Corruption Ledger

Today, the United States filed a proposal in federal court that — if approved by the court — would appoint an Interim Third Party Manager to stabilize the city of Jackson, Mississippi’s public drinking water system, and build confidence in the system’s ability to supply safe drinking water to the system’s customers. The city and the Mississippi State Department of Health (MSDH) have signed this order and agreed to its terms. At the same time, the Justice Department, on behalf…

The Federal Trade Commission and state attorneys general announced lawsuits against Google LLC and iHeartMedia, Inc. for airing nearly 29,000 deceptive endorsements by radio personalities promoting their use of and experience with Google’s Pixel 4 phone in 2019 and 2020. The proposed FTC orders and the state judgments settling the allegations bar Google and iHeartMedia from similar misrepresentations, and the state judgments also require them to pay $9.4 million in penalties. “Google and iHeartMedia paid influencers to promote products they never…

Tennessee State Senator Brian Kelsey pleaded guilty today to violating campaign finance laws and conspiring to defraud the Federal Election Commission (FEC) as part of a scheme to benefit his 2016 campaign for U.S. Congress. According to court documents, Kelsey, 44, of Germantown, admitted that he conspired to, and did, secretly and unlawfully funnel money from multiple sources, including his own Tennessee State Senate campaign committee, to his authorized federal campaign committee. Kelsey, who was a practicing attorney, and his…

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As reported in the the Retail Industry Law Resource blog:
Plaintiff’s firms continue to file variations of state law wiretapping lawsuits over “session replay” software and “live chat” or “chatbot” applications in various jurisdictions. These filings typically allege that companies use such software tools to record users’ interactions with a website without first obtaining users’ consent, thereby violating the wiretapping, eavesdropping, or interception provisions of various state laws. Session replay software allows companies to record and play back user’s interactions on its websites. The “live chat” or “chatbot” feature allows a website user to engage in text conversations with an assistant, to which chat the company has access. These wiretapping claims threaten substantial penalties. Companies that use these web-tracking tools, however, can take steps to protect themselves from these lawsuits by a careful examination of the software being used and by evaluating what disclosures or consent may be warranted.

Plaintiffs’ claims arise from the wiretapping or interception provisions of various state laws that prohibit the recording of confidential communications without the consent of all parties to the communication. California courts, for example, have experienced a surge of class action filings pursuant to the California Invasion of Privacy Act (“CIPA”). Specifically, section 631 of CIPA prohibits (1) intentional wiretapping of any telegraph or telephone wire, line, or cable; (2) willfully and without the consent of all parties attempting to learn the contents of a communication in transit; and (3) attempting to use or communicate information obtained as a result of engaging in either activity. CIPA entitles plaintiffs to $5,000 per violation. A violation arguably occurs each time a user visits a website. Thus, these penalties can grow quickly.
Further, recent case law has encouraged the Plaintiffs’ bar with favorable interpretations of these state statutes. For example, the Third Circuit recently took a narrow view of the direct-party exception defense under Pennsylvania’s Wiretapping and Electronic Surveillance Control Act, resulting in the initiation of several class actions. The direct-party exception works to exempt a party from liability pertaining to communications directly with another party. In Popa v. Harriet Carter Gifts, Inc., however, the Third Circuit held that the legislature “codified only a law-enforcement exception, thus limiting any direct-party exception to that context” and remanded the case for further consideration by the District Court, which had not reached the issue of consent. Thus, companies facing claims under the Pennsylvania statute cannot avoid liability merely by showing that plaintiff and the company were the direct parties to the communication. If successful, the Pennsylvania statute entitles plaintiffs to $100 a day for each day of violation, or $1,000, whichever is higher.
Accordingly, it is important for companies to be aware of how their website software is being utilized, what information they and their vendors are collecting from website users, and what disclosures or consents may be warranted in light of the above. User consent is consistently a defense under state wiretapping statutes. Therefore, companies should evaluate their website terms of service and privacy policies to confirm that they include sufficient and clear disclosures and/or obtain user consent depending on the type of activity taking place on company websites by the company and its service providers.

Dr. John Campbell, long-time WHO employee and Ph.D. health expert, struggles to explain current funding biases in relation to the Gates Foundation and censorship on Google’s Youtube platform, as well as the larger global issue of silencing sound medical advice in response to financial interests and government pressure.

