Sweetheart Breaks on Your Dime

The ABAJournal.com tips to the Albany Times-Union report involving the sweetheart deal given Albany prosecutor Michael McDermott (pic, left) on his student loan payback by the contract agency in charge of protecting the public dime. 

This is reporter Brendan Lyon's story in excerpt:

An investigation by the state Inspector General's office has found that employees of a state agency that oversees student loan collections gave preferential treatment to an employee and to a well-known Albany attorney, [and former prosecutor] Michael P. McDermott.

The report, released Thursday morning, also accuses officials with the Higher Education Services Corp. (HESC) of making false entries in a computer system to prevent outside collection vendors from receiving the information. The inspector general said the false entries were intended to prevent the loss of state worker jobs by thwarting the transfer of $1.25 million in HESC collection accounts to private companies.

The report, which was forwarded to the state Attorney General's office for possible criminal prosecution, contends the actions of the state workers were 'unlawful.' Among the people targeted in the report are Joseph Catalano (pic, right), assistant vice president of collection and default management at HESC.

Catalano 'prompted his subordinates to unlawfully arrange special treatment for former Albany County prosecutor Michael P. McDermott by reducing his student loan payments 60 percent, purging his collection debts and blocking the garnishment of his wages, at a cost of more than $24,670 to state and federal taxpayers,' the report states.

Catalano, 54, of Delmar, told investigators that he met McDermott after being called as a witness in the 2006 high-profile murder trial of Christopher Porco, who was convicted of murdering his father and attempting to murder his mother in their Delmar home. Catalano, Christopher Porco's former youth minister, testified that he went to the hospital the week of the 2004 attack and spoke to Porco for about three hours.

On the witness stand, Catalano testified about Porco's state of mind at the hospital, where his mother was undergoing multiple surgeries, and about conversations they had regarding the couple's home-alarm system and Porco's treatment by Bethlehem police.

The inspector general's report prominently recounts McDermott's role as a prosecutor in the murder case, which drew national attention. 

McDermott, now in private practice with the law firm O'Connell & Aronowitz, issued a statement Thursday saying he cooperated with state investigators and that his student loan debts were not reduced by any of the actions taken by HESC on his behalf.

'I never requested preferential treatment and did not believe that my account was being handled differently from those of others similarly situated," McDermott said. "Indeed, I was told that any action taken on my account was in compliance with HESC policies and regulations. At the end of the day, my monthly loan payment remained the same after I contacted Mr. Catalano as it had been before I contacted him.'

McDermott said he contacted Catalano because he knew he worked for HESC and he wanted to speak to someone after his account manager there had died.
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This may seem like an arcane story, but it is in fact one of those situations where you as a taxpayer should be pissed,  It is one of those situations where two grown men fall in love with their egos in the form of how much "juice" they have to help one another out, even if it sort of screws the taxpayers.  The former prosecutor should have known better and he used his office and profile to get a break he didn't deserve.  Wanna bet that this happens all the time? 

The thing is, this is a n-o-t-h-i-n-g but what it leads to, let's say: duck hunting with the Vice President of the United States then being blind to the appearance of impropriety when a case comes along that you shouldn't sit on.   Not that that sort of thing ever happens.

Here in OurCounty, local government is going through major gyrations including a wholesale electoral uprising dumping the former form of County government because well everyone was corrupt. Many, many public officeholders and employees in OurCounty were doing favors for one, another--they loved their prerogatives.  Our crooks fell in love with "their juice," their perception that the property tax revenue stream was theirs to dole out to friends and family.  That's what the Blagojevich trial was about, this story from Albany, NY tells you, at a seed level, how such things begin.

Defiant Tax Cheat Lawyer Disbarred By Florida Supreme Court

The Legal Profession Blawg had a link to an opinion in the disciplinary case of Charles Behm, a Florida attorney who from the moment he became an attorney refused to report his income to the Federal government and presumably all other authorities under the novel theory that his services were "human capital" which he exchanged for payment that he claimed did not constitute "income."  Here's a link to an Blog account of the underlying story, apparently this former attorney was part of a tax protest movement.

The Florida disciplinary panel that heard the case recommended a 6 month suspension, the Florida Supreme Court was astounded by the conduct, the defiant attitude of Mr. Behm who said at his hearing that he had no intention in the future to become compliant with the law, and permanently disbarred this clown.  Notably Behm was already suspended for a prior disciplinary conviction for--oh, things like incompetence. 

You would think that the Bad Lawyer would sympathize with Charles Behm in light of my disciplinary suspension and guilty plea to a tax felony.  I was telling dear old friends last night that I entered a guilty plea to a tax felony, because I am guilty.  When I became a lawyer I held my right hand up and swore that I would uphold the laws.  I did not.  I am ashamed and disgraced.   I do not empathize with lawyers who can not or will not honestly accept their obligations to obey the laws.  Our actions, even when effected by depression or illness, have consequences.  When a lawyer says--I swore to obey the laws, but I'm not going to follow this or that law because I have a novel theory, they disqualify themselves from the privilege that their license conveys.  Let me go further, they obtained their license fraudulently.

I feel terrible about my disciplinary suspension and tax felony.  I am responsible.  I did this to myself, I did this to my clients, my friends, and my family.  I hope to live each day, including this day trying to find away to pay my indebtedness and redeem myself.  I loved being a lawyer and I wanted to do the right things while admittedly ill-equipped as a business man and perhaps emotionally.  I pray for the  miracle to be restored, or acceptance of anything else my Creator has planned for me in my lifetime in or out of my chosen profession.  I pray for the other lawyers in my position, that they can have a willing heart and mind--to be restored, to find a path, to find a way back, to find the ability and to be willing to pay the price. 

