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Audit shows security gaps persist at nuclear weapons complex penetrated by nun and other activists in 2012

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A good security system would seem essential for the federal repository holding virtually all of the nation’s highly-enriched uranium, a key ingredient of nuclear weapons, just outside Knoxville, Tennessee.

But the hi-tech system installed at a cost of roughly $50 million over the past decade at the Energy Department’s Y-12 complex is still riddled with flaws that impede its operation, according to a newly released report by the department’s top auditor. Moreover, no one knows how much the government will have to spend to fix it or when that task might be accomplished, the report said.

Flaws in the site’s security system first came into national view in July 2012, when an 82-year-old nun and two other anti-nuclear activists cut through fences and walked through a field of motion detectors to deface the exterior of Y-12’s Highly Enriched Uranium Materials Facility, which holds enough explosives to make 10,000 nuclear bombs.

Subsequent investigations concluded that those monitoring the few critical sensors that were operating that day had been schooled to ignore them by persistently false alarms, including many triggered by wildlife.

But not much has changed since that break-in, according to the report by Inspector General Gregory H. Friedman, even though the department spent more than a million dollars in 2012 to get a consultant’s advice about how to make the system work better, and then millions more completing the installation of hi-tech sensors in 2013.

His report said the so-called Argus security system, which was developed by DOE’s Lawrence Livermore National Laboratory and named optimistically after the fabled 100-eyed monster of Greek mythology, “did not fully meet the site’s security needs” and was not installed the way it was designed to be used.

 It’s still prone to frequent false alarms and falls short of the Energy Department’s requirements, he added.

Friedman blamed the flaws on inadequate spending and poor management. In particular, those installing the system tried to do so on the cheap. Instead of undertaking a top-to-bottom modernization, they tried to integrate new equipment with older alarm wiring and cabinets. Those operating it said this effort was not successful, and that it caused false alarms to jump by 25 percent.  

As a result, Friedman wrote, the operators were “not able to efficiently perform their duties.”  In fact, a 27-month study of alarm data that concluded in July 2014 showed that false alarms accounted for more than 35 percent of all alerts.

Budget records suggest that the task of safeguarding nuclear weapons has not been as high a priority at the Energy Department as developing them. The security program that supports the Argus project and others like it across the nation’s nuclear sites received $79.8 million for the current fiscal year, and for 2016 the Energy Department has asked Congress for 5.8 percent less, $75.2 million. Meanwhile, spending on weapons programs stands at $8.1 billion and the Energy Department’s request to Congress for next year seeks 10.5 percent growth to $8.8 billion.

Argus’s troubles are not unique to Y-12. A report by the inspector general in May said similar problems erupted at the Energy Department’s Nevada National Security Site when Argus was installed there. “We determined that the Argus project experienced schedule delays and cost increases as a result of inadequate project management and funding issues,” Friedman wrote.

The Argus project in Nevada began in November 2010 with a targeted completion date of October 2011 and an estimated cost of $8.4 million, for example. By June of 2012, it still wasn’t done and the estimated cost had more than doubled to $17.8 million. It’s been on hold since May 2014, and the Nevada site “has continued to rely on an outdated security system,” according to the inspector general's report.

At Y-12, the system’s operation has been undermined as well by the use of error-filled and cumbersome maps of the complex, which obscure the views of the operators. “Even within the confines of… funding limitations, we found that management weaknesses contributed, at least in part, to the issues identified,” Friedman wrote.

The inspector general recommended installing the necessary components to have a fully operational version of Argus, and replacing parts of the security system that are driving the high rate of false alarms. Although the National Nuclear Security Administration, which oversees the production and handling of nuclear weapons, has analyzed the security needs at Y-12 and identified the work that needs to be done to improve it, no detailed plan, schedule for making the upgrades, or cost estimate for the full project has been developed by the Energy Department, he said. One estimate suggested it could $300 million, just at Y-12.

In a letter responding to Friedman, NNSA chief Frank Klotz wrote that NNSA agreed with the audit’s conclusions and recommendations. Klotz said efforts have begun to address the lingering security needs at Y-12 “within programmatic constraints,” in part by developing a plan by the end of September 2016 for replacement and maintenance of security systems across the nation’s nuclear labs.

“The secure operation of our facilities is a top priority,” Klotz wrote.

In this Aug. 17, 2012 photo, signs warn against trespassing onto the Y-12 National Security Complex in Oak Ridge, Tenn.Patrick Malonehttp://www.publicintegrity.org/authors/patrick-malonehttp://www.publicintegrity.org/2015/09/03/17939/audit-shows-security-gaps-persist-nuclear-weapons-complex-penetrated-nun-and-other

9 things to know about Lawrence Lessig

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Yearning for a most unconventional presidential candidate?

Then you’ll love Lawrence Lessig, who promised torun if his exploratory effort raised $1 million by Labor Day. (It did.)

