is empty."<strong>&nbsp;</strong></font>

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<font face="Times New Roman" size="4">The wire turned out to be short lived. Within days, the agents realized that their suspect was phasing out use of the phone they were monitoring. Group VII would have to reapply, all over again, for permission to tap the new phone number.</font>

<font face="Times New Roman" size="4">But Voth's so-called "schism e-mail" would live in infamy. Today it is held up as proof that the group was desperately divided over the tactic of gun walking and that Voth belittled those who opposed it. But there is no documentary evidence that agents Dodson, Casa, or Alt complained to their supervisors about the alleged gun walking, had confrontations about it, or were retaliated against because of their complaints, as they all later claimed....</font>

<font face="Times New Roman" size="4">How is it possible to deduce that? Because Dodson then proceeded to walk guns intentionally, with Casa and Alt's help. On April 13, 2010, one month after Voth wrote his schism e-mail, Dodson opened a case into a suspected gun trafficker named Isaiah Fernandez. He had gotten Casa to approve the case when Voth was on leave. Dodson had directed a cooperating straw purchaser to give three guns to Fernandez and had taped their conversations without a prosecutor's approval.</font>

<font face="Times New Roman" size="4">Voth first learned these details a month into the case. He demanded that Dodson meet with him and get approval from prosecutors to tape conversations. Five days later, Dodson sent an uncharacteristically diplomatic response. (He and Alt had revised repeated drafts in that time, with Alt pushing to make the reply "less abrasive." Dodson e-mailed back: "Less abrasive? I felt sick from kissing all that ass as it was.") Dodson wrote that he succeeded in posing undercover as a straw purchaser and claimed that prosecutor Hurley—who he had just belatedly contacted—had raised "new concerns." The prosecutor had told Dodson that an assistant U.S. Attorney "won't be able to approve of letting firearms 'walk' in furtherance of your investigation without first briefing the U.S. Attorney and Criminal Chief."</font>

<font face="Times New Roman" size="4">It was the first time Voth learned that <b>Dodson intended to walk guns.</b> Voth says he refused to approve the plan and instead consulted his supervisor, who asked for a proposal from Dodson in writing. Dodson then drafted one, which Voth forwarded to his supervisor, who approved it on May 28.</font>

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<font face="Times New Roman" size="4">On June 1, Dodson used $2,500 in ATF funds to purchase six AK Draco pistols from local gun dealers, and gave these to Fernandez, who reimbursed him and gave him $700 for his efforts. Two days later, according to case records, Dodson—who would later testify that in his previous experience, "if even one [gun] got away from us, nobody went home until we found it"—left on a scheduled vacation without interdicting the guns. That day, Voth wrote to remind him that money collected as evidence needed to be vouchered within five days. Dodson e-mailed back, his sarcasm fully restored: "Do the orders define a 'day'? Is it; a calendar day? A business day or work day….? An Earth day (because a day on Venus takes 243 Earth days which would mean that I have plenty of time)?"</font>

<font face="Times New Roman" size="4">The guns were never recovered, the case was later closed, and Fernandez was never charged. By any definition, it was gun walking of the most egregious sort: a government agent using taxpayer money to deliver guns to bad guys and then failing to intercept them....</font>

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<font face="Times New Roman" size="4">On Feb. 4, 2011, the Justice Department sent a letter to Sen. Grassley saying that the allegations of gun walking in Fast and Furious were false and that ATF always tried to interdict weapons. A month later, Grassley countered with what appeared to be slam-dunk proof that ATF had indeed walked guns. "[P]lease explain how the denials in the Justice Department's Feb. 4, 2011 letter to me can be squared with the evidence," Grassley wrote, attaching damning case reports that he contended "proved that ATF allowed guns to 'walk.'" The case and agent names were redacted, but the reports were not from Fast and Furious. They came entirely from Dodson's Fernandez case.</font>

<strong><font face="Times New Roman" size="4">An unusual alliance</font></strong>

<font face="Times New Roman" size="4">By the end of July 2010, the Fast and Furious investigation was largely complete. The agents had sent prosecutors 20 names for immediate indictment, Jaime Avila's among them. His purchase of the three WASR-10s were listed among his criminal acts. On Aug. 17, 2010, ATF agents met in Phoenix with prosecutors, including U.S. Attorney Dennis Burke.&nbsp;According to two people present, the ATF presented detailed evidence, including the fact that their suspects had purchased almost 2,000 guns, and pushed for indictments. A month later, on Sept. 17, an ATF team—this time including ATF director Kenneth Melson—met with prosecutors again and again pushed for action. The sides agreed to aim for indictments by October, according to one person in attendance.</font>

<font face="Times New Roman" size="4">But as weeks and then months passed, prosecutors did not issue indictments. The ATF agents grew increasingly concerned. By December, prosecutors had dropped Avila's name from the indictment list for what they deemed a lack of evidence.</font>

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<font face="Times New Roman" size="4"><b>Only when Terry, the U.S. Border Patrol agent, was murdered in December 2010 did the prosecutors act</b>. Voth's agents arrested Avila within 24 hours of Terry's death. On Jan. 19, 2011, a federal grand jury indicted him and 19 other suspects. (Avila has since pleaded guilty to dealing guns without a license).</font>

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<font face="Times New Roman" size="4">Meanwhile, a crucial part of the Fast and Furious scandal—an unusual alliance that would prod politicians and spread word of the failure to stop guns from making their way to Mexican drug cartels—was waiting in the wings. Little more than a week after Terry's murder, a small item about the possible connection between his death and the Fast and Furious case appeared on a website, <b>CleanUpATF.org</b>. The site was the work of a disgruntled ATF agent-turned-whistleblower, Vince Cefalu, who is suing the bureau for alleged mistreatment in an unrelated case. His website has served as a clearinghouse for grievances and a magnet for other ATF whistleblowers.</font>

