Phil Gramm, comedian

gramm.gifThis CNN article reports that former Texas senator and presidential candidate (for about 15 minutes) Phil Gramm cut the crowd up yesterday while testifying as a witness in the public corruption trial of former Illinois Governor, George Ryan.
While running for President in 1996, the Gramm campaign paid a rather large “fee” to a Chicago-based “consultant” who turned around and funneled the money to Ryan’s daughters and two aides while Mr. Ryan was serving as Illinois Secretary of State. Prosecutors allege that the consulting fee was Mr. Ryan’s requirement for endorsing Mr. Gramm in the Illinois Presidential Primary that year. Asked by prosecutors whether he would have approved of the payments to the Ryan daughters and aides if he had known about them, Mr. Gramm replied that he would not have approved of them, explaining:

“It’s sort of like the difference between love and prostitution,” the folksy former Texas senator testified, drawing gasps and laughter from spectators at a hearing with the jury out of the room. “You don’t pay people to like you.”

By the way, a Gramm aide also testifed that, when questioning a Ryan aide about the unusually large size of the proposed “consulting fee,” the Ryan aide told him:

“That’s the way we do things in Chicago.”

Hat tip to the ever-alert Ellen Podgor for the link to the CNN article.

Sony BMG’s bad idea

sonybmglogo.jpgSony BMG‘s decision to implement a copyright-protection plan without telling anybody is shaping up to be one of the costliest decisions that the company has ever made.
Earlier this month, a computer-security researcher publicly revealed that some of Sony BMG’s CDs secretly install a program known as a “rootkit,” which is difficult to detect or remove from a computer and which can act as a back door for a malicious programmer to take remote control of a computer. Just to make matters worse, researchers shortly thereafter identified at least two viruses that were designed to take advantage of holes created by the code for the rootkit. Scrambling to respond to the developing disaster, Sony BMG last week announced that it was recalling and replacing the 4.7 million discs containing the program and that it stopped using the controversial software.

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Attempting to pin down Atta in Prague

Mohamed_Atta.jpgEdward Jay Epstein (previous post here) is the author of a new book on Hollywood, The Big Picture (Random House, 2005), and is in the process of writing a book on the 9/11 Commission. In this fascinating Opinion Journal piece, Mr. Epstein explains the maddening difficulties of tracking down the truth of whether 9/11 hijacker Mohamed Atta met with an Iraqi intelligence agent in Prague during April, 2001. Particularly interesting is the following excerpt, which describes Czech intelligence agent Jiri Ruzek’s troubling experience in dealing with the American intelligence community:

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Spitzer drops another misguided prosecution

Spitzer36.jpgFollowing the decision to drop his dubious prosecution (or was that persecution) of Theodore Siphol in regard to alleged improper trading of mutual funds (here, here, here and here), New York Attorney General Eliot Spitzer dropped similar fraud and larceny charges against Paul Flynn, a former executive at Canadian Imperial Bank of Commerce who had been accused of aiding hedge funds in improper mutual-fund trading.
Interestingly, spokespersons in Mr. Spitzer’s office defended the decision to drop the charges against Mr. Flynn on the grounds that his indictment on criminal charges was merely a small part of the better good — i.e., the Lord of Regulation’s campaign to overhaul the mutual fund industry and extract over $3 billion in fines, restitution and fee cuts from those evil capitalist roaders. Besides, nine of the 11 people facing criminal charges from Spitzer’s office related to the improper trading had pleaded guilty, so that’s a pretty good batting average. Don’t need to get greedy in chocking up another one against Mr. Flynn.
H’mm. Sounds to me as if Mr. Spitzer is using the criminal justice system to extort settlements from companies and individual defendants through headline-grabbing threats of business destruction and prison time. Plus, the publicity from these public crusades is cheap advertising for the “Spitzer for Governor” campaign.
Isn’t such conduct more deserving of a criminal investigation than many of the matters that Spitzer pursues?
By the way, this Peter Elkind puff piece in the current edition of Fortune magazine at least provides some interesting personal background on Mr. Spitzer. Mr. Elkind is a co-author of Smartest Guys in the Room about the Enron scandal. Hat tip to Adam Shpeen for the link to the Spitzer article.