The Harvard University professor and political campaign finance reformerenters the Democratic primary pledging to — if elected — resign the presidency as soon as possible.

Say what?

Indeed, Lessig says he'd serve as what he's calling a “referendum president” — occupying the White House only as long as it takes to win passage of a bill that would, among other things, reform the nation's elections and end congressional district gerrymandering.

Once accomplished, he'd join Richard Nixon as the only other president to quit, tossing the keys to 1600 Pennsylvania Ave. over to his yet-to-be-named vice president. (Neil deGrasse Tyson, Jon Stewart and Joe Biden are on his short list.)

"Every issue — from climate change to gun safety, from Wall Street reform to defense spending — is tied to this 'one issue.' Achieving citizens equality in America is our one mission," Lessig says.

While Lessig enjoys a passionate following, he faces both the political juggernaut that is Hillary Clinton and another populist campaign finance reformer in Sen. Bernie Sanders of Vermont who, of late, has watched his campaign crowds grow and poll numbers rise.

Former Maryland Gov. Martin O'Malley, former Rhode Island Gov. Lincoln Chafee, former Sen. Jim Webb are also running, while Vice President Joe Biden continues to think about it.

Here are nine things to know about Lessig's financial and political background:

 

Sources: Center for Public Integrity reporting, Amazon.com, Federal Election Commission, OpenSecrets.org

Dave Levinthalhttp://www.publicintegrity.org/authors/dave-levinthalJared Bennetthttp://www.publicintegrity.org/authors/jared-bennetthttp://www.publicintegrity.org/2015/09/06/17956/9-things-know-about-lawrence-lessig

US infrastructure crisis includes your vote

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Having been stuck in a broken down Amtrak train from New York and then evacuated to another in a six-hour odyssey, I had time to ponder US infrastructure and the way a Keynesian response to the 2011 downturn didn’t go to infrastructure but to banks. Nick Kusnetz, our New York based elections and states reporting expert, has a piece today on the crumbling election infrastructure as we head in to the 2016 Presidential election.

"Democracy inaction” was his nice way into a piece looking  at the problem of voting equipment, facilities, registers and the civil rights implications of attempts to limit voter registration.

Given the Bush-Gore history of all this and the offer by India — the world’s largest democracy — to help back then, it’s no wonder partners like Politico lapped up Nick’s story, giving us important reach and distribution. Their headline brings back memories: Is Ohio the Next Home of Hanging Chads?

Partnerships are a vital part of our strategy to give the greatest possible chance for impact from Public Integrity work far beyond our own websites. Our communications manager Bill Gray will be refining our strategy and focusing on key publications and audience groups from influencers to the masses.

Spotting a quirky story early can be just as effective and our political correspondent and regular fixture on Al Jazeera AmericaDave Levinthal, got great pickup on a story this week related to what I hope is the temporary phenomenon of someone, or something, called Deez Nuts. Dave is great at hitting the short-term spot story to bring attention to our bigger work and commitment to political reporting. He and data journalist Chris Zubak-Skees used the Deez Nuts thing as a way to show how the GOP race is only the tip of an iceberg of candidates. Their work was rapidly referred to in New York MagazineJezebel, the Washington Post and Politico.

We also had a big burst of traffic to anolder story after Chris Zubak-Skees posted his very attractively presented interactive on the failure of Defense Department audits to a specialist discussion area on Reddit. It is a nice piece of work and strongly supported the reporting of Julia Harte.

Belated but important impact

We’re always looking at how our stories have real and measurable impact. One of the slow burners has been Jeff Kelly Lowenstein’s series exposing the state of American nursing homes. Today the Government Accountability Office announced an inquiry after a Senate committee called for it based in part on our work. Jeff’s piece also won a recent National Press Club award.

What we’re reading

Liz Essley Whyte in the States reporting team highlighted this in-depth piece in the Los Angeles Review of Books on reporting and why the official story is the easiest but only digging can get to something close to the truth.

Not a bad piece in the New York Times today on why European publishers are attacking — some might say blackmailing — Google.

In the “you-couldn’t make it up” department, Rebekah Brooks, tried and acquitted of involvement in the phone hacking scandal in the UK could be back running News Corporation in the UK by the end of the year, according to theFinancial Times [$]

The Economist has a good read on why Virtual Reality might actually be what it is cracked up to be this time. As it happens a friend of mine recently joined a US newspaper group as a VR journalist and an organization I am connected with, the Global Editors Network, is running a Silicon Valley study tour which includes a look at the prospects for news media and virtual reality.

I welcome any feedback on this note.