Representing people as a lawyer was and is a great honor.

Conchita's Millions--the Material World

Conchita (pic, left) lives in an $8 million dollar mansion in an exclusive Florda Island community supported by a $3 million dollar trust and by millionaire servants.  Conchita is the dog.  Her owner, Gail Posner (also pic, left) died leaving the bulk of her estate which she inherited from her wealthy corporate raider father, Victor Posner to the her beloved chihauhau. 

Gail's only son, Steve Carr, is challenging the will under he inherited $1 million dollars and Conchita takes the cake, so to speak. The story is at the Miami Herald and is a great meditation on wealth and the material world. 

I know people with a lot, with many material blessings and I know many remarkable people who earned every dime. While I know many lawyers and businessmen and women who inherited "opportunites" in government, law or industry--I've not known many beneficiaries of purely inherited wealth like Gail Posner.  Like you I read about great fortunes and maybe like you, I doubt that such wealth is terribly marvelous for the beneficiaries, maybe I'm wrong--but, I suspect that there is great suffering.  This appears to have been the case for Gail Posner. 

Recently, the New York Times reported on the glitch in the Federal Estate Tax law that is allowing a multibillion dollar fortune of Dan L. Duncan (pic, right) to pass to Duncan's descendants untaxed by the federal government which will lose billions of dollars on the wealth transfer from the guy that earned it to those who share his DNA.  What in our national character tolerates this massive wealth transfer from one generation to the next without insisting on substantial taxation for the common benefit?  While I understand the idea that a capitalist who amasses a great fortune should be able to do what they wish to do with their money while living, explain to me why these fortunes should pass undisturbed to subsequent generations?  What benefit is conferred on those who do not earn wealth, on others?  Great fortunes do not arise from air, they are derived from the social and commercial opportunites created by societies and economies--why shouldn't a substantial portion of these fortunes revert to those societies and economies for the benefit of all? 

We occupy a material world, where fabulously wealthy people wallow in ridiculous objects of desire while fantastically impoverished people barely eke out life on the barren and polluted leftover remaining to them.  Consider the absurdity, and marvel.

Apologies

Alina Tugend at the New York Times (January 29, 2010) had a thought-provoking article on the "lost art of apology."  While I take issue with the "cliche`" of the so-called "lost art [fill in the blank]", Ms. Tugend's piece while marred by a gimmicky intro dealt with some meaty ideas. 

The piece did a cursory comparison of the Bank executives who testified on Capitol Hill at the Financial Crisis Inquiry Commission with the Leaders of Japan Airlines who are in full formal "apology bow."  See pics

For reasons that should be obvious to anyone who reads Bad Lawyer, this blawg is somewhat obsessed with the struggle to make an appropriate apology--loaded down with the personal desire to move beyond the offense I've given to my disciplinary and the tax authorities and resume my professional practice.  The news yesterday makes that wish seem unlikely.  Knowing that I may pay dearly for my inattention to my tax compliance deprived me of sleep and peace of mind many nights over these last few years, but all night last night.  I'm struggling to get accurate information and dealing with the probability that it may not matter in terms of what happens to me.  Let me be a power of example:  don't ignore your filing requirements, and if you have--deal with it now!

I like the notion that because you apologize, there is no requirement that your apology be accepted.  We are a culture of instant gratification--"I'm sorry," really is not an apology, it can mean:  leave me alone; you-want-me-to-say-these-words-now-I've-said-them; forgive me now you bitch/bastard; I'm sorry, but....  My 17 year old is a master at a lot of these, I'm sorry spills out of her, like "you know" spilled out of kids, 5 to 10 years ago. 

This subject took on another layer for me yesterday morning when the high school telephoned to inform me that my 14 year old was suspended for "threatening a teacher."  My son the smart aleck cracked wise to his pregnant algebra teacher about his feet sticking into the aisle.  This idiot, my son, sarcastically told the teacher it was his intention to cause her to trip and injure herself and her unborn child!  Astonished, speechless, aghast, all are applicable to describe my reaction to this ridiculous performance by my dear little man who on "youth Sunday" was the preacher at his Church delivering a beautiful "serrmon" on compassion. 

The classic teaching moment--I explained to the 14 year old that you get to keep learning the lessons you don't learn properly the first time, and that I was in the process of doing that and that I am afraid that he won't be smart enough to learn from Mr. Bad Example and continue to have to learn and relearn lessons.  That I love him dearly, and that for the most parts even lousy parents love their children.  And Moms are capable of losing all rational thought, balance and tolerance for ineptly wise-cracking 14 year ols when it comes to perceiving a threat to a child--especially, an unborn child. 

One of the best points made by Alina Tugend is--that saying your sorry or asking for forgiveness permits you to have a future relationship with the person you offended.  It also serves to "reestablish the moral universe."  The 14 year old-ninth grader spent a good part of the day mulling this over, and by 3:45 PM, an apology was handwritten and delivered to his school.  He will get over this colossal act of stupidity--I wish I could get by mine. 

In case the authorities are reading my blawg, let me reiterate--I am truly sorry.  Regardless of outcome, I deeply regret my failings.