Tag: corruption

Two Reasons Not to Hire More Border Patrol Agents

The main argument against President Trump’s plan to hire more Border Patrol agents is that the Southern border does not need them.  Even border hawks can’t argue with the evidence that Border Patrol agents are a lot less busy than they used to be.  In 1986, Border Patrol agents along the Southern border apprehended an average of 42 illegal immigrants every month.  That number fell to 2 a month by 2016 – one apprehension for every couple of weeks on the job (Figure 1).  The last month that apprehensions for all Border Patrol were above three per agent was in April 2010 and the number has steadily declined since then.  From January through September 2017, all Border Patrol agents have apprehended an average of 1.1 illegal crossers per month.  Even if you believe that the hiring spree of Border Patrol agents in recent decades stopped unlawful immigration (probably not), there is no good reason to hire more unionized government law enforcement officers to patrol a secure border.

 

Figure 1

Apprehensions Per Border Patrol Agent

Source: Customs and Border Protection.

Another good reason not to expand an expensive federal law enforcement agency that already has too little to do is that there are serious personnel and, likely, corruption issues in Border Patrol that need to be addressed first.  My recent Cato Institute Policy Analysis delved into the opaque world of corruption data in Customs and Border Protection (CBP) and found lots of poorly reported and contradictory information.  Fortunately, the Office of Personnel Management (OPM) does report the number of terminations by reason per occupation per agency.  Although OPM doesn’t specifically identify corruption, a termination for discipline or performance includes those terminated for corruption – as well as other issues.  The results were worse than I suspected: Border Patrol agents were the most likely to be terminated for poor discipline and bad performance than law enforcement officers in any other large federal law enforcement agency (Figure 2).  The second most likely to be terminated were Customs Officers.  Immigration and Customs Enforcement (ICE) agents were the fourth most likely. 

 

Figure 2

Termination Rate for Law Enforcement Officers by Federal Agency, 2006-2016

 

Sources: Office of Personnel Management, “FedScope Separations Cube, Fiscal 2006-2016”; and Office of Personnel Management, “FedScope Employment Cube, Fiscal Years 2006-2016.” Published in “Border Patrol Termination Rates: Discipline and Performance Problems Signal Need for Reform,” Cato Institute Policy Analysis, November 2, 2017.

Note: BOP = Bureau of Prisons; BP = Border Patrol; CBP-OFO = Customs and Border Protection Office of Field Operations; DEA = Drug Enforcement Administration; FBI = Federal Bureau of Investigation; ICE = Immigration and Customs Enforcement.

All in all, Border Patrol agents were twice as likely to be terminated for disciplinary infractions or poor performance as ICE agents and 49 percent more likely than CBP officers who work in the Office of Field Operations, from 2006 through 2016. Border Patrol agents were 54 percent more likely than guards at the Bureau of Prisons to be terminated for disciplinary infractions or poor performance, 6 times as likely as Federal Bureau of Investigation agents, 7.1 times as likely as Drug Enforcement Administration agents, and 12.9 times as likely as Secret Service agents. 

The lack of effective internal affairs at Border Patrol and CBP is a major reason for these problems.  There is some positive movement on Capitol Hill to address the lack of sufficient internal affairs at Border Patrol and CBP, but it is unfortunately tied to a massive and unnecessary expansion of the force itself.  Severe discipline and performance problems combined with a historic slowdown in the number of illegal immigrant border crossers are two excellent reasons not to hire 5,000 additional Border Patrol agents.

Congress’ Illegal ObamaCare Exemption and Its Nixonian Defenders

Thousands of members of Congress and congressional staffers are benefiting from an illegal scheme that gives Congress special treatment both by exempting them from the harshest part of ObamaCare and by providing them each up to $12,000 in benefits that federal law prohibits them from receiving. Last week, the Heritage Foundation’s John Malcolm and I furnished additional evidence that the government officials who implemented this scheme violated federal criminal laws. (Malcolm is a former deputy assistant attorney general in the Department of Justice’s Criminal Division.) Few government officials or legal scholars are willing to defend this scheme. Those who are nevertheless have been unwilling to comment on these new revelations or to offer a legal basis for this scheme. At least one seems to suggest that, because the executive branch did it, it must be legal.

In brief, the Obama administration violated numerous federal laws, including criminal laws, to provide thousands of dollars of benefits to members of Congress for the purpose of preventing members from voting to change ObamaCare. Martha Stewart went to jail for less. Congress has proven unwilling to investigate this obvious fraud, precisely because members of Congress from both parties benefit from it. The Trump administration has kept this illegal arrangement going for the same reason the Justice Department has not investigated the crimes committed implementing it: the beneficiaries of this fraud are extremely powerful and united in their determination both to perpetuate it and to hide it from voters.

