Aussie Court Finds 60 Minutes Defamed Peter Schiff Seven Times In “Exposé” That Led Up To Bank Shut Down

Aussie Court Finds 60 Minutes Defamed Peter Schiff Seven Times In “Exposé” That Led Up To Bank Shut Down

We wrote back in August that well known Austrian economist Peter Schiff had settled with Puerto Rican banking regulators, who had suspended operations at the bank after alleging that it had failed to meet capitalization requirements. 

There was also an investigation into whether or not Schiff’s bank helped people launder money or evade taxes, which came after baseless accusations were leveled at Schiff, culminating in a “gotcha”-type exposé that ran on Australian Nine Network’s “60 Minutes”.

Now, an Australian Court has found that the “gotcha” moment that may have put the entire ball into motion, disrupting Schiff’s business and personal life for years, actually “conveyed seven defamatory imputations” about Schiff and his bank.

Schiff wrote in a press release this week that “the Federal Court of Australia, in a detailed 48 page decision dated September 23 (NSD 1086 of 2021), found that Australia’s Nine Network, producer of “60 Minutes/Australia,” reporter Nicholas McKenzie, and producers Charlotte Grieve and Joel Tozer had published and conveyed seven imputations which are defamatory about financial expert and banker Peter Schiff and his Puerto-Rico-based Euro Pacific Bank in its October 18, 2020 TV broadcast.”

“Specifically, the judge found that these defendants defamed Schiff and his bank in seven specific defamatory imputations, such as ‘permitting his bank, Euro Pacific, to be used as a vehicle for around one hundred Australian customers to commit tax evasion,’ and that Schiff, himself, ‘committed tax fraud’,” the release says. 

As a result, Schiff is now calling for the U.S. Commissioner of the Internal Revenue Service to suspend IRS Criminal Enforcement Chief, James Lee, for his use of similar false innuendo during a press conference that took place in Summer 2022 in Puerto Rico. 

“No criminal charge was ever brought against Schiff or anyone connected to the bank,” the release says. 

Recall, the 60 Minutes hit piece was laboriously broken down and explained almost immediately, in depth, by Schiff for over an hour and a half, on his own YouTube channel in the days after it aired.

“Why would anyone want to shut down a bank flush with cash, no debts, no loans, with a highly-qualified buyer committed to injecting millions in capital well in excess of regulatory requirements, ready to buy the entire bank at a fair market price. Then put the bank into receivership, needlessly tying up customer deposits for months, then sell off all the bank’s assets to the same buyer at a fire-sale price?” Schiff asked in the press release.

“The 60 Minutes hit piece created an unfair cloud over me that led to the bank being shut down.”

“The investigation found nothing. The bank didn’t help people launder money or evade taxes. So why is it getting shut down?” Schiff asked earlier this year. 

 

Tyler Durden
Thu, 09/29/2022 – 22:00

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This Thanksgiving, Supplies Of Turkey, Eggs, & Butter Will Be Extremely Tight In The US

This Thanksgiving, Supplies Of Turkey, Eggs, & Butter Will Be Extremely Tight In The US

Authored by Michael Snyder via The Economic Collapse blog,

If you love to cook, this upcoming Thanksgiving may be a real challenge for you.  Thanks to a resurgence of the bird flu, supplies of turkey are getting tighter and tighter.  Sadly, the same thing is true for eggs.  And as you will see below, reduced milk production is sending the price of butter into the stratosphere.  Thanks to soaring prices, a traditional Thanksgiving dinner will be out of reach for millions of American families this year, and that is extremely unfortunate.  Of course all of this is happening in the context of a horrific global food crisis that is getting worse with each passing day.  Yes, things are bad now, but they will be significantly worse this time next year.

The bird flu pandemic that has killed tens of millions of our chickens and turkeys was supposed to go away during the hot summer months, but that didn’t happen.  And now that the weather is starting to get colder again, there has been a resurgence of the bird flu and this is “devastating egg and turkey operations in the heartland of the country”

Turkeys are selling for record high prices ahead of the Thanksgiving holiday as a resurgence of bird flu wipes out supplies across the US.

Avian influenza is devastating egg and turkey operations in the heartland of the country. If just one bird gets it, the entire flock is culled in order to stop the spread. Millions of hens and turkeys have been killed in recent weeks. As a result, prices for turkey hens are nearly 30% higher than a year ago and 80% above pre-pandemic costs. Just as concerning are inventories of whole turkeys, which are the lowest going into the US winter holiday season since 2006. That means there will be little relief from inflation for Thanksgiving dinner.

In the months ahead, we could see tens of millions more chickens and turkeys get wiped out.

Egg prices have already tripled in 2022 and the price of turkey meat is up 60 percent.  Unfortunately, this is likely just the beginning

Turkey hens are $1.82 a pound this week, according to Urner Barry, compared to $1.42 last year and $1.01 before the pandemic. Meanwhile, wholesale egg prices are at $3.62 a dozen as of Wednesday, the highest ever, up from a previous record of $3.45 a dozen set earlier this year, said John Brunnquell, chief executive officer of Egg Innovations, one of the biggest US producers of free-range eggs. Consumers have seen prices for eggs at grocery stores triple this year, while turkey meat rose a record-setting 60%, according to a Cobank report.

Meanwhile, supplies of butter are steadily getting tighter as well

Lower milk production on U.S. dairy farms and labor shortages for processing plants have weighed on butter output for months, leaving the amount of butter in U.S. cold storage facilities at the end of July the lowest since 2017, according to the Agriculture Department.

