Live in Obedient Fear, Citizen!

It now seems taht some prosecutors are making professional and physical threats against defense counsel for offering a a vigorous defense of their clients:

………

In February, San Antonio District Attorney Nico LaHood allegedly did just that. LaHood was prosecuting Miguel Martinez, who stood accused of shooting a graduate student named Laura Carter in the head during a drug deal gone bad. Martinez’s trial derailed soon after it began. On the second day, the government disclosed that its star witness, who was also a possible suspect in the killing, had once had a sexual encounter with a prosecutor in the DA’s office. The defense argued that the relationship gave the witness a motive to help the government and gave the government a reason not to investigate or charge the witness. The defense accused prosecutors of violating their constitutional duty by failing to disclose that information before trial. The defense lawyers asked for a mistrial and indicated they may ask the judge to bar further prosecution.

According to defense pleadings, LaHood threatened to shut down the opposing counsels’ practice during a meeting in the judge’s chambers. He allegedly said he would “go to the media and do whatever it took” and that he did “not care what happened to him.” Their client would also be at risk, LaHood allegedly said, because he would be “better prepared for trial the next time” and he would “pick a better jury.” The defense lawyers, Christian Henricksen and Joe Gonzalez, asked for a mistrial. Trial Judge Lori Valenzuela granted their motion.
In March, the defense moved to bar future prosecution. At a hearing the following month, LaHood denied under oath that he’d threatened the lawyers’ livelihoods. He claimed the defense’s allegations were false and accused the defense attorneys of acting in bad faith when they alleged prosecutorial misconduct.

Valenzuela, who had observed the incident, then took the stand. (Valenzuela did not preside over this April hearing, as she was a witness to the events at issue.) She described how, without provocation, LaHood had threatened to make sure the defense lawyers never got appointed on another case, becoming so enraged that she feared “somebody would get hurt physically.” She explained that LaHood may have committed misdemeanor official oppression, a crime that occurs when an official uses his power to “mistreat” others or impede them in the exercise of their rights.

Might have committed official oppression? Might have?

Seriously?

He did it in front of a judge who testified against him.

He needs to be jailed and disbarred.

Schadenfreude Overload

New favorite German word: Backpfeifengesicht, a face that needs to be slapped.

— Sarah Sh. (@psygh) July 11, 2017

Roll Tape!

Martin Shkreli has been found guilty of fraud and faces up to 20 years in prison:

Martin Shkreli, 34, has confidently courted controversy in recent years, bulldozing his way into Wall Street and the drug industry, raising the price of a lifesaving drug by 5,000 percent overnight, boasting that he would outwit prosecutors in his federal fraud case, and live-streaming and tweeting throughout his five-week trial.

But on Friday, after five days of deliberations, jurors convicted him on three counts of fraud in federal court, and he now faces up to 20 years in prison on each of the first two counts, and up to five years on the final count.

Mr. Shkreli looked shaken as the judge read the verdict. But not long after, he appeared outside of court and returned to form, saying that he was “delighted, in many ways,” with the verdict. “This was a witch hunt of epic proportions, and maybe they found one or two broomsticks,” he said.

Later in the afternoon, he was live-streaming once more, sipping beer and joking about prison life from his Manhattan apartment.

………

He never seemed to take his case seriously, meeting with federal authorities without a lawyer, making faces during testimony, calling the prosecution “junior varsity” and reading a book during final statements.

Jurors convicted Mr. Shkreli of three of the eight counts: securities fraud in connection with his hedge fund MSMB Capital; securities fraud in connection with MSMB Healthcare; and conspiracy to commit securities fraud related to the Retrophin stock scheme, in which he tried to quietly control a huge portion of Retrophin stock.

It would be nice if something like this happened to Lloyd Blankfein and Jamie Dimon, though.

You shouldn't have to be as Backpfeifengesicht as Shkreli in order to be prosecuted.

