The Project On Government Oversight (POGO) Blog

SUNSHINE WEEK: Revolving Regulators at the CFTC

By ANDREW WYNER and MICHAEL SMALLBERG

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As part of Sunshine Week, a national initiative to highlight the importance of open government and freedom of information, POGO is releasing a host records obtained by the Freedom of Information Act (FOIA). Read more about POGO's plans for Sunshine Week here.

Since 2006, at least seven former employees of the Commodity Futures Trading Commission (CFTC) have disclosed their intent to appear before the CFTC on behalf of a client shortly after leaving the Commission, according to CFTC post-employment statements provided to POGO in response to a Freedom of Information Act (FOIA) request. Because the revolving door potentially engenders serious conflicts of interest, POGO believes that the CFTC and similar agencies should readily disclose post-employment records to the public.

Like other executive branch employees, CFTC staffers face certain restrictions on their post-employment activities. For instance, former employees can never appear in a representative capacity before the CFTC on a particular issue if they worked closely on that issue during their time at the Commission. In addition, according to federal statute, former CFTC commissioners and certain senior employees must wait a year before they attempt to influence the Commission on any issue.

Controversial DARPA Chief Regina Dugan Bolts for Job with Google

Regina Dugan at Cal State Fullerton Commencement

Click here to join POGO's Un-Do Influence Campaign: a movement to reclaim Washington

By JOE NEWMAN

Regina Dugan's tenure at the Department of Defense's shadowy research arm is apparently over with news that Dugan is once again headed back to the private sector. Wired's Noah Shachtman reported that Dugan is taking a job with Google.

As Shachtman points out, Dugan's time at the Defense Advanced Research Projects Agency (DARPA) won her both praise and criticism. The controversy stemmed from her ties to DARPA contractor RedXDefense, the company that she founded after she left her job as a DARPA program manager in 2000. When she passed through the revolving door to rejoin Darpa in 2009, her father succeeded her as CEO of RedXDefense; her uncle is on the board of directors.

After the media reported that RedXDefense had received $1.75 million in contracts after Dugan became DARPA director, that it still owed her $250,000 and that she still had a financial stake in the company, the Project On Government Oversight asked the Pentagon's Inspector General (IG) in May to investigate the potential conflicts of interest, as well as shortcomings in DARPA's ethics policies.

How Many House Staffers Went on to Lobby for Top Government Contractors?

By ANDREW WYNER

Click here to join POGO's Un-Do Influence Campaign

The Sunlight Foundation recently released an analysis finding that since July 2009, at least 377 former House of Representatives staffers left their respective congressional offices to become registered lobbyists. POGO has long been concerned about the revolving door phenomenon, and Sunlight’s analysis sheds light on its continued prevalence on the Hill.

Sunlight found that of the 377 staffers, nearly 82 percent joined lobbying firms, corporations, or business associations, while a meager 10 percent lobbied on behalf of non-profit advocacy groups. 156 staffers joined lobbying firms, 80 joined corporations, and 72 joined business associations, giving these groups connections to important Members of Congress and House committees.

Not highlighted in the report, however, is that of the 80 former House staffers who left to lobby on behalf of corporations, at least 19 went to top 100 government contractors (as compiled by POGO in its Federal Contractor Misconduct Database). According to Sunlight’s analysis, three staffers went to AT&T, two to Boeing, two to United Technologies, and two to ITT Industries. Former staffers also went to Lockheed Martin, Northrop Grumman, and KBR, among other firms. Find a full breakdown with links to each contractor's profile in our database below:

At Public Citizen, Jack Abramoff Calls for End of the Revolving Door

Click here to join POGO's Un-Do Influence campaign: a movement to end the undue influence that powerful corporate interests have on our federal government

By DANA LIEBELSON

When former lobbyist Jack Abramoff needed to get something done on the Hill, he had a tried-and-true strategy: offer a congressional staffer a job. Not right away, but six months or a year down the road—enough time to gain some advance access. And if a staffer said no? Well, that was rare. They all fell under Abramoff’s money-spell eventually.     

“[Those who said no] were so incredibly complimented, from then on, anything I asked was absolutely granted,” Abramoff said at the Washington, DC headquarters of Public Citizen on February 6. “That was almost a bribe itself.”

