Daily Kos

Boston Globe reports possible Alito corruption

Thu Nov 03, 2005 at 06:45:57 AM PDT

A report in today's Boston Globe, buried on the last page of the second section of the front page, may just contain a smoking gun that Dems can use to reject the Alito nomination.

Under the headline "Plaintiff alleges Alito conflict," the report documents a case in which Alito failed to recuse himself, despite having a clear financial interest in its outcome. Follow the jump for quotes and commentary.

Judge Samuel A. Alito Jr. ruled in a 2002 case in favor of the Vanguard mutual fund company at a time when he owned more than $390,000 in Vanguard funds and later complained about an effort to remove him from the case, court records show -- despite an earlier promise to recuse himself from cases involving the company.

The case involved a Massachusetts woman, Shantee Maharaj, who has spent nearly a decade fighting to win back the assets of her late husband's individual retirement accounts, which had been frozen by Vanguard after a court judgment in favor of a former business partner of her husband.

Her lawyer, John G. S. Flym, a retired Northeastern law professor, said in an interview yesterday that Alito's ''lack of integrity is so flagrant" in the case that he should be disqualified as a Supreme Court nominee.

It turns out that Alito's conflict was only discovered after Maharaj reviewed his financial disclosure forms following his negative ruling in her case:

''I just started seeing Vanguard after Vanguard, and I almost fell to the floor," she said in an interview at the Jamaica Plain home she shares with a friend after losing her own home in the course of the prolonged litigation. ''I just couldn't believe that it could be so blatant."

Alito when seeking confirmation as a circuit judge in 1990 had sworn he would disqualify himself from cases "involving the Vanguard companies, but then refused to do so in the Maharaj case. In fact, he even complained when the case was appealed that "I do not believe that I am required to disqualify myself based on my ownership of the mutual fund shares."

It appears Alito was assigned the case in error, but his failure to recuse himself certainly looks like a significant breach of judicial ethics. By itself it may not be enough to scuttle his nomination, but it's something that definitely should come up in hearings.

Tags: Samuel Alito, Supreme Court, Republicans, nuclear option, conflict of interest, Vanguard, filibuster, fraud, culture of corruption, Bush Administration (all tags) :: Previous Tag Versions

Permalink | 284 comments

    •  On C-SPAN this AM (none / 0)

      Lindsey Graham briefly mentioned this and appeared to dismiss it as unimportant. This was in response to a reporter's question.
      •  And (4.00 / 13)

        this is precisely why this must be foregrounded.  In fact, this is not a partisan issue; this is an egregious breach of judicial ethics.  And because we desire to not appoint what many call "activist judges" to the SCOTUS, he will have to justify recanting his 1990 promise.  I also believe Ms. Maharaj should serve as a witness during the hearings.  Republicans and Democrats desire an independent judiciary.  And in the wake of prodigious corporate expansion, such conflicts of interest that result in corrupt business decisions need to be penalized, not rewarded, as Lindsey Graham and Alito seem to believe.
        •  Admin Judge ruled that Scalito was wrong (4.00 / 7)

          See Elwood Dowd's post farther down in this thread, Scalito's decision was vacated and this case was given to another judge.  So the administrative judge clearly agreed with the plaintiff that Scalito had a conflict.

          This should quiet the naysayers who don't see the conflict, this is "settled law" and Scalito was wrong, plus he lied to the Senate.  

          Scooter Libby will soon find out if lying under oath is acceptable, he's facing some serious jail time for his felonies.

          •  Can anyone else figure out why (4.00 / 7)

            Scalito has so many defenders in this thread--defenders who use provably false claims--and continue to repeat them, even after they've been debunked?

            For instance, there are umpteen posts claiming Scalito had no ownership interests in Vanguard--utter bullshit, since all Vanguard investors own part of the company; it's the way Bogle structured it.

            Also, a lot of folks repeatedly overlook Scalito's prior promise to recuse himself from any case involving Vanguard--a promise he broke in ruling on this case.

            Most of all, some people continue to debate whether he had a conflict of interest using utterly nonsensical arguments--despite the fact that a judge ruled he did, vacated his order and took the case away from him.

            What is going on? I'd say it's a troll invasion, but that doesn't explain the behavior of old-timers. More like, internalized Democratophobia--an instinctive reaction to attack any Democrat who attacks Republicans.

            It's weird, and can't be explained by "differences of opinion." There's no such thing as a "difference of facts"--unless you're a Republican.

            •  more like attempts at self-restraint (none / 1)

              it's worth it to be skeptical.  A poorly planned indictment is worse than no indictment at all.  

              see TANG documents for the bad case scenario, see Fitzgerald for the good case scenario.

              people are just making sure this is not going to come back to bite us.  the self-correcting blogosphere in action.

              that's what this site does.

              (and I appreciate your laying the counterarguments out clearly, by the way... my first reaction to this was similar to those downthread; it's helpful to have you lay it out more clearly.)

              •  It's one thing to be skeptical (4.00 / 3)

                and another to continue to question a position even after shown to be wrong about the skepticism. I think its more like people become invested in a position, and make judgement solely based on their personal opinion. Yesterday, I believe it was Hunter who put out an excellent diary about fact versus opinion. For example, there are clear standards for the judicial ethical canon. There no need to even speculate about whether or not he  had a conflict. He can be looked up as a matter of the rules, and the fact that indeed apparently some judge actually did have a problem with his involvement in the case indicates that the skepticism isn't well founded here.
                •  Again, the posts weren't "skeptical" (none / 1)

                  per se.

                  I'm not counting the posts that posed questions--"Are you sure that....?"  "How does it work when...?--or those that examined conflicting media reports. I agree, that kind of skepticism is what the blogosphere is best at.

                  I'm talking about the derisive dismissals based on ignorant assumptions that were contrary to fact--dismissals that often continued even after their assumptions were openly debunked.

                  I'm starting to think we could benefit from the insights of mental health professionals who have worked with abused women or kidnap victims. Some people have a bad case of Stockholm Syndrome.

                  •  I think we are in agreement (none / 0)

                    with each other. I have read this and other threads, frankly, where what you say is the case. I also agree healthy skepticism is a good thing. But, the real issue is how to figure out whether the skepticism is merited or not. Unjustified skepticism is as bad as unsubstantiated claims. I am actually a lawyer, and I don't pretend to understand all the facts or legal ethical questions here, BUT, I do have a problem with the way that some here have passed their opinion off as fact or as the rules of judicial ethics. The things I do know about the rules made me post in response to some general points- such as de minimis claims which I didn't think had anything to do with questions of conflicts of interest. For example, again in agreement with you, I find it odd that people keep saying there is nothing here even when presented with a judge having found a conflict. That's not healthy skepticism- it's just willful indifference to facts that do not comport with ones own opinion. For example, you have one person saying below that they are convinced that there is nothing here. My question to them is how can they can be convinced of anything. At best, especially from a skeptics perspective, you woould want to know more. And, as a partisan, your job would be  to want to know more rather than come to a quick conclusion on something as important as a S Ct nomination.
                    •  I've seen this in the fraud diaries (none / 0)

                      True, one side may be prone to overuse of tinfoil or shoddy logical argument. However, the other side has some adherents who are prone to utterly irrational dismissal, going far beyond what is necessary to point out logical flaws and actively seeking to discredit the entire line of inquiry into voting integrity.

