Does the U.S. have a case against Julian Assange?


UPDATE November 8, 2018: This mayo615 post from October 2016, discusses the legal complexities of a potential espionage or conspiracy charge against Julian Assange by the United States.  As of now, November 2018, the indictment and extradition of Julian Assange to the United States seems highly likely.  My reading that such a charge was likely and possibly imminent, is now probably becoming fact. Ecuador’s newly elected government is tired of providing Assange with diplomatic protection. Ecuador is likely to happily give up Assange and cause his extradition to the United States by Great Britain. The increased likelihood of moving against Assange was originally heightened by numerous factors: Obama’s announcement on October 7th 2016 that the United States officially holds Russia responsible for the cyber theft of the Democratic National Committee documents released by Wikileaks, and Assange’s own statements of his intent to harm the United States, most recently in a video interview on Real Time With Bill Maher, which are now coming back to haunt him.

 

Reblogged from Agence France Press

Source: Does the US have a case against Julian Assange? | Alternet

Does the U.S. have a case against Julian Assange?

If WikiLeaks founder Julian Assange ever ends up in a US courtroom, prosecutors could face an uphill struggle trying to convict him, given America’s legal safeguards for publishers, analysts say. On the other hand, over the course of Robert Mueller’s investigation, it has become much clearer that Assange was working directly with Guccifer 2.0 and probably Roger Stone, which alters the equation on his culpability.

Citing fears of prosecution in the United States, Assange remains holed up at Ecuador’s embassy in London on Saturday, defying a British police order to turn himself in for extradition to Sweden.

Assange faces sexual assault allegations in Sweden but has refused to set foot there, saying he runs the risk of extradition to the United States, which he insists is intent on charging him with espionage or other serious crimes for releasing troves of once-secret files to the public.

Assange’s lawyers and supporters say his concerns are justified and not driven by paranoia.

They cite tough statements from senior US officials, interrogations of Assange’s colleagues and a grand jury investigation that has reportedly questioned associates of Bradley Manning, the soldier accused of passing hundreds of classified documents to WikiLeaks.

“The grand jury is a serious business,” said Michael Ratner, a human rights lawyer advising Assange. referring to the discussions to determine whether a criminal indictment will be issued.

Some with links to Assange have reportedly faced questioning when trying to travel outside the United States and federal authorities at one point demanded Twitter open the accounts of WikiLeaks figures.

“They’re all over this case,” Ratner told AFP.

The US Justice Department will not comment on the grand jury probe and says it has no role in the extradition proceedings in London. But spokesman Dean Boyd said: “There continues to be an investigation into the WikiLeaks matter.”

Some US lawmakers and commentators have called for Assange to be charged with espionage or for conspiracy to obtain secret documents, arguing that he intended to sabotage America’s foreign policy and endangered lives by revealing the identities of informants.

Charging Assange under the Espionage Act — a vaguely worded World War I-era law — would be a difficult challenge, as it requires the government to show the accused intended to harm the US government or aid a foreign power, analysts said.

Without knowing the evidence held by US investigators, it’s difficult to predict how the government will pursue Assange’s case, said Charles Stimson, a former federal prosecutor.

“It’s a very open question as to whether you could try him for espionage,” said Stimson, a legal fellow at The Heritage Foundation think-tank who oversaw detainee policies at the Pentagon under ex-president George W. Bush.

A better option for prosecutors may be “to see whether or not they could charge him with something like conspiracy to disclose classified documents,” he said.

A protester wearing a Guy Fawkes mask holds a poster reading “I’m Julian” as he demonstrates outside the Ecuadorian embassy in London on June 23, where Wikileaks founder Julian Assange is seeking political asylum. If Assange ever ends up in a US courtroom, prosecutors could face an uphill struggle trying to convict him, given America’s legal safeguards for publishers, analysts say.

But such an approach would be breaking new legal ground, experts said.

Unlike Manning, charged with handing over a massive cache of secret State Department cables and military intelligence logs to WikiLeaks, Assange is not a US government employee obliged to withhold classified documents.

The United States has “never really successfully prosecuted a non-government official for taking documents that were classified,” Ratner said.

His defense attorneys portray him as a publisher, who merely came into possession of sensitive information. But US investigators would likely try to paint Assange as a plotter who helped Manning spill secrets, with the aim of tarnishing Washington.

Assange’s supporters can take comfort from a recent case against two pro-Israel lobbyists accused of passing on classified information to Israel, the first time civilians were charged under the Espionage Act.

After a long legal battle, prosecutors eventually dropped the charges in 2009.

The seminal case that proved the limits of government authority over publishing secrets came in 1971 over the Pentagon Papers, when President Richard Nixon tried to stop The New York Times from publishing classified documents on the Vietnam War.

The bid failed, with the courts citing the free speech rights enshrined in the First Amendment of the US Constitution.

Renowned First Amendment lawyer Floyd Abrams, who worked on the Pentagon Papers case, said Assange’s website raises questions about the limits of freedom of expression, including the publishing of names of Afghans cooperating with the US government.

Some of Assange’s public comments have seemed to suggest a desire to undermine US foreign policy, comments that could backfire on him in court, Abrams said.

“WikiLeaks has a First Amendment argument, and it is a serious First Amendment argument if it is ever charged,” Abrams said on C-Span television in 2010.

“At the same time, the government has a genuine and serious national security argument to be made with respect to the behavior, often the misbehavior, of WikiLeaks.”

Uber And The False Hopes Of A Sharing Economy

At its inception, Uber touted itself as a shining example of the “sharing economy” described by Jeremy Rifkin, in this now famous book, The Third Industrial Revolution. As time has passed the reality has been radically at odds with a sharing economy.  Among the many issues that have emerged has been the legacy of Uber’s ugly corporate culture, secret apps used to confound regulators, and to intimidate journalists, a Justice Department investigation of illegal practices, including 200 Uber employees conspiring together to attack Lyft’s operations. The proverbial chickens have come home to roost, as municipalities around the world have begun to regain control of transportation policy within their jurisdictions, and the inflated valuations of these unicorns begin to deflate.


Regulating Ride-Sharing: New York May Be The Model For The Future

Writing On The Wall: London and Vancouver Moving In A Similar Direction

At its inception, Uber touted itself as a shining example of the “sharing economy” described by Jeremy Rifkin, in this now famous book, The Third Industrial Revolution. As time has passed the reality has been radically at odds with a sharing economy.  Among the many issues that have emerged has been the legacy of Uber’s ugly corporate culture, secret apps used to confound regulators, and to intimidate journalists, a Justice Department investigation of illegal practices, including 200 Uber employees conspiring together to attack Lyft’s operations. The proverbial chickens have come home to roost, as municipalities around the world have begun to regain control of transportation policy within their jurisdictions, and the inflated valuations of these unicorns begin to deflate.

READ MORE:

READ MORE: Wharton Newsletter: Regulating Ride-Sharing: New York May Be The Model For The Future

From the Wharton Newsletter/Podcast, August 14, 2018

The largest market for Uber, Lyft and other ride-hailing app companies — New York City — last week had its first successful attempt at regulating the growth of the nascent industry. On Wednesday, the New York City Council passed a series of bills, notably one that places a one-year moratorium on the issue of new for-hire vehicle (FHV) licenses. Other bills establish minimum wage levels for ride-hailing service drivers; require FHVs to submit data on ridership with penalties for failure to do so; and create driver-assistance centers to provide counseling services.

New York City had little option to act, especially after a similar move by Mayor Bill de Blasio fell apart following intense lobbying by Uber. Increasing road congestion by cars was the biggest contributing factor to the passage of the bill capping new licenses, corroborated by a decline in subway ridership. The number of FHVs in the city had grown from 65,000 in 2015 to about 130,000 currently. Uber is the biggest gainer, as shown by its almost hockey-stick growth in ridership.

New York City took the right steps to regulate the FHV industry, according to Wharton professor of operations, information and decisions Senthil Veeraraghavan. “This is the right way to go,” he said. “This is a great experiment that we’re [witnessing].”

“They had to do something,” noted Wharton management professor John R. Kimberly. “This is part of an obviously much deeper story … and the timing seems to be right.”

The move to ensure that drivers receive a minimum pay of $15 an hour after they cover expenses is also significant, said James Parrott, director of economic and fiscal policies at the New School’s Center for New York City Affairs. He had worked on an extensive study for the city’s Taxi and Limousine Commission that looked at the ride-hailing sector and its growth, and in particular its impact on driver earnings.

Kimberly, Veeraraghavan and Parrott discussed the implications of the legislative actions governing New York City’s for-hire vehicle industry on the Knowledge@Wharton radio show on SiriusXM. (Listen to the podcast at the top of this page.)