Ballots about a measure that would have required labels for genetically modified foods are recounted at Multnomah County election headquarters in Portland, Ore., in December 2014.Peter Balehttp://www.publicintegrity.org/authors/peter-balehttp://www.publicintegrity.org/2015/09/08/17958/us-infrastructure-crisis-includes-your-vote

Texas toxic air emissions series wins fifth national journalism award

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The collaborative environmental health project “Big Oil, Bad Air”  between the Center, InsideClimate News and the Weather Channel has won the 2015 National Association of Science Writers (NASW) Science in Society Award in the Longform category. This is the fifth first-place award for the project in a national journalism contest.

The almost two-year investigative series examined hydraulic fracturing, or fracking, in the Eagle Ford Shale of South Texas and how it has generated billions of dollars for oil companies all while endangering public health. Since the series, a new air monitor was installed in one of the heaviest drilling areas.

Judges said the series was "an extraordinary accomplishment in team investigative science journalism targeted at a crucial energy, environment and health issue that extends well beyond the boundaries of Texas, the project's focus. The reporters set out to get to the bottom of a corrupt regulatory system involving the fracking boom. They found no bottom."

They also noted, “Several new media outlets teamed to deliver the kind of broad-shouldered, crusading doggedness in exposing public malfeasance that once was the near-exclusive province of big metropolitan newspapers." 

For The Center for Public Integrity: managing editor for environmental health and labor Jim Morris, reporters Ben Wieder, Jamie Smith Hopkins, Rosalind Adams, David Heath, multimedia editor Eleanor Bell, data editor Alex Cohen, news applications developer Chris Zubak-Skees and former reporter Alan Suderman.

For InsideClimate News: Lisa Song, David Hasemyer, Paul Horn, Zahra Hirji, Susan White, Sabrina Shankman, Marcus Stern, Hannah Robbins, and David Martin Davies. 

For The Weather Channel: Gregory Gilderman, Neil Katz, Faisal Azam, Eric Jankstrom, Shawn Efran, and Katie Wiggin.

The National Association of Science Writers is the largest organization devoted to the professional interests of science writers. They foster the dissemination of accurate information regarding science through all media normally devoted to informing the public.

All of the award winners will be honored at the NASW annual meeting in October in Cambridge, Massachusetts. 

The “Big Oil, Bad Air” project has previously been recognized with awards from the National Press Foundation, the Association of Health Care Journalists, the Society of Environmental Journalists and the Heywood Broun Awards. 

Fracking activity in the Eagle Ford Shale of TexasWilliam Grayhttp://www.publicintegrity.org/authors/william-grayhttp://www.publicintegrity.org/2015/09/09/17964/texas-toxic-air-emissions-series-wins-fifth-national-journalism-award

When being a reporter leads to jail

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When doing your job as a reporter means jail

Khadija Ismayilova, a member of the International Consortium of Investigative Journalists, was jailed this week for seven and a half years in a trumped up trial clearly orchestrated in revenge for her work exposing the excesses of the Azeri ruling family under Ilham Aliyev. Ismayilova, who’s already been in custody for eight months while on trial for tax evasion and abuse of power, apparently laughed as the judge delivered the verdict. The judge then walked out while she was delivering her own statement.

ICIJ Director Gerard Ryle joined a chorus of international condemnation for the conviction and jailing of Ismayilova:

“Rather than prove any of the charges against Khadija, this trial has only served to further prove the systemic corruption Khadija herself has spent years investigating,” Ryle said.  “Azerbaijan’s crackdown on journalists and rights activists should be a red flag to the international community.

“We commend Khadija’s continued courage in the face of these baseless accusations, and know that her bravery will motivate her colleagues and peers to continue her essential work, exposing corruption at the highest levels within Azerbaijan.”

The ICIJ blog has full details and Ismayilova’s mother also wrote a courageous piece in The Guardian explaining her daughter’s commitment.

“Mama, brace yourself, you have to be strong,” Ismayilova told her mother.

To understand quite the risks she took and why she was such an irritant to Aliyev I urge you to read her work. This piece for the ICIJ, bylined by Stefan Candea and with a lovely picture of Aliyev and his wife, sums up a great deal of it. Her colleagues at the OCCRP, the Organized Crime and Corruption Reporting Project, produced this collection of her work and their own additions on what’s really going on with Azerbaijan.

"Khadija Ismayilova is a hero and we feather-bedded journalists here in the west should salute her,” wrote Roy Greensladein The Guardian.

Swords into problematic plowshares

Relative newcomer to the Center, Patrick Malone has made a strong impact since joining the National Security desk under Jeff Smith in May. Patrick came from the Santa Fe New Mexican and already had a long history of tracking the work of the Sandia labs and Los Alamos. His latest piece for us is on the apparent failures of vital security systems at the Y-12 repository in Knoxville, Tennessee. You can see the body of Patrick’s work — as you can with any of our reporters — by clicking on their byline or looking here in his case

The National Security team keeps tabs on not only problems the US nuclear stockpile and weapons industry but the attempts to prevent fissile material overseas getting into the wrong hands.