Linkage

• U.S. government ordered to solve 'Case of the Incredible Shrinking Airline Seat' (Reuters) The FAA is saying that shrinking airline seats are not a safety issue.  An advocacy group filed suit.
• Lawsuits could force feds to pay Obamacare insurers (Politico) Pass the popcorn.
• People Are Buying Fish Antibiotics Because They Can’t Afford Human Ones (Motherboard) Best healthcare system in the world.
• Original Shareholder Value Article – Milton Friedman to GM: Build Clunky Cars (Naked Capitalism) A straight line between Milton Friedman's theory of shareholder value and the implosion of GM. See also Sears and Ayn Rand.
• Why Are Drug Prices So High? The Fight Over A Price-Gouging Bill (International Business Times) The Democratic Governors Association, in particular contemptible Connecticut sh%$ heel Dan Malloy, are fighting against anti-price gouging laws. And the Dems wonder why people don't believe that they work for the rest of us.
• UPDATED: Siedle, Raimondo Critic, to be Awarded $48M in SEC Record Whistleblower Case (GoLocalProv) Gina Raimondo, Rhode Island Governor and former state Treasurer, shoveled money out of the pension fund to her hedge fund friends.  One of her biggest critics just got a lot of money for uncovering corruption.
• ‘Flash drought’ could devastate half the High Plains wheat harvest  (Grist) Clearly anthropogenic climate change is a myth.

Reader(s) of this blog may be aware of my fondness of the juxtaposition of engineering and history. Case in point, this military training film about mechanical ballistic computers from the early 1950s:

A Big Deal, but Not a Huge Deal

Robert Mueller has empaneled a grand jury as a part of his investigation of the Trump campaign.

There have been a lot of people implying that an indictment is imminent, but it's not.

I would be surprised if to see any indictments before year's end.

What it does mean, however, is that Muller can now issue subpoenas to compel testimony and turn over evidence.

It's serious, but not, "Oh my God," serious.

Needless to say, for anyone contacted by Mueller's team, it's time to lawyer up.

Zuckerberg hires former Clinton pollster Joel Benenson - POLITICO

My first though upon hearing that Facebook CEO Mark Zuckerberg hired former Clinton pollster and political advisor Joel Benenson, oh my God, this dirt-bag is going to run for President.

My second thought was that I didn't have to worry, because if he is going to be relying on the incompetents who managed to lose an election to an inverted traffic cone, then he has a snowball's chance in hell of actually winning anything:

Facebook CEO Mark Zuckerberg and his wife, Priscilla Chan, have hired Democratic pollster Joel Benenson, a former top adviser to President Barack Obama and the chief strategist for Hillary Clinton’s failed 2016 presidential campaign, as a consultant, according to a person familiar with the hire.

Benenson’s company, Benenson Strategy Group, will be conducting research for the Chan Zuckerberg Initiative, the couple’s philanthropy. The organization — whose mission statement, according to its website, is “advancing human potential and promoting equality” — is endowed with the couple’s Facebook fortune.

Zuckerberg and Chan have vowed to give away 99 percent of their Facebook shares, worth an estimated $45 billion, to charity. Bringing on Benenson is the latest sign that they’re pushing their philanthropic work more heavily into the political and policy world.

In January, the couple hired David Plouffe, campaign manager for Obama’s 2008 presidential run, as president of policy and advocacy. Plouffe had previously worked at Uber. Ken Mehlman, who ran President George W. Bush’s 2004 reelection campaign, also sits on the board.

Yes, Mark Zuckerberg is seriously considering a Presidential run, and he is availing himself of the most incompetent people available, so it's going to be a clown show.

There is nothing to worry about.

Then again, that's what they said about Donald Trump.

Pass the Popcorn

You may recall that in 2012,  Bruno Iksil, aka the, "London Whale," lost billions of dollars for JP Morgan by playing Russian Roulette with credit default swaps.

He agreed to testify against two relatively low level employees, but is now saying that the orders to cover up the losses came from Jamie Dimon and his Evil Minions^™:

The U.S. case against two former J.P. Morgan Chase & Co. traders charged with concealing billions of dollars in losses fell apart because a key witness known as the London Whale shifted blame to Chief Executive Officer James Dimon and other top executives, according to a person familiar with the matter.