Tight supplies have sent butter prices soaring at U.S. supermarkets, surpassing most other foods in the past year. U.S. grocery prices in August rose 13.5% during the past 12 months, the largest annual increase since 1979, according to the Labor Department. Butter outstripped those gains, rising 24.6% over the same period.

The trends that are driving up the price of butter aren’t going away any time soon, and so we are being warned to brace ourselves for “elevated” prices for the foreseeable future…

The forces at work in butter highlight the challenge of curtailing inflation. Economic pressures fueling high prices for livestock feed, labor shortages and other factors could persist, keeping prices for the kitchen staple elevated longer term.

To me, slathering a piece of warm bread with a huge chunk of butter is one of the best things about Thanksgiving.

And most of us will continue to buy butter no matter how high it goes.

But the truth is that rapidly rising food prices are forcing vast numbers of Americans to adjust their shopping habits.  Here is one example

For Carol Ehrman, cooking is a joyful experience.

“I love to cook, it’s my favorite thing to do,” she said. She especially likes to cook Indian and Thai food, but stocking the spices and ingredients she needs for those dishes is no longer feasible. “When every ingredient has gone up, that adds up on the total bill,” she said.

“What used to cost us $250 to $300 … is now $400.” Ehrman, 60, and her husband, 65, rely on his social security income, and the increase was stretching their budget. “We just couldn’t do that.”

The global food crisis is starting to hit home for many ordinary Americans, and we need to understand that this crisis is still only in the very early chapters.

David Beasley is the head of the UN World Food Program, and he is actually using the word “hell” to describe what is potentially coming in 2023

“It’s a perfect storm on top of a perfect storm,” Beasley said. “And with the fertilizer crisis we’re facing right now, with droughts, we’re facing a food pricing problem in 2022. This created havoc around the world.”

“If we don’t get on top of this quickly — and I don’t mean next year, I mean this year — you will have a food availability problem in 2023,” he said. “And that’s gonna be hell.”

The World Food Program keeps sounding the alarm, but very few of us in the western world seem to be taking those warnings very seriously.

People are literally dropping dead from starvation in some areas of the globe right now, and a new report that the WFP just released says that there are 19 “hotspots” where we could see a “huge loss of life” between October and January…

World Food Programme (WFP) and the Food and Agriculture Organization of the United Nations (FAO) are out with a new report outlining countries that “are either already starving or on the brink of disaster.”

WFP and FAO found 19 hunger hotspots worldwide, with most countries in Africa, the Middle East, and even some in Central America. They call for urgent humanitarian action between October 2022 and January 2023 to avoid “huge loss of life.”

Afghanistan, Ethiopia, South Sudan, Somalia, Nigeria, Yemen, and Haiti are labeled “hotspots of highest concern,” facing catastrophic hunger levels.

The sort of famines that we were warned about are already starting to happen right in front of our eyes, but most people simply will not care as long as they are not going hungry themselves.

What those people do not realize is that this global food crisis is going to continue to spread.

As supplies of food get tighter and tighter, prices will continue to soar and shortages will become more common.

We truly are in unprecedented territory, and the pain that is ahead will greatly shock all of the lemmings that just kept assuming that everything would work out just fine somehow.

*  *  *

It is finally here! Michael’s new book entitled “7 Year Apocalypse” is now available in paperback and for the Kindle on Amazon.

Tyler Durden
Thu, 09/29/2022 – 21:40

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“As Soon As Possible”: US Preparing To Wean Itself Off Russian Nuclear Fuel

“As Soon As Possible”: US Preparing To Wean Itself Off Russian Nuclear Fuel

Russia’s dominance in the global nuclear fuel market presents another massive challenge for Washington, especially the liberal hawks in the Biden administration, who are trying to wean Western countries off Russian energy supplies.

Secretary of Energy Jennifer Granholm said President Biden is redoubling efforts to break the US reliance on Russian nuclear fuel, indicating domestic uranium-enrichment capacity could be increased with upcoming key legislation. 

“We are going to get Congressional support in a bipartisan way for us to make our own fuel cycle supply chain independent, certainly of Russia,” Granholm said in an interview at the International Atomic Energy Agency in Vienna, Bloomberg quoted. 

“We’ve got to make this happen for our own independence and national security,” she continued. 

Bringing on new capacity could take years. For instance, uranium extracted from mines to refine into fuel for nuclear reactors takes three to five years. 

Russia controls about two-fifths of the global enrichment services market and supplies almost a quarter of the fuel for the US’ 93 operational nuclear reactors. This is another chokepoint the US is trying to avoid.  

Earlier this year, Washington banned imports of Russian fossil fuel products, though uranium wasn’t part of the sanctions. 

“We should not be sending any money to Russia for any American energy or for any other reason,” Granholm said in May.

The Biden administration is working toward expanding a uranium supply chain to wean itself off Russian supplies though top congressional Democrats recently balked at Biden’s $1.5 billion request in an upcoming budget bill to support domestic uranium enrichment programs. 

“We need to signal that the US is committed to its own fuel supply as well as the conversion and enrichment components of the supply chain. 

“This investment in our own supply chain is a critical piece of that,” Granholm said in Vienna. 

The American nuclear industry could soon see a resurgence since the Three Mile Island facility accident in 1979 sent it into a tailspin for decades if Granholm and the Biden administration can get funding. 

She said the government would support the demand side rather than taking direct ownership stakes in facilities. 

