I’m completely fascinated by the rampant criminality within the Murdoch empire, and I think this is a good, brief summation of the Foreign Corrupt Practices Act, a law I had never heard of prior to two days ago:
The scandal embroiling the empire of media mogul Rupert Murdoch’s News International might extend from London to Washington, legal experts not personally involved in the unfolding matter said Monday.
The potential liability flows from journalists at individual newspapers, such as the recently defunct News of the World, to its parent, News International, to its parent, News Corp., which is a publicly held company in the United States.
If true, that might violate the Foreign Corrupt Practices Act (FCPA), which Koehler described as “a U.S. law that generally prohibits the payment of money or anything of value to a foreign official for a business purpose.
And, with that, look who’s back in the news:
Still, as things now stand, the nearly 4,000 miles that separate Washington from London won’t put off U.S. investigators. “Of the 10 largest fines in FCPA history, eight have been against foreign companies,” Tillen said.
But that may change. Rep. James Sensenbrenner, R-Wisconsin, has criticized the act as putting U.S. companies at a competitive disadvantage and held hearings last month intended to water it down, A spokeswoman for Sensenbrenner provided CNN with a statement Monday from the congressman.
“I plan to introduce a bill that would reform the Foreign Corrupt Practices Act and bring it up-to-date with the changing world,” Sensenbrenner said in the statement. “We need to bring clarity to what is and what is not illegal. My intent is to make sure that the stop signs and red lights are clearly visible for American companies doing commerce internationally.
“Right now, there is confusion regarding who qualifies as a foreign official. Foreign law enforcement officers are clearly foreign officials and it is absolutely absurd to imply that any changes to the FCPA would change that status or permit U.S. businesses to bribe policemen,” he added.
Touchy, touchy. Mr. Sensenbrenner is a little irritable, I guess.
I’d just like to add that it is in keeping with conservative dogma that Sensenbrenner is busy watering down a law that has been used successfully to sanction white collar criminals, so we shouldn’t draw any conclusions. As you know, nothing and no one may get in the way of powerful people making a buck, ever, off of anything, because they’re job creators.
TheMightyTrowel
On the tea-drinking side of the atlantic, the schadenfreude is daily renewed and ever delightful. I’ve been deeply enjoying watching news international slowly implode and I can only hope the infection spreads.
Xenos
Hmmmm…. bribery? Yes. Extortion? Maybe. Fraud? Not sure. Obstruction of Justice? Yeah, baby. Racketeering? Maybe, that is a vague definition and a pretty tough call, though the pattern of business is pretty much of a racket.
A pattern of racketeering behaviour, meaning more than one instance within the last ten years, throughout an organization? YES. And when we see this same pattern of racketeering in different subsidiaries of an international corporation, itself run by proven ‘made men’ in the illegal practices mentioned above? Oh, yes. We could see some veils piercing here.
Rupert, meet my buddy RICO. And call your new lawyers, as your current lawyers may be co-defendants.
Ash Can
Sounds like someone got a heads-up from his boss.
kay
Oh, good. That’s what I wanted to hear. Don’t get my hopes up here. Xenos :)
I wanted to look at Sensenbrenner’s bill, but I can’t find it yet. Just checking! Trust but verify!
marian
Apparently, corporations giving things of value to foreign officials is a crime, but giving things of value to American officials is a First Amendment right.
Xenos
@kay: Just musing here, a bit of issue-spotting by a guy who has not touched crim since the bar exam. BMAZ is probably working on this right now…
But I can dream, right?
‘Help me Eric Holder, you’re my only hope!’
SiubhanDuinne
When I saw the headline, my mind instinctively wanted to make the acronym FCPA into something beginning with “Fuck…”
Too much time reading Balloon Juice?
kay
Oh, I know. I won’t hold you to it. I’m glad you weighed in on our rampant speculation.
Now, I have to work, so I’ll have to check in later on the (hopefully) 3 or 4 new allegations. This is moving so fast. It’s not lawyerly, Xenos. It’s not dignified. These things are supposed to move slow and stately, right?
SiubhanDuinne
These people are oozing pus-filled sores on the maggots eating the necrotic tissue of the pond scum. My schadenfreude is just enjoying the hell out of this whole thing. At this point I don’t much care whether the Murdoch empire is demolished through legal tactics or public revulsion or what — I’m just glad to see it coming down.
Um . . . Does that make me a bad person?
Xenos
@kay: As befits the majesty of the law…
stuckinred
Hannity Freedom Concerts need to be given the eye!
kay
Ugh. These people are slime. The deleted messages on the girl’s phone hit me right in the gut. If you’ve ever had that terror when a kid is missing, and then they would have had hope, because it does make sense to interpret deletions as her making them…jesus. Those poor people. Just godammned pawns in this amoral asshole’s game.