If anyone can speak about bribery, it’s “Casino Jack,” the notorious felon and former Washington insider who was convicted and sentenced for giving illegal gifts to legislators and defrauding Native American tribes out of tens of millions of dollars. 

His appearance at the public interest advocacy group, Public Citizen, was the latest stop on his so-called “redemption tour.” Since getting out of prison, Abramoff has been pushing out his book, Capitol Punishment: The Hard Truth about Washington Corruption from America’s Most Notorious Lobbyist, and—more controversially—is now shedding light on the revolving door culture in Washington.

“I believe that those who engage in public service, those who work on Capitol Hill, those who are elected to federal office and the administration, should not be able to move from those positions into the influence industry,” Abramoff said.

This is precisely what POGO has been preaching in its “Un-Do Influence” campaign—although, hearing the words come out of Abramoff’s mouth is a bit unnerving. The revolving door in Washington gives corporate interests and lobbying firms valuable insider access, and breeds corruption in our government by allowing current and former officials to use their positions for private gain.

Un-Do Influence: Air Force's Revolving Door Helped Booz Allen Hamilton Get Unfair Edge

Facepalm Ratings Guide = Stupefying example of everything that's wrong with the system. = Outrageous; shameless, even. = Worthy of rebuke. = Even if there's no conflict of interest, appearances matter.

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By JOE NEWMAN

Global consulting firm Booz Allen Hamilton is paying the price for playing fast and loose with federal contracting rules. But it's how Booz Allen's San Antonio operations may have obtained information from a competitor that takes our facepalm ratings to a new low.

According to a Feb. 6 Air Force memo, in April 2011, Booz Allen hired retired Air Force Lt. Col. Joselito Meneses, who had served as deputy chief in the Information Technology division of the Medical Support Agency under the Office of the Air Force Surgeon General.

On his first day of work for Booz Allen, Meneses arrived with a hard-drive containing non-public information he had obtained during his Air Force tenure.

Some of the data on the drive was proprietary information from one of Booz Allen's competitors, which the San Antonio office used to help shape its own bid to the Air Force, according to the memo.

As a result, the Booz Allen's San Antonio unit has been suspended and recommended for debarment. The company fired Meneses after a whistleblower brought the activity to the attention of company officials.

Meneses shows how the revolving door can corrupt the federal contracting system by allowing companies to get unfair, competitive advantages when they hire former government employees. The case also shows how former federal officials are motiviated to use their insider knowledge to help their new employers. Meneses knew better. He gets our maxium four-facepalm rating.

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Rep. Grimm Faces Accusations of Improper Fundraising

We've raised questions about Rep. Michael Grimm's efforts to gut protections for financial sector whistleblowers, and how it appears the only people who would benefit from such legislation are Grimm's backers on Wall Street.

Now, Grimm (R-NY) is facing much more serious allegations of influence peddling and improper fundraising. According to a New York Times story, Grimm enlisted the help of Ofer Biton, an Israeli citizen, to help raise more than $500,000 from the followers of a New York rabbi.

Booz Allen Suspension: A Successful Failure

By NEIL GORDON

POGO has learned more details about the Air Force's proposed debarment of Booz Allen Hamilton's San Antonio office. This new information raises a troubling prospect about the revolving door between government and private contractors. Namely, that stopping its abuses often isn’t as easy as it seems.

According to the memorandum in support of the proposed debarment, a Booz Allen employee disclosed sensitive, non-public government procurement data. The employee, Joselito Meneses, was hired as a senior associate at Booz Allen’s San Antonio office in April 2011. He formerly served as a deputy chief of information technology at the Air Force, where he had achieved the rank of Lieutenant Colonel.

According to the memo, on his first day of work, Meneses brought along a hard drive containing non-public source selection and bid or proposal information he obtained while working at the Air Force. At 9:28 a.m., shortly after arriving at the office, he sent out an email to co-workers containing sensitive pricing and labor mix data relating to an Air Force contract for IT work that Booz Allen intended to bid on when the contract expired. The data would have given Booz Allen an unfair competitive advantage. The four co-workers to whom Meneses sent the email were also proposed for debarment, as was Meneses back in September.