“We would be using the market to make sure this capability gets out,” she added. “We would contract with facilities. The goal is to be independent as soon as possible.”

Several nuclear fuel supply chain companies, including Honeywell International Inc., General Atomics, and Centrus Energy Corp., could benefit from atomic independence from Russia. 

Readers may recall we have outlined Nuclear Power Is Staging A Remarkable Comeback and Why Nuclear Energy Is More Relevant Than Ever

Remember we outlined in 2020: Buy Uranium: Is This The Beginning Of The Next ESG Craze

Tyler Durden
Thu, 09/29/2022 – 21:20

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“We Don’t Have Due Process”: Book Reveals Decision To Abandon Historical Precedent To Impeach Trump

“We Don’t Have Due Process”: Book Reveals Decision To Abandon Historical Precedent To Impeach Trump

Authored by Jonathan Turley,

Below is today’s column in Fox.com on the new disclosures in a new book on the Trump impeachment. The authors allege that House Judiciary Committee Chair Jerrold Nadler, D-N.Y., and his staff raised virtually the same procedural objections that I made in my history about the House abandoning both historical precedent and due process guarantees. The book directly contradicts public statements made by Speaker Nancy Pelosi and House Intelligence Committee Chair Adam Schiff.

Here is the column:

“They’re going to argue we don’t have due process for Trump. Why make that argument real?” Those words from House Judiciary Committee Chair Jerrold Nadler, D-N.Y.,  stand out in the shocking disclosures in the recently released book, “Unchecked: The Untold Story Behind Congress’s Botched Impeachments of Donald Trump,” Politico Playbook co-author Rachael Bade and Washington Post reporter Karoun Demirjian recount how House Intelligence Committee Chair Adam Schiff and Speaker Nancy Pelosi overrode objections from Nadler that the lack of witness testimony was a denial of due process for then President Donald Trump. He put it plainly and correctly: “It’s unfair, and it’s unprecedented, and it’s unconstitutional.”

It was a strikingly familiar objection.  I testified at the first Trump impeachment before Nadler and criticized the lack of any factual witnesses or Judiciary Committee hearings supporting the articles of impeachment. The book details a position of the House Judiciary that is strikingly similar to my own testimony.

The book, however, has not brought a sense of vindication as much as frustration. Nadler publicly toed the line with Pelosi to support a process that he reportedly viewed as abusive and “unconstitutional” even as some of us were set upon by a legion of irate liberal pundits. Worse yet, the book indicates that the bar on witnesses was not compelled by the schedule as claimed by Pelosi and Schiff, but raw politics.  It was, I wrote, a decision to follow the rule of Franz Kafka’s character that “my guiding principle is this: Guilt is never to be doubted.”

On the second impeachment, they went one better. They jettisoned any witnesses (including legal experts) in what I called a “snap impeachment.”

During the impeachments, I suggested that the reason was not any limitation of time but tactical advantage. In both rushed impeachments, Pelosi then held back the articles of impeachment before sending them to the Senate – destroying even the pretense of exigency as the reason for abandoning due process.

The book appears to confirm the Katkaesque logic. It states that neither Pelosi nor Schiff wanted to risk a witness or member going off script by allowing true due process. When Nadler raised historical and constitutional objections, Schiff reported barked back that he needed to what “his tone” and complained “you’re putting us in a box.”  

That box is an effort to guarantee fairness and Nadler reportedly and correctly observed that “if we’re going to impeach, we need to show the country that we gave the president ample opportunity to defend himself.”

In my testimony in the only hearing held by the Judiciary Committee in the two impeachments, I objected that “this is wrong. It is not wrong because President Trump is right…No, it is wrong because this is not how an American president should be impeached.”

I relied primarily on the Nixon and Clinton cases to show how far the House was far outside any historical navigational beacons. It turns out Nadler and his staff reached the same conclusion and cautioned Schiff and Pelosi to “Stick close to the Nixon and Clinton cases.” They refused.

Dan Goldman, Schiff’s lead counsel and the Democratic nominee to represent New York’s 10th District in the House, scoffed and mocked Nadler: “Jerry Nadler? With him, everything is negotiable.” When Nadler’s team argued for an approach (as I did) “more like Nixon,” Schiff’s team reportedly dismissed due process and said, “F— Donald Trump.”

People can disagree on the merits of the impeachments, but both impeachments were an abusive use of the Article I authority in the denial of any substantive hearings before the Judiciary Committee. While it was constitutional in the sense that there is no required process, it was wrong from both a historical and procedural perspective.  Of course, the public was not allowed to either hear from witnesses or know that even Democrats like the Judiciary Chair objected on these same grounds.

Indeed, when the House elected to pursue the January 6th investigation, they followed the same playbook with Schiff as a member.  Traditionally, each party is allowed to pick its own members on such committees. However, Pelosi rejected two of the Republican members and the rest of the party (except outgoing Reps. Lynne Cheney and Adam Kinzinger) boycotted the hearings. The result was the same one-sided production without a hint of fairness or balance in exploring possible defenses or counterarguments.

What is most sad about this account is that for a critical moment Nadler rose to the occasion. He defended not just the historical authority of his committee but the constitutional norm, even for a president despised by Democrats. That twilight moment of clarity was soon lost. The book recounts how Nadler made an “effort to get back into Pelosi’s good graces.”

When I testified, there was not a hint of concern or dissent.

Nadler and the Democrats scoffed at the notion that the impeachment departed from core historical precedent or legal protections.