                      Take the discussion of the GAO report. This report indicates that many machines produced erroneous results and they are easily tampered with. One might reasonably argue whether the evidence even suggests a circumstantial case that fraud occurred.

                      But at this point, it's irrational to claim, as some still do, that the entire burden of proof still rests on those who call the machines unreliable. We're past that point, and ought to be moving on, but many are still adopting the posture of smug dismissal. Hard to explain.

                      •  I think that maybe the case, but I see (none / 1)

                        this as unlike the fraud situation in that there has apparenlty already been a judicial ruling here based on the actual canon of ethics which says that Alito did violated his ethical obligations. That's what that ruling means. For those of you who are interested-that's what conflicts of interests are- a violation of an attorney or judge's ethical obligations. Lawyers and judges are each required to follow these rules with varying degrees of effect in terms of what it means to the invididual lawyer or judge. It's not saying that Alito didn't inadvertantly violate the rules, but the fact is he did violated the rule. It can't be the argument- as I am seeing here, that there was no breach of ethics.

                        I also think what is missing here is that a breach of ethics is definitely a potential issue of corruption. Also, the rules don't require as some people keep saying here for some high level of financial interest. These are all concepts being added here rather than required in the ethical rules as I generally know them.

                        What I can't figure out is why this isn't a fair game question to ask? One can accept or not accept Alito's explaination, but it's a question that definitely needs to be addressed and would be so even if this were a Democratic nominee. I am going to sound like an ass, but I have been asking this a lot, but is this because people don't get the subject matter they are talkign about? Not everyone's knowledge of concepts is equal. For example, I know enough to know when someone is bullshitting on the subject of legal ethics, but I don't pretend to be an ethics expert. I am admitting here by limits in the debate, but I don't sense the same is true of everyone. That's why I said to you that I think some of this is that people have become vested in theory own theories. And example of this is where people kept saying that it was likely Fitzgerald would indicted for the underlying crime despite the high burden required under the statute. There were a  lot of diaries of pure speculation- and there is here a lot of analysis of pure speculation about what conflict of interest means. These things are concepts that are clearly laid out. I can't say 100 percent did Alito intentionally or not violated the rules.

                        I do know, however, if a judge has decided on the matter, then there is a lot more to this than smoke, and I also know that as partisans its the job of the left to figure out why and act as check on the process. It's not our job to come up with explanations for Alito.

                        •  We're in agreement (none / 0)

                          Some people, lacking subject-matter expertise or a solid command of the facts, are embracing unsupportable conclusions for irrational reasons, and then defending those conclusions without respite.

                          What's odd is that, on a partisan Web site, their irrational sympathy goes instinctively to our opponents. It's just weird.

                          •  On that I think we are also in agreement (none / 1)

                            that the list of reasons why, none of them about healthy skepticism about the diary's claim, come out of one or more of the following a) trolls b)the basic instinct on the left to be contrary for contrary sake c) some version of the stockholm syndrome in a political sense d) the need to be the smartest guy in the room syndrome (this used to be a big issue for me- but in last year I have really pushed to say that I maybe wrong on things, and I want people to counter what I say with supportable positions) e) some need to believe they are "better" than the other side even if it's at the expense of the truth (below someone argues Dems should be "better" than this) or f) they are working of totally emotive arguments so facts don't play a factor (the fact is Dems are as faith based as Republicans and these sorts of things can often point out the fault lines that exist because although they should be on our side- they end up arguing solely from their believe systems rather than facts or objective standards. there is a canon of judical ethics here that has nothing to do with whether people personally believe there was a conflict or not. really, our personal believe about the question is in an objective sense is irrelevant to whether there was a reasonable issue of conflict of interest here).
                  •  The "ignorant assumptions" (none / 1)

                    The ignorant assumptions in this discussion would appear to be those that Chief Judge Scirica somehow ruled that Judge Alito had acted improperly and ordered him off the case.  In fact, once the asserted conflict was raised, Judge Alito recused HIMSELF, which resulted in the case being reopened and another judge being assigned to the panel.  (The second panel ruled the same way as the first one, and the Supreme Court has now denied certiorari.)  

                    There are plenty of legitimate reasons to oppose Alito's confirmation, but his supposed "corruption" based on this case is far from being one of them, and if this gets pushed, we'll lose enormous amounts of credibility.

                    "Those who would sacrifice liberty for security deserve neither liberty nor security." -Ben Franklin

                    by leevank on Thu Nov 03, 2005 at 11:38:57 AM PDT

                    [ Parent ]

                    •  For further details (none / 0)

                      For further details of my basis for saying this, please see my Comment of Thu Nov 03, 2005 at 02:29:20 PM EST.

                      "Those who would sacrifice liberty for security deserve neither liberty nor security." -Ben Franklin

                      by leevank on Thu Nov 03, 2005 at 11:41:22 AM PDT

                      [ Parent ]

                    •  That's not what the Globe says (none / 0)

                      WaPo reported it as you describe, based on White House sources. The more recent Globe article, based on the litigant's statement, says no: Alito resisted.
                      •  I quoted the official docket entried (none / 0)

                        I would agree that the Boston Globe trumps the White House on just about anything, but it seems to me that the official docket entries in the case have to trump whatever ANY newspaper has to say about the case.

                        The docket entries are available online from the Administrative Office of the Courts (although you've got to register and get a mailed password), and that's where I got the quote, not from any newspaper, and most assuredly not from the White House.

                        "Those who would sacrifice liberty for security deserve neither liberty nor security." -Ben Franklin

                        by leevank on Thu Nov 03, 2005 at 12:25:42 PM PDT

                        [ Parent ]

                        •  You didn't just quote, you interpreted (none / 1)


                          The docket does not say that Alito did not oppose the recusal. He did, and continued to defend his taking the case in an interview with the Philadelphia Inquirer.

                          I admire all the energy spent in making sure no one asks Alito difficult questions.

                          •  It says Alito recused HIMSELF! (4.00 / 2)

                            Nobody ordered him recused.  There is simply no such order in the docket.  He recused HIMSELF.  That's what the docket says, in so many words.  If you want to base the opposition to him on the theory that he actually opposed something that he himself did, that is your privilege, but I don't think you'll get far.

                            As for spending energy on preventing him from being asked tough questions, I WANT to see him asked tough questions about some of his opinions that I see as very problematic, and as indicating not nearly as much concern for individual rights as I'd like to see.  But asking him about an instance of alleged corruption that was simply nothing of the kind isn't a tough question -- it's a question that simply makes the questioner look either uninformed, or unfair, or both.

                            "Those who would sacrifice liberty for security deserve neither liberty nor security." -Ben Franklin

                            by leevank on Thu Nov 03, 2005 at 12:36:03 PM PDT

                            [ Parent ]

                            •  I think my doubts (none / 1)

                              about your motivation have been resolved.

                              You may want people to pretend that Alito did not hear and rule on a case in which he had ownership interest in one of the parties, in violation of his written confirmation documentation as well as explicit judicial ethics standards, and that he repeatedly defended such action, but I doubt you'll get many other takers on this side of the aisle.