Hold that Revolving Door! Four-Star General Coming Through

Photo of Gen. James Cartwright from USA.gov

Click here to join POGO's Un-Do Influence campaign: a movement to end the undue influence that powerful corporate interests have on our federal government.

By DANA LIEBELSON

The revolving door that carried former Department of Defense honcho William Lynn III to a well-paying job with an Italian defense contractor keeps on spinning – now Gen. James Cartwright, who retired as the nation’s second-highest ranking military officer in August, is following Lynn into the private sector.

Cartwright is joining the Board of Directors at Raytheon, a major U.S. defense contractor. Earlier in the week, DRS Technologies named Lynn as its chief executive officer. (Coincidently, before Lynn was tapped as deputy defense secretary, he was a top lobbyist for Raytheon.)

“General Cartwright's deep understanding of defense and broad experience in military operations and matters of national security will be of great value to our Board," Raytheon Chairman and CEO William H. Swanson said in a press release.

Well, Cartwright certainly has a deep understanding of defense: He’s a four-star general with 40 years of service in the Marine Corps, including four years as the Vice Chairman of the Joint Chiefs of Staff. But then there’s that sticky “great value to the Board” comment.  And that’s where the problem with the well-oiled revolving door that leads from the Pentagon to the defense industry rears its ugly head.

It’s absolutely reasonable to wonder if Cartwright was eyeing a cushy job with Raytheon during his last years of service. Did that influence any decisions he may have made in regards to Raytheon, which receives billions in taxpayer dollars through federal contracts? Even if it didn’t create any conflicts of interest, the appearance that it could have is why the revolving door chips away at the public’s confidence in government.

As POGO pointed out in its 2004 “Politics of Contracting” report, “a contracting system where current and former public servants use their positions for private gain means powerful private corporations can rig the system in their favor.”

Un-Do Influence: Fear the Facepalm!

Facepalm Ratings Guide = Stupefying example of everything that's wrong with the system. = Outrageous; shameless, even. = Worthy of rebuke. = Even if there's no conflict of interest, appearances matter.

---------------------------- Click here to join POGO's Un-Do Influence campaign: a movement to end the undue influence that powerful corporate interests have on our federal government.

By JOE NEWMAN

From Wikipedia: A facepalm (sometimes also face-palm or face palm) is the physical gesture of placing one's hand flat across one's face or lowering one's face into one's hand or hands. The gesture is found in many cultures as a display of frustration, embarrassment, shock, or surprise.

Our facepalm ratings are intended to shine a light on the people who through their conflicts of interest, influence peddling and trips through the revolving door are doing their part to undermine our faith in government.

Study after study shows that well-financed lobbyists -- who are often major political fundraisers and contributors -- have a real impact on how our government officials and elected leaders make public policy. Likewise, people who move through the revolving door between government and industry have the type of insider access that gives them an unfair competitive advantage when it comes to influencing everything from how contracts are awarded to whether wrongdoing is investigated. Corporate lobbyists do more than advocate for or against legislation, often times, they actually write the bills or talking points that members of Congress use.

Consider our facepalm ratings a way to not only express our frustration with the system but a way to build some momentum for reform through our Un-Do Influence Campaign. Unfortunately, we don't expect to ever run out of deserving recipients.

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No Veiled Threats Here

You got to give Chris Dodd some credit. In this day of behind-the-scenes lobbying and the influence that goes along with campaign spending, the former U.S. senator gave us a candid look at how the game actually works in the nation's capital.

Dodd, now the head of the Motion Picture Association of America, didn't mince words when he vented to Fox News about the sudden and dramatic loss of congressional support for the Stop Online Piracy and Protect IP acts. Protests from millions of internet users helped derail the bills, handing the motion picture and recording indistries a devastating setback. Dodd was livid:

"Candidly, those who count on quote 'Hollywood' for support need to understand that this industry is watching very carefully who's going to stand up for them when their job is at stake. Don't ask me to write a check for you when you think your job is at risk and then don't pay any attention to me when my job is at stake."

Talk about a civics lesson. Dodd straight up called out his former Democratic colleagues and told them to toe the line or they're apt to not only lose their invitations to the next George Clooney screening but also see an end to that Hollywood gravy train.

As Colbert Exposes Underbelly of Super PACs, Should We Laugh or Cry?