They had, as Nadler predicted, made the due process arguments “real,” but no one cared. To paraphrase Goodman’s reported observation, in Washington, “everything is negotiable.”

Tyler Durden
Thu, 09/29/2022 – 21:00

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Elizabeth Warren Turns Attention From Crumbling Economy To Pending Vacuum Cleaner Company Acquisition

Elizabeth Warren Turns Attention From Crumbling Economy To Pending Vacuum Cleaner Company Acquisition

While the Federal Reserve is in the midst of nuking the U.S. economy and stock market and as inflation runs rampant, destroying quality of life for middle income and lower income households, Senator Elizabeth Warren has turned her focus away from berating Jerome Powell to…vacuum cleaners. 

Having apparently solved all of the nation’s other financial woes already, Warren has now directed her attention to a relatively small pending acquisition by Amazon, of Roomba vacuum cleaner company, iRobot. 

Warren and a group of lawmakers has publicly asked the FTC this week to reject Amazon’s plans to buy the vacuum maker for $1.7 billion, according to Reuters. The FTC was already in the midst of an antitrust review of the deal, as of earlier this month. 

The letter to the FTC reads: “Given Amazon’s record of infringing on consumers’ privacy, and their ongoing history of anticompetitive mergers to increase their monopoly power, the FTC should use its authority to oppose the Amazon – iRobot transaction.”

“Rather than compete in a fair marketplace on its own merits, Amazon is following a familiar anticompetitive playbook: leveraging its massive market share and access to capital to buy or suppress popular products,” it continues. 

The Senator later told Axios: “I have serious concerns about the Amazon-iRobot deal — dominant companies like Amazon shouldn’t be allowed to just buy their way out of competing. The FTC should oppose this proposed merger to protect competition, lower consumer prices, and rein in Amazon’s well-documented anticompetitive activities.”

Yeah, because Amazon is primarily a vacuum cleaner company…

You can read Warren’s full letter to the FTC here

Tyler Durden
Thu, 09/29/2022 – 19:20

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District Court Rejects Claim That “FBI Misled Judge in Obtaining Warrant To Seize Hundreds of Safe Deposit Boxes”

I posted Sunday about the post alleging that the FBI misled judge (and the L.A. Times story following up on that); just today, though, Judge Gary Klausner (C.D. Cal.) seems to have rejected that allegation, in Snitko v. U.S.:

Plaintiffs’ other Fourth Amendment argument is that the Government misled Judge Kim in its warrant affidavit, thus breaching its duty of candor. Specifically, Plaintiffs note that the affidavit states only that the Government intended to inventory the box contents, while omitting the fact that investigators were making preparations to forfeit much of that property.

Naturally, law enforcement agents may not submit warrant affidavits that contain “material falsities or omissions.” The test for determining whether a false statement or omission was material is whether an affidavit containing the omitted material would have provided a basis for a finding of probable cause.” If probable cause would have remained even if the omitted facts were included in the affidavit, an omission is “immaterial.” Further, an omission relating to “how the search would be conducted,” rather than relating to “whether a warrant should issue” in the first place, is also immaterial.

Here, Plaintiffs do not argue that the purported omission—that the Government had made certain preparations to forfeit boxholder contents—had any effect on the existence of probable cause to search and seize USPV’s property, including the nests of boxes. Rather, they base their argument on two Ninth Circuit cases that address alternative types of improper affidavit omissions.

In United States v. Comprehensive Drug Testing, Inc. (9th Cir. 2010), the Government sought a warrant to search the defendant’s computers, which contained data on steroid tests conducted on professional baseball players. However, the Government only had probable cause to retrieve the electronic files of ten players. In its affidavit, the Government informed the magistrate that there was a significant risk the data it sought might be destroyed, which required a broad seizure of all data on CDT’s servers, including that for which the Government had no probable cause. What the Government failed to tell the magistrate, however, was that CDT had “agreed to keep the data intact” for a certain amount of time, an omission that “created the false impression that, unless the data were seized at once, it would be lost.” The Court found that this omission caused the magistrate to issue a warrant he may not otherwise have issued.

Here, by contrast, the omission of the Government’s forfeiture preparations did not “create[] [a] false impression.” The affidavit was rife with details of prior investigations into individual USPV boxholders that resulted in forfeiture, and it noted that the agents executing the warrant would inventory the contents of all individual boxes. Any reasonable magistrate would have inferred that the inventory could lead to the potential discovery of criminal proceeds in certain boxes, which would then lead to forfeiture. [For more on the other precedent, and other matters, see the opinion. -EV] …

In all, Plaintiffs have not demonstrated either that: (1) the omission of the Government’s forfeiture plans from the affidavit was material to a finding of probable cause as to USPV; or (2) that the Government’s conduct in this matter was equal to or greater than the violative conduct in CDT …. Thus, the Court finds that Plaintiffs’ second Fourth Amendment argument fails.

Thom Mrozek, a spokesman for the U.S. Attorney’s Office, characterized the matter thus:

The court’s ruling expressly rejected every claim of improper conduct. In fact, prosecutors and agents acted professionally and ethically during the investigation. Contrary to the assertions made by the plaintiffs and adopted by some in the media, investigators were open and honest with the court that authorized the search and seizure warrants. This ruling demonstrates that the actions taken in relation to a business that catered to criminals were legally authorized, adhered to policy and were conducted in full compliance with the Constitution.

Congratulations to Andrew Brown, Maxwell K. Coll, and Victor A. Rodgers, Jr., who represented the government in this case.