                            •  leevank, do you oppose Alito? (none / 0)

                              It would be best to be clear which side of this you're on.  If you're pro-Alito--fine, but just come clean in the spirit of full disclosure....
                              •  From what I've seen thus far, I'd vote against him (none / 0)

                                As I wrote in my comment, there are a number of his opinions that I think are very problematic, and that reveal what seems to be a disturbing (at least to me) lack of concern for individual rights.  If I were in the Senate, I'd wait until after the hearings to make up my mind for sure, but I'd definitely want to ask him some probing questions about the basis for some of his opinions, and if he didn't have very good answers to those questions, I'd certainly vote against him.

                                And that's my concern about this entire "corruption" argument -- it detracts attention from other issues that I think are entirely legitimate bases to oppose his confirmation.

                                "Those who would sacrifice liberty for security deserve neither liberty nor security." -Ben Franklin

                                by leevank on Thu Nov 03, 2005 at 03:55:05 PM PDT

                                [ Parent ]

                    •  I am unpersuaded by your descriptions (none / 0)

                      of your motivations for excuse-making.

                      Alito took the case in direct violation of judicial ethics standards, as he had both a financial and larger ownership interest in a party before him.

                      Period.

                      He took the case in direct violation of his prior, written promise to recuse himself from cases involving Vanguard.

                      Period.

                      He did not disclose this conflict to the plaintiff. He did not raise the issue sua sponte. In fact, he resisted recusing himself.

                      Period.

                      So, your portrayal of Scalito as a judge shocked, shocked to discover a million-dollar financial interest in a party before him is simply specious.

                    •  this is the frustration (none / 0)

                      the argument keeps changing. below people were arguing "there is no conflict." that's the ignorance related argument that is being addressed here. they didn't even know or understand what is the standard for conflicts of interest under the judical canon of ethics.

                      now, you are arguing a separate point. your argument is if we were in a court of law would be called a factual argument. you aren't arguing whether the situation meets the standard, indeed, you can't a judge already said that it does despite what some posters here said. what you are arguing is that factual alito didn't have a conflict of interest because he recused himself. but thats a quesiton of fact. a fact that one person has already disputed in jus ta response to you. these are the facts of the situation that need to be understood.

                      it's not going to be understood by saying as you have said "if we bringing up, we will look foolish." that statement isn't about figuring out what happened in this situation- it's about fearing the concesquences of askign the question.

            •  I have to agree with you (none / 1)

      •  Corrupt? Republican? (none / 0)

        Nah, it just couldn't happen.

        I'm thinking that it's time for a fillibuster. My Senator Feinstein needs to miraculously grow a pair.

        Won't happen though.. "Machine-Gun Alito" is going to sit on the Court.

        Dammit!

        When you grow up, knife a Romanoff wherever you find him - Samuel Langhorne Clemens

        by SecondComing on Thu Nov 03, 2005 at 09:33:15 AM PDT

        [ Parent ]

    •  silly (2.22 / 9)

      "he owned more than $390,000 in Vanguard funds"

      Please... don't be ridiculous.

      Owning a mutual fund managed by Vanguard is NOT the same thing as owning Vanguard.

      It's even more ridiculous because most of the Vanguard funds are index funds....

      This is grasping at straws and doesn't deserve to be in the top recommended diaries.  

      And it makes us sound very uninformed to accuse Alito of corruption based on such a non-starter as this.

      "documented, schmocumented" -- overheard at the LARGEST protest in U.S. history

      by DoDi on Thu Nov 03, 2005 at 08:02:47 AM PDT

      [ Parent ]

      •  How about his lying? (4.00 / 5)

        So the fact that he promised to recuse himself doesn't bother you?

        I think his decision to rule in favor of strip searching the 10 year old girl is more damning than this, all Republicans lie, so we are used to it from Bush down to the lowest of the low, Michael Steele who is running for Senate in MD.  Liars all, and most of them do it blatantly.  Scooter Libby might find out that lying isn't allowed just because you are a Bushite scum, but Scalito will skate by, after all this was just a little lie.

        •  Bothers me (4.00 / 8)

          and I might add... if this were John Kerry's nominee the other side would be pulling out the nominee's 1st grade test scores if they felt there was something there to pick on.

          Let's never forget that the other side does not hold back. They wore purple heart bandaids at their convention while our soldiers were being injured and were dying in war for crying out loud.

          Army snipers hunting insurgents in Iraq were under orders to "bait" their targets with suspicious materials, then kill whoever picked up the items.

          by isbister on Thu Nov 03, 2005 at 08:24:36 AM PDT

          [ Parent ]

      •  FAR from silly (4.00 / 9)

        It's far from "silly" when ANY judge does not follow his own promises of ethical conduct.

        "In the 1990 questionnaire, Alito was asked how he would resolve potential conflicts of interest. He responded: I do not believe that conflicts of interest relating to my financial interests are likely to arise. I would, however, disqualify myself from any cases involving the Vanguard companies.""

        He made a promise pertaining to ethical behavior.  Going against it is a breach of ethical conduct.

        If we can't expect our judges to follow their OWN, self-imposed rules of ethical conduct how can we demand the same of policians.

        "We are the ones we've been waiting for"

        by gossamer on Thu Nov 03, 2005 at 08:19:25 AM PDT

        [ Parent ]

        •  OK (none / 0)

          He did go back on what he said in 1990.

          But I don't think it's significant enough to merit a charge of corruption.

          "documented, schmocumented" -- overheard at the LARGEST protest in U.S. history

          by DoDi on Thu Nov 03, 2005 at 08:22:27 AM PDT

          [ Parent ]

          •  I believe the thread is titled (4.00 / 6)

            "possible corruption."

            And, personally I believe that ANY judge who goes against an ethical promise made in order to gain an appointment IS corrupt.

            "We are the ones we've been waiting for"

            by gossamer on Thu Nov 03, 2005 at 08:32:00 AM PDT

            [ Parent ]

          •  He knew what he did wasn't right. (4.00 / 4)

            He asked for the judgement to be withdrawn.

            What gets me is his excuse:
            White House spokeswoman Dana Perino said Alito had become involved in the case because a "computer screening program" at the 3rd Circuit had failed to pick up the potential conflict. She said that "as soon as the matter was brought to [Alito's] attention" by Maharaj's motion, he wrote a letter to Scirica requesting that the ruling be withdrawn and the case presented to a new panel.

            The prophet is a fool, the spiritual man is mad; For the multitude of thy iniquity, and the great hatred...

            by Tirge Caps on Thu Nov 03, 2005 at 08:54:26 AM PDT

            [ Parent ]

            •  Wait doesn't that story conflict with the part (4.00 / 3)

              Elwood posted?

              Maharaj requested the judges' financial disclosure forms and discovered Alito's Vanguard holdings. She contacted Flym at Northeastern and he agreed to assist her in a motion that alleged that Alito's participation was unlawful under judicial ethics rules because of his Vanguard holdings.