Maude
This is great. The bigger they are, the harder they fall and what goes around, comes around.
If the House tries to weaken the F law, the Senate won’t pass it.
I am waiting to see if any of these News Corpse folks hacked anyone here in the US.
Edit: Stuckinred, you are so right.
A Mom Anon
I’d love to see this thing begin effecting our US politicians and punditry. I have a really hard time believing that this brand of corporate culture doesn’t exist throughout the Murdoch empire. I’ve thought for a very long time that the only thing that explains the actions of many of our so called elite is a serious threat of blackmail. There’s no way this stuff isn’t happening here in the US. Sensenbrenner’s actions seem to be related to some sort of tip off that shit’s gonna hit the fan here too.
I hope the whole ugly,dirty,stinky Murdoch sweater unravels.
arguingwithsignposts
All i want to know is which bodies buried where does rebecca brooks know the location of and details about. There is no other explanation for rupert’s loyalty to her.
And what is BMAZ?
Linnaeus
He’s one of Marcy Wheeler’s co-bloggers. Her blog is called “emptywheel”, and it’s affiliated with a certain blog collective that is roundly despised here.
R-Jud
With every passing day, I get more excited that this might actually lead to big hurt for Rupert and company. Les Hinton, who runs the WSJ, is probably the most vulnerable US-side News Corp bigwig: from what I’ve read, it looks like he may have lied to Parliament regarding what he knew about hacking at NotW.
Also, too: Fry and Laurie on Murdoch: It’s A Soaraway Life.
Chris
I’ve never studied law, but in my observation, if enough people think something is or should be legal, it is. The removal of the Cherokee Indians under Jackson and the internment of certain groups of Americans during WW2 were both illegal on the face of it, but if you’ve got enough of the population whipped up into a frenzy of support for you, the law no longer matters.
Which is probably what would happen if anyone tried to seriously touch the American branch of NewsCorp, even if they do turn out to’ve been involved in the same exact thing.
WereBear
If you think the rules don’t apply to you; you act like it.
But so much gets away when its under the radar. When it’s under a microscope; it’s different. And I don’t believe Newscorpse can count on a lot of sentiment running in their favor.
Nothing like kicking somebody on the way down.
PK
Deleting messages from the cell phone of a kidnap victim, and stealing medical records of Gordan Brown’s sick child. And here is another one. Apparently causing the suicide of the daughter of one of the actors in “Trading places”. There are no depths too low.
http://www.youtube.com/watch?v=lb9cnlbzhgk
serge
What, did someone refer to him as “Tex?”
PK
Another thing which kind of surprises me is the depth of loathing for Rupert Murdoch. I have yet to read anyone who is defending him. Now everyone is piling on. Did everyone keep quiet all these years out of sheer terror?
gypsy howell
That’s adorable. What color is the sky in your world? IF (and that’s a huge IF) the justice department decided to go after Murdoch and News Corp, the House and the Senate would pass that law making whatever vile things they did legal in an afternoon.
I said it to Thurston yesterday: as soon as we find out that News Corp has been breaking the law here (and we will), the law will be changed. But more likely it will all be swept under the rug by the justice department, and worst case scenario for News Corp, they’ll admit no guilt and pay a tiny fine.
WereBear
Yes. SATSQ.
It’s not like J Edgar Hoover was such a great lawman.
Chris
@ PK,
You talking in Britain, or over here? Cause over here, plenty of people still love the guy. What happened was clearly just a few bad apples and the real story is that liberals want to use the issue to sink Murdoch, etc etc etc, you know the drill. At least that’s what some loud people in the Yahoo News comments sections are saying.
scav
Xenos and kay: tusind tak for putting the ideas of fast-moving, dignity of the law and the UK all into my addled brain before coffee. I now have visions of simply streams of bewigged minions of the law, desperately clutching their headgear and their briefs as they run a marathon through the city. And, tho I’ve never figured out which local species is the one with the hair, I presume they’ll need both so it doesn’t matter. Looks like we’ll get Papa and Baby Murdoch with the Siren of Sleeze next Tuesday.
NSinNY
Sensenbrenner is absolutely always wrong … except for this one narrow time. Most of the foreign official prosecutions under the FCPA have been for payments to doctors to use products in countries with single-payer systems, or payments to telecom officers in countries with nationalized telecom infrastructure, not to government officials as they are understood here.
Strange to be sentencing people to jail time (or bankrupting companies) on the basis of a definition so unclear.
(And, as the douchewit said, you could nail Murdoch and News Corp. for their turpitude either way)
Kirk Spencer
@Linnaeaus (16)
It’s also about the only one I bother to read there – both for her and for Bmaz.
Linda Featheringill
pk #20
The young women who committed suicide.