The post District Court Rejects Claim That "FBI Misled Judge in Obtaining Warrant To Seize Hundreds of Safe Deposit Boxes" appeared first on Reason.com.

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The Yaliest of All Torts: Wrongful Interference with Clerkship Opportunities

From Stubbs v. Gerken, decided today by Judge Sarah Merriam (D. Conn.):

Plaintiffs Sierra Stubbs and Gavin Jackson …, each of whom was a student at Yale Law School, bring this action alleging, in sum, that two deans of the Yale Law School, along with the Law School’s Director of Diversity, Equity and Inclusion, “worked together in an attempt to blackball” plaintiffs from the prestigious job opportunities that are often available to Yale Law School students and graduates….

For purposes of deciding the Motion to Dismiss, the Court presumes the following factual allegations set forth in the Second Amended Complaint to be true….

Events Leading to the “Dossier”

Stubbs and Jackson each first met Professor Amy Chua … when each was enrolled in Chua’s International Business Transactions course. Chua “has served as an important mentor for her students, many of whom successfully obtain prestigious [judicial] clerkships.” In September 2018, well before Stubbs and Jackson met Chua, Gerken, the current Dean of YLS, began “publicly criticizing Chua[.]”In “an email to all members of the [YLS] community[,]” Gerken expressed “‘enormous concern'” about “‘allegations of faculty misconduct’ supposedly against Chua[.]” {The allegations against Chua included claims that she had “given advice on dress or appearance to [judicial] clerkship candidates preparing for interviews[.]”} It was “reported” that in 2019 “Chua had entered a ‘no-socializing’ agreement with  the University whereby she agreed not to socialize with students off-campus.”

In February 2021, plaintiffs “separately attended Zoom ‘office hours’ with Chua to discuss their coursework.” These conversations “would also cover career discussions and any concerns that [plaintiffs] voiced about the University.” Such concerns included those of Jackson, who “struggled with what he felt was a lack of institutional support for students of color, which ended with his frustrated resignation from the board of the Yale Law Journal.” Jackson’s resignation “received media coverage[,]” which “caused” him “to face significant hostility at the school.” Chua was “in a unique position to offer [Jackson] guidance on these issues[,]” having been subject to “race-based, online instigated hostility, as well as being one of the few faculty members of color at” YLS.

Because of the “sensitive nature of the subject,” plaintiffs “wished to discuss their issues with Chua in person.” To avoid meeting in public[,]” plaintiffs “and Chua decided to meet at Chua’s home[.]” Plaintiffs met with Chua at her home on two occasions in February 2021 and March 2021. It was at this time, beginning in February 2021, that plaintiffs “became embroiled in Gerken and [Associate Dean of Student Affairs] Cosgrove’s apparent vendetta against Chua.” …

The “Dossier” and the Aftermath

Plaintiffs’ meetings with Chua “became [the] subject of pernicious law school gossip[,]” including a “20-page document, the Dossier (Ex. A), that purported to document the ‘secret dinner parties’ that Chua was supposedly hosting with [plaintiffs], and unidentified federal judges.” The Second Amended Complaint alleges that the Dossier “claims that [plaintiffs] had ‘repeatedly lied’ about their experience as students of color at the Law School, and further ‘repeatedly lied’ about the existence of the secret dinner parties, before supposedly admitting their existence to the Dossier’s author[.]”The Dossier also “denounced” plaintiffs “for ‘deliberately enabling’ a ‘secret atmosphere of favoritism, misogyny, and sexual harassment.'” “The Dossier eventually gained such wide circulation that it became the subject of  investigative reporting from” several national news outlets.

Plaintiffs “became aware of the Dossier in late April 2021, when it had begun to circulate among the [YLS] student body.” On April 23, 2021, Cosgrove and Eldik, the Director of Equity, Diversity and Inclusion at YLS, contacted plaintiffs about the Dossier. “Cosgrove and Eldik 7pressured [plaintiffs] to make a formal statement confirming the allegations against, and lodge their own formal complaint, against Chua.” Despite plaintiffs “repeatedly denying the Dossier’s assertions, Cosgrove and Eldik pressured [plaintiffs] to make … false statements against Chua.”

In communications with Stubbs, Cosgrove and Eldik made reference to “the ‘effort against Professor Chua’ and insisted that if [Stubbs] would ‘just give them’ a statement, they would have ‘enough’ against Chua.” Plaintiffs “consistently refused to make false statements, and instead repeatedly asked Cosgrove and Eldik for assistance against the troubling invasion of privacy and resulting harassment that they suffered.” “Cosgrove and Eldik ignored these requests … and discouraged [plaintiffs] from filing a formal  complaint concerning the harm” caused by the Dossier.

During a call among Cosgrove, Eldik, and Stubbs, Eldik told Stubbs “that the Dossier would likely end up in every judges’ [sic] chambers, following her even after she graduates, effectively sabotaging any hopes of her securing a clerkship whether she applied now or in the future.” In a similar call among Cosgrove, Eldik, and Jackson, “Eldik and Cosgrove strongly suggested that [Jackson] should not apply for a clerkship in the summer of 2021 because of the Dossier’s wide publicity.” For these reasons, “[i]t was suggested” that plaintiffs “cooperate by making a statement against” Chua.

