Ethics in Government

In response to the news that Clarence Thomas participated in the Supreme Court decision to deny cert in the first of three challenges of New York City’s rent control law, Revolving Door Project Executive Director Jeff Hauser released the following statement.

Corporate predators and their Republican lackeys want our corrupt Supreme Court to make fraud legal again. Their greed could yield catastrophic economic damage.

Corrupt Supreme Court Justice should not participate in case that would benefit his wealthy benefactors.

More problematically, conflicts of interest have plagued the USPTO, including at the highest levels. Trump-era USPTO director Andrei Iancu was far too cozy with patent law firms while he served in government. Iancu came in via the revolving door from patent litigation firm Irell & Manella, where he earned $4,733,748 as a managing partner in the year before he was nominated, and went out the door and back to the firm when his term was up. He is now a partner in Sullivan & Cromwell’s patent practice.

With Labor Day now behind us, Hot Labor Summer has come to a scorching end, but the labor movement is alive and well with several heavyweight bouts looming on the horizon. This transition time is the perfect moment to take stock of the Biden administration’s labor allyship — applauding recent rulemaking efforts, highlighting some shortcomings, and previewing some potential labor strikes coming this fall.

The Revolving Door Project’s Ananya Kalahasti and Will Royce released the following statement regarding the US Chamber of Commerce’s lawsuit regarding the Inflation Reduction Act’s Medicare prescription drug negotiation program, and a financial conflict of interest regarding the judge in the Southern District of Ohio.

A few days ago, a white supremacist murdered three innocent Black people at a Dollar General store in Jacksonville. Like the shooter in Buffalo and Dylann Roof in Charleston, he had a manifesto that espoused white nationalist talking points and conspiracy theories. The prevalence of racist attacks in recent years underscores the alarming rise of right-wing domestic terrorism in the United States. The problem I want to address is: Who at the highest levels of government is to blame for this?

As long as one party remains totally united behind a man who attempted to overthrow the government by force, was the most corrupt president in American history, and undermines the public’s faith in elections at every turn, the future of American democratic self-government is at risk.

Sounds scary. But what if I told you this was a great opportunity for fun and profit? Silicon Valley–backed startup Kalshi is attempting to expand the amount of gambling on the country’s elections with the introduction of an “event contract” centered around congressional elections. Simply put, the firm aims to allow traders to bet on the event: Which party will win control of Congress?

The National Multifamily Housing Council (NMHC) – a landlord lobby group led by Crow’s right-hand man – has spent millions to kill tenant protections and rent regulation.

Rep Jim Jordan and company had already been eyeing Khan for an investigation because she had the audacity to enforce a consent decree that Twitter violated under Elon Musk’s leadership. Then, they eagerly seized on last month’s (conveniently timed) reporting from Bloomberg which published a previously unseen memo from an FTC ethics official and accused Chair Khan of ignoring the official’s recommendation. With that backdrop, the Republicans seemed poised to strike while the iron was hot, a culmination of their years-long project to undermine Khan’s leadership and reputation. The result was … much different. Thanks to some sleuthing on our part and the bipartisan support for taking on tech monopolies, yesterday’s hearing was less a damning inquisition and more a victory lap for Khan’s rejuvenation of the FTC.

If we were to agree to the industry’s demand that policy experts should be precluded from regulating issues they have spent significant amounts of time developing expertise in, we would be setting a precedent that severely undermines any kind of public-minded enforcement. In fact, banning experts such as Gensler would leave the public with a pool of potential regulators who are either already corporate-aligned or unqualified to adequately opine on pressing issues.

In advance of the House Judiciary Committee holding a hearing on Thursday, July 13, 2023, at 10:00 a.m. ET on “Oversight of the Federal Trade Commission,” Revolving Door Project has sent a letter to FTC Chair Lina Khan calling on her to take on the FTC’s considerable internal revolving door challenges.

It turns out that the ethics official who recommended that Khan recuse herself from a case involving Meta is an owner of Meta stock. This ethics judgment was music to the ears of the media organizations, Republicans, and antitrust hacks who have been attacking Lina Khan throughout her leadership. Beyond being wrong and selective in singling out FTC officials for ethics concerns, the problem with Pankey’s opinion is deeply ironic. Pankey herself has a legitimate conflict of interest in relation to Meta. 

The ethics officer who recommended Lina Khan recuse herself from the Meta/Within case owns between $15k and $50k in Meta stock.

Let’s take a step back and consider what it means for a Supreme Court Justice to respond to questions for a news article by publishing an angry opinion piece in a (very) different publication than the one which contacted him, and apparently without informing the journalists ahead of time.