              In 2004, Anthony Joseph Scirica, the chief administrative judge for the circuit, vacated Alito's order and assigned the case to a new panel, which again ruled against Maharaj.[my emphasis]

              •  this also conflicts with the White House story.... (none / 1)

                Needs some more investigation I would think, doesn't sound to me like he 'realized his mistake'

                "In fact, he even complained when the case was appealed that "I do not believe that I am required to disqualify myself based on my ownership of the mutual fund shares." "

              •  Yes, WaPo and Globe stories are in conflict (4.00 / 3)

                And the White House is busy spinning this -- they fear this has legs.
              •  It doesn't conflict (none / 1)

                WaPo reported that the White House spokesperson claimed, once the conflict was recognized, that the conflict had not been recognized before-hand because of a computer glitch.

                That's what's BS. Alito states in his confirmation hearing that he would specifically recuse himself from any Vanguard case, and then when one comes down the pipe, he doesn't. All the mon ey he had invested with them and his specific statement to recuse himself from any Vanguard cases did not ring any bells. Instead he relied on a computer program that should notify him when there is a conflict of interest.

                I just find this very hard to believe.

                The prophet is a fool, the spiritual man is mad; For the multitude of thy iniquity, and the great hatred...

                by Tirge Caps on Thu Nov 03, 2005 at 09:22:00 AM PDT

                [ Parent ]

            •  And he also didn't notice until she moved... (4.00 / 2)

              More White House bullshit:

              ...because a "computer screening program" at the 3rd Circuit had failed to pick up the potential conflict. She said that "as soon as the matter was brought to [Alito's] attention" by Maharaj's motion...

              Didn't he see that one of the parties was Vanguard when he got the case? Especially since he had specifically stated that he would recuse himself on any cases dealing with Vanguard (by name)?

              So why did it have to be "brought to his attention" by the plaintiff's motion? And the "...as soon as..." and "...letter to Scirica requesting..." is bullshit, too -- he complained about it being appealed.

              Of course, you see, he doesn't have to lie about this, as long as the White House is willing to lie on his behalf. But I do hope that it is raised during the committee hearings and he is asked to explain it.

              America will never again be the land of the free... Until she again becomes the home of the brave.

              by Ducktape on Thu Nov 03, 2005 at 09:29:38 AM PDT

              [ Parent ]

            •  I'm going to blame my computer (4.00 / 5)

              For not taking out the garbage on trash night.

              For the "not tonight, honey, I have a headache, headache."

              For leaving the bathroom light on and leaving the seat up.

              For super gluing the seat.

              The computer did it!

              We need Alito wearing A Supreme Court robe like I need a freaking hernia and a dose of herpes

              Bush is Watergate Nixonian in the polls, I want to see advise and consent. I deserve advise and consent. The prick probably stole the damn election.

              He gets to shape the Supreme Court? What the $#*& is that all about?

              I'm ready for a Shakespearian Senate with knives. It simply can't get any more surreal. I'm done with these creepy bastards. I want my country back.

              When you grow up, knife a Romanoff wherever you find him - Samuel Langhorne Clemens

              by SecondComing on Thu Nov 03, 2005 at 09:49:57 AM PDT

              [ Parent ]

          •  If you think not recusing is cool (none / 1)

            then just say so.

            But don't be so jaded as to chide someone for pointing out an example of poor judgment on the part of someone who could be sitting on the Supreme Court for the next 25 years.

            "The best way to determine what a person wants is by surveying what he gets." -Erle Stanley Gardner

            by KOTCrum on Thu Nov 03, 2005 at 09:28:19 AM PDT

            [ Parent ]

      •  but (4.00 / 2)

        In the article, iirc, Vanguard states that the fund holders are essentially shareholders in the company. I can't get back to the article now to confirm.
        •  Yep (none / 1)

          From the Globe article:

          Federal judicial ethics rules permit judges to rule on cases involving some mutual funds in which they have a stake, but not those in which shares convey an ownership interest in the fund. The Vanguard Fund describes itself as owned by the ''fund's shareholders" in its corporate literature, Flym and Maharaj argue.
          snip

          According to a 2002 court filing submitted by Flym alleging the conflict of interest, ''Alito owned shares worth $390,000 to $975,000 in seventeen Vanguard funds."

          that out of many, we are one; that while we breathe, we hope. - Barack Obama

          by acuppajo on Thu Nov 03, 2005 at 09:30:50 AM PDT

          [ Parent ]

          •  Where does he get this kind of money? (none / 0)

            As a circuit court judge? Is his family wealthy? I don't know his background actually.  I know he went to Princeton and Yale but I didn't know he was personally that wealthy.  Can someone explain?
            •  There could be lots of ways (none / 0)

              if he had an IRA with them for years, and it did well, it's not impossible for it to grow like that.

              Judges do well, I suspect his wife works too, I wouldn't be surprised if they made well into the 6 figures.

              Put away a few thou a year, over 10-15 yrs in a boom time (like the 90s), and you wind up rich.

              Until the market tanks, that is. ;-)

        •  As a Vanguard mutual fund owner for 8 years... (4.00 / 3)

          ...I can attest to the fact that Vanguard treats the people who own its shares like shareholders.  We choose its board of directors of the various actively-managed funds, etc.  We approve changes to the way those funds invest money, etc.  In my opinion, this truly "mutual" structure is much better than, say, Putnam Funds, which is owned by insurance giant Marsh and McClennon (sic?), which itself is owned by other shareholders and therefore less directly accountable to those who invest the money.

          If Alito invested in actively-managed Vanguard funds (i.e. by humans, rather than index funds managed by a computer program), he would be periodically given the opportunity to vote his proxy for various functions of the fund and for the slate of the board of directors in whatever fund he was invested.  This, to me, suggests a clear (though probably minor) conflict of interest.

          However, we Vanguard owners are a smug bunch.  We like the low costs and the easy access to information.  I can see myself, if called to rule on an issue involving Vanguard's culpability for some thing, subconsciously starting from the prospective that "Vanguard could not have done anything wrong....".  That is the reason why the issue is relevant.  That, and of course, the fact that he promised to recuse himself, which he probaby did because he recognized he was in the "smug Vanguard owner" group.

          And, yes, I am a lawyer.

          As you read this, the Constitution is a dead letter. That's what the Democratic caucus left us with when they decided to take impeachment off the table.

          by aloha and mahalo on Thu Nov 03, 2005 at 10:01:53 AM PDT

          [ Parent ]

          •  Absolutely (none / 1)

            People overlook the corruption potential of simple emotional prejudice. Wouldn't you expect a judge to recuse himself from a case in which his neice was a party--even though she's not promising to pay him for a favorable ruling? Vanguard investors--I am one--are very favorably disposed toward the company and hold its founder, John Bogle, in high regard. The prejudice you describe is very real.

            Also, does no one remember that judgments set precedent? A finding favorable to the plaintiff could have resulted in an entire new class of actions against mutual fund companies like Vanguard. Of course an owner has an interest in defending the company!

          •  thank you (none / 1)

            If I had read your post before I posted mine
            http://www.dailykos.com/...
            I wouldn't have written mine because your post said what I was trying to say much more effectively:))
      •  conflict of interest (4.00 / 2)

        Alito should have felt uncomfortable ruling on the case, especially since he promised to recuse himself.