The 2012 trading debacle that unfolded inside a London outpost of J.P. Morgan ultimately cost the bank more than $6 billion. Former trader Bruno Iksil, who was nicknamed the London Whale for his outsize bets, agreed in 2013 to testify against ex-coworkers Javier Martin-Artajo and Julien Grout for their alleged roles in hiding the losses.

But over the past year, Mr. Iksil changed his story.

“I mostly inferred that Dimon and his close lieutenants were responsible much, much more than my two colleagues could ever be,” Mr. Iksil said in an email, his first comments since prosecutors requested the case be dropped on July 21.

Mr. Iksil’s shifting explanations about who was responsible helped to end the high-profile U.S. criminal case, the person said.

On July 21, prosecutors in the Manhattan U.S. attorney’s office filed a motion in federal court to drop the charges against Messrs. Martin-Artajo and Grout, saying the government “no longer believes that it can rely on the testimony of Iksil in prosecuting this case” after “a review of recent statements and writings made by Iksil.” The office provided no other details beyond that statement.

………

Mr. Iksil never asserted that Mr. Dimon gave this initial order, but on his website, he cited a September 2010 public presentation from the CEO that predicted such reductions as a way of meeting new regulatory demands.

Even as losses mounted in 2012, valuations of those positions weren’t hidden, Mr. Iksil wrote in his memoir. Instead, he wrote, they were communicated to top bank officers, suggesting to Mr. Iksil that others were fully aware of the issues.

A J.P. Morgan spokeswoman declined to comment about Mr. Iksil’s allegations.

There is an old saying, "A fish rots from the head down."

It seems to apply here.

This is Profoundly Weird

Marcus Hutchins, a white hat hacker who shut down the WannaCry ransomware, was just arrested by the FBI, and charged with creating and distributing a banking Trojan 3 years ago:

On Wednesday, US authorities detained a researcher who goes by the handle MalwareTech, best known for stopping the spread of the WannaCry ransomware virus.

In May, WannaCry infected hospitals in the UK, a Spanish telecommunications company, and other targets in Russia, Turkey, Germany, Vietnam, and more. Marcus Hutchins, a researcher from cybersecurity firm Kryptos Logic, inadvertently stopped WannaCry in its tracks by registering a specific website domain included in the malware's code.

Hutchins was arrested for allegedly creating the Kronos banking malware.

Motherboard verified that a detainee called Marcus Hutchins, 23, was being held at the Henderson Detention Center in Nevada early on Thursday. A few hours after, Hutchins was moved to another facility, according to a close personal friend.

The friend told Motherboard they "tried to visit him as soon as the detention centre opened but he had already been transferred out." Motherboard granted the source anonymity due to privacy concerns.

"I've spoken to the US Marshals again and they say they have no record of Marcus being in the system. At this point we've been trying to get in contact with Marcus for 18 hours and nobody knows where he's been taken," the person added. "We still don't know why Marcus has been arrested and now we have no idea where in the US he's been taken to and we're extremely concerned for his welfare."

So, they have arrested him, and are holding him incommunicado, and at this time it appears that he has not been allowed to talk to a lawyer.

Also note that "MalWareTech" seemed to confirm that the WannaCry code originated with the NSA, which might imply that there some institutional imperative to go after him that was not strictly judicial.

Also, at the time of the Kronos release, Marcus Hutchins was casting about on Twitter for a copy of the code, which seems to an awfully odd thing to do if he wrote the code in the first place:

Anyone got a kronos sample?

— MalwareTech (@MalwareTechBlog) July 13, 2014

Marcy Wheeler also noticed an odd coincidence that corresponded to his arrest:

In remarkably timed news, between 3:10 and 3:25 AM UTC this morning (8 PM last night Mountain Time), someone emptied out all the WannaCry accounts.

So, while Hutchins was detained, someone took all the ransom money that 

This is all profoundly odd.