The scheme is illegal, as Malcolm and I explain, in part because it relies on Congress enrolling in coverage through the District of Columbia’s small-business Exchange (also known as a “SHOP” Exchange), even though both federal and D.C. law prohibit employers with more than 100 workers from participating in SHOP Exchanges. Congress employs thousands upon thousands of people. Congressional officials falsified the applications they submitted to the D.C. SHOP Exchange on behalf of the House and Senate by claiming each employs fewer than 100 people. All by themselves, those false statements are prosecutable under 18 U.S.C. § 1001, with each count exposing the responsible officials to up to five years in prison.

Could President-elect Trump’s Business Dealings Violate the Constitution?

At the New York Times, Adam Liptak has a story on whether President-elect Trump’s business dealings–in particular the possibility that he may use his presidential power to secure business advantages–would violate the obscure Emoluments Clause of Article I, Section 9 of the Constitution. Since the clause has never been directly addressed by the Supreme Court, we’ll have to do some guesswork.

The short answer: very possibly, but it will depend upon the facts of the situation.

The longer answer: whether or not Trump’s dealings violate the text and original public meaning of the Emoluments Clause, it should be highly concerning to everyone that the President-elect seems committed to still being closely involved in his businesses. Unless he wants a pall of suspicion hanging over his every move and every phone call to a foreign official, the President-elect should immediately place his businesses in a blind trust in order to maintain at least the semblance of propriety.

In the text, the Emoluments Clause prohibits any Person holding “any Office of Profit or Trust” under the Constitution from accepting “any present, Emolument, Office, or Title, of any kind whatever, from any King, Prince, or foreign State.” Immediately, it is clear that the text limits the clause to gifts from foreign governments and the officials.

The original public meaning of the clause also confirms this interpretation. Foreign kings and princes once gave lavish presents to American officials, for example, a diamond-studded snuff box given to Benjamin Franklin (then ambassador to France) by Louis XVI. The Framers were concerned that these gifts would corrupt our officials, and so they prohibited them.

The next relevant consideration is whether, if Trump’s businesses receive a “gift” from a foreign government, Trump himself may be violating the Emoluments Clause. There is certainly an argument for this, since he benefits from the gift, even if only by increasing the value of his brand and stock holdings.

It Couldn’t Happen Here?

Dilma Rousseff was never as popular as the president who anointed her as his successor. Despite her intelligence and diligence in numerous official posts, she lacked his warm personality and flair for campaigning. But she ran a very professional presidential campaign, with lots of celebrity supporters, and the vigorous support of her predecessor, and she won the election and became Brazil’s first female president. In office she pursued policies of easy money, subsidized energy, and infrastructure construction, which initially boosted her popularity. As is so often the case, though, those populist programs eventually brought inflation and a slide into economic contraction. Simultaneously, allegations of corruption and cronyism hurt her reputation. Impeachment proceedings were brought against her, focused on her mismanagement of the federal budget, particularly employing budgetary tricks to conceal yawning deficits. “Experts say Ms. Rousseff’s administration effectively borrowed some $11 billion from state banks, an amount equal to almost 1 percent of the economy, to fund popular social programs that have been a hallmark of the Workers Party’s 13 years in power.” Some said that such fiscal mismanagement and dishonesty were common in presidential administrations and should not result in impeachment. But the Senate convicted her and removed her from office, making her bland vice president the new president.

Thank goodness nothing like that could happen in our own country.

Our Corrupt Navy

The Glenn Defense Marine scandal has exposed “a staggering degree of corruption within the Navy,” concludes a Washington Post investigation.

A more accurate title for this blog might have been “Our Corrupt 7th Fleet,” but the ease with which one foreign contractor infiltrated and ripped off the Navy in the Pacific makes one wonder about the integrity and strength of the broader institution. It is surprising that Navy officers with so much training and experience fell prey to the simple flattery, bribes, and other low-tech tools of a Singapore-based huckster.

For more than a decade, the head of Glenn Defense, Leonard Glenn Francis, cozied up to Navy leaders to win lucrative contracts to refuel and resupply ships. At the same time, he was gathering internal Navy procurement information and other intelligence. To do so, he wined and dined Navy officers, and provided them with gifts, prostitutes, and other favors to get them to do his bidding.