That whole story is very, very sad.
srv
Karzai’s half-brother, Ahmad Wali Karzai, who we called a corrupt drug-lord one week and gave CIA payments to the next has been assassinated.
gene108
What’s interesting about News Corp., in order to start Fox Broadcasting, moved its HQ to the USA and Murdoch became a U.S. citizen.
I hope this move backfires on them right now and the U.S. government prosecutes them under FCPA.
rikyrah
I think things are about to totally heat up. when you talk about getting the medical records of a sick child as they did with the former PM’s child…there comes a straw that breaks it all down.
Linda Featheringill
This is fun to watch.
I don’t have TV [and usually don’t miss it] but I would assume that Keith Olbermann is having a good time with this.
scav
SHit, I keep missing details. Yates, the I can clear an emerging scandal off my desk in 15 minutes and write a report without reading evidence hey-presto! is the Metropolitan police’s assistant commissioner in charge of counter-terrorism
Chris
If that happens, expect GOP pressure out the wazoo. Murdoch’s empire is one of the foundation stones of their machine. They’ll pull out every last stop and mobilize their supporters like nobody’s business in the name of freedom of the press, stopping Obama’s totalitarian power grab, etc.
Trying to prosecute NewsCorp under FPCA, if it involves any serious risk to the survival of the company, would probably be even more toxic and politically impossible than trying to prosecute Bush administration members.
Napoleon
I am kind of surprised when I saw this story about charging Fox come up that no one has mentioned that something like 6 months ago it came out that Roger Ailes had counseled an employee of his to lie under oath about something. There should already be an investigation in process on that one already.
burnspbesq
@ Ash Can:
Sensenbrenner doesn’t need any help our direction in order to be an idiot. His credentials in that area are impeccable.
pablo
I’ve visited the future in my time machine, and I am releasing exclusively (almost) this photo I snapped to all you BJ faithfuls.
It’s heartwarming!
NonyNony
@Chris
Oh Chris, you’ve got it backwards.
The GOP these days is the political arm of Murdoch’s media empire. Of course the GOP will come out swinging for Murdoch – would you expect anything less of a corporation when their CEO is under assault.
The GOP became a piece of Murdoch’s empire about 3 years ago when Bush left office, Michael Steele was the head of the RNC, and the leadership vacuum in the party resembled outer space. FOX News stepped in to fill that gap and Roger Ailes has been running the party ever since.
And the Democrats still have not figured out that the GOP has been co-opted by a media mogul, much like in Italy except not as transparently.
bjacques
I live and work abroad, for a subsidiary of a US company. It’s mandatory that every year we watch a 1/2-hour online presentation on the FCPA.
If yer paying a cop to do something they don’t normally do for free, especially something they’re not supposed to be doing at all, yer breaking the law.
If you’re doing it on behalf of a company you work for, lete alone own, yer violating the FCPA.
It’s not hard.
When I read about the FCPA in connection with James Murdoch carelessly admitting to having authorized payments to UK coppers, I had starbursts!
Oh yeah, and half a $350 bottle of wine would exceed the $100 limit for a gift from someone yer doing business with. Just sayin’.
Poopyman
I’ll believe the Holder DOJ is pursuing this when I actually see the video from the courtroom.
Not. Gonna. Happen. Call me cynical, but it’s way too hot and toxic for No Drama Obama. Gotta look forward.
I’ll be ecstatic to be proven wrong on this. And I’m hoping there’s a chance that state laws were broken here. Especially NY laws.
Stefan
Racketeering? Maybe, that is a vague definition and a pretty tough call, though the pattern of business is pretty much of a racket.
Precisely because racketeering is a vague definition it’s easy for prosecutors to charge someone with it.
Chris
Well, fair point. But they’re a political arm for more than just him – Koch Industries comes to mind and there’s others too. Call the GOP a joint venture. As well as a political machine, with people like Murdoch being the bosses.
Eh, it’s pretty transparent over here too. The only difference is that in America, elites rule by buying and owning the man rather than being the man. Much more fun, carefree and responsibility-free that way.
bjacques
If it’s true about the 9/11 wiretaps, then I’d imagine some tappees might want to press charges.
Catsy
See also: torture, Bush administration.
I no longer have any confidence whatsoever that egregious but politically explosive violations of the law such as these will be prosecuted on their merits. There has to be something else driving them–missing white girl, prostitutes, a sex scandal, salacious details, something to spur the press corpse into obsessing over it enough that an investigation has to occur.
And even then. See also: Libby, Scooter.
Kathleen
A Mom Anon @14 – I totally agree with you that the same stuff has been going on over here. The real story (and I’m not downplaying the massive invasion of privacy and criminality of the enterprise by any means) is how the fear of exposure and subsequent blackmailing of officials and media resulted in horrible policy decisions that Murdoch supported. I often suspected blackmail was involved in the passage of the Patriot Act and support for the invasion of Iraq.