“This is the right way to go. This is a great experiment that we’re [witnessing].”–Senthil Veeraraghavan

Incentive to Improve

The establishment of a minimum pay for drivers is an important incentive for ride-hailing app companies to increase the utilization of drivers’ time, said Parrott. Drivers currently have a passenger in the car for only about 36 minutes of every hour, which means they don’t have a paying passenger for 42% of their time, he added.

Up to now, Uber’s business model has been “to flood the streets with cars,” since the firm gets a commission based on every fare, Parrott said. “There’s been no incentive for them to better utilize the drivers’ capital,” he added. “Keep in mind; this is an industry where the capital investment in the rolling stock – the cars – is entirely put up by the drivers. The pay standard gives them an incentive by allowing them to pay a little bit less if they make better utilization of the drivers’ time.”

The city will use the year ahead to study congestion levels in the city and find ways to redress that, including through congestion pricing mechanisms. Last week’s actions took a step in that direction with a surcharge on cabs below 96th Street ($2 per ride for medallion trips and $2.75 for ride-hailing app cabs). It will also allow the city to monitor how the pay standard works out, and how the ride-hailing app companies make better utilization of drivers’ time, Parrott said.

“Even if you increase utilization by 10 percentage points – from 58% to 68% – you would only increase average wait times across the city about 20 to 30 seconds,” said Parrott, citing his study’s findings. “We sense that most people can live with that.”

According to Parrott, the number of Uber trips in the city increased 100% in 2016 and 70% in 2017. Going forward, he said that figure could probably grow another 40% over the next year, “even without any additional cars on the street – just from increased efficiency.” Those increased efficiencies could come from a variety of quarters, including urging part-time drivers to go full-time and recruiting some of the drivers from the non-app services, such as the traditional livery car segment that has no minimum pay standards.

“Uber and the drivers are on both sides of the story,” noted Veeraraghavan. Riders want low waiting times, which can be achieved with more vehicles. But drivers want fewer drivers, because that would allow them to get better pricing, he said.

“Granted it might have been done a lot sooner, but it seems to me that at least in the city of New York there’s a real, serious effort to get their arms around the problem.”–John Kimberly

Worsening Congestion

Parrott said New York City had first started talking about capping Uber and Lyft cars in 2015, drawing “heavy pushback” from the ride-hailing industry at that point. Between then and now, the number of trips using ride-hailing apps has skyrocketed to 600,000 a day, which is more than five times the level in 2015, he noted. A 2016 study by the mayor’s office proposed several remedial measures including those to reduce congestion, improve air quality, protect drivers’ interests and enhance passenger experiences.

Parrott said that while the city bears some responsibility for not acting sooner on the unbridled growth of the FHV industry, it faced a different climate when it attempted that in mid-2015. Uber at the time controlled 90% of the market in the city as opposed to 66% now, he pointed out. Suicides by six cab driversalso highlighted the “economic crisis” and changed public opinion in favor of the changes, he said.

“Theoretically speaking, there’s always a gap between what firms will want to optimize and what society wants to optimize,” said Veeraraghavan. “And it’s hard for individuals to see what’s optimal for this society.” However, as city residents have begun seeing the impact of the FHV industry’s growth — including on public transportation ridership numbers — they now have had a better understanding. “So we have a redo from 2015 to 2017 … and we’re seeing better support for this.”

“Granted, it might have been done a lot sooner, but it seems to me that at least in the city of New York there’s a real, serious effort to get their arms around the problem and to figure out how to solve it,” said Kimberly.

Congestion in New York City has worsened in recent years with not just the influx of cabs, but also other vehicles “providing instant service for a variety of needs that people believe they have,” including delivery vehicles, said Kimberly. “The density of tourists on the sidewalks is so great it spills over into the street – that slows down traffic and makes it hard for cars,” he added. The option of levying congestion pricing is being seriously considered also at the state headquarters in Albany, he noted.

At the same time, “the growth of FHVs has meant that there’s much better transportation access in the outer boroughs, so the city doesn’t want to diminish that newly available service,” said Kimberly. “And yet the city also has a great interest in making sure that the drivers are able to remain economically viable to meet their expenses and to earn a decent living.” Higher wages would also enable drivers to work fewer than the 10-12 hours a day they now put in, he added, and that would have safety benefits as well.

“If they can show that they have stability and regulatory certainty in their largest market in the U.S., that will give investors a lot more certainty….”–James Parrott

Congestion pricing will also help fund investments in maintaining and upgrading the city’s aging subway and public bus system, Parrott said. The decline in mass transit ridership is not just because of the growth of the FHV industry, he noted; commuters are turning away because of “under-investment and under attention to adequately maintaining the mass transit system.”

Uber’s Leadership Challenge

The changes also highlight a “leadership challenge” for Uber, said Kimberly. “They have hundreds of markets around the globe, and each market has its own political configuration, and its own way of doing business,” he noted. “When you think about the challenges of operating an enterprise like Uber on a global basis with all the local idiosyncrasies that need to be taken into account both economically and politically, it’s a really interesting [problem].”

Uber, which is currently valued at about $62 billion, is said to be preparing for an initial public offering of its stock next year. “If they can show that they have stability and regulatory certainty in their largest market in the U.S., that will give investors a lot more certainty about the potential prospects for the company,” said Parrott.

Uber’s impact on employment is also large, Parrott noted. Uber drivers are not legally considered employees, but if they were to be treated as full-time equivalent (FTE) employees, Uber would be the largest private-sector employer in New York City, with about 35,000 FTEs, he said. “[Ride sharing] has become a huge enterprise in New York City, and it and it’s not what people usually think of as gig work where you are doing this to supplement other income. We found that 80% of the drivers bought their cars mainly for the purpose of providing transportation services, and two thirds of the drivers are full-time drivers.”

Parrott noted that both Uber and Lyft embraced the pay standard proposal. But Kimberly thought they had little option in the matter. “I don’t think it’s by accident that they’re embracing the pay standard,” he said. “Left to their own devices, they probably would not have done that. But there’s been so much social criticism – and valid criticism – of their models that they’ve really had no choice.”

Catherine Deneuve defends men’s ‘right’ to hit on women and warns of a new “puritanism” – BBC News


Legendary French actress Catherine Deneuve and over 100 other prominent French women have today written a poignant editorial in Le Monde, warning of a new era of “puritanism” in the wake of the current wave of sexual harassment charges against women.  It should force all of us serious thinkers to reexamine the current very valid wave of outrage against sexual harassment and as well, the dangers of excess that hark back to other periods of ugly history.   A link to the Le Monde editorial is included here for those who read French or wish to translate the editorial in their browsers. The letter begins by declaring that violence of any kind against women is utterly unacceptable, but makes its point that we are in danger in this era of Trumpism of going into extremism in the name of virtue.

The open letter to Le Monde will undoubtedly spark denunciation by feminists, as has happened in the earlier criticism of women writers like Christina Hoff Sommers, who spoke out about the false claims regarding domestic violence on Super Bowl Sunday. The letter raises questions about truth and freedom of speech, especially among women themselves. It will hopefully ignite a monumental ethical and philosophical debate like nothing since Germain Greer debated William F. Buckley at Cambridge.

Read more In Le Monde (French language) : French Women Decry New Era of Puritanism

Source: Catherine Deneuve defends men’s ‘right’ to hit on women – BBC News

Catherine Deneuve defends men’s ‘right’ to hit on women

 

Catherine Deneuve. Photo: 30 November 2017
Catherine Deneuve has been in more than 100 films in a career spanning decades

French actress Catherine Deneuve has said that men should be “free to hit on” women.

She is one of 100 well-known French women who wrote an open letter, warning about a new “puritanism” sparked by recent sexual harassment scandals.

The letter deplores a wave of “denunciations” after claims that US movie mogul Harvey Weinstein has raped or sexually assaulted dozens of women.

Mr Weinstein has denied all allegations of non-consensual sex.

However, he has admitted that his behaviour has “caused a lot of pain”.

What does the open letter say?

The letter by French women writers, performers and academics was published in France’s Le Monde newspaper on Tuesday.

“Men have been punished summarily, forced out of their jobs when all they did was touch someone’s knee or try to steal a kiss,” it said.

“Rape is a crime, but trying to seduce someone, even persistently or clumsily, is not – and nor is men being gentlemanly a chauvinist attack.”

Harvey Weinstein
Harvey Weinstein has been expelled from the Academy of Motion Picture Arts and Sciences, the body behind the Oscars

The authors argued that there was a new “puritanism” afoot in the world.

They said that while it was legitimate and necessary to speak out against the abuse of power by some men, the constant denunciations have spiralled out of control.

