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crime and punishment First Amendment rights government transparency national politics & policies

Secrecy Broken

The “Wikileaks” controversy proceeds to grow and mutate, like Clostridium botulinum in a Petri dish with spoiled pork, and I’ve avoided talking about it up till now.

Wikileaks is a website devoted to publishing leaked documents from governments and other scandal-prone institutions. You probably know the major players, and the various permutations of the story. You can hardly miss them. Because of that, I’m not going to go through the story in detail. Instead, I’d like to take a step back and offer a few “meta-thoughts” . . . ideas that might help produce a good conclusion.

  1. Republican forms of government require a great deal of transparency, though not on everything. There are military secrets and diplomatic info-dumps that, for our security, would best remain secret and un-dumped.
  2. Politicians, soldiers and bureaucrats tend to hate transparency. Why? They don’t like being second-guessed by “non-professionals.” So they often make government more opaque than it should be.
  3. Some of our leaders have tried to put nearly everything foreign-policy-related into the tightest security, demanding high clearances even for viewing. Much of this is self-serving, not truly security-related.
  4. A government worker who breaks security protocols to leak documents can be at once a hero and still prosecutable by law.

Now’s a good time to rethink transparency and our government’s secrecy protocols.

But, rethought or not, no one’s been surprised to learn of more amazing lapses in ethics and judgment on the part of our leaders.

This is Common Sense. I’m Paul Jacob.

Categories
crime and punishment national politics & policies

Ponzi in California

Keeping loans and investments distinct is important not merely for business people, but for governments.

Case in point? Mahmoud “Mike” Karkehabadi’s 89 felony counts of securities fraud and grand theft. The Laguna Niguel, California, movie maker is accused of turning his business into a Ponzi scheme.

When his film Hotel California flopped, bringing in just over half a million dollars, Mr. Karkehabadi convinced his investors to roll over their loans to him into future movie projects. When he did this, it is alleged, he fuzzed up the distinctions between different deals, and entered dark territory. Fraud.

According to California Attorney General Jerry Brown, Karkehabadi “ran a cold and calculated scam, making promises he never intended to keep and using the funds of new victims to pay off the earlier ones.”

I don’t know which this sounds like more, something out of Get Shorty or the Social Security Act of 1935.

It’s interesting that, at the same time it prosecutes Karkehabadi, the state of California is hastily and drastically re-arranging its finances. Politicians are forced to do so because they have promised the state’s retiring employees returns on investments never made in amounts state government could never, realistically, afford to come through on.

The whole story of the accused Mr. Karkehabadi looks bad. Criminal. But then, so does the whole story of how politicians in California (and elsewhere) behave.

Fraud isn’t as uncommon as it should be.

This is Common Sense. I’m Paul Jacob.