        It's not clear to me what financial consequences, if any, there would have been to Alito's personal financial holdings at Vanguard had the trial result been pro or con Vanguard.
        Had Vanguard lost, would Vanguard simply have had to award the funds in the deceased husband's account to the wife instead of the partner? The funds never "belonged" to Vanguard. So the money wouldn't come out of their own pocket but out of the proprietary account of the dead husband. Or would Vanguard have had to come up with additional funds for some reason?
        It seems like what's in question are the rules under which mutual funds and financial institutions in general operate to safeguard the financial interests of their fundholders and their heirs while abiding by the law re: the interest of creditors. Had the court ruled against Vanguard, it might have brought into question the rules under which Vanguard and other financial institutions operate with respect to whether IRA accounts can be used to satisfy debt obligations. And so the conflict it seems to me is that as a fundholder and legal expert, Alito might supposedly have known and been in agreement with the rules under which Vanguard and supposedly other financial institutions operate. Would Alito want Vanguard to win just so they'd not suffer a public loss of confidence? That could be an angle that could have affected Alito's ruling but it could be a prejudice that he's not even consciously aware of or would deny. Therefore, to avoid even the appearance of bias he should have recused himself. But, hey,  I'm no expert and no lawyer.

        •  The "money quote" from the article, (none / 0)

          Vanguard spokesman John Woerth said in an interview that his company took control of the IRA assets to comply with a court order from Massachusetts.

          ''Vanguard acted properly. . ." he said. ''We are simply complying with a court order to disperse the assets."

          There was never a question of Vanguard keeping the money, just who it was going to pay it to.

          Daily Kos is the worst form of liberal web-site, except for all the others that have been tried.-Roy Solomon(paraphrasing Winston Churchill)

          by roysol on Thu Nov 03, 2005 at 01:14:07 PM PDT

          [ Parent ]

    •  Originally in Wash Post on Tuesday (none / 1)

      Wash Post 11/01/05

      And the story was originally published a couple of years ago in the Philly Inquirer, here:

      Philly Inquirer 12/05/03

      Further details on the case mentioned here:

      Shantee Maharaj case

      Here we are now Entertain us I feel stupid and contagious

      by Scarce on Thu Nov 03, 2005 at 10:04:36 AM PDT

      [ Parent ]

      •  That last link (none / 0)

        appears to be a post from Shantee Maharaj herself on an investor forum. She implies that T. Rowe Price also received a court order to disburse her husband's assets, but unlike Vanguard, they didn't follow through. She also mentions that Vanguard was sued, successfuly, by another investor in similar circumstances to her own, and Vanguard was forced to pay $500,000 in interest penalties in that case.

        There is an increasing risk for for mutual fund companies from shareholder lawsuits.  I don't think that point was lost on Alito.

  •  Interesting (4.00 / 12)

    Well worth exploring.  But I think your use of the word "corruption" is a little too strong.  "Conflict of interest" would be better, and more appropriate.

    A proud member of the "far left."

    by Paleo on Thu Nov 03, 2005 at 06:47:58 AM PDT

    •  Corruption or conflict either way . . . (none / 0)

      Very significant, if true. Notice how I give this creep Alito the benefit of the doubt.

      Goes to the heart of judicial fairness and integrity.

      •  not so sure (4.00 / 6)

        I own Vanguard, not sure what owning a mutual fund would have to do with ruling on whether they were right to disperse money to party A or party B.  It's not like Vanguard has any financial stake in the outcome, they were simply doing their fiduciary duty as they saw it. It's not clear that Alito could stand to benefit in any way from the outcome of this case, so what's the basis of your claim of conflict of interest?

        Vanguard as a company has a good reputation and it's one of the few mutual companies I think has integrity in that they are very straight about long term performance mostly being a question of the fees taken off the top. They take the least off the top of any mutual fund I know. Perhaps not relevant but I tend to think they have integrity.

        Either way I really think this diary should NOT be in the top 10 recommended - it's not a scandal for Alito to have taken this case, it's not at all clear that he even did anything wrong. On top of that, the hyperventalating title is over the top and unfair.

        There's a lot that I don't like about this guy but I don't think this is a fair thing to attack him on.

        •  Judge Alito Did Something Wrong (4.00 / 16)

          He told the Senate Judiciary Committee that he would recuse himself in cases involving Vanguard.  He failed to follow the recusal policies that he represented to the Senate Judiciary Committee he would follow and then tried to act like he had made no such promise.  

          You can argue that most judges do not own a sufficient financial interest in most companies that they should not be required to recuse themselves, but the ethical rules that apply to federal judges are clear.  A financial interest is disqualifying.

          The end result was that this case had to be reheard.  

          •  What is significant is not necessarily (4.00 / 2)

            his failure to recuse himself, but his lack of integrity in sticking by his promise to the Senate Judiciary Committee.

            How can any Senator hearing his upcomming testimony or speaking with him in private regarding his SCOTUS nimination trust him?

            Just recently he told a Senator that he would bring no agenda to the court.  Can we believe him?

            •  Exactly, Scalito is a Liar (none / 1)

              And of course that means that he fits in well with the mainstream Repub liars.  

              I agree with another poster, we need to attack Scalito on many fronts.  This lie may have not benefitted him financially, but why did he lie to the Senate?  Does this establish a pattern of lying?  How will we know when he's lying to the senate this time?  

              Will he follow the Bush rule- easy to detect his lying- just watch his lips, when they move, Bush is lying!

            •  Every judge brings an agenda (none / 1)

              to the court. They're human. It goes with the territory.

              The overarching question is whether they recognize that or not, and if they DO recognize it, how they deal with it.

              •  this is just wrong (none / 1)

                forget allito for a second. that's simply not the standard for judical ethics. there are clearly state rules and requirements. it's  not up to them to decide it on their own
                •  It IS wrong (none / 0)

                  and that's what I meant.

                  EVERY judge has an agenda. Every PERSON has an agenda. Everybody has things that they feel are important, or not, or should be left to personal choice, or not.

                  A judge is supposed to recognize that, and leave his/her PERSONAL agenda at the courthouse door. No matter what they think PERSONALLY about the issue, or how much they PERSONALLY might benefit, the LAW is what's supposed to be the guide. Not the bible, not their views, just the LAW.

                  However, knowing that it's pretty much impossible to divorce your emotions totally from your decisions, a judge is supposed to have the intelligence and ethical sense to see when it's either not possible to do that, or when it would APPEAR to be a conflict.

                  Someone who won't err on the side of caution in those matters doesn't belong on the highest court in the land, where there's no further review of their decisions.

          •  'financial interest' (none / 0)

            Whether Alito had any 'finanacial interest' is the first question, and it doesn't look to me like owning vanguard mutual funds gave him a financial interest in the outcome of the case.

            The second point is perhaps more cutting: did he make a promise that he failed to keep. Perhaps yes, I would want to see the specifics of that promise and how it was understood. You make a good point here, I'm just not convinced yet.

            Either way, calling it 'corruption' is not fair and I don't care what the Republicans would do. They aren't honest and don't have integrity so why are we looking to them as a model?