According to the writers, this is creating a public mood in which women are seen as powerless, as perpetual victims.

“As women we do not recognise ourselves in this feminism, which beyond denouncing the abuse of power, takes on a hatred of men and of sexuality.”

Ms Deneuve, 74, has recently spoken openly against social media campaigns, which, she says, shame men accused of harassing women.

Women and men from all over the globe who have been sexually harassed have been sharing their stories across social media using the hashtag #MeToo.

In France, Twitter users are using #Balancetonporc (“rat on your dirty old man”) to encourage women to name and shame their attackers.

Ms Deneuve, an Oscar-nominated actress, has been in more than 100 films, making her debut in 1957.

Harvey Weinstein Hired Israeli ex-Mossad Agent to Intimidate Women Accusers And Journalists

In an extraordinary revelation today by Ronan Farrow, son of Woody Allen and the writer for The New Yorker who broke this story, it was revealed that Harvey Weinstein hired a female Israeli ex-Mossad agent via a private firm, Black Cube, and who used false identities and secret recording devices to intimidate Rose MacGowan and other female accusers of Harvey Weinstein.  Mr. Farrow appeared tonight on PBS Newshour in an interview by Judy Woodruff to detail his investigative findings. This has also now been reported by the Washington Post and other journals. 


Weinstein Hired Israeli Ex-Mossad Agent to Intimidate Rose MacGowan And Other Accusers

In an extraordinary revelation today by Ronan Farrow, son of Woody Allen and the writer for The New Yorker who broke this story, it was revealed that Harvey Weinstein hired a female Israeli ex-Mossad agent via a private firm, Black Cube, and who used false identities and secret recording devices to intimidate Rose MacGowan and other female accusers of Harvey Weinstein.  Mr. Farrow appeared tonight on PBS Newshour in an interview by Judy Woodruff to detail his investigative findings. This has also now been reported by the Washington Post and other journals.

Chilling tale of Harvey Weinstein’s spies shows Ronan Farrow’s reporting chops — and compassion


Journalist Ronan Farrow at the White House Correspondents’ Association dinner in 2015. (Jonathan Ernst/Reuters)

 Media Columnist November 7 at 2:44 PM
Over the past several weeks, I’ve heard endless variations of this question: “Why did it take so long for Harvey Weinstein to be revealed as a sexual predator?”With the publication Monday night of a remarkable story by Ronan Farrow in the New Yorker, there is less reason to speculate.In breathtaking detail, Farrow shows just how far the Hollywood mogul was willing to go to shut down the allegations of his sexual abuse over many decades.Farrow reports how Weinstein used a network of lawyers and spies — including former Mossad agents working undercover — to track women and reporters. It was a desperate, aggressive and, thankfully, failed effort.“It’s ‘Gaslight’ meets ‘Spotlight’ meets ‘All the President’s Men,’ ” was Hollywood writer Jake Fogelnest’s assessment of Farrow’s latest story.

Growing list of women allege sexual harassment, assault against Harvey Weinstein
Paz de la Huerta is among the many women accusing movie producer Harvey Weinstein of sexual harassment, assault or rape. Other accusers include Lupita Nyong’o, Gwyneth Paltrow and Cara Delevingne. (Nicki DeMarco/The Washington Post)

David Remnick, editor of the New Yorker, told me that the 29-year-old Farrow has the qualities he looks for in an investigative reporter — including relentless drive, or what he termed “obsession in the best sense.”

And, Remnick said, Farrow offers a rare quality: “Huge compassion, sympathy and patience” with those whose stories he wanted to tell. On occasions when he observed Farrow interacting with accusers, Remnick said, “it was really quite moving.”

Farrow’s reporting makes it clearer than ever how much credit must go not only to the women who came forward, willing to have their names used, but also to the New York Times, as well as the New Yorker, for withstanding the heat. The Times’s Jodi Kantor and Megan Twohey broke their history-making story Oct. 5; Farrow’s initial report in the New Yorker plowed new ground Oct. 10.

In this latest piece, Farrow, through access to a wide array of documents and many interviews, described Weinstein’s agents of intimidation.

“Two private investigators . . . using false identities, met with the actress Rose McGowan, who eventually publicly accused Weinstein of rape, to extract information from her. One of the investigators pretended to be a women’s rights advocate and secretly recorded at least four meetings with McGowan,” Farrow wrote.

The same operative, using a different identity and suggesting that she had information on Weinstein, met twice with a journalist to find out which women were talking to the press.

Later, Weinstein sicced his lawyers on news organizations, trying to prevent publication of negative stories. The role of prominent lawyer David Boies, who worked for Weinstein while repeatedly serving as outside counsel to the Times, is an unsavory subplot

Farrow’s road to this triumphant moment hasn’t been smooth. He started the reporting while working for NBC, but the network claims it didn’t believe the story was solid enough. He took it to the New Yorker, where he developed it further.

It’s obvious now that NBC passed up not only a story that would be a blockbuster but also one that had a crucial social purpose. (Nor is it the first time that the network has pulled its punches. It was The Washington Post that last year revealed the now-infamous “Access Hollywood” tape on which Donald Trump bragged about groping women, scooping NBC on its own material.)

Farrow, a Yale Law School graduate, and former MSNBC host, has his own family history with alleged sexual assault.

Along with his mother, actress Mia Farrow, he has supported his older sister Dylan in her accusations against their father, director Woody Allen. She says she recalls her father’s frequent inappropriate touching and, at age 7, an instance of molestation.

Allen has vehemently denied the charges, and in 1993, a Connecticut prosecutor decided not to bring charges, though reportedly acknowledging that there may have been “probable cause” to do so. Allen has been married for many years to a sibling of Ronan’s and Dylan’s, Soon-Yi Previn.

These days, Ronan Farrow regrets advising Dylan to keep quiet.

“I was for many years one of the people around a victim of sexual assault, saying, ‘Why bother coming forward more? What will it achieve? It’s just going to bring shame and trouble, and he’s a powerful guy,’ ” Farrow told Stephen Colbert last week.

On Tuesday, I asked Farrow by phone how much his family background had motivated this new reporting.

There’s “no factual link between the two,” he said, but indirectly, his family experience “was integral” to making sure that his reporting was deep and meticulous.

“I have been part of a family where we’ve had to grapple with the complex cost-benefit analysis” of making public accusations, he said.

For a long time, he told me, “I said it was better to move forward — don’t let this cast a shadow.”

But as his sister decided to take her accusations against Allen public in 2014, “I realized I was wrong. I realized the healing value of the truth.”

No matter what the motivation behind Farrow’s reporting, it is deeply impressive.

The wonder about exposing Weinstein should no longer be why it took so long. The wonder is that — under this kind of immense pressure — the revelations happened at all.

 

Silicon Valley Is Suffering From A Lack of Humanity

The genius of Steve Jobs lies in his hippie period and with his time at Reed College, the pre-eminent Liberal Arts college in North America. To his understanding of technology, Jobs brought an immersion in popular culture. In his 20s, he dated Joan Baez; Ella Fitzgerald sang at his 30th birthday party. His worldview was shaped by the ’60s counterculture in the San Francisco Bay Area, where he had grown up, the adopted son of a Silicon Valley machinist. When he graduated from high school in Cupertino in 1972, he said, “the very strong scent of the 1960s was still there. After dropping out of Reed College, a stronghold of liberal thought in Portland, Ore., in 1972, Mr. Jobs led a countercultural lifestyle himself. He told a reporter that taking LSD was one of the two or three most important things he had done in his life. He said there were things about him that people who had not tried psychedelics — even people who knew him well, including his wife — could never understand.


Deep Down We All Know Silicon Valley Needs The Humanitarian Vision of Steve Jobs

The genius of Steve Jobs lies in his hippie period and with his time at Reed College. With the deep ethical problems facing technology now, we need Jobs vision more than ever.

To his understanding of technology, Jobs brought an immersion in popular culture. In his 20s, he dated Joan Baez; Ella Fitzgerald sang at his 30th birthday party. His worldview was shaped by the ’60s counterculture in the San Francisco Bay Area, where he had grown up, the adopted son of a Silicon Valley machinist. When he graduated from high school in Cupertino in 1972, he said, “the very strong scent of the 1960s was still there. After dropping out of Reed College, a stronghold of liberal thought in Portland, Ore., in 1972, Mr. Jobs led a countercultural lifestyle himself. He told a reporter that taking LSD was one of the two or three most important things he had done in his life. He said there were things about him that people who had not tried psychedelics — even people who knew him well, including his wife — could never understand.

