As noted in this earlier post, Mark Thatcher (or “Sir Mark” as he is typically referred to in England), son of former British prime minister Margaret Thatcher, had been caught up in the wild world of Equatorial Guinea (prior posts here), where the enticing combination of rich energy deposits and corrupt local governmental officals led the mercurial Mr. Thatcher to get caught up in a coup attempt last year. Here is the Telegraph’s article on the matter.
Well, according to this BBC News account, it appears that Sir Mark has been able to take care of that dirty business in South Africa with a fine and a suspended sentence. Despite the plea bargain, do not expect the Thatcher family to be vacationing in Equatorial Guinea anytime soon.
Daily Archives: January 13, 2005
Andrew Beal, the contrarian banker
The Wall Street Journal ($) has this profile today on Andrew Beal, the Plano-based banker who has made a name for himself over the past decade of so placing contrarian bets on lending and bond business plays. Here is an earlier D Magazine Online profile on Mr. Beal.
Mr. Beal is definitely not your typical banker. He is a college dropout who never earned an M.B.A. He never worked for a big company learning the ropes. In the 1970’s, he operated a business that bought old homes, remodeled them, and then sold them at a profit, which led him to get into the banking business in the late 1980’s. Mr. Beal now owns 100% of Beal Financial Corp., which is a bank holding company with combined assets of $7.8 billion and a net worth of more than $1.7 billion.
One interesting characteristic of Mr. Beal is his penchant for Texas hold’em poker, as the Journal profile relates:
Mr. Beal has other interests in Las Vegas. Since 2000, he has been visiting casinos to play marathon sessions of Texas hold ’em poker against some of the world’s top gamblers. Participants say Mr. Beal sits practically immobile for hours. He wears sunglasses and headphones to shut out voices, so he won’t inadvertently betray a clue about his hand by making eye contact or chatting.
Other players say he lost several million dollars in these games, though a winning spree last spring brought him close to break-even. Mr. Beal doesn’t dispute that account. He is known for blasting away with big bets even if he has bad cards, sometimes inducing opponents with better hands to fold.
“It’s almost as if he’s playing with disdain for the value of money,” says one opponent, Doyle Brunson, a former poker world champion. Mr. Brunson, a legendary bluffer in his own right, calls Mr. Beal “a very difficult person to play against.”
More on the SCOTUS sentencing guidelines decision
The dust is settling on the U.S. Supreme Court’s decision yesterday in United States v. Booker and United States v. Fanfan that the federal sentencing guidelines are unconstitutional because they violate a defendant’s Sixth Amendment right to be tried by a jury.
Congress enacted the guidelines almost 20 years ago on the theory that the guidelines would standardize prison sentences and make them fairer nationwide. However, the law of unintended consequences took over. As demagogues began advocating long prison sentences, the guidelines evolved largely into an arbitrary and capricious mess that unwisely restricts judicial discretion in sentencing, leading to absurd sentences in cases such as in the sad case of Jamie Olis. The SCOTUS decisions, set forth in two 5-4 rulings, gives broader discretion back to federal judges by relegating the guidelines to advisory in nature.
Despite the demagogic posturing “to be hard on crime” that inevitably follows such a Supreme Court ruling, the decision is the right one. Earlier this year, the American Bar Association’s Justice Kennedy Commission, a distinguished panel of legal scholars and jurists, recommended repealing the mandatory sentences and restoring guided discretion for judges in sentencing, which allows judges to consider the unique characteristics of offenses and offenders that warrant increased or decreased prison time.
Moreover, apart from the troubling moral issues relating to capricious sentencing, such sentencing has also caused practical problems. The harsh sentences that were being meted out under the guidelines has caused big problems in the federal prison system where, according to the Bureau of Prisons, more than half of the 180,000-plus people in federal institutions are there for drug law violations. Most are small-time and nonviolent offenders who are serving long sentences pursuant to the myopic guidelines. Annual federal incarceration costs are estimated at $26,696 per inmate, which translates to about $4 billion annually.
The Supreme Court previewed yesterday’s ruling last year by striking down in Blakely v. Washington the State of Washington’s sentencing guidelines that were similar to the federal guidelines. Both sets of guidelines directed judges to boost sentences based on exacerbating factors such as the defendant playing a leadership role in a crime, acting with deliberate cruelty, or the infamous “market effect” of the crime. The standard for deciding whether to include these “enhancements” under the guidelines was merely a preponderance of the evidence as determined by the judge, rather than the “beyond a reasonable doubt” standard that juries are required to use in convicting a defendant. Yesterday’s ruling held that that mandating such enhancements violated the constitutional right of defendants to a trial by jury.
Unfortunately, the Supreme Court majority that decided that issue could not reach a consensus on whether the guidelines should be overturned entirely or simply rendered advisory in nature. So, a new five-justice majority in a second opinion held that the guidelines should stay almost entirely intact, except for a few provisions that made them mandatory. The second decision also gives federal appeals courts specific guidance on reviewing disputed sentences. The key determinant is the “reasonableness” of the original sentence, although it’s far from clear how district courts will interpret that concept in the sentencing context.
Although yesterday’s decisions are helpful to federal defendants whose sentences are currently under review, the decisions will not result in an onslaught of appeals relating to past sentences meted out under the guidelines. The Supreme Court dashed those hopes by making clear that its decision will not apply retroactively to sentencing decisions that had reached final resolution. Of the estimated 180,000 federal prisoners, only several thousand have cases on direct review, which means that most federal prisoners will not be able to seek a shorter sentence, at least for time being. Moreover, the vast majority of federal sentences are doled out under plea bargains in which the defendant is required by the plea agreement to waive the right to challenge the sentence.
As noted in yesterday’s post, Professor Berman’s blog is the best place to review more thorough analysis of the implications of these decisions. Take a look there over the next few days as he and other sentencing guideline experts provide their views on the implications of these decisions.