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<font face="Times New Roman" size="4">It had also attracted gun-rights activists loosely organized around a blog called the Sipsey Street Irregulars, run by a former militia member, Mike Vanderboegh, who has advocated armed insurrection against the U.S. government. It was an incendiary combination: the disgruntled<strong> </strong>ATF agents wanted to punish and reform the bureau; the gun-rights activists wanted to disable it. After the item about Terry appeared, the bloggers funneled the allegations through a "desert telegraph" of sorts to Republican lawmakers, who began asking questions.</font>

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<font face="Times New Roman" size="4">A week after the initial Fast and Furious press conference in January 2011, Dodson dropped a small bombshell. He told a supervisor that he had been contacted by congressional staff. Dodson met that day with two ATF supervisors. According to their written contemporaneous accounts, Dodson was vague but claimed that Voth had always "treated him like shit" and that it "felt good" to speak with someone outside ATF.</font>

<font face="Times New Roman" size="4">Dodson appeared on the <em>CBS Evening News</em> a week later. As Voth watched the program from his living room, he says, he wanted to vomit. He saw sentences from his "schism" e-mail reproduced on the TV screen. But CBS didn't quote the portions of Voth's e-mail that described how the group was divided by "petty arguing" and "adolescent behavior." Instead, CBS claimed the schism had been caused by opposition to gun walking (such alleged opposition is not discussed anywhere in the e-mail, which is below). CBS asserted that Dodson and others had protested the tactic "over and over," and then quoted portions of Voth's e-mail in a way that left the impression that gun walking was endorsed at headquarters. CBS contacted the ATF (but not Voth directly). The result was a report that incorrectly painted Voth as zealously promoting gun walking. (A CBS spokeswoman, Sonya McNair, says CBS does not publicly discuss its editorial process but notes, "The White House has already acknowledged the truth of our report.")</font>

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<strong><font face="Times New Roman" size="4">The "Witch Hunt"</font></strong>

<font face="Times New Roman" size="4">Less than 36 hours after the CBS report, Voth was jolted awake at dawn by the blaring of his burglar alarm. With his wife and children still in bed, he crept down the stairs of his desert home, his ATF-issued .40 caliber Sig Sauer extended before him. In the garage, he saw a door ajar and a massive kettle bell he used for workouts knocked from its place. Outside, the fleeing intruder had left behind a partial footprint in the sand.</font>

<font face="Times New Roman" size="4">As Voth waited for the police, he checked his e-mail and found an anonymous threat, sent minutes earlier: "You God-damned stupid 'Yes-Man' who does not have either the morals, or the intelligence, to realize that allowing this 'Fast and Furious' operation would result in unnecessary, unjustified deaths: MAY YOU EAT SHIT AND DIE." Later his wife found a strange car outside their house and an angry post on the Internet listing their home address. Voth confidentially shared his concern about that post in a meeting<strong> </strong>with two senior ATF officials, only to find an account of the meeting on the Sipsey Street blog within 24 hours.</font>

<font face="Times New Roman" size="4">The ATF's office of operations security investigated the threats to Voth. A confidential report on March 29, 2011, concluded, "ATF 'insiders' are the number one threat to GS Voth and his family." The report cited "at least six individuals," whom it did not name, who had "personal agendas to undermine the credibility of ATF supervisors and members of management as retribution for [Voth's] operational shortcomings." The report cited the two blogs and concluded that "the malicious intent of insiders" had led directly to Voth's becoming the target of a "nation-wide…libel campaign."</font>

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<font face="Times New Roman" size="4">New facts are still coming to light—and will likely continue to do so with the Justice Department inspector general's report expected in coming months. Among the discoveries: Fast and Furious' top suspects—Sinaloa Cartel operatives and Mexican nationals who were providing the money, ordering the guns, and directing the recruitment of the straw purchasers—turned out to be <b>FBI informants</b> who were receiving money from the bureau. That came as news to the ATF agents in Group VII....</font>

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<font face="Times New Roman" size="4">Issa has alleged on Fox News that Fast and Furious is part of a liberal conspiracy to restrict gun rights: "<b>Very clearly, [the ATF] made a crisis and they are using this crisis to somehow take away or limit people's Second Amendment rights."</b> (Issa has a personal history on this issue: In 1972, at age 19, he was arrested for having a concealed, loaded .25-caliber automatic in his car; he ultimately pleaded guilty to possession of an unregistered gun.)</font>

<font face="Times New Roman" size="4">Issa's claim that the ATF is using the Fast and Furious scandal to limit gun rights seems,<b> to put it charitably, far-fetched. Meanwhile, Issa and other lawmakers say they want ATF to stanch the deadly tide of guns, widely implicated in the killing of 47,000 Mexicans in the drug-war violence of the past five years. But the public bludgeoning of the ATF has had the opposite effect</b>. From 2010, when Congress began investigating, to 2011, gun seizures by Group VII and the ATF's three other groups in Phoenix dropped by more than 90%.</font></p>

<div style=""><em><font face="Times New Roman" size="4">Reporter Associate: Doris Burke &nbsp;<a href="http://features.blogs.fortune.cnn.com/2012/06/27/fast-and-furious-truth/">http://features.blogs.fortune.cnn.com/2012/06/27/fast-and-furious-truth/</a></font></em></div>

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