Decades later Jobs flew around the world in his own corporate jet, but he maintained emotional ties to the period in which he grew up. He often felt like an outsider in the corporate world, he said. When discussing Silicon Valley’s lasting contributions to humanity, he mentioned in the same breath the invention of the microchip and “The Whole Earth Catalog,” a 1960s counterculture publication. Jobs’ experience rings with my own experience in the Santa Clara Valley at that time. Jobs and I were both deeply affected by Stewart Brand, the visionary behind The Whole Earth Catalog.  Stanford professor Fred Turner has documented this period in his book “From the Counterculture to Cyberculture, Stewart Brand, the Whole Earth Network, and the Rise of Digital Utopianism. 

For me this journey also began with the extraordinary vision of Marshall McLuhan, the Canadian professor of communications, who literally predicted the emergence of the World Wide Web and “The Global Village,”  like some kind of modern day Nostradamus.

Stewart Brand is also featured in Tom Wolfe‘s book, “The Electric Kool-Aid Acid Test,” along with Ken Kesey’s Merry Pranksters and The Grateful Dead.  I had the great good fortune to formally meet Brand at a COMDEX Microsoft event in a hangar at McCarren Airport in Las Vegas and was immediately impressed by him, as was Jobs. Not surprisingly, Brand was an invited guest at the Microsoft event, having already seized on the importance of the personal computer and the prospect of a networked World. Recently, in another anecdote on that time, Tim Bajarin shared a wonderful story about Job’s counterculture friend and organic gardener who remains the manager of the landscape at the new Apple campus, retaining the feeling of the original Santa Clara Valley orchard economy, that some of us can still remember.

It is important to think back to that time in the Bay Area and the euphoria of the vision of “digital utopianism.”   It grounds me and helps me to understand where we have gone so terribly wrong.

Digital utopianism is now dead. I have written about its sad demise on this blog. The wonderful vision of digital utopianism and the Web has been perverted by numerous authoritarian governments, now including our own, resulting in a Balkanized Web and a dark Web pandering all kinds of evil. This is the problem we face and the urgent need for greater emphasis on ethics. What about human life, culture, and values?  So many areas of technology are on the verge of deep philosophical questions.  Uber has become the poster child for everything that is wrong with Silicon Valley. I ask myself, “What would Steve Jobs have said about Travis Kalanick and Uber?” I think we know the answer. Ironically, Silicon Valley has a center for research and study in ethics, the Markkula Center for Applied Ethics at Santa Clara University. Mike Markkula was an Intel marketing guy who quit Intel to join with two crazy long-haired guys in Cupertino.

I am a Liberal Arts & Humanities graduate myself, including graduate study at Oxford University. When I returned from England I asked the obvious question: Now how do I make a living?  As it happened, I very improbably landed my first real job at Intel Corporation. When I asked why I was hired, the answer was that I was judged to have the requisite talent and aptitude if not the technical knowledge.  I later developed a reputation for being very “technical” by the process of “osmosis,” by simply living in a highly rarified technical culture and receiving whiteboard tutorials from friendly engineers. I was thrown into a group of Ivy League MBA’s. We wistfully shared a desire to have the others’ educations, but simply working together made us all more effective. Amazingly my career grew almost exponentially and I attribute my success to that cross-fertilization.

While with Intel in Hillsboro Oregon, someone approached me to represent Intel at a talk with Reed students. I was cautioned that few if any Reed students would be interested in working for Intel, but they would be very intellectually engaging.  That proved to be a significant understatement.  In the end, I believe that perhaps two dozen “Reedies,” as they are known, joined Intel, one of whom went on to a stellar career as a Silicon Valley venture capitalist.  A significant part of my later career has been devoted to using my Humanities education background to assess and translate deep technology in human terms for the benefit of both management and potential customers.

Today, nothing of my story would ever happen, but the influence of the Humanities and Arts in business seems more sorely needed than ever.

Read more: Why We Need Liberal Arts in Technology’s Age of Distraction – Time Magazine – Tim Bajarin

Read more: Digital Utopianism of Marshall McLuhan and Stewart Brand is Cracking – mayo615,com

Read more: Liberal Arts In The Data Age – Harvard Business Review

Does the U.S. have a case against Julian Assange?

UPDATE: This mayo615 post from October 2016, discusses the legal complexities of a potential espionage or conspiracy charge against Julian Assange by the United States. My reading that such a charge was likely and possibly imminent, is now fact. Ecuador’s newly elected government insistence that it will continue to provide Assange with diplomatic protection is becoming very thin. It is more likely that time and diplomatic pressure will force Ecuador to give up Assange and cause his extradition to the United States by Great Britain. The increased likelihood of moving against Assange has been heightened in my opinion, by two factors: Obama’s announcement on October 7th that the United States officially holds Russia responsible for the cyber theft of the Democratic National Committee documents released by Wikileaks, and Assange’s own statements of his intent to harm the United States, most recently in a video interview with Bill Maher, which are now coming back to haunt him.


UPDATE: This mayo615 post from October 2016, discusses the legal complexities of a potential espionage or conspiracy charge against Julian Assange by the United States.  My reading that such a charge was likely and possibly imminent, is now fact. Ecuador’s newly elected government insistence that it will continue to provide Assange with diplomatic protection is becoming very thin.  It is more likely that time and diplomatic pressure will force Ecuador to give up Assange and cause his extradition to the United States by Great Britain. The increased likelihood of moving against Assange was originally heightened by two factors: Obama’s announcement on October 7th that the United States officially holds Russia responsible for the cyber theft of the Democratic National Committee documents released by Wikileaks, and Assange’s own statements of his intent to harm the United States, most recently in a video interview with Bill Maher, which are now coming back to haunt him.  It now appears that the technicalities of the indictment may be more complex.

Reblogged from Agence France Press

Source: Does the US have a case against Julian Assange? | Alternet

Does the U.S. have a case against Julian Assange?

If WikiLeaks founder Julian Assange ever ends up in a US courtroom, prosecutors could face an uphill struggle trying to convict him, given America’s legal safeguards for publishers, analysts say.

If WikiLeaks founder Julian Assange ever ends up in a US courtroom, prosecutors could face an uphill struggle trying to convict him, given America’s legal safeguards for publishers, analysts say.

Citing fears of prosecution in the United States, Assange remained holed up at Ecuador’s embassy in London on Saturday, defying a British police order to turn himself in for extradition to Sweden.

Assange faces sexual assault allegations in Sweden but has refused to set foot there, saying he runs the risk of extradition to the United States, which he insists is intent on charging him with espionage or other serious crimes for releasing troves of once-secret files to the public.

Assange’s lawyers and supporters say his concerns are justified and not driven by paranoia.

They cite tough statements from senior US officials, interrogations of Assange’s colleagues and a grand jury investigation that has reportedly questioned associates of Bradley Manning, the soldier accused of passing hundreds of classified documents to WikiLeaks.

“The grand jury is a serious business,” said Michael Ratner, a human rights lawyer advising Assange. referring to the discussions to determine whether a criminal indictment will be issued.

Some with links to Assange have reportedly faced questioning when trying to travel outside the United States and federal authorities at one point demanded Twitter open the accounts of WikiLeaks figures.

“They’re all over this case,” Ratner told AFP.

The US Justice Department will not comment on the grand jury probe and says it has no role in the extradition proceedings in London. But spokesman Dean Boyd said: “There continues to be an investigation into the WikiLeaks matter.”

Some US lawmakers and commentators have called for Assange to be charged with espionage or for conspiracy to obtain secret documents, arguing that he intended to sabotage America’s foreign policy and endangered lives by revealing the identities of informants.

Charging Assange under the Espionage Act — a vaguely worded World War I-era law — would be a difficult challenge, as it requires the government to show the accused intended to harm the US government or aid a foreign power, analysts said.

Without knowing the evidence held by US investigators, it’s difficult to predict how the government will pursue Assange’s case, said Charles Stimson, a former federal prosecutor.

“It’s a very open question as to whether you could try him for espionage,” said Stimson, a legal fellow at The Heritage Foundation think-tank who oversaw detainee policies at the Pentagon under ex-president George W. Bush.

A better option for prosecutors may be “to see whether or not they could charge him with something like conspiracy to disclose classified documents,” he said.

A protester wearing a Guy Fawkes mask holds a poster reading “I’m Julian” as he demonstrates outside the Ecuadorian embassy in London on June 23, where Wikileaks founder Julian Assange is seeking political asylum. If Assange ever ends up in a US courtroom, prosecutors could face an uphill struggle trying to convict him, given America’s legal safeguards for publishers, analysts say.

But such an approach would be breaking new legal ground, experts said.