Center uncovers White House unease at Medicare fraud

Fred Schulte, who has been dogged in his pursuit of Freedom of Information Act requests on Medicare and Medicare Advantage fraud, turned up a memo from the White House budget director demanding tougher action on improper payments to doctors, hospitals and insurance companies. It’s clear from the letter than having achieved the Affordable Care Act the Presidency worries it too is at risk from fraud and excessive claims by the health industry. Fred has been relentless in his coverage of this area and will shortly move his focus the influence of business in politics more generally. More on that shift soon.

What we’re reading

Bloomberg News fired something like 80 journalists during the week – a dozen of them in Washington — in a change of tack they think will lead to sharper reporting and a tighter focus as the “Chronicle of Capitalism”. It was widely reported in our industry which of course looks in on itself like no other but there’s also food for thought in the epic memo by new Bloomberg editor-in-chief John Micklethwait, formerly editor of The Economist. We’re a minnow by comparison but some of those same challenges face us.

What was directly relevant to us and others in the non-profit sector was this analysis in the Stanford Social Innovation Review about the “NonProfit Starvation Cycle” in which organizations struggle to justify and meet overhead demands and by doing so are restricted in what they can achieve, creating a self-fulfilling cycle of disappointment. It is a big issue among non-profits and philanthropy groups.

Fortune picked up an interesting report on the symbiotic relationship between anyone publishing breaking news — or any news in my view – and Twitter. It’s no surprise Twitter is working on a new project called Lightning aimed at curating the best news available. Please remember you can track our work on the Twitter account @publici and @icijorg for the ICIJ. Mine is @peterbale and all our reporters and editors are there if you click on their bylines to follow them.

I welcome any feedback on this note.

This photo taken Sunday, March 2, 2014, shows Azerbaijani Khadija Ismayilova, a reporter for Radio Free Europe/Radio Liberty, in Baku, Azerbaijan. Azerbaijan detained Khadija Ismayilova, a prominent investigative journalist, on Friday whose reporting has often featured the business dealings of top politicians in the country.Peter Balehttp://www.publicintegrity.org/authors/peter-balehttp://www.publicintegrity.org/2015/09/10/17971/when-being-reporter-leads-jail

Did this shady pro-Bernie Sanders super PAC just dupe James Bond?

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Super villains are no match for James Bond. But a shadowy pro-Bernie Sanders super PAC might be.

Daniel Craig, the actor famous for portraying the British spy, confirmed to the Center for Public Integrity that he donated nearly $50,000 this summer to Americans Socially United, an organization purporting to support Sanders’ upstart presidential campaign.

What Craig apparently didn’t know: The super PAC’s founder, Cary Lee Peterson, has routinely run afoul of creditors and the law — including stiffing one of the nation’s largest news companies out of a six-figure sum.

Sanders himself has disavowed super PACs, which have no contribution limits, and his campaign has demanded that Peterson curtail his operation. But there is little the U.S. senator from Vermont can actually do to stop passionate supporters — or opportunists — from launching such groups.

Super PACs are largely unregulated by the Federal Election Commission. Pretty much anyone can form one, including political professionals, college kids and even convicted criminals. And the prominence of social media means these unofficial groups may easily tap online support for a popular candidate like Sanders.

Campaign finance watchdogs say this creates a buyer-beware situation for donors, especially if the super PAC’s name is similar to that of the candidate.

Peterson, a self-described “lobbyist” and “diplomat” prone to making extravagant claims about his business operations, initially took this approach, naming Americans Socially United both “Ready for Bernie Sanders 2016” and “Bet on Bernie 2016” before the FEC made him change it. The super PAC has also failed to file campaign finance disclosures, in violation of federal law.

“The risk of donors being duped is very high,” said Paul S. Ryan, an attorney at the nonpartisan Campaign Legal Center, which supports stricter campaign finance regulations.

At the extreme, Ryan added, super PAC operators may legally use the money they raise “to buy a yacht and sail off into the sunset.”

Several Sanders supporters confirmed they donated to Americans Socially United thinking the money was going to Sanders’ campaign.

Peterson says that he started Americans Socially United because he’s a fan of Sanders — nothing more.

“I just believe in the cause,” Peterson said in a recent phone interview. “If I don’t do it, who [will]?”

Peterson said it was an “honor” to receive $47,300 in July from Craig, adding: “James Bond for Bernie is pretty cool, you know what I mean?”

Craig — a U.S. resident legally able to make political donations, according to Laura Symons, his publicist — said in a statement to the Center for Public Integrity that he made the donation to Americans Socially United “in good faith” to support Sanders’ candidacy.

Told of Peterson’s legal history, Craig replied: "Currently, I have been informed of no evidence to question that my donation has not been used as intended. Should that situation occur, then clearly, I will review my position.”