The Federal Trade Commission is sending payments totaling more than $830,300 to 1,376 people who began their enrollment at Saint James School of Medicine between Fall 2016 and Summer 2021. The for-profit medical school in the Caribbean and its Illinois-based operators allegedly misled prospective students about their chances of success—both in passing a medical school standardized test and in matching with a residency program after graduation. In April 2022, the FTC took action against Saint James and its operators, alleging…

U.S. v. Honeywell International Inc., case number 1:08-cv-00961, in the U.S. District Court for the District of Columbia. Honeywell will pay $3.35 million to settle a long-running False Claims Act suit over allegedly faulty body armor sold to law enforcement, following a circuit court ruling that had significantly limited its potential liability, the U.S. Department of Justice announced Wednesday. The deal resolves allegations that between 2000 and 2005, Honeywell International Inc. had sold “Z Shield” Zylon fiber material to a…

The Federal Trade Commission and State of California are taking action against home improvement financing provider Ygrene Energy Fund Inc. for deceiving consumers about the potential financial impact of its financing, and for unfairly recording liens on consumers’ homes without their consent. The FTC and California allege that Ygrene and its contractors falsely told consumers that the financing wouldn’t interfere with the sale or refinancing of their homes, in many instances relying on high-pressure sales tactics or outright forgery to sign…

Haaretz Daily Newspaper reports: Documents reveal that a corporation implicated in corruption, served as a middleman between Israel Aerospace Industries (IAI), Elbit (publicly traded co), Israel Shipyards (publicly traded co) and Myanmar’s brutal junta, despite international sanctions over the Rohingya genocide. Company Company Relation Location Industry Description Israel Aerospace Industries Ltd. (IAI) Parent Israel Aircraft Engines Elta Systems Ltd Subsidiary of Parent Israel Electronic Navigation/Tracking Systems Iai Asia Pte. Ltd. Subsidiary of Parent Singapore Wholesalers Iai North America Inc. Principal…

Miami – It was a deal that brought together oligarchs from some of America’s top adversaries. ‘The key is the cash,’ the oil broker wrote in a text message, offering a deep discount on Venezuelan crude shipments to an associate who claimed to be fronting for the owner of Russia’s biggest aluminum company. ‘As soon as you are ready with cash we can work.’ The communication was included in a 49-page indictment unsealed Wednesday in New York federal court charging…

Alexander Ozhelskiy, 22, son of Russian billionaire Mikhail Fridman, posted a video address in which he says that he does not support the war in Ukraine and thinks the sanctions against him are unfair. Alexander states that he has participated in “pro-Ukrainian protests”. Ozhelskiy is the co-founder and general director of Esef Direct Investments LLC, as well as a co-founder and director of Alliance Management Company LLC. He is also co-founder of Esef Development LLC and Esef Properties LLC. His…

Ukraine throws damns this treaty to hell [less dramatic translation: violates the treaty] a year later, and begins attacking the borders of the two republics…Desperate, the two republics send a delegation to Moscow and finally manage to talk to Putin.

Department of Justice  /  Southern District of Florida  /  FOR IMMEDIATE RELEASE / Wednesday, October 19, 2022 MIAMI – A federal judge sentenced two Florida women to prison in connection with their participation in a conspiracy to falsify clinical trial data. Senior U.S. District Judge Donald L. Graham of the Southern District of Florida sentenced Analay Rico, 37, of Fort Lauderdale, to 40 months in prison and Daylen Diaz, 44, of Miami, to 24 months in prison. The court also ordered…

On September 16, 2022, the U.S. Department of the Treasury (“Treasury”) published three reports in response to a March 2022 Executive Order concerning the development of digital assets.  The reports address the future of money and payments; implications for consumers, investors, and businesses; and the illicit financing risks of digital assets.  Secretary Yellen described the reports as identifying the challenges and risks of digital assets used for financial services, while providing recommendations for mitigating such risks.  The reports responded to President…

On August 8, 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) sanctioned virtual currency mixer Tornado Cash for having laundered more than USD 7 billion worth of virtual currency since its founding in 2019.  This includes over USD 455 million worth of stolen virtual currency associated with the Lazarus Group, a “Democratic People’s Republic of Korea (DPRK) state-sponsored hacking group” that is responsible for the largest known virtual currency heist to date.[1]  Notably, Tornado Cash…

“Russia should not benefit from European knowledge and expertise.”  That is the view of European Commission (“EC”) President Ursula von der Leyen, who recently proposed an eighth package of sanctions against Russia in response to “escalation” in Ukraine. Among the “biting” new sanctions will be a wider ban on the provision of European services to Russia.  The list of banned services has not yet been announced, but there are multiple reports circulating that this may include legal services.  Watch this…