“Cosgrove also directly threatened [Stubbs], claiming that [YLS] was receiving complaints about her potentially serving as a Coker Fellow due to the Dossier, and further suggested that such complaints would be moot if [Stubbs] made a statement against Chua.” Cosgrove thereafter told Stubbs that if Stubbs “accepted a Coker Fellowship with the professor—despite [Stubbs’s] repeated denials that she had received an illicit offer from the professor—Cosgrove or  another member of the [YLS] administration would approach the professor with the allegations.”

Jackson likewise denied the claims in the Dossier that “the [P]rofessor had extended him an illicit Coker Fellowship offer.” Jackson “asked Cosgrove and Eldik to help him deal with the false rumors being spread by other students to the contrary,” but “Cosgrove and Eldik indicated that they were unaware of any complaints or rumors to that effect … and insinuated that they would require concrete proof of this harassment before assisting” Jackson. “When [Jackson] informed Cosgrove and Eldik about his concerns regarding the lies and misrepresentations included in the Dossier, it was suggested to [Jackson] that unless he filed a complaint against Chua, the administration could not effectively protect him from further harassment.”

In April 2021, Stubbs, “who was a student in Gerken’s academic clinic and … writing a lengthy paper under Gerken’s direct and personal supervision, sought Gerken’s advice in dealing with the Dossier.” Gerken “advised [Stubbs] to ‘be candid'” about the Dossier with faculty members, including Cosgrove and Eldik. Stubbs “explained to Gerken that the allegations in the Dossier were false and questioned why her own candor was at issue.”

Thereafter, “Gerken and Cosgrove personally approached the [P]rofessor, who was in the process of hiring Coker Fellows” to “dissuade him from offering a Coker Fellowship to” either plaintiff and to “convince him that [plaintiffs] were lying about their interactions with Chua, making them untrustworthy and unsuited for employment, despite the [P]rofessor already employing [plaintiffs] as his research assistants.” Gerken and Cosgrove showed the Professor “a copy of the Dossier that Cosgrove had personally marked up with highlighting and annotations to show where Cosgrove believed that [plaintiffs] were lying.” “Cosgrove did not try to investigate the specific allegations contained in the Dossier[,]” even though plaintiffs “repeatedly informed her that” it contained “lies and misrepresentations.” Plaintiffs assert that “[t]hese actions constituted improper retaliation[]” as defined in the University’s Policy Against Discrimination and Harassment (hereinafter the “Policy”).

As a result of defendants’ actions, plaintiffs have suffered “significant harm[,]” including “significant career damage[.]” Plaintiffs “did not apply for any judicial clerkships, and their ability to form and maintain relationships with their peers has also been irreparably and permanently stunted.” Plaintiffs have “suffered insomnia, anxiety, nausea, and loss of appetite.”

The court allowed the plaintiffs to go ahead with their intentional interference with prospective business relationship claim, which has as its elements, “(1) a business relationship between the plaintiff and another party; (2) the defendant’s intentional interference with the business relationship while knowing of the relationship; and (3) as a result of the interference, the plaintiff suffers actual loss”:

{Plaintiffs contend that they “have pleaded the specific relationships that were harmed: the Coker Fellowship with the Professor and federal clerkship opportunities[.]”} Defendants concede that plaintiffs have “plausibly allege[d] a business relationship with the Professor.” … [P]laintiffs have [also] stated a claim with respect to the lost clerkship opportunities. Here, drawing all inferences in favor of plaintiffs, plaintiffs have alleged that defendants knew of their prospective relationships with federal judges and sought to specifically target those relationships by threatening that the Dossier would “end up in ‘every judges’ chambers[.]'” …

[D]rawing all inferences in plaintiffs’ favor as to lost clerkship opportunities, plaintiffs have plausibly alleged “that, except for the tortious interference of the defendant[s], there was a reasonable probability that the plaintiff[s] would have” been hired as federal judicial law clerks.  As “compelling candidates” from YLS, it is reasonable to infer that but-for defendants’ interference, plaintiffs would have applied for, and been hired as, federal judicial law clerks. At this early stage, this is sufficient to plead actual loss.

But the court rejected plaintiffs’ breach of contract (and promissory estoppel) claim that was based on a Yale Anti-Retaliation Policy, because “The events in question occurred before the Policy on which plaintiffs rely was adopted,” and in any event,

The breach of contract claim also fails because the conduct alleged in the Second Amended Complaint does not fall within the scope of the Policy that was allegedly breached. Defendants attach a copy of the Policy to their Motion to Dismiss…. The plain language of the Policy prohibits retaliation in response to complaints of discrimination or harassment based on a “protected characteristic” as that term is defined in the Policy…. The allegations [in the Second Amended Complaint] do not assert retaliation because plaintiffs reported racial discrimination and harassment. To be sure, the allegations of the Second Amended Complaint suggest an undercurrent of plaintiffs’ concerns regarding the treatment of minority students and professors at YLS. The Second Amended Complaint, however, alleges that defendants retaliated against plaintiffs because plaintiffs refused to be complicit in the alleged vendetta against Chua, not because plaintiffs reported concerns about racial discrimination and harassment….

The court also rejected plaintiffs’ defamation claims:

[T]he Court finds that the claim in the Dossier that plaintiffs “repeatedly lied[]” [about the dinners] is the type of statement that could constitute defamation per se….

Taken in the context of the legal profession, where character reigns supreme and is rigorously verified before admission, a statement of fact that a person “repeatedly lied” could undoubtedly “injure a man in his profession and calling[.]” This statement gives rise to a presumption of “injury” to plaintiffs’ “reputation … such that plaintiff[s] need neither plead nor prove” the injury in order to state a claim for defamation.