Sanders’ campaign, however, certainly has a problem with Peterson.

“While Bernie 2016 is grateful for your enthusiasm, we are compelled to inform you that your current efforts are illegal and are causing harmful confusion for supporters of Senator Sanders’ campaign,” wrote Brad Deutsch, Sanders’ legal counsel, in a June 12 cease and desist letter to Peterson, obtained by the Center for Public Integrity.

Peterson has largely ignored the letter's demands, which include taking down his websites and social media pages.

Sanders campaign officials declined to comment.

For his part, Peterson says his past run-ins with the law, which include a pair of outstanding warrants in Arizona, are not relevant to the work he’s doing now.

“You don’t need to look back on my past,” Peterson said. “I’m going out there trying to make a difference.”

But those who have dealt with Peterson have learned not to always believe what he says.

The ‘official’ Bernie Sanders PAC?

Technically a so-called “hybrid super PAC,” Americans Socially United can collect donations in unlimited amounts from individuals, corporations and labor unions to spend — independently — in support of Sanders’ campaign.

From a separate bank account that only collects smaller donations of no more than $5,000 per person, it can also contribute up to $5,000 directly to Sanders’ presidential campaign, though there is no indication that it’s done so.

To hear Peterson tell it, his super PAC has grandiose plans for the 2016 presidential election.

But the group appears to be little more than a house of cards run by a man whose legal and financial history would give many donors pause.

According to court records, one of Peterson’s companies was recently ordered to pay two creditors more than $200,000 for breaches of contract. He was twice evicted from apartments in Texas. And he once defaulted on a few thousand dollars’ worth of student loans.

The two warrants out for Peterson’s arrest in Arizona stem from Peterson failing to appear in court for misdemeanor cases. One involves a disorderly conduct charge in 2014, and the other is connected to an alleged probation violation after Peterson was convicted in 2007 of an “extreme DUI” where his blood alcohol content was measured at 0.19 at 8:59 a.m. on a Tuesday.

Peterson, who says he is 35 years old but court records list as 36, blames “bad business associates” for some of his mishaps. But he declined to offer specifics.

“I’ve been through probably six coup attempts since 2002,” he said. “If you’re out there and you’re shaking and moving, not everybody is going to like what you do.”

He declined to discuss the warrants.

“Anything that happens in Arizona has to do with my personal family,” Peterson said. “I don’t care to do an interview about my personal family. I’m not Kim Kardashian.”

Meanwhile, the physical footprint of Americans Socially United is minimal. It exists mostly online and lists a private mail box in Las Vegas as its headquarters.

Call the toll-free phone number listed on Americans Socially United’s website — BetonBernie.com— and you’ll be told by a friendly voice that you’ve reached “Ready for Bernie Sanders 2016” — “the official Bernie Sanders 2016 political action committee.”

But the person answering your call isn’t a staffer at Americans Socially United or even a volunteer. Rather, the receptionist is an employee of a call answering service hired to take phone messages.

Furthermore, if you visit Americans Socially United’s Washington, D.C., address, you won’t find a single employee, or even a real office. Instead, you’ll find a suite of virtual offices provided by Regus — a company that provides, for a modest fee, “fully furnished offices” at “prestigious addresses.”

Regus employees in Washington said that Peterson is not a current client and should not be using their office’s address. Mail sent to Americans Socially United at this address was returned as undeliverable.

Peterson told the Center for Public Integrity that Americans Socially United was using virtual office services because it didn’t have the money for real offices. But he insisted that his super PAC had already spent more than $1 million backing Sanders’ presidential bid — paying for billboards, field organizers and pro-Sanders swag.

That number, however, is impossible to independently verify. Americans Socially United has not yet filed its mandatory mid-year campaign finance report with government regulators. Due July 31, that report would detail how much money the super PAC has raised and spent.

Nor has it submitted filings known as independent expenditure reports. By law, these reports are required when a PAC or super PAC spends $10,000 or more on materials that urge voters to support or reject a candidate.

Campaign finance reports submitted to the FEC must be signed, and those containing “false, erroneous or incomplete information” subject the signer to federal penalties.

In the virtual world, meanwhile, Peterson’s super PAC has attempted to build itself a higher profile.

On Twitter, Americans Socially United claims hundreds of thousands of followers, although it’s not clear how many of those are bona fide human beings. Many appear to be fake accounts that will follow a Twitter user for a small fee.

The super PAC has even hired a PR firm to briefly run images of Sanders — at least twice — on a digital billboard in Times Square in New York City, which it has, in turn, promotedonline as signs of its legitimacy.

(You, too, could do the same for as little as $399 per press release, with the company sending you a digital snapshot “for an extra ‘pop’ of publicity.”)

“Like it or not, Bernie Sanders is going to have a PAC,” Peterson said.