Unlike Manning, charged with handing over a massive cache of secret State Department cables and military intelligence logs to WikiLeaks, Assange is not a US government employee obliged to withhold classified documents.

The United States has “never really successfully prosecuted a non-government official for taking documents that were classified,” Ratner said.

His defense attorneys portray him as a publisher, who merely came into possession of sensitive information. But US investigators would likely try to paint Assange as a plotter who helped Manning spill secrets, with the aim of tarnishing Washington.

Assange’s supporters can take comfort from a recent case against two pro-Israel lobbyists accused of passing on classified information to Israel, the first time civilians were charged under the Espionage Act.

After a long legal battle, prosecutors eventually dropped the charges in 2009.

The seminal case that proved the limits of government authority over publishing secrets came in 1971 over the Pentagon Papers, when President Richard Nixon tried to stop The New York Times from publishing classified documents on the Vietnam War.

The bid failed, with the courts citing the free speech rights enshrined in the First Amendment of the US Constitution.

Renowned First Amendment lawyer Floyd Abrams, who worked on the Pentagon Papers case, said Assange’s website raises questions about the limits of freedom of expression, including the publishing of names of Afghans cooperating with the US government.

Some of Assange’s public comments have seemed to suggest a desire to undermine US foreign policy, comments that could backfire on him in court, Abrams said.

“WikiLeaks has a First Amendment argument, and it is a serious First Amendment argument if it is ever charged,” Abrams said on C-Span television in 2010.

“At the same time, the government has a genuine and serious national security argument to be made with respect to the behavior, often the misbehavior, of WikiLeaks.”

Jerks And The Start-ups They Ruin

Perhaps the premiere of Season 4 of “Silicon Valley” twigged me to share this post. but despite the title, the HBO series only connection may be the now viral “mean jerk time algorithm.” The real “Silicon Valley jerk” has been around for decades, buried with all the other dirty laundry. Uber’s Travis Kalanick has only brought it front and center at this moment. It is something of a conundrum as some of the jerks are also the most successful. We all now know about the “bad” Steve Jobs. Oracle for years had a very bad reputation that came directly from Larry Ellison himself. Microsoft was long known as a “sweatshop” with a highly negative culture led by Steve Ballmer. Even venture capitalists themselves have caught the disease as evidenced by Reid Hoffman and the late Tom Perkins of KPCB. The best assessment I have heard is that these aggressive unrestrained corporate cultures destroy their own goals. Or better yet, the saying that “culture trumps strategy.”


Perhaps the premiere of Season 4 of “Silicon Valley” twigged me to share this post. but despite the title, the HBO series only connection may be the now viral “mean jerk time algorithm.”     The real “Silicon Valley jerk” has been around for decades, buried with all the other dirty laundry. Uber’s Travis Kalanick has only brought it front and center at this moment. It is something of a conundrum as some of the jerks are also the most successful. We all now know about the “bad” Steve Jobs. Oracle for years had a very bad reputation that came directly from Larry Ellison himself.  Microsoft was long known as a “sweatshop” with a highly negative culture led by Steve Ballmer. Even venture capitalists themselves have caught the disease as evidenced by Reid Hoffman and the late Tom Perkins of KPCB.  The best assessment I have heard is that these aggressive unrestrained corporate cultures destroy their own goals. Or better yet, the saying that “culture trumps strategy.”

 

The tech industry has a problem with “bro culture.” People have been complaining about it for years. Yet nobody has done much to fix it.

That may finally change if the people in charge of Silicon Valley — venture capitalists, who control the money — start to realize that the real problem with tech bros is not just that they’re boorish jerks. It’s that they’re boorish jerks who don’t know how to run companies.

Look at Uber, the ride-hailing start-up. It’s the biggest tech unicorn in the world, with a valuation of $69 billion. Not long ago Uber seemed invincible. Now it’s in free fall, and top executives have fled. The company’s woes spring entirely from its toxic bro culture, created by its chief executive, Travis Kalanick.

What is bro culture? Basically, a world that favors young men at the expense of everyone else. A “bro co.” has a “bro” C.E.O., or C.E.-Bro, usually a young man who has little work experience but is good-looking, cocky and slightly amoral — a hustler. Instead of being forced by investors to surround himself with seasoned executives, he is left to make decisions on his own.

The bro C.E.O. does what you’d expect an immature young man to do when you give him lots of money and surround him with fawning admirers — he creates a culture built on reckless spending and excessive partying, where bad behavior is not just tolerated but even encouraged. He creates the kind of company in which going to an escort bar with your colleagues, as Mr. Kalanick did in South Korea in 2014, according to recent reports, seems like a good idea. (The visit led, understandably, to a complaint to the personnel department.)

Bro cos. become corporate frat houses, where employees are chosen like pledges, based on “culture fit.” Women get hired, but they rarely get promoted and sometimes complain of being harassed. Minorities and older workers are excluded.

Bro culture also values speedy growth over sustainable profits, and encourages cutting corners, ignoring regulations and doing whatever it takes to win.

Sometimes it works. But often the whole thing just flames out. The bros blow through the money and find they have no viable business. For example, Quirky, founded in 2009 by the 20-something Ben Kaufman. It raised $185 million to build a “social product development platform” that sold kooky gadgets but filed for bankruptcy basically because the “brash” and “unorthodox” chief executive had no business being a chief executive. One indication that Mr. Kaufman is a bro? Well, the first reference he lists on his LinkedIn page is: “He’s a dick … but hilarious.”

Zenefits, a human-resources start-up, and another bro co., raised $583 million, at a peak valuation of $4.5 billion, then crashed after reports that it had used software to cheat on licensing courses for insurance brokers, and operated a hard-partying workplace where cups of beer and used condoms were left in stairwells. Zenefits limps on, but its C.E.-Bro co-founder has left the company, and nearly half the staff has been laid off.

Uber’s public downfall began in February, when Susan Fowler, a former engineer at the company, wrote about enduring sexual harassment and discrimination there. Other employees came forward with stories. One involved a manager groping employees’ breasts. Mr. Kalanick’s own bro-hood became part of the story when a video surfaced showing him berating a Uber driver who complained that Uber’s price cuts had driven him into bankruptcy. Mr. Kalanick said the driver needed to take responsibility for his own life.

As this was happening, Google’s self-driving car unit sued Uber, alleging it had stolen its ideas. Then word leaked that Uber had been using a sneaky software tool to deceive regulators in cities around the world. All this is as much a part of “bro culture” as the poor treatment of women; the point is to get away with as much as you can.

Hoping to right the ship, Uber appointed one of its board members, Arianna Huffington, to join former attorney general Eric Holder and others to investigate the sexual harassment claims. Mr. Kalanick has apologized and vowed to “grow up.” (He’s 40.) Most important, Uber has announced that it is planning to hire a chief operating officer, ideally a steady hand like Sheryl Sandberg, the chief operating officer of Facebook. It’s a great idea, but it should have happened years ago. Now it may be too late.

Ms. Huffington insists the board has full confidence in Mr. Kalanick. But should it? He’s a college dropout with a spotty track record and a reputation for pugnacity. His record at Uber includes racking up enormous losses — reportedly $5 billion over the last two years. Despite this, the bluest blue-chip investors (including Goldman Sachs and Morgan Stanley) have invested a total of $16 billion in Uber.

Bro C.E.O.s are better at raising money than making money. So why do venture capitalists keep investing in them? It may be because many of the venture capitalists are bros as well.

Venture capitalists used to be tech engineers who had made a bundle, retired early and took up investing in start-ups as a kind of white-shoe hobby. The new breed are competitive alpha males who previously might have gone to work as bond traders. At the same time, there are fewer women. In 1999, 10 percent of investing partners at venture capital companies were women. By 2014 the number had declined to 6 percent, according to the Diana Project at Babson College. This is probably one reason that, despite many studies showing that women run companies better than men, none of the 15 biggest American tech companies valued over $1 billion has a female chief executive.

Uber’s collapse should not come as a surprise but it does offer a lesson: Toxic workplace culture and rotten financial performance go hand-in-hand. It’s possible for a boorish jerk to run a successful company, but jerks do best when surrounded by non-jerks, and bros do best when they hire seasoned executives to help them. Without “adult supervision” and institutional restraints, the C.E.-Bro’s vices end up infecting the culture of the workplaces they control.

This poisonous state of affairs will get fixed only when investors start getting hurt. A crash at Uber, the most high-profile tech start-up in the world, could provide the jolt that finally brings the tech industry back to its senses.