            •  I Agree On The Corruption Point (none / 0)

              Although I think that conflict of interest and violation of an oath to Congress are both supported by the facts.
              •  I don't think y'all understand (4.00 / 2)

                what corruption means- conflicts of interests are the definition of a corrupt act- if you agree its a conflict of interest then you ae saying that there is some version of corruption here. now is it to the level of coingate- no , but i think people should understand that a conflict of interest is a question of corruption
                •  Having Practiced in Cook County, Illinois (none / 0)

                  During a time period when judges were taking bribes in conjunction with their judicial duties, I think a distinction can be made between corruption and a conflict of interest, although the ultimate result of either corruption or a conflict of interest is the erosion of judicial integrity.  I think it's also clear that some conflicts of interest may constitute corrupt acts.  I'm just not sure that Judge Alito crossed the line here (other than by his failure to follow the recusal policy he told the Senate Judiciary Committee he would follow and then claiming it did not matter, when the facts suggest it was a financial conflict of interest).

                  On the Supreme Court (where each justice is the arbiter of his or her own recual), it is especially important that recusal policies be set forth in advance and each justice held to a recusal policy.

                  •  first, i think its okay for the diarist (none / 0)

                    to ask if there was "potential" corruption. in that phrasing along its clear that he or she doesn't assume there is, and more importantly whenever conflicts of interest arise (as a judge did find here) questions of corruption are fair game. Whether you believe it or not - frankly is irrelevant to a reasonable person standard as to what the rule is here. I don't pretend to know all the rules here or facts of the situation. What I do know is that the diarist is raising an extremely valid question about a potential S Ct nomination. These are not just canon of judicial ethics quesitons, but political ones about what kind of justice does one want on the S Ct. Someone who skaters the line- even if it's not corruption- did he skate the line of acceptable judicial conduct. If it is a fact that he was forced as soome are claiming here- to take himself off the case rather than doing so willingly- this says something about this character. If you have practice, you know that there is a difference between the higher standards often required in rules versus the standard that should be applied politically. Your analysis, if I am understanding it (and I admit i may not) reminds me of last weeks comments regarding Libby. Somehow that just because Fitzgerald didn't think he could prove beyond a reasonable double that Libby broke intelligence laws gave Republicans, some of them lawyers, leave to say that there wasn't an issue. Considering that they are lawyer, they know- better- the beyond a reasonable double is a higher standard to prove than say more likiely than not. the same is true here. And going from that was it reasonable to have such person in the white house. The same is true here- I don't claim to know for  certain the situation. I just know that based on these facts- this is a legitimate issue of Democratic concern because a conflict of interest was found. This in and of itself means we need to investigate and understand the facts behind the case. Because our standard for the S Ct should be more than just skating at the line
            •  The Globe (4.00 / 2)

              story quotes him directly from the 1990 questionnaire. He made an unqualified and unambiguous promise, regardless of his belief that it would cause no conflict of interest, that he would recuse himself from any cases involving Vangard.  

              He responded: I do not believe that conflicts of interest relating to my financial interests are likely to arise. I would, however, disqualify myself from any cases involving the Vanguard companies."

              Later, he uses the fact that he believes there is not conflict of interest to justify the fact that he did not recuse himself as earlier promised:

              Alito told the Philadelphia Inquirer in 2004 that his decision in the case was not influenced by his ownership of Vanguard shares.

              ''They have $600 billion invested with them," Alito said of Vanguard. ''The idea that a case like this would affect that is just ludicrous."

              that out of many, we are one; that while we breathe, we hope. - Barack Obama

              by acuppajo on Thu Nov 03, 2005 at 10:09:55 AM PDT

              [ Parent ]

        •  When the GOP doesn't like a candidate... (4.00 / 6)

          Do you see them only complaining about the "fair" things?  

          It's gonna take a LOT of rocks to sink the Alito boat.  This is a nice heavy one.  It's shaped like financial corruption - one of the current OBVIOUS problems with the GOP.  And it's NOT about abortion or any other "moral" issue.  This is his PERSONAL behavior.  

          Sure, maybe it's not as big a deal as it sounds like at first.  But that doesn't mean we shouldn't be raising the issue.  If we fight Alito purely on Roe and meta-Roe grounds, we shall almost certainly lose.  But if we can force Bush to withdraw Alito, even on non-Roe grounds, we hand Bush and Frist ANOTHER defeat, and further drive the wedge between the GOP leadership and the religious right.

          So hell yes I'm recommending this!

          I trust Obama's judgment more than I trust my own. Why are YOU telling him what to do?

          by Leggy Starlitz on Thu Nov 03, 2005 at 07:50:44 AM PDT

          [ Parent ]

          •  it's... (none / 1)

            It's not the incident that's the clear problem, it's the fact that he lied about it.

            Which is a Republican phenomenon that we've been seeing a bit of lately, isn't it?

            He swore to the Senate Judiciary Committee that he would do something, then he went and did the exact opposite.  If he did it in something so minor as a Vanguard case (which would hardly have sunk the company), then how can you trust what he says he'll do in more significant cases?  

            That should (in a perfect world) cut against him with both the Left and the Right.  Maybe we can use this and his pro-sodomy manifesto to judo the Right into Harrietting his nomination.

            Not likely, but possible.

            •  yes, the lies!` (4.00 / 2)

              And it raises the question of his judicial ETHICS and impartiality, which gives us another light to shine on the Roe angle.

              Played right, this sort of thing could force Bush to withdraw the nomination, and WITHOUT us making it just about his radical agenda, but rather about GOP lying and corruption.  This is a TERRIFIC issue for us.  And if the Queensbury Rules Democrats are feeling a little squeamish about it, they should just get the hell out of our way and let us win one for them.

              I trust Obama's judgment more than I trust my own. Why are YOU telling him what to do?

              by Leggy Starlitz on Thu Nov 03, 2005 at 08:06:33 AM PDT

              [ Parent ]

          •  This is SO the point (none / 0)

            I am convinced (for now) by posters in this diary that this is a lot of smoke with no actual fire under it.

            So. What.

            Serious critical issues are best, but let's use the ammo we have.  This issue may not be much more than only a superficial appearance of COI plus something of a lie regarding a Senate process, but it's credible enough to throw some smoke to darken Alito's record just that much more and I'll take that too.

            Swift boat uber alles.

          •  If this was a Democratic nominee (none / 0)

            The GOP would run this point into the ground, every Repub talking head would repeat thr info, including the Fembot Conservative Chorus, Fox News would run with it and the nominee would be pushed back.
        •  I agree with you (none / 0)

          this dog won't hunt.

          Owning some Vanguard Mutual Funds (probably the most popular mutual funds there are... lots and lots of people hold them in thier portfolios) is not the same as owning an interest in Vanguard itself.

          This is like saying you'd have to recuse yourself from a case involving Ethan Allen because you bought your sofa from them.

          I don't see why the judge should have to recuse based on owning mutual funds.  If he was an owner of Vanguard Group itself it would be a different matter.