“He needs us,” Peterson continued. “We influenced them to start their thing.”

He argues his super PAC has been doing “a damned good job” of raising awareness for Sanders.

As for failing to file his campaign finance reports, Peterson says his group is “new to all this” and blames “some technical issues” with the FEC’s software.

For weeks, he has promised to soon file the reports, but has failed to do so.

On Sept. 3, the FEC sent him a letter warning of potential “civil money penalties, an audit or legal enforcement action” for not filing.

Confusion reigns

Craig, the actor known for playing James Bond, didn’t say how he initially came upon Americans Socially United. But other Sanders supporters found it by mistake.

Kostas Panagopoulos, a small business owner in New York City who says he is supporting Sanders’ 2016 bid because “the middle class needs a spokesman,” said he donated $100 via BetonBernie.com after happening upon the website.

“So where did the money go?” Panagopoulos asked when told Peterson’s super PAC was not affiliated with Sanders’ official campaign.

Author David Black, another New Yorker, also didn't realize that BetonBernie.com wasn’t Sanders’ website.

Black ended up giving $100 to Americans Socially United when he wanted to donate to Sanders — a politician he believes is “the only candidate who is telling the truth about the situation in America today.”

“I donated online assuming it was a Sanders site,” Black told the Center for Public Integrity, adding that he intended to seek a refund and donate more money directly to Sanders’ campaign.

“I should have checked out the site better,” he acknowledged.

Jo-Ann Lax, a former teacher who lives in Boynton Beach, Florida, said she visited BetonBernie.com in August after receiving a mailing from Sanders’ official campaign.

“I typed in Bernie Sanders and several things came up,” Lax said. “I’m not a whiz kid on a computer.”

Lax said she wanted to donate $100 to Sanders because he’s “sincere” and “wants to help people.”

Meanwhile, Marcia Vecchione, a nurse from Fort Worth, Texas, said she pledged to give $20 via BetonBernie.com — thinking it was Sanders’ campaign — because “every little bit helps.”

And Larry Sobel, a cryogenics engineer at Raytheon Missile Systems and adjunct professor at the University of Arizona, said he inadvertently gave $5 to Americans Socially United.

“I never looked to see where the money went,” Sobel said. “Since it is not deductible, I just sent it into the ether without thinking.”

BetonBernie.com — a website that also has mirrored versions at BetonBernie2016.com, PledgeSanders2016.com and SociallyUnited.org — presently offers little more to visitors than photographs and links to news articles about Sanders, the man who seeks to upset Democratic Party frontrunner Hillary Clinton.

There’s also a form to enter your personal information to either give money or pledge to. The super PAC even offers to provide a “Donor Support Package” — consisting of a T-shirt, yard sign, bumper sticker and window hanger — to anyone who gives at least $2,000.

The website currently lists more than 500 people who have collectively given, or pledged to give, tens of thousands of dollars. Most are small-dollar supporters, with many listing occupations such as teacher, retiree or disabled veteran.

Despite donor confusion, Peterson says Americans Socially United makes it “very clear” on both its website and toll-free hotline that the group is not associated with Sanders’ official campaign.

“Those who are confused know very little about [the] difference between [a] PAC and Campaign Fund [sic],” Peterson wrote in an email to the Center for Public Integrity. “Their lack of knowledge is not our fault.”

A history of hype

Americans Socially United is just one of eight political groups Peterson has registered with the FEC this year.

He’s also created the American Friends for Micronesia, the Congressional Committee on Cuban Affairs, the Congressional Committee on Eurasian Affairs, the Congressional Committee on Law Enforcement and Public Safety, the Congressional Task Force on Human Trafficking, the Every Vote Counts Restoring America Super PAC and the Independent National Committee.

Like Americans Socially United, none have filed campaign finance disclosures. And despite their names, none are officially affiliated with Congress.

Under the auspices of his Congressional Committee on Eurasian Affairs, Peterson recently traveled to Albania. There, he met with several political officials, including Edmond Panariti, the country’s minister of agriculture and rural development; Koço Kokëdhima, a Socialist Party member of parliament; and Florjana Koka, the mayor of the Albanian city of Saranda.

Peterson is purportedly working to create a partnership between Albania, Micronesia and the United States to develop a medicinal cannabis program. His trip earned him the headline“Florjana Koka meets U.S. Senator” in Shekulli, an Albanian newspaper owned by Kokëdhima.

The scheme would not be Peterson’s first attempted transnational venture. Over the years, Peterson has claimed to have secured billions of dollars’ worth of deals with foreign governments.

One 2010 press release issued by Peterson’s company ECCO2 Corp. touted discussions with the government of Haiti for a “$1.5 billion cleantech project to reduce carbon emissions and stimulate [the Haitian] economy.”

Another lauded discussions with the Nigerian government to launch a “$90 billion cleantech project to reduce carbon emissions.”