However, the allegations of the Second Amended Complaint do not assert that defendants conveyed objective facts, sufficient to constitute actionable defamation…. The Second Amended Complaint alleges that Gerken and Cosgrove approached the Professor with a marked-up version of the Dossier to show the Professor that Cosgrove “believed” plaintiffs were lying about certain matters, in an attempt to dissuade him from selecting plaintiffs for a Coker Fellowship…. A belief is not “[a] statement [that] can be defined as factual” because it does not “relate[] to an event or state of affairs that existed in the past or present and is capable of being known.” Rather, this statement, given the circumstances in which it occurred, could only constitute an evaluative, “personal comment about another’s conduct, qualifications or character that has some basis in fact[,]” which is non-actionable opinion.

Plaintiffs assert that Gerken and Cosgrove “proceeded to share the Dossier as a fact they accepted as true” because they “refused to investigate[]” the allegations of the Dossier. Plaintiffs assert that the lack of investigation transformed the opinion into one that “impl[ied] knowledge of existing facts,” which “are not protected and can ultimately be considered as defamatory as pure factual statements.” The lack of investigation, however, does not transform opinion into fact. Nor does the failure to investigate mean that Cosgrove and Gerken accepted the statement as true. Rather, without an investigation, Cosgrove and Gerken were in no position to present anything as fact, and were accordingly limited to  presenting their beliefs and other non-actionable evaluative opinions….

And the court also rejected plaintiffs’ disclosure of private facts, false light, and intentional infliction of emotional distress claims.

The post The Yaliest of All Torts: Wrongful Interference with Clerkship Opportunities appeared first on Reason.com.

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District Court Rejects Claim That “FBI Misled Judge in Obtaining Warrant To Seize Hundreds of Safe Deposit Boxes”

I posted Sunday about the post alleging that the FBI misled judge (and the L.A. Times story following up on that); just today, though, Judge Gary Klausner (C.D. Cal.) seems to have rejected that allegation, in Snitko v. U.S.:

Plaintiffs’ other Fourth Amendment argument is that the Government misled Judge Kim in its warrant affidavit, thus breaching its duty of candor. Specifically, Plaintiffs note that the affidavit states only that the Government intended to inventory the box contents, while omitting the fact that investigators were making preparations to forfeit much of that property.

Naturally, law enforcement agents may not submit warrant affidavits that contain “material falsities or omissions.” The test for determining whether a false statement or omission was material is whether an affidavit containing the omitted material would have provided a basis for a finding of probable cause.” If probable cause would have remained even if the omitted facts were included in the affidavit, an omission is “immaterial.” Further, an omission relating to “how the search would be conducted,” rather than relating to “whether a warrant should issue” in the first place, is also immaterial.

Here, Plaintiffs do not argue that the purported omission—that the Government had made certain preparations to forfeit boxholder contents—had any effect on the existence of probable cause to search and seize USPV’s property, including the nests of boxes. Rather, they base their argument on two Ninth Circuit cases that address alternative types of improper affidavit omissions.

In United States v. Comprehensive Drug Testing, Inc. (9th Cir. 2010), the Government sought a warrant to search the defendant’s computers, which contained data on steroid tests conducted on professional baseball players. However, the Government only had probable cause to retrieve the electronic files of ten players. In its affidavit, the Government informed the magistrate that there was a significant risk the data it sought might be destroyed, which required a broad seizure of all data on CDT’s servers, including that for which the Government had no probable cause. What the Government failed to tell the magistrate, however, was that CDT had “agreed to keep the data intact” for a certain amount of time, an omission that “created the false impression that, unless the data were seized at once, it would be lost.” The Court found that this omission caused the magistrate to issue a warrant he may not otherwise have issued.

Here, by contrast, the omission of the Government’s forfeiture preparations did not “create[] [a] false impression.” The affidavit was rife with details of prior investigations into individual USPV boxholders that resulted in forfeiture, and it noted that the agents executing the warrant would inventory the contents of all individual boxes. Any reasonable magistrate would have inferred that the inventory could lead to the potential discovery of criminal proceeds in certain boxes, which would then lead to forfeiture. [For more on the other precedent, and other matters, see the opinion. -EV] …

In all, Plaintiffs have not demonstrated either that: (1) the omission of the Government’s forfeiture plans from the affidavit was material to a finding of probable cause as to USPV; or (2) that the Government’s conduct in this matter was equal to or greater than the violative conduct in CDT …. Thus, the Court finds that Plaintiffs’ second Fourth Amendment argument fails.

Thom Mrozek, a spokesman for the U.S. Attorney’s Office, characterized the matter thus:

The court’s ruling expressly rejected every claim of improper conduct. In fact, prosecutors and agents acted professionally and ethically during the investigation. Contrary to the assertions made by the plaintiffs and adopted by some in the media, investigators were open and honest with the court that authorized the search and seizure warrants. This ruling demonstrates that the actions taken in relation to a business that catered to criminals were legally authorized, adhered to policy and were conducted in full compliance with the Constitution.

Congratulations to Andrew Brown, Maxwell K. Coll, and Victor A. Rodgers, Jr., who represented the government in this case.

The post District Court Rejects Claim That "FBI Misled Judge in Obtaining Warrant To Seize Hundreds of Safe Deposit Boxes" appeared first on Reason.com.

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What Happens When A Fact-Checker Doesn’t Get The Facts Right?

What Happens When A Fact-Checker Doesn’t Get The Facts Right?