          "documented, schmocumented" -- overheard at the LARGEST protest in U.S. history

          by DoDi on Thu Nov 03, 2005 at 07:51:02 AM PDT

          [ Parent ]

          •  You are 100% wrong (3.75 / 4)

            Owning shares of Vanguard funds IS exactly the same as owning Vanguard itself.  The company is shareholder owned.

            For this reason, Vanguard and companies like it are an exception to the standard conflict of interest rules for judges, who are normally allowed to buy mutual funds without any conflicts arising.

            •  Yet (none / 1)

              Can there be a conflict of interest if there is no possible outcome of the case which would change the value of the Vanguard shares held, or of Vanguard itself? I don't know if that was the case in this case. But if it were, so that there would have been no possible benefit to the judge in one judgment over another, then where does the temptation towards corruption enter?

              As an aside, in years of owning shares in several Vanguard funds, I don't recall ever being presented with a ballot for directors, as I am for any company I own stock in. Nor is there any dividend paid on Vanguard's profits. Nor do fund share values reflect the performance of Vanguard as a firm. The fees Vanguard takes for fund management (which are quite low — the funds are "no load") have some relationship to the firm's profitability, but it would take a legal case whose adverse consequences totalled in the hundreds of millions to even nudge Vanguard towards charging higher fees on its funds.

              •  It was settled , it is conflict see Elwood's post (none / 1)

                Maharaj requested the judges' financial disclosure forms and discovered Alito's Vanguard holdings. She contacted Flym at Northeastern and he agreed to assist her in a motion that alleged that Alito's participation was unlawful under judicial ethics rules because of his Vanguard holdings.

                In 2004, Anthony Joseph Scirica, the chief administrative judge for the circuit, vacated Alito's order and assigned the case to a new panel, which again ruled against Maharaj.[my emphasis]

              •  he has a stake in the company (none / 1)

                the issues and how they might or might not effect the company (or him) are not always clear; sometimes they are indirect. Legal fees, personnel issues, etc. It has to do with a lot more than whether or not he would make or lose a dollar. Conflicts of interest are not something that has to be proven. It is the appearance that is important. Witness Tom Delay's case. He absolutely should have recused himself, and he should have known it from the get go. The fact that there is a coverup speaks to the fact that this is important. He made a serious fuckup on this.

                fouls, excesses and immoderate behavior are scored ZERO at Over the Line, Smokey!

                by seesdifferent on Thu Nov 03, 2005 at 10:34:58 AM PDT

                [ Parent ]

              •  Can there be a conflict of interest? (none / 1)

                YES!

                Because conflict of interest is not about a provable result for the conflictee, it's about the PERCEPTION of a result.

                If any doubt can be assumed regarding the vedict of the case because of a possible conflict, that's the very definition of a conflict of interest. The rule is there not just because you don't want judges profiting from their decisions, but because you don't want the general public to assume that they are, thus losing faith in the high standards of the court itself.

                Scalia might not have allowed the fact that he went duck-hunting with Dick Cheney influence the case he heard ABOUT Cheney, but the fact that he might have, or might have been conceived as, should have recused him from the case.

                In Alito's case, not only did he know he should have recused himself, he fought it, and then blamed others once proved wrong.

                Not good enough for the Supreme Court.

                Fool me once, I'll punch you in the fucking head.

                by HollywoodOz on Thu Nov 03, 2005 at 10:58:00 AM PDT

                [ Parent ]

          •  are you an attorney or judge? (4.00 / 2)

            I ask that because there seems to be a lot of comments along this thread that says- "well it wouldn't be a conflict of interest for me" and that's not the standard. there are rules of ethics that judges and attorneys have to follow. this is definitely skating at the  line, and if he owned any interest, regardless of size, he probably should have recused himself.
          •  It's mixed (none / 1)

            True that technically an association does not equal recursal, but the circuit court system computer improperly hooked him up with this case there were pleenty of other judges that did not own vanguard and this whole sorted affair would not have happened.

            combine this with the fact that he stated for the record that he would recurse himself and you have a question of ethics that is too strong to ignore.

          •  Flawed Logic (none / 1)

            The Ethan Allen sofa example does not hold because any judgement that negatively impacted Ethan Allen would have no effect on the value of your sofa.  Your butt still fits in it just fine.  You don't buy a sofa from EA to watch it increase in value like you do Vanguard funds. The judicial decision would have no effect. Unless of course Ethan came over to your house and beat the stuffing out of your sofa while you were sitting on it.
        •  Should he have recused? The court answered. (4.00 / 10)

          Maharaj requested the judges' financial disclosure forms and discovered Alito's Vanguard holdings. She contacted Flym at Northeastern and he agreed to assist her in a motion that alleged that Alito's participation was unlawful under judicial ethics rules because of his Vanguard holdings.

          In 2004, Anthony Joseph Scirica, the chief administrative judge for the circuit, vacated Alito's order and assigned the case to a new panel, which again ruled against Maharaj.[my emphasis]

          All this speculating by us non-lawyers, based on one newspaper article, is trumped by the judicial decision made after weighing all the evidence.

          •  thanks elwood (none / 0)

            nothing like the facts to shut down a good argument though!
          •  Chief judge ruled against Scalito! (4.00 / 4)

            So you are saying that the chief judge, Joseph Scirica, ruled against Scalito.  

            That seems to make it clear that Scalito was wrong, so this is definitely something to tar him with:

            Scalito refused to comply with his earlier promises to recuse himself from cases involving Vanguard, and his decision on the case was vacated by the Adminstrative judge, who ruled against Scalito.

            That sounds pretty convincing to me, Scalito did the wrong thing.  Will he continue to lie?  Probably, given his history.  The most important thing that Scalito will do is rule for Bush on any future war crimes trial, that's the real question that all these wingers are asked before being nominated.

        •  And could we please cut the Scalito (none / 0)

          crap.  I wasn't paying attention for a few day's and couldn't remember the guy's name because all I knew was Scalito.  How dumb is that?

          Ok. My bad.(don't watch much TV)  But also makes this place look silly.  And it ain't now, is it?

          "Yes dear. Conspiracy theories really do come true." (tuck, tuck)

          by tribalecho on Thu Nov 03, 2005 at 01:25:50 PM PDT

          [ Parent ]

    •  Distinction without a difference (none / 0)

      If you were in the plaintiff's shoes, you'd call it corruption.
      •  Difference (none / 0)

        I'm viewing it objectively, not as the plaintiff would view it.  There's a big difference between, say, taking money from a litigant and not recusing oneself from a case involving a possible conflict.

        A proud member of the "far left."

        by Paleo on Thu Nov 03, 2005 at 06:59:27 AM PDT

        [ Parent ]

        •  Definite conflict, (none / 0)

          possible corruption, as the title states.  

          When "stupidity" suffices, why search for any other reason?

          by wozzle on Thu Nov 03, 2005 at 07:16:21 AM PDT

          [ Parent ]

        •  There is no 'possible conflict.' (4.00 / 12)

          This is a clear example of the textbook definition of conflict of interest.

          A person has a conflict of interest when the person is in a position of trust which requires her to exercise judgment on behalf of others (people, institutions, etc.) and also has interests or obligations of the sort that might interfere with the exercise of their judgment.

          On top of that apparently this very issue may have been brought up during his confirmation hearings in 1990.  