Representatives of the Haitian and Nigerian embassies in Washington, D.C., did not respond to requests for comment, but records indicate Peterson’s ECCO2 Corp. is facing financial and legal woes.

In 2012, Dow Jones & Co. sued ECCO2 Corp. for a breach of contract for failing to pay for advertisements in the Wall Street Journal— and was issued a judgment of nearly $170,000. A second company, Manpower Inc., also sued ECCO2 Corp. for a breach of contract — and was awarded a judgment of about $35,000 a year later. Representatives for both companies declined to comment.

Court documents in a separate 2011 case show that Peterson and his companies were evicted from an Austin, Texas, apartment after failing to pay rent. Peterson was also evicted from a second Texas apartment the following year, court records show.

“We were chasing money every month,” said Stormy Johnson, a Texas businessman who, along with his wife, rented an apartment to Peterson and his girlfriend in 2012 and later sued to evict them.

“All I was getting was excuses,” Johnson continued, adding that Peterson has still not paid the approximately $2,000 in rent, court costs and interest owed.

State business records further show that ECCO2 Corp.’s right to transact business in Texas has been involuntarily terminated, and the Securities and Exchange Commission has suspended trading of the penny-stock company that Peterson acquired in 2012 to be one of ECCO2 Corp.’s corporate partners.

A few years earlier, in 2009, the U.S. government tried to recoup Peterson’s roughly $4,000 in student loan debt — including interest — on which he had defaulted in 2000. When the Department of Justice tried to serve him, it found only a no-longer-current mailbox at a Mail Boxes Etc. in Arizona and an answering service with no forwarding information for him.

Last year, Peterson flirted with running for Congress — as the delegate from the American territory of Guam, an island in the Pacific Ocean.

Despite promoting a potential Democratic Party candidacy online, he never filed paperwork with the Guam Election Commission to become an official candidate.

Sen. Nerissa Bretania Underwood, vice chairwoman of the Guam Democratic Party, told the Center for Public Integrity she’d “never heard of this man.”

Problems ahead?

With super PACs now playing a more prominent role in presidential politics than ever before, federal regulators recently moved to take increased steps to ensure that donors are not duped by the proliferation of groups that can easily have a greater presence on paper — or online — than they do in reality.

In July, the six-member, often-ideologically gridlocked FEC unanimously voted to bar unauthorized PACs that support a single candidate from using that candidate’s name in the names of their websites or social media pages. Federal rules already generally prohibit political committees that are not authorized by a candidate from using that candidate’s name in their own names.

That could pose a problem for Americans Socially United, which still uses the monikers “Bet on Bernie” and “Ready for Bernie Sanders” on several social media websites, including Facebook, Google+ and Twitter.

In an email to the Center for Public Integrity, Peterson asserted that the FEC’s decision did not apply to him.

“Our social media pages or groups existed long before Senator Sanders announced his candidacy,” Peterson wrote. “This is something we cannot modify since we have [so] many members and followers.”

Through a spokeswoman, Ann Ravel, the FEC’s Democratic chairwoman, declined to comment for this story.

Matthew Petersen, the FEC’s Republican vice chairman, declined to comment about the specific details of Americans Socially United. But he said in general that the naming rules are “designed to avoid fraudulent misrepresentation” and “avoid confusion.”

Ryan, the lawyer at the Campaign Legal Center, for one, thinks the FEC should be concerned by Americans Socially United’s activities.

“It seems like the violations are quite clear,” Ryan said, adding that Peterson “strikes me as Exhibit A” for why the naming rules are on the books.

“This guy sounds like someone who’s shown a tendency to rip people off in the past, has violated laws in the past and would seemingly have the capacity to dupe Bernie Sanders supporters out of their contributions,” Ryan said.

Michael Beckelhttp://www.publicintegrity.org/authors/michael-beckelhttp://www.publicintegrity.org/2015/09/10/17947/did-shady-pro-bernie-sanders-super-pac-just-dupe-james-bond

'Samsung is to blame' for cancers

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CHUNCHEON, South Korea— Han Hye-kyung’s wheelchair is folded and leaning against the wall at the apartment entrance two floors below. There is no need for her wheelchair in this tiny apartment. The main room has no furniture, just appliances: a refrigerator, stove, sink and a second refrigerator for storing kimchee, the spicy fermented vegetable dish. There is a bedroom on either side of the room and a bathroom.

Han sits on a cushion on the floor of her mother’s apartment hugging her knees and staring. Her head bobs ever so slightly. She’s wearing pink pajama bottoms and a sweater with pink hearts. Her long, black hair is in a ponytail.

It has been 10 years since she had her brain tumor removed and began rehabilitation in a hospital for the elderly. She’s had a lot of time to think.

“So at first I thought it was my fate,” Han said. “I tried to comfort myself. But as time went by I got angrier. What can I say? It is Samsung’s fault. Samsung is to blame.”

