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Citigroup proclaims that its "private bankers act as financial architects,
designing and coordinating insightful solutions for individual client needs,
with an emphasis on personalized, confidential service." That is so colorless.
It might better boast, "We set up shell companies, secret trusts and bank
accounts, and we dispatch anonymous wire transfers so you can launder drug
money, hide stolen assets, embezzle, defraud, cheat on your taxes, avoid court
judgments, pay and receive bribes, and loot your country." It could solicit
testimonials from former clients, including sons of late Nigerian dictator Sani
Abacha; Asif Ali Zardari, husband of Benazir Bhutto, former prime minister of
Pakistan; El Hadj Omar Bongo, the corrupt president of Gabon; deposed
Paraguayan dictator Alfredo Stroessner; and Raul Salinas, jailed brother of the
ex-president of Mexico. All stole and laundered millions using Citibank
(Citigroup's previous incarnation) private accounts.
One lesser-known client, Carlos Hank Rhon of Mexico, has been the object of
a suit by the Federal Reserve to ban him from the US banking business. Hank
belongs to a powerful Mexican clan whose holdings include banks, investment
firms, transportation companies and real estate. Hank bought an interest in
Laredo National Bank in Texas in 1990. Six years later, when he wanted to merge
Laredo with Brownsville's Mercantile Bank, the Fed found that Citibank had
helped him use offshore shell companies in the British Virgin Islands to gain
control of his bank by hiding secret partners and engaging in self-dealing, in
violation of US law. One of the offshore companies was managed by shell
companies that were subsidiaries of Cititrust, owned by Citibank.
The Fed says that in 1993, Hank's father, Carlos Hank González, met
with his Citibank private banker, Amy Elliott, and said he wanted to buy a $20
million share of the bank with payment from Citibank accounts of his offshore
companies, done in a way that hid his involvement. Citibank granted him $20
million in loans and sent the money to his son Hank Rhon's personal account at
Citibank New York and to an investment account in Citibank London in the name
of another offshore company.
Citigroup spokesman Richard Howe said, "We always cooperate fully with
authorities in investigations, but we do not discuss the details of any
At press time, there were reports that Hank had negotiated a settlement
with the Fed, which the parties declined to confirm.
Nothing tests our commitment to principle like terrorism. Before September 11, America banned assassinations of foreign leaders; now the Administration is considering abandoning that prohibition. Before September 11, more than 80 percent of the American public felt that racial or ethnic profiling was wrong; today, that consensus is rapidly eroding, as FBI agents detain dozens of suspects solely because of their Arab or Muslim identity and associations. Ten years ago, Congress repealed McCarran-Walter Act provisions making mere membership in various political organizations a deportable offense. Now the Administration seeks authority to detain and deport aliens accused of virtually any tie to a terrorist group--defined expansively to include any group that has or might use weapons.
The September 11 terrorist attack undoubtedly warrants a comprehensive review of our intelligence and law enforcement capabilities. But what is needed is better-coordinated intelligence and more targeted law enforcement, not broad-brush legislation that simply throws more power at government agencies that have already shown a proclivity to abuse the power they have.
This country has a long tradition of responding to fear by stifling dissent, punishing association, launching widespread political spying and seeking shortcuts around the Constitution. Few Americans opposed the imprisonment of antiwar dissenters during World War I, the internment of Japanese-Americans during World War II or the anti-Communist laws of the McCarthy era. We now acknowledge that those initiatives were wrong, but have we learned from our mistakes?
To some extent we have. No one has yet proposed making membership in a Muslim organization a crime, detaining all Americans of Arab descent or Muslim faith, or criminalizing dissent. But in 1996, after the Oklahoma City bombing, we resurrected guilt by association, criminalizing any material support to any foreign group deemed terrorist by the Secretary of State, even if that support consisted of sending human rights pamphlets to an organization fighting a civil war. And now the INS seeks unprecedented authority to lock up and deport as a "terrorist" any alien remotely associated with a any group that has ever used force--even if the alien himself has no connection to violent acts.
And all indications are that the FBI continues to operate as if guilt by association is the rule. While the September 11 terrorists were training for and coordinating their conspiracy in Florida, the FBI was spending vast resources investigating Mazen Al Najjar, a Palestinian professor from Tampa who spent three and a half years in detention on secret evidence and charges of political association. Al Najjar was released last December when an immigration judge found no evidence that he posed a threat to national security. And while the terrorists were conspiring in New Jersey, the FBI focused its efforts on Hany Kiareldeen, a Palestinian in Newark detained for a year and a half on secret evidence for associating with terrorists. He was freed after immigration judges flatly rejected the government's charges as unfounded; the FBI's principal source was apparently Kiareldeen's ex-wife, with whom he was in a bitter custody dispute and who had filed several false reports about him.