British Columbia: The ‘Wild West’ of Canadian Political Cash – NYTimes.com

British Columbia has no limits on political donations, leading critics to say the provincial government has become a lucrative business dominated by special interests. As the premier of British Columbia, Christy Clark is on the public payroll, pulling down a salary of 195,000 Canadian dollars in taxpayer money. But if that were not enough, she also gets an annual stipend of up to 50,000 Canadian dollars — nearly $40,000 — from her party, financed by political contributions. Personal enrichment from the handouts of wealthy donors, some of whom have paid tens of thousands of dollars to meet with her at private party fund-raisers? No conflict of interest here, according to a pair of rulings last year by the province’s conflict-of-interest commissioner — whose son works for Ms. Clark.


British Columbia has no limits on political donations, leading critics to say the provincial government has become a lucrative business dominated by special interests.

Source: British Columbia: The ‘Wild West’ of Canadian Political Cash – NYTimes.com

By DAN LEVIN
THE NEW YORK TIMES

VANCOUVER, British Columbia — As the premier of British Columbia, Christy Clark is on the public payroll, pulling down a salary of 195,000 Canadian dollars in taxpayer money. But if that were not enough, she also gets an annual stipend of up to 50,000 Canadian dollars — nearly $40,000 — from her party, financed by political contributions.

Personal enrichment from the handouts of wealthy donors, some of whom have paid tens of thousands of dollars to meet with her at private party fund-raisers? No conflict of interest here, according to a pair of rulings last year by the province’s conflict-of-interest commissioner — whose son works for Ms. Clark.

“B.C. is the wild west,” said Duff Conacher, a founder of Democracy Watch, a Canadian civic organization that has petitioned the Supreme Court of British Columbia to void the commissioner’s decision. The group argues that there is a “reasonable apprehension of bias” because the commissioner’s son is a deputy minister in Ms. Clark’s cabinet. The court heard arguments in the case on Friday.

Ethics in politics is a hot topic right now in Ottawa. Prime Minister Justin Trudeau has faced criticism for attending exclusive fund-raisers, and other Canadian provinces are tightening the reins on political contributions. Against that backdrop, the case in British Columbia stands out for the unabashedly cozy relationship between private interests and government officials in the province, a political state of affairs that will be tested at the ballot box in May.

Unlike many other provinces in Canada, British Columbia has no limits on political donations. Wealthy individuals, corporations, unions and even foreigners are allowed to donate large amounts to political parties there. Critics of the premier and her party, the conservative British Columbia Liberal Party, say the provincial government has been transformed into a lucrative business, dominated by special interests that trade donations for political favors, undermining Canada’s reputation for functional, consensus-driven democracy.

“What it says to people is money talks and votes don’t,” said Dermod Travis, the executive director of IntegrityBC, a nonpartisan political watchdog group based in Victoria, the provincial capital. “When anyone anywhere in the world can donate as much as they want to the system, you have an even bigger threat to the system.”

Much of what is considered business as usual in British Columbia is illegal elsewhere in Canada. The federal government bars unions, corporations and foreigners from donating to candidates for federal office, and donations by individual citizens are limited to 1,525 Canadian dollars, about $1,150, a year. Those limits were imposed after a fund-raising scandal in the 1990s.

Provincial ethics rules are a patchwork of restrictions and loopholes. Corporate and union donations are banned in Nova Scotia, Manitoba, Alberta and, since Jan. 1, in Ontario. Ontario provincial officials, their staff members and party leaders are also barred from attending fund-raisers. Quebec goes even further, limiting party donations to 100 Canadian dollars, roughly $76 a year, and only by individual citizens.

British Columbia is not the only province to refuse to impose such tight limits, but democracy advocates say the large amounts of money flowing there are a particular cause for concern.

Critics say that big donors to Ms. Clark’s party often appear to have benefited financially from their political generosity. These include banks, Chinese real estate developers, and companies like Imperial Metals, the owner of a mine tailings pond that spilled billions of gallons of toxic debris in 2014, and was then permitted to operate an even larger mine. Imperial Metals did not respond to a request for comment.

On Thursday, Ms. Clark’s government approved the Kinder Morgan Trans Mountain oil pipeline project, after opposing the proposal at hearings last January. Political donation records show that Kinder Morgan and other oil industry supporters of the project had donated more than 718,000 Canadian dollars, about $546,000, to the BC Liberal party through March 2016.

Some pooled donations have ended up in the pockets of the premier, following a longstanding practice by her political party. Ms. Clark has received more than 277,000 Canadian dollars, or $210,000, from the BC Liberal Party since 2011, according to Canadian news media reports. No other party in British Columbia pays its leader a stipend, and only one other Canadian premier, in Saskatchewan, receives such funds; the practice has largely vanished elsewhere as the provinces have tightened their political finance rules.

Ms. Clark’s office declined to answer specific questions about her conduct and her relationship with the conflict-of-interest commissioner and his son. Instead, British Columbia’s minister of justice, Suzanne Anton, who is also its attorney general, sent a statement saying that the province’s standards “should give the public confidence in the electoral system.”

In an email, the B.C. Liberal Party said its leader’s stipend was a longstanding tradition that previous conflict-of-interest commissioners had found acceptable.

Last April, Ms. Clark’s stipend was challenged by David Eby, a member of the provincial legislative assembly from the B.C. New Democratic Party. He filed complaints with the conflict-of-interest commissioner about the stipend and about Ms. Clark’s attendance at fund-raisers where donors paid thousands of dollars to meet with her privately.

“In practice, it means that if you’re part of a coterie of high-net-worth donors, your private interests get priority over what’s best for the province,” Mr. Eby said.

In nine years as British Columbia’s conflict of interest commissioner, Paul Fraser said he has never found any government official to be in violation of the province’s Conflict of Interest Act. Mr. Fraser has donated to Ms. Clark’s political party, and so has his son, John Paul Fraser, who worked on Ms. Clark’s election campaign and now serves in her cabinet as the deputy minister for government communications and public engagement.

The elder Mr. Fraser ruled in May that his son’s boss did not violate the act by accepting tens of thousands of dollars from her party while attending exclusive party fund-raisers, despite the law prohibiting actions by officials that may create even the “reasonable perception” that they might be affected by private interests.

Democracy Watch asked the provincial Supreme Court in October to overturn the ruling, arguing that the commissioner should have recused himself, as he did in a 2012 case against Ms. Clark.

In a telephone interview, Mr. Fraser rejected accusations of bias over his son’s job. “The issue, I guess, is, should people’s children and their career aspirations trump other considerations,” he said. He added that his 2012 recusal was a special case, because his son had been in business with the premier’s ex-husband.

Mr. Fraser’s lawyers have tried to get the case dismissed by arguing that the commissioner’s opinions are immune to judicial review.

Canada’s Open Door to Tax Fraud, Money Laundering

How many shell companies exist in Canada? How many legal trusts? Who are the beneficial owners protected by such unnecessary veils of secrecy? No one knows because in most cases there is no legal requirement to disclose actual ownership even to regulators. In fact, more information is required to get a library card than to set up a company in most jurisdictions in Canada. What we do know is that Canada ranks near the bottom among our OECD partners in terms of corporate disclosure requirements to fight money laundering and tax evasion. A recent report from Transparency International detailed the dismal situation and why our country has become a haven for dubious offshore property speculation.


 

The Shell Game: Canada’s Lax Disclosure Laws Open Door to Tax Fraud, Money Laundering

Transparency International warns against country becoming a ‘haven for corrupt capital.’

By Mitchell Anderson | TheTyee.ca

How many shell companies exist in Canada? How many legal trusts? Who are the beneficial owners protected by such unnecessary veils of secrecy? No one knows because in most cases there is no legal requirement to disclose actual ownership even to regulators. In fact, more information is required to get a library card than to set up a company in most jurisdictions in Canada.

What we do know is that Canada ranks near the bottom among our OECD partners in terms of corporate disclosure requirements to fight money laundering and tax evasion. A recent report from Transparency International detailed the dismal situation and why our country has become a haven for dubious offshore property speculation.

“The Canadian government must take immediate steps to require all companies and trusts in the country to identify their beneficial owners to ensure Canada does not become a haven for corrupt capital,” warns Transparency International Canada executive director Alesia Nahirny.

Canada is one of the few developed countries that does not require the identities of company directors to be verified or any information on shareholders. In most provinces, it is legal to use “nominee” directors or shareholders without disclosing that they are acting on someone else’s behalf.

A nominee is essentially a sock puppet — the proverbial student or homemaker often listed as the title owner of some of Canada’s most expensive homes. Why would someone list a multi-million dollar property in someone else’s name? Some plausible reasons include to avoid taxes or to launder money. This practice remains completely and inexplicably legal in most parts of our painfully polite country.