If this nobody, who had no military background, could wrap so many Navy leaders around his finger with little more than charisma, there is a huge institutional problem here. What about our other military and intelligence services and agencies—are they just as easy for hucksters, let alone expert foreign spy services, to penetrate?

You should read the full Post story. The revelations are disgusting and pathetic. I assume the Navy puts a huge effort into training, protocols, security, and technology to ensure that we have the most effective fighting force possible. Yet all of that was so easily undermined in such old-fashioned ways. I don’t get it.

To the Navy’s credit, it was their internal investigation that eventually exposed the corruption. And the Post story indicates that there were some officers who wouldn’t go along with the sleaze.

Francis was captured and pled guilty to various crimes. Four Navy officers, an enlisted sailor, and a Navy investigator have pled guilty to crimes. Last Friday three more officers were charged with corruption-related offenses. Investigations are ongoing, and dozens of other Navy officials are under scrutiny.

Here are some of the highlights from the Post story about one of the worst national security breaches in years:

Leonard Glenn Francis was legendary on the high seas for his charm and his appetite for excess. For years, the Singapore-based businessman had showered Navy officers with gifts, epicurean dinners, prostitutes and, if necessary, cash bribes so they would look the other way while he swindled the Navy to refuel and resupply its ships.

Much more than a contracting scandal, the investigation has revealed how Francis seduced the Navy’s storied 7th Fleet, long a proving ground for admirals given its strategic role in patrolling the Pacific and Indian oceans.

In perhaps the worst national-security breach of its kind to hit the Navy since the end of the Cold War, Francis doled out sex and money to a shocking number of people in uniform who fed him classified material about U.S. warship and submarine movements. Some also leaked him confidential contracting information and even files about active law enforcement investigations into his company.

He exploited the intelligence for illicit profit, brazenly ordering his moles to redirect aircraft carriers to ports he controlled in Southeast Asia so he could more easily bilk the Navy for fuel, tugboats, barges, food, water and sewage removal.

Over at least a decade, according to documents filed by prosecutors, Glenn Defense ripped off the Navy with little fear of getting caught because Francis had so thoroughly infiltrated the ranks.

The company forged invoices, falsified quotes and ran kickback schemes. It created ghost subcontractors and fake port authorities to fool the Navy into paying for services it never received.

The investigation has mushroomed partly because Glenn Defense was a pillar of U.S. maritime operations for a quarter-century. The 7th Fleet depended on the firm more than any other to refuel and resupply its vessels.

Over time, Francis became so skilled at cultivating Navy informants that it was a challenge to juggle them all. On a near-daily basis, they pelted him with demands for money, prostitutes, hotel rooms and plane tickets.

“The Soviets couldn’t have penetrated us better than Leonard Francis,” said a retired Navy officer who worked closely with Francis and spoke on the condition of anonymity to avoid reprisal. “He’s got people skills that are off the scale. He can hook you so fast that you don’t see it coming. . . . At one time he had infiltrated the entire leadership line. The KGB could not have done what he did.”

After the Sheldon Silver Conviction

The federal corruption trial of former New York Assembly Speaker Sheldon Silver (D-Manhattan) has concluded with a conviction on all counts, despite his lawyers’ interesting argument that trading favors — in this case, funneling state grant money to a doctor’s clinic in exchange for highly lucrative asbestos-claim referrals to Silver’s law firm — is just the way everyone does politics in New York. It’s a huge win for Preet Bharara, who holds Rudy Giuliani’s old job as chief federal prosecutor in Manhattan — often seen as the only jobholder capable of cleaning up New York politics, because all the relevant actors within the state government itself are too compromised one way or another.

Ward heelers and frank rogues are common enough in Northeastern politics, but Silver always presented himself as something else, the voice of conscience speaking for every kind of progressive movement in New York. He had won the National Conference of State Legislatures’ “William M. Bulger Excellence in State Leadership Award,” delightfully named after the notorious boss of Massachusetts politics. Silver had the power, but he also had the pretensions.

Everything You Need to Know about Deductions, Loopholes, and Special-Interest Tax Provisions

Why does the tax code require more than 10,000,000 words and more than 75,000 pages?

There are several reasons and none of them are good. But if you had to pick one cause for all the mess, it would be the fact that politicians have worked with interest groups and lobbyists to create myriad deductions, credits, exclusions, preferences, exemptions, and other loopholes.

This is a great deal for the lobbyists, who get big fees. It’s a great scam for politicians, who get lots of contributions. And it’s a great outcome for interest groups, who benefit from back-door industrial policy that distorts the economy.

But it’s not great for the American people or the American economy.

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