DC THROUGHLINE
A few topics stood out to us this week:
First, there’s the administration’s decision to order federal prosecutors to halt prosecution against New York Mayor Eric Adams in what can only be described as a troubling quid-pro-quo — which, in a developing story as of writing, seems to have triggered something of an implosion at the Justice Department. As we discussed in our previous feature on kleptocracy, this is exactly the sort of behavior such systems exhibit: protection for corrupt underlings (and it is vital here to say that Mayor Adams has not been tried or convicted of any crime) in exchange for loyalties. While Noah Schachtman claimed it “caps a broad effort to functionally legalize bribery” in Rolling Stone, that’s not quite right: it’s a message that you might get away with bribery if you bend the knee.
On the other hand, the administration’s decision to suspend enforcement of the Foreign Corrupt Practices Act could indeed be read as functionally legalizing bribery of foreign officials.
Then there’s Wednesday’s news that, despite DOGE’s ongoing chevauchée through the federal government, public records indicate that the State Department has a contract of at least $100 million for purchase of “armored Tesla (production units)”, presumably Cybertrucks. While, to be fair, this one is a holdover from the Biden administration, one wonders as to whether Elon Musk’s operatives will identify any wastefulness in contracts involving Musk.
NATIONAL ROUNDUP
Washington, DC
Councilmember accused of bribery expelled: In an unprecedented move on February 4th, the DC City Council unanimously voted to expel Ward 8 member Trayon White, a Democrat, who faces federal bribery charges of accepting tens of thousands of dollars in bribes to influence city contracts, after an independent investigation found substantial evidence indicating he’d violated the council’s ethics rules.
Delaware
New governor issues government transparency rules, as Musk leads “DExit” movement: The new Democratic Governor of the famously business-friendly state of Delaware, Matt Meyer, who campaigned on a platform of increased transparency, signed a new executive order at the end of January aimed at just that. The order coincides with an exodus of major Delaware-incorporated companies, led by Elon Musk’s Tesla, after a Delaware judge blocked his $56 billion pay package in response to a shareholder lawsuit – which has prompted Meyer to promise to “win them back”.
North Carolina
Future of investigation into Columbus County Sheriff’s Office in doubt: With the resignation of the top Biden-appointed federal prosecutor in Eastern North Carolina after the Trump transition (a common practice during administration changeovers), the future of a long-running investigation into the Columbus County Sheriff’s Office and its former Sheriff, Republican Jody Greene, is in doubt. The investigation, which has been running since 2022, has focused on questions around the deputies’ use of force, connections to the January 6th riots, and most significantly, potential misuse of public funds (“suspicions of embezzlement involving some of the area’s most prominent business owners”), but has yet to produce any indictments.
Texas
Some of those who work (border) forces: In a case that highlights the potential for corruption and abuse of office at the highly politicized southern border, a CBP officer was arrested this past weekend by the multi-agency federal West Texas Border Corruption Task Force, and is accused of involvement in human trafficking and drug smuggling.
Missouri
A whiff of private enterprise in the St. Louis Building Division? Reporting from local outlets since December has documented potential corruption and abuse of office at the St. Louis Building Division. Cases include an ex-firefighter convicted of stealing cash from the scene of a fatal crash rehired by the Division, a building inspector who resigned after allegations that he funneled millions to companies he was connected with, and another who resigned after allegedly soliciting charity donations for his boss’s wife. The scandal has driven the mayor to call for an FBI investigation.
Illinois
Madigan guilty: Former Illinois House Speaker, Democrat Mike Madigan, along with co-defendant Michael McClain, was convicted Wednesday in a major, months-long trial on federal charges of racketeering, wire fraud, bribery and extortion. The case against Madigan, formerly one of the most powerful figures in Illinois politics, was complicated by the Supreme Court’s ruling in Snyder v. USA in June, which narrowed the definition of bribery.
Minnesota
Guilty plea in $250 million pandemic fraud scheme: On February 3, the US Attorney’s Office in Minnesota announced that a participant in a sprawling fraud scheme that had diverted $250 million from a federal child nutrition program during the pandemic through a number of restaurants and nonprofits had pleaded guilty. This is the latest development in the case, in which 70 people have been charged, which included an alleged attempt to bribe a juror in which the person delivering the bribe on behalf of a defendant allegedly skimmed some off the top for herself.
California
Former Oakland mayor faces federal charges in alleged pay-to-play scheme: The local US Attorney’s Office announced last week it had over 140 gigabytes of data proving indicted former Oakland Mayor, Democrat Sheng Thao, and her romantic partner were involved in a bribery scheme with a pair of local businessmen, which involved extension of city contracts and political advertising in exchange for bribes. Thao, the first Hmong mayor of a major US city, was voted out of office last November in a recall election bankrolled by Silicon Valley, crypto, and hedge fund wealth but also backed by leaders in the local NAACP chapter. The recall was added to the ballot before a June 2024 FBI raid on her house in which much of the data was seized.