Lawyers can also act as nominee directors, offering their clients an additional level of secrecy under solicitor-client privilege unavailable in most other countries. A ruling from the Supreme Court of Canada in 2015 exempted lawyers and their firms from important parts of the Proceeds of Crime and Terrorist Financing Act, further widening the yawning loopholes in our laws meant to fight money laundering. According to an international oversight body, the Financial Action Task Force of which Canada is a member, “the legal profession in Canada is especially vulnerable to misuse.”

Toronto lawyer Simon Rosenfeld was secretly taped in 2002 during a meeting in a Miami bar with an undercover RCMP officer, who was posing as a member of a Columbian drug cartel needing money-laundering services. According to the officer’s testimony, after exchanging a token dollar to cement solicitor-client secrecy, Rosenfeld bragged that moving illegal funds through Canada was “20 times” easier than the U.S., where arrest and convictions are much more likely. He described the Canadian enforcement regime as “la la land” and said that five other lawyers in Vancouver laundered $200,000 per month through trust accounts for a seven per cent commission.

The transcript of this conversation did not endear Rosenfeld to the jury during his prosecution and he was sentenced to three years in jail. He appealed the conviction and the higher court judge increased his sentence to five years. This rare successful enforcement provides some fleeting schadenfreude, but Rosenfeld’s seasoned and sad assessment of “la la land” continues to ring true.

Legal black boxes

Millions of legal trusts are estimated to exist in Canada, but there is no way of knowing since there is no requirement for them to be registered or file any record of their existence — again an outlier among other countries. They are supposed to file information on assets and trustees with the Canada Revenue Agency but only a small fraction actually do.

A trust is the consummate legal black box. Considered a mere private contract under Canadian law, trusts do not need to keep records on beneficial owners, let alone file such documents with the federal government. Trustees can conduct transactions without disclosing their role as go-betweens, making it difficult or impossible for financial institutions to comply with money laundering regulations. To our international embarrassment, the Financial Action Task Force found in 2016 that Canada was less than fully compliant in 29 out of 40 anti-money laundering measures and “non-compliant” regarding transparency and beneficial ownership of such legal arrangements.

Real estate in Vancouver and Toronto is where the rubber really hits the road on these national regulatory failings. Transparency International looked at the title documents for the 100 most expensive homes in the Lower Mainland and unsurprisingly found a sampling of all these methods to conceal the beneficial owners. Twenty-nine properties were held by Canadian or offshore shell companies, 11 were owned by nominees with no obvious source of income, six more were held by trusts. In total, 49 of these luxury estates collectively worth more than $1 billion had opaque ownership.

Canada’s lax legal oversight coupled with a decades-long public policy effort to incentivize wealthy citizenship has turned Vancouver into a global hedge city. Like London, New York, and San Francisco, Vancouver’s luxury properties have become a favored place to stash cash for the world’s wealthiest.

According to professor David Ley at the University of British Columbia, Canada effectively sold Canadian citizenships to rich offshore investors through the now-cancelled Business Immigration Program. Ley described the scheme during a lecture last September, detailing how up to 200,000 of the world’s wealthiest may have arrived in the Lower Mainland as a result of these public policy efforts, inflating property values and contributing to our current housing woes.

According to Ley, Canada’s BIP was heavily oversubscribed because Canada was selling citizenships for far below the international market rate compared to other countries with similar citizenship-for-sale incentive programs. In the U.S., candidates had to invest $1,000,000 and employ up to 10 Americans before being granted citizenship. In Canada, investors only had to loan provincial governments $800,000 to be paid back in full after five years. This come-and-get-it attitude towards passports and global capital seems sadly similar to other national assets such as natural resources, but I digress.

Besides ballooning our housing prices, was there a net economic benefit to this citizenship fire sale? According to Ley, the federal immigration database showed that “of all immigration streams to Canada, the Business Immigration Program led to the lowest declared incomes, lower even than refugees.” This was in part because wealthy offshore investors are so skillful at avoiding taxation coupled with a shocking lack of enforcement from the CRA.

Defending against dubious lucre

What can Canada do to clean up this mess and avoid becoming an even more desirable destination for dubious global lucre? A low-cost first step would be to require all Canadian companies and trusts to declare beneficial owners and publish this information on a public searchable registry. The United Kingdom brought in such a system in 2016 to improve in law enforcement and tax collection, which will more than cover the cost of implementation.

Transparency International has several other practical suggestions that are also supported by the banking sector and law enforcement:

  • Beneficial ownership should be listed on all land title documents, ideally retroactively.
  • Corporate registries should have the resources and requirement to accurately identify directors and shareholders
  • The federal government should require all sectors — including real estate agents — to identify beneficial owners before transactions are conducted.

Besides money launderers, tax evaders and criminals, who could possibly oppose these sensible and long overdue reforms? Is the Trudeau government going to act quickly to plug these gapping holes and bring our country in line with the global fight against illicit capital? The recent cash-for-access events with wealthy offshore investors provide a telling opportunity to see on whose behalf Trudeau is acting. The whole country is watching.  [Tyee]

Uber Is Still Trump

UPDATE: This February 3, 2016 post on Uber deserves an update. This week Uber announced that it lost $800 Million in its 3rd quarter. That’s correct, $800 Million in only three months. The Uber announcement tries to spin the loss as good news for Uber as ” increased by only 25% over the third quarter last year. An $800 Million quarterly loss is right up there in the same league with Trump lost money. I guess we need to remember Trump’s admonition that debt is good, and it’s ok to lose other people’s money. Uber’s announcement goes on to project continuing losses projected to be greater than $3 Billion next year, as Uber continues its plans for an apparent IPO for brain dead investors.


badges

Permits? We don’t need no stinkin’ permits!

UPDATE:  This February 3, 2016 post on Uber deserves an update. This week Uber announced that it lost $800 Million in its 3rd quarter. That’s correct, $800 Million in only three months. The Uber announcement tries to spin the loss as good news for Uber as ” increased by only 25% over the third quarter last year.  An $800 Million quarterly loss is right up there in the same league with Trump lost money. I guess we need to remember Trump’s admonition that debt is good, and it’s ok to lose other people’s money.  Uber’s announcement goes on to project continuing losses projected to be greater than $3 Billion next year, as Uber continues its plans for an apparent IPO for brain dead investors.

Then we have Uber’s new dispute with the California Department of Motor Vehicles and Attorney General’s office. Uber has begun operating self-driving vehicles in San Francisco without obtaining the necessary permits. Uber is claiming that they are exempt and don’t need permits to operate driverless cars. They “don’t need no stinkin’ permits,” though video posted on SFGate shows an Uber driverless vehicle running a red light on 3rd Street, right in front of SFMOMA.  Why do I feel like Uber and Trump are the same thing?

The Problem With Uber Has Absolutely Nothing To Do With Ride Sharing

donaldtrump

uber-travis-kalanick-23

Donald Trump, Travis Kalanick, and Uber

So Trump is Uber and conversely, Uber is Trump. This comparison has been made by both supporters and opponents, so as they say, there must be some truth in it. Both Uber and Trump have based their strategies on disrupting the status quo and the establishment with politically incorrect behavior.  My argument here is simply that while the disruption fostered by both Trump and Uber may appear attractive at first glance, and desirable to many, in both cases, there are much deeper ethical issues that are only now coming to the forefront.

Uber’s origins date back to a cold winter night in Paris in 2008, when founders Travis Kalanick and Garrett Camp were stranded without a cab.  Having personally also been stranded in Paris without a taxi on a cold and rainy night, I can commiserate.  But the real strategy behind the founding of Uber was to disrupt what they perceived to be an overregulated industry ripe for the picking, managed by municipalities and regional agencies ill-equipped to handle the kind of corporate pressure brought to bear by Uber.  The Uber strategy involves massive PR, faux negotiations with slow-moving regulatory bureaucracies, followed by defiantly ignoring the law, which Uber euphemistically describes as “principled confrontation.”  It is nothing less than blitzkrieg. Similarly, Donald Trump has crafted his strategy to disrupt politics as usual, with political incorrectness, bluster, and bombast.  Both Travis Kalanick of Uber and Donald Trump share the same odd appeal for their disruption, but both also have armies of critics who perceive much deeper and disturbing issues.  It all has an air faintly of Fredrick Nietzche’s Man and Superman and Ayn Rand’s philosophy of total self-interest.

ayn rand

Ayn Rand

I also ask rhetorically why and how Uber has managed to attract such a massive unprecedented pile of investment capital.  Uber is the current global symbol of defiant confrontation with any and all regulation of industries. Some are arguing convincingly that the huge pile of cash may have to do with sheer plutocratic greed, driven by Wall Street lobbyists, keen to roll back all regulation of capitalism everywhere.  There is no shortage of circumstantial evidence that this may be correct, from the ongoing global banking scandals to corporate tax evasion.