Click here to join POGO's Un-Do Influence campaign: a movement to end the undue influence that powerful corporate interests have on our federal government.

By JOE NEWMAN

Are we seeing the "Colbert Effect" -- a greater awareness and concern about the impacts of Super Pacs on our elections? Comedy Central's Stephen Colbert has arguably done more to educate the average American about how Super Pacs work than a stack of New York Times editorials could ever hope to do.

A PEW Center survey found that among voters who were aware of the Citizens United ruling (the 2010 Supreme Court decision that opened the door to unlimited political spending by corporations, unions and advocacy groups), 65 percent said that Super Pacs were having a negative impact on the 2012 presidential campaign. Gotta figure there's a bunch of Colbert Report fans among those polled.

If you haven't seen Colbert and Jon Stewart lampoon the federal law that requires Super Pacs to act independently of candidates, check it out.

Will SEC Watchdog Lose its Bite?

That collective sigh of relief you're hearing? That's coming from some Wall Street types who just got the news that David Kotz, the Securities and Exchange Commission's (SEC) inspector general, is leaving at the end of January. (Charles S. Clark writes about Kotz' departure in Government Executive.)

Revolving SEC Official Receives Maximum Fine for Representing Accused Ponzi Schemer

By MICHAEL SMALLBERG and ANDREW WYNER

A former Securities and Exchange Commission (SEC) enforcement official has agreed to pay a $50,000 civil fine for illegally representing a jailed Texas financier whom the former official investigated when he was still at the SEC, according to an announcement from the Department of Justice (DOJ) and SEC Office of Inspector General (OIG). The financier is Allen Stanford, who is awaiting trial on criminal charges that he bilked investors out of $7 billion in a Ponzi scheme.

The former official is Spencer Barasch, whose brazen move through the revolving door was first revealed in an investigation headed by SEC Inspector General David Kotz (Kotz just announced this week that he will be leaving the agency at the end of the month).

The OIG found that Barasch—who directed the SEC Fort Worth Regional Office’s enforcement program from 1998 to April 2005—asked the SEC ethics office for approval to represent the Stanford Financial Group shortly after his departure. There was, however, a serious problem with this request: although Barasch told the SEC ethics office that he was “not aware of any conflicts,” the OIG concluded that he had “played a significant role” in the SEC’s investigation into Stanford’s alleged Ponzi scheme. In fact, the OIG found that Barasch repeatedly participated in decisions to delay or quash his office’s inquiries, despite the numerous red flags uncovered by the Fort Worth examinations team.

Two Former Watchdogs Ring in the New Year on the Other Side of the Revolving Door

By NEIL GORDON

Welcome to another episode of "As the Washington Revolving Door Turns." The two latest ex-government officials to land jobs with private companies formerly served as very high-profile watchdogs of those companies.

The first revolver is Michael Thibault, former co-chairman and commissioner of the Commission on Wartime Contracting in Iraq and Afghanistan (CWC). The CWC released its final report in August and officially sunset a month later—with all of its internal records sealed from public view until 2031, unfortunately. Last month, Thibault joined DynCorp International as its vice president of government finance and compliance. Thibault worked for many years at the Defense Contract Audit Agency (DCAA), serving as Deputy Director from 1994 until 2005. Between his government postings at the DCAA and CWC, Thibault briefly worked for federal contractors Navigant Consulting and Unisys.

DynCorp, one of the three primary LOGCAP IV contractors, is currently the 32nd largest contractor in POGO’s Federal Contractor Misconduct Database. It has nine instances of misconduct since the early 2000s and $19.6 million in penalties. Readers of POGO’s blog are probably familiar with some of DynCorp’s checkered history, as are those who saw the 2010 movie “The Whistleblower”, which was based on the harrowing experiences of former DynCorp employee Kathryn Bolkovac.

10 Standout Posts from 2011

By BRYAN RAHIJA

As we've noted recently, it's been a heck of a year here at POGO. Beyond publishing reports, developing a database, and sending letters to policymakers, we also authored some 900 blog posts, which ranged from one-liners to gargantuan near-reports. Here are ten posts that, for one reason or another, stood out to me this year.

Whether you clicked or commented, tweeted or tumbled, or liked or lurked, thank you for making POGO's blog part of your 2011.