Authored by Chandler Lasch via RealClear Wire,

Georgia Democratic gubernatorial candidate Stacey Abrams recently came under fire for a false claim about embryonic development. Glenn Kessler, fact-checker at the Washington Post, chimed in with his own analysis. But instead of setting the record straight, he tweeted another inaccurate remark.

https://twitter.com/RepTerriSewell/status/1234129731186024448/ph

In a clip posted to Twitter by RNC Research on Sept. 21, Abrams criticized anti-abortion legislation in Georgia that bans most abortions after six weeks of pregnancy, when embryonic heartbeats can typically be detected. But Abrams took issue with this framing. “There is no such thing as a heartbeat at six weeks,” she said. “It is a manufactured sound designed to convince people that men have the right to take control of a woman’s body.”

The next day, in response to RNC Research on Twitter, Kessler sided with Abrams. “FWIW [for what it’s worth], ‘fetal heartbeat’ is a misnomer,” he wrote. “The ultrasound picks up electrical activity generated by an embryo. The so-called ‘heartbeat’ sound you hear is created by the ultrasound. Not until 10 weeks can the opening and closing of cardiac valves be detected by a Doppler machine.”

Cardiologists were quick to correct the fact-checker, pointing out that this is not how ultrasound works. “I was today years old when I discovered that an ultrasound can pick up electrical activity,” Anish Koka, a cardiologist and writer, tweeted sarcastically.

This is scientifically and medically incorrect. 100%,” wrote Pradheep J. Shanker. “Ultrasound can’t detect electrical activity. Who told you otherwise?”

As evidence for his claim, Kessler cited an NPR article from September 2021. The article quoted OB-GYN Jennifer Kerns, who said the term “fetal heartbeat” was “pretty misleading.” “What we’re really detecting is a grouping of cells that are initiating some electrical activity,” she said. “In no way is this detecting a functional cardiovascular system or a functional heart.”

But Shanker criticized this piece when it was published, pointing out that ultrasound “measures MOTION, not electrical activity. In fact, ultrasound doesn’t measure electricity at all. It is literally detecting motion … motion of the soft tissue (in this case, the wall of the cardiac chamber).” He added, “measuring electrical activity in a fetal heart is VERY DIFFICULT.”

Further, Abrams’ statement that “there is no such thing as a heartbeat at six weeks” is false. An article in The Journal of Prenatal Medicine explained, “Cardiovascular development in a human embryo occurs between 3 and 6 weeks after ovulation. … At the end of the 4th week of gestation, the heartbeats of the embryo begin.” Because pregnancy is measured from the last week of a woman’s period, rather than from conception, the fourth week of gestation is close to the sixth week of pregnancy.

Until recently, even Planned Parenthood conceded that in the second month of pregnancy, “a very basic beating heart and circulatory system develop” during weeks 5-6 of pregnancy. Their website now references “cardiac activity” during “the earliest stage of the heart developing.”

Abrams’ claim that a heartbeat detected at six weeks of pregnancy is nonexistent and “a manufactured sound” is false, as is Kessler’s claim that ultrasound detects electrical activity, not the motion of a heart.  For two years, Abrams has urged Americans to “follow the science,” while Kessler has insisted that at his newspaper, “we deal in facts.” Both are laudable goals – and equally applicable to the speaker, as well as their audiences.

Tyler Durden
Thu, 09/29/2022 – 19:00

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Mackenzie Scott Files For Divorce From Former Science Teacher

Mackenzie Scott Files For Divorce From Former Science Teacher

MacKenzie Scott – formerly known as MacKenzie Bezos – and her husband, Dan Jewett, have called their marriage quits less than two years after the couple announced intentions to give away “their” fortune together.

Scott filed for the divorce from Jewett, who is a former science teacher, in the King County Superior Court in Washington state earlier this week, according to The New York TimesYahoo Finance

As the report notes, in just four years’ time, Scott divorced her former husband, Jeff Bezos, gave away $12 billion to various non-profits and then married Jewett, who was an instructor at the school where her kids attended. 

Jewett has not contested the divorce, Yahoo reported. The couple’s division of property – of which Scott likely is responsible for 99.9% of – has been laid out in a separate contract, which had been agreed to by the couple and is not public. 

The couple’s high profile relationship in the media was helped along by their collective promise to donate Scott’s enormous fortune to good causes. However, in recent times, non-profits who generally received gifts from the couple were thanking Scott alone, the report says. 

“I am married to one of the most generous and kind people I know — and joining her in a commitment to pass on an enormous financial wealth to serve others,” Jewett had written publicly two years ago. 

One acquaintance of Jewett said of him after he married Scott: “He’s earnest, not very edgy. He’s the perfect person to end up with this money to give away — no sense of greed at all.”

The report notes that Scott has apparently been trying to scrub her connection to Jewett off the internet, as well:

In the past week his name vanished from her philanthropic endeavors. On the site for the Giving Pledge, where billionaires promise to give away half of their wealth before they die, his letter no longer appeared with hers. Without fanfare, his name was recently edited out of a Medium post Scott had written last year about their gifts.

Scott, a novelist, also deleted Jewett from her author bio on Amazon, the online retailer that is the source of her vast wealth.

Scott’s fortune was once estimated to be as much as $62 billion, but due to the decline in the market, it is now estimated at about $27.8 billion. Scott has made very few public statements about her giving and often declines interview requests. 

Tyler Durden
Thu, 09/29/2022 – 18:40

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