Both Trump and Uber also now appear to be hitting serious bumps in their strategies.  Trump ignominiously lost the Iowa Caucus and is facing a serious threat from a Republican establishment determined to stop his candidacy one way or another. Uber is facing its own disruption, a federal lawsuit by the California Public Utilities Commission, challenging Uber’s definition of their drivers as “contractors.” The California PUC lawsuit has spawned numerous other similar actions against Uber and is being closely watched by legal experts around the World, particularly in the European Union countries and India. A decision against Uber could have major global consequences for Uber’s business model.  Meanwhile, organized protests against Uber’s practices, policies, and contractor pay have also evolved and escalated.  The early protests were particularly unsuccessful and counter-productive, and which served only to aggravate the public. However, more recent protest strategies have been much more effective.  For whatever reason, Uber elected to announce its intent to reduce contract driver pay recently, which has provided a strategic opportunity for organized protests in many cities.

The core issue for me is the glaring distortion of Jeremy Rifkin’s Third Industrial Revolution into an unabashed corporate takeover of the sharing economy.  The capital feeding frenzy around Uber is disturbing, and still a potential bubble if things don’t go as planned. It also betrays myopia for Big Ideas in favor of the quick buck.

ANALYSIS

Uber discussions need to go beyond the fact it offers a cheaper ride

‘This isn’t just an Uber problem. If they get away with it, every company will do this.’

By Paul Haavardsrud, CBC News Posted: Jan 24, 2016 5:00 AM ET Last Updated: Jan 24, 2016 9:30 AM ET

A man rides his bicycle between taxis parked on the street during a protest against Uber in Rio de Janeiro, Brazil on July 24, 2015. A number of protests have cropped up the world over as the ride-hailing app grows in popularity.

A man rides his bicycle between taxis parked on the street during a protest against Uber in Rio de Janeiro, Brazil on July 24, 2015. A number of protests have cropped up the world over as the ride-hailing app grows in popularity. (Ricardo Moraes/Reuters)

This is part three of a three-part series on Uber. Read parts one and two.

Outraged taxi drivers the world over telling anyone who will listen that Uber is the devil in corporate form makes it tough, even for those so inclined, to blithely accept at face value the company’s argument that it’s just a technology firm disrupting a sheltered industry.

It would be nice if that were the case. Easier.

But nothing is ever that easy, is it? And neither is Uber.

In fairness, you could say there’s much to like about a company that can deliver a prompt ride at the push of a button, often at a cheaper price than cabs. So far, so good.

But that’s only the beginning of the Uber discussion. A closer look at the company’s particular brand of disobedience could quickly become unsettling.

Uber may like to cast itself as a harmless scofflaw that’s willing to bend a few rules for the greater good, but legal experts say its practices are hardly benign.

Uber taxi ottawa protest

Uber’s confrontational approach to changing regulation is taking direct aim at the taxi industry. (Alistair Steele/CBC)

Working for its own narrow self-interest, the company’s systemic disregard for regulations — a stratagem termed “corporate nullification” — can undermine the laws of the land that everyone else follows.

“This isn’t just an Uber problem. If they get away with it, every company will do this; every company will become a platform and just say ‘oh, the laws don’t apply to us.’ If we enter into that stage, then it’s game over for vast swathes of business regulation: environmental, insurance, civil rights, worker protection, consumer protection, that’s all gone,” said Frank Pasquale, a law professor at the University of Maryland.

“People don’t see the stakes of it, they think ‘oh well, you know, we have to disrupt taxi cabs and we have to get this stuff done,’ but it doesn’t have to be done on Uber’s terms. The stakes couldn’t be higher in terms of the ability of these platforms to just get out of regulation.”

Gig economy

In the here and now, of course, warnings about the consequences of corporations flouting the rule of law can feel abstract compared to the immediate gratification of getting a cheaper ride to the airport.

That may soon change. While researchers haven’t yet reached a consensus on the number of workers participating in the so-called gig economy, most agree that new forms of contract employment made possible by companies like Airbnb, TaskRabbit and Uber are on the rise.

In the U.S., a recent poll suggests more than one in five Americans have participated in this type of on-demand contract employment. Part of the conversation now taking place there, which is beginning to migrate to Canada, involves asking what responsibilities 21st-century companies will have to workers, as well as the rest of society.

As it stands, employers and employees both pay to fund programs such as health care, employment insurance, Old Age Security and other parts of the social safety net. The question of who will cover those costs if the nature of work changes to include fewer traditional full-time positions — not to mention the fate of worker protections such as overtime and minimum wage — is still in search of an answer.

Indeed, the recent popularization of the term “gig economy” reflects thisevolution of the work world to include more part-time and contract employment and fewer of the full-time jobs that have traditionally been the bedrock of the middle class.

As for the more well-known term, “sharing economy,” it’s losing ground amidst a growing recognition that sharing isn’t really part of the equation. A transaction in which a passenger pays a driver wouldn’t seem to be any different from what happens with a taxi. Yet taking a cab isn’t known as sharing a ride.

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 Angry taxi driver confronts Uber driver1:13

Wrapping itself in the language of the sharing economy, however, allows Uber to align itself with values like co-operation, sustainability and community. It’s a smart play, if disingenuous, particularly insofar as it helps to bathe a business model that’s so nakedly commercial in a kinder, gentler light. Uber, as is often pointed out, is libertarian to its core, whether it’s the company’s attempts to dismantle regulation or its belief in the righteousness of the unfettered free market.

What happens to cabbies?

None of this, of course, makes Uber an evil corporation. At the same time, the speed at which the company, among the fastest-growing startups in the history of Silicon Valley, is crashing through the world puts it at the centre of any number of questions.

On the front lines of those looking for answers is the taxi industry. The existing system may be flawed, overregulated, and too costly, but that doesn’t mean cabbies should just be written off as collateral damage — the result of rule changes inspired by the financial ambitions of a single company.

Toronto Taxi Anti-Uber protest

Many taxi drivers say they can’t compete with a company that isn’t governed by the same strict, and costly, regulations. (John Rieti/CBC)

By pushing cities into making immediate changes, though, Uber is manufacturing a binary choice. To limit the decision to Uber or the current flawed system, however, is a false construct. The taxi system doesn’t need to be overhauled tomorrow and changes could come in many different ways that allow for ride-hailing services while also protecting existing taxi drivers.

“The main problem is it’s not an empty space,” said Mariana Valverde, a professor at the University of Toronto and an urban law expert. “Uber is coming in and they’re combining the power of a big, U.S.-based corporation with lots of lobbyists and lots of money, on the one hand, with a total disregard for regulations and rules. Taxi drivers have played by the rules and they’ve often followed really strict, often quite picky and annoying rules, and they’re seeing their livelihoods vanish.”

Big issues

The back-and-forth between Uber and the taxi industry opens up any number of considerations, ranging from practical to theoretical to troubling.

If Uber’s continued success pushes existing taxi fleets out of business, it’s worth wondering what happens to fares. The company’s introduction of surge pricing, which allows the price of rides to float when demand outstrips supply, points in a direction that may have customers yearning for the regulated days of yore. A market monopoly may never come to pass, but Uber’s success to date, combined with the controversies that surge pricing have already inspired, doesn’t make it a comforting thought.

Uber Surge Pricing 20160112

Uber’s introduction of surge pricing, which allows the price of rides to float when demand outstrips supply, may one day have customers yearning for the regulated days of yore if a market monopoly is ever reached. (The Canadian Press)

The us-versus-them dynamic that’s developed between Uber and cab companies is also too often accompanied by an ugly undercurrent of racism that targets the ethnic makeup of the taxi industry. To be clear, this isn’t Uber’s fault per se, but it is an element of the ongoing confrontation that needs to be better recognized, understood and defused.

The many issues surrounding Uber can also become an issue in itself. As tales of Uber’s unsavoury tactics continue to circulate, how does someone who just wants to take an Uber across town reconcile the tension between wanting to be a good citizen, yet also a savvy consumer at the same time.

One theory, put forward by Robert Reich, suggests that no one can be blamed for seeking out a cheaper ride, regardless of how conflicted they may feel about the company offering the service. Our consumer selves, he says, are wired to look for the best deal possible and, on some level, we’ve made peace with what that entails. At the same time, he continues, serious thought must also be given to the responsibilities of citizenship.

As Uber inspires changes to the existing system, the idea of what our citizen selves might contribute to the discussion is worth considering. Yes, change is going to happen and outdated regulations need to be updated. How those changes happen, though, also matters a great deal. And not just to cabbies.