          If Delay can get his judge tossed out cause he made contributions of to the Democrats as having a conflict of interest then Alito in this case easily reaches the standard.

          In my opinion the standard for conflict of interest should be set as low as possible, better to error on the side of caution then muddy the legal waters with second guessing about your motives as a judge.  Alito clearly has a different attitude and given the importance of any supreme court case having a judge on the court with just a lax viewpoint regarding this important standard is dangerous.

          McCain '08: Like Hope, But Different.

          by Siberian on Thu Nov 03, 2005 at 07:22:39 AM PDT

          [ Parent ]

          •  re: Delay's judge (none / 0)

            Excellent point.
          •  Well done (4.00 / 4)

            If Delay can get his judge tossed out cause he made contributions of to the Democrats as having a conflict of interest then Alito in this case easily reaches the standard.

            that one bears repeating.

          •  No Conflict At All (4.00 / 3)

            The suit was against Vanguard which is the management company which runs the Vanguard mutual funds.

            Altito held shares in individual mutual funds managed by Vanguard. He did not own shares in the management company.

            So whether Vanguard won or lost the suit would have absolutely no effect on the net asset value of the Vanguard mutual funds which Alito held.

            •  As unfortunate as that may be (none / 0)

              I would have to agree with you. I don't see the conflict. Mind you, I don't have all of the info, yet.

              But owning shares in mutual fund does not give an investor interest in the managing company.

              The question remains, though, why he had promised to recused himself from cases involving Vanguard. Holding fund shares should not have led to a promise to recuse. Maybe there were some other business dealings with the company?

              He that would have been insolent and injurious in the woods of America,
              would not probably be much better in a throne.
              John Locke

              by Special Purpose Entity on Thu Nov 03, 2005 at 07:51:03 AM PDT

              [ Parent ]

            •  Appearance of impropriety (none / 1)

              If I am not mistaken the burden of proof is not actual gain but the appearance of impropriety.  The fact is that he exercises such poor judgment in this appearance of impropriety that you must question how ethical he would operate when he faces an even graver conflict of interest.  He should have removed himself and it would have been easy for him to do so.  The issue is not whether or not he gained anything but whether or not he is honorable in preventing even the appearance of impropriety.

              The judicial system is founded on a mix of trust and force.  Without the trust, it's just force.  Actions like these on the parts of jurists erodes the force of trust and honestly weakens the system.

              Just remember- after Bush, it's all uphill.

              by electricgrendel on Thu Nov 03, 2005 at 07:51:58 AM PDT

              [ Parent ]

              •  I don't think you understand (none / 0)

                the difference between owning a mutual fund and owning a mutual fund company.

                Should a judges in the IBM case have recused themselves if they used IBM Notebooks?

                "documented, schmocumented" -- overheard at the LARGEST protest in U.S. history

                by DoDi on Thu Nov 03, 2005 at 07:54:14 AM PDT

                [ Parent ]

                •  actually unless he has the fund in (4.00 / 2)

                  blind trust, the answer is yes he or she should recuse himself- the question is nt the amount of the financial gain, it's one of whether there is any. i dont know the particular facts of this case- but the way you frame this is wrong. amount is not a factor in conflict of interest cases and kind as to how the conflict arises is not really that much of a consideration either.
                •  No. (none / 0)

                  But they should recuse themselves if they have money invested in IBM, an IBM dealer, IBM suppliers, or are friends or relatives of IBM shareholders/executives.

                  It's not about whether you can prove that he made money, or will make money, off the case. It's about whether or not a reasonable person could assume that he would, and thus lose faith in the court's ruling.

                  Conflict of interest is about perception more than anything else. And whether he owns stock or mutual fund investment in Vanguard (others here have said that mutual fund owners in Vanguard are actually also shareholders, so it's moot, but), it's irrelevant. The fact is, he's 'connected' to the company, and thus it could be perceived that he'd want the company to win.

                  Really, there's no argument about it. It's clear cut conflict of interest.

                  Fool me once, I'll punch you in the fucking head.

                  by HollywoodOz on Thu Nov 03, 2005 at 11:02:29 AM PDT

                  [ Parent ]

                  •  I don't even understand (none / 0)

                    and this point- what the argument over the basic quesiton is about. A judge found that there was a conflict. The only real issue is whether it was inadvertant or not. If it wasn't inadvertant then the issue is fair game in his hearings.
            •  yes (none / 0)

              exactly

              "documented, schmocumented" -- overheard at the LARGEST protest in U.S. history

              by DoDi on Thu Nov 03, 2005 at 07:52:26 AM PDT

              [ Parent ]

          •  Crucial comparison (4.00 / 2)

            We must HAMMER this point, what's good for Delay's cooked goose is good for Alito's gander. Which also equates Alito with a female goose, so it's a twofer.
          •  Scalia (4.00 / 2)

            Cheney
            Hunting trip
            Conflict?
            low standards?
        •  sorry, but you are't looking at it objectively (none / 0)

          that word object has a certain meaning. it means looking it a situation from a standard without regard to the particular circumstances. the size of the money involved does not change the nature of whether there is or is not a conflict that would require a recusal. this whole size argue is a red herring as to the question of objectively looking at this from an ethical stand point.
          •  sorry i mistating idea of being ojective (none / 1)

            it  means one would not look at this from the view point of whether one personally views this as a conflict of interest- but instead would look to the rules regarding ethical standards.
    •  the false promise is the serious part (none / 0)

      If he said that he would recuse himself from such cases, then he is in the wrong.  And it shows we cannot trust anything he says.  (hmmm... like Thomas.)

      Doesn't sound like it is $390,000 in owning Vanguard stock... what possible effect could his ruling have on the value of his mutual funds?  I don't see any corruption.

      •  $390,000 (none / 0)

        The Globe is being cautious here, I believe. The figure comes from a statement of holdings that showed between $390,000 and $950,000 in Vanguard funds.
      •  I agree. (none / 1)

        If he lied in his confirmation hearing then, he'll lie in his confirmation hearing now. Why should we trust him? I'd say lying to Congress is corrupt.

        (¯`*._(¯`*._(-IMPEACH-)_.*´¯)_.*´¯) It's not too late!

        by nehark on Thu Nov 03, 2005 at 07:15:01 AM PDT

        [ Parent ]

        •  It's also impeachable (4.00 / 5)

          He needs to be made to state that perjury is a crime.  He needs to affirm that lying under oath is a crime.  He needs to affirm that a judge lying under oath is a crime and an impeachable offense.  He then needs to be grilled with questions about this conflict of interest above and why he lied under oath beforehand.  He needs to grilled about his positions (commerce clause and environmental regs, abortion and privacy, labor laws, etc).  Once he is on record for first stating that perjury is illegal and impeachable and also on record, under oath, about his positions and legal philosophy about all the above-mentioned issues, he has helped place himself (and Clarence Thomas) into impeachment land if he rules contrary to the way he testified...under oath.


          Hell, Arlen Specter has already indicated his problem with the "lying" of Clarence Thomas at his confirmation hearings.  Arlen indicated his displeasure for Thomas for testifying one way and then immediately ruling in various matters in direct contradiction to