The government already has adequate powers to combat terrorism. It has authority to wiretap any person suspected of working for a foreign government or organization, without any criminal predicate whatsoever. It can prosecute and freeze the assets of those who provide aid to terrorist organizations. It can bar entry to members of terrorist organizations, and it can detain and deport any alien who has engaged in or supported a terrorist act.
When, in less turbulent times, a bipartisan National Commission on Terrorism appointed by Congress recommended steps to improve our response to terrorism, it advocated none of the measures now advanced by Attorney General Ashcroft. Its advice was to streamline and coordinate existing authority, but that entails hard work and substantial turf battles; it's far easier, but far less effective, to give the FBI still more power to spy on the American people.
Two books on modern policing and the racial dynamics that go with it.
'Following the Money' can prove devastating to critics of the illegal trade.
The brother of the Sultan of Brunei
Set out to see how much a guy could buy,
And fifteen billion's what he finally spent
Before the sultan voiced some discontent.
The guilt of many shoppers was assuaged.
The most committed shopaholic gauged,
"I'd really have to spend a lot more dough
To be a spendthrift like the sultan's bro."
Not every citizen has accepted the Court's momentous presidential decision.
A world effort to force an end to the US death penalty is gaining strength.
These days, the buzz on Capitol Hill seems loudest about Gary Condit.
One of the most surprising decisions of the Supreme Court term just concluded was Justice Antonin Scalia's ruling in favor of a criminal defendant who claimed that a thermal imaging device violated his Fourth Amendment rights. The police used the device to measure the heat leaking from Danny Kyllo's house and inferred from that information that he was growing marijuana inside with heat lamps. Indeed, he was, as the subsequent search revealed: more than 100 plants' worth.
In the most unlikely collaboration of the year, Justices Scalia and Clarence Thomas joined forces with Justices Ruth Bader Ginsburg, Stephen Breyer and David Souter to rule that use of the thermal imaging device was an unconstitutional search. The decision is surprising in several respects--and not just because it rules for a drug defendant. It announces a bright-line rule barring the use of high-tech devices to intrude upon the privacy of the home, in an era where the Court has largely abandoned bright-line rules except where they benefit the police. It speaks in majestic tones about protecting privacy from the onslaught of technology, from a Court that has all but given up on privacy in favor of crime control. And it reaches a result that was by no means foreordained. This was a close case, as Justice John Paul Stevens's quite reasonable dissent shows.
So what's going on here? Should liberals (or drug manufacturers) start looking to Justices Scalia and Thomas for protection of criminal defendants' rights? I'm afraid not. This is a rare instance of an alliance between liberals and libertarians, united here in support of the sanctity of the home. For Scalia and Thomas, at least, it all comes down to property. Step outside, and you're fair game.
The dispute centered on whether the use of the thermal imaging device was a "search" that invaded Kyllo's "reasonable expectation of privacy." The police argued that the device merely registered information from the outside of the home. A police officer's observation that snow melted more quickly on certain parts of a roof would provide the same information, but no one would call that a "search." Since the information came from outside the house, it invaded no privacy.
Justice Scalia rejected that approach, and concluded that whenever the police use "sense-enhancing technology" not in general public use to obtain information that they otherwise could not have gathered without entering the home, they have conducted a search, for which they must have probable cause and a warrant. His opinion waxes eloquent on the home as castle and the need to protect citizens from the intrusions of modern technology. (None too soon, as police are already working on ultrasound technology for houses, although one wonders how they're going to apply petroleum jelly to aluminum siding.)
In its attempt to protect privacy from advancing technology, the decision is a landmark and will stand along with the Warren Court's 1967 decision in Katz v. United States, which extended the Fourth Amendment to include wiretapping. But in another respect, the decision marks an ironic return to the pre-Katz world. Before Katz, Fourth Amendment law was governed by property notions, leading the Court to make ridiculous distinctions between listening devices attached to an outside wall with a thumbtack, which were said to invade property and require a warrant, and similar devices merely taped to the wall, which were deemed not to invade property and therefore not to require a warrant.
Katz importantly held that the Fourth Amendment protects "people, not places" and eschewed arcane property questions for an inquiry into whether the government had invaded a person's "privacy." But Kyllo brings us back full circle, because without any reasoned explanation it expressly limits its protection to homes. Justices Scalia and Thomas's libertarian instincts stop at the doorstep. A man's home may be his castle, but in the view of these Justices, at least, the streets still belong to the police.