Han is among hundreds of former employees of Samsung, the world’s largest manufacturer of consumer electronics devices, who believe their cancers were caused by exposure to toxic chemicals at work — allegations that were made by American electronics workers two decades ago. More than 70 Korean workers have died of their illnesses, according to an advocacy group.

Samsung says its factories are safe and denies that workers were sickened by their jobs. But former workers have won significant court cases, prompting the company to make a public apology for taking too long to show concern for sick and dying employees. In August, Samsung agreed to establish an $85.8 million fund to provide financial aid to such workers and their families. "We provide this financial support regardless of whether there may be a correlation between the workplace environment and employee illness," the company said in a statement.

Like most at Samsung, Han was recruited in high school during the annual spring examinations the company holds to find new workers. As many as 200,000 register to take the test each year, and only those with top marks are offered jobs.

Han started work at Samsung in 1996 with big plans. She would stay five or six years, save her money and return home to open a store with her mother.

The work was repetitive. She glued wires and electronic pieces onto a circuit board using a cream she later learned was lead-based. Her thin paper mask didn’t keep out the fumes, she said, and within a few months she developed flulike symptoms and problems with her menstrual cycle.

The doctors couldn’t pinpoint the problem or normalize her cycle, so after almost six years she quit her job. Her health didn’t improve; instead, she started having problems with her balance. In October of 2005, four years after she quit, an MRI revealed a brain tumor. She was 28 years old.

“I did not know about the brain tumor before the operation,” Han said. “I found out about it after having the operation, so when I woke up I found that my body was not that of a normal person. I found myself having become a disabled person.”

She’s been home in Chuncheon for only a few months. She can’t walk and struggles to talk. She gets exercise and swimming physiotherapy and is learning to use a computer. At 38, she wants independence. She also wants Samsung to accept responsibility for her tumor, which, by one doctor’s recent description, was “in between benign and malignant.”

Lack of disclosure on chemicals

No one knows for sure how many chemicals are used to create a cell phone, flat-screen TV, tablet or computer, but it is a lot. Dr. Thomas Gassert, an occupational and environmental physician with the University of Massachusetts Medical School and Harvard University’s School of Public Health, says tens of thousands of chemicals are used in the electronics industry but only a fraction have been tested for toxicity.

This creates a problem for the workers who make electronic gadgets. If they get sick they have a hard time connecting their illnesses with their jobs because they often don’t know the names of the substances they work with.

The companies say masks, respirators and other equipment, automation and air circulation protect the workers. They say they inspect their factories in Asia to make sure safety rules are followed. The devices, however, are not made in a single place. Semiconductors — the essential components of phones and computers — are produced in special factories. Screens and cases are made elsewhere. The companies can’t inspect all these sites.

The demand for electronic products continues to grow; consumers trade up long before devices start to fail. Each upgraded device requires the use of chemicals — many new, almost none tested.

Most electronics today are made in Asia, where governments compete to offer the lowest minimum wage and taxes and the cheapest land — and, in many cases, the weakest labor laws and occupational health protections.

Sanjiv Pandita is executive director of the Asia Monitor Resource Centre, a Hong Kong-based nonprofit that focuses on labor issues. The electronics industry is a big concern, Pandita said, because most workers are unsophisticated young women from rural areas.

“We don’t know people who are dying of cancers or where they are,” he said. “If you see a factory in Shenzhen [China], somebody gets sick, they’re sent back home to their hometown and we never bothered to put them in those statistics. The same thing is in Vietnam, the same thing is in Philippines. But that doesn’t mean the problem is not there; that means we’re sitting on a time bomb.”

Electronics boom in Vietnam

Vietnam is the newest destination for the electronics industry. Since 2009, Samsung has invested billions of dollars in plants that now account for almost 20 percent of Vietnam’s exports, pulling ahead of the textile and garment industries.

Samsung has two plants near Hanoi in the north, employing 80,000 people. In Ho Chi Minh City in the south, one plant is in operation and a second is under construction.

Samsung isn’t alone. Intel Corporation now produces 80 percent of its central processing units — or CPUs, the brains of a computer — in Vietnam. Foxconn has six plants that make computers, smart phones and components. Hundreds of smaller suppliers and sub-contractors have followed.

Vietnam has a youthful population with an enormous demand for new jobs. In 2014, 42 percent of Vietnamese were under the age of 25.

The Center for Development and Integration, a nonprofit based in Hanoi, is monitoring the electronics boom. Its managing director, Duong Viet Anh, worries that Vietnam lacks “the experience to control, to manage such kind of industry.” It arrived so quickly, she said, that the government didn’t have time to put worker health and safety protections in place.

A recent center study of three factories with about 200,000 workers, mainly women between the ages of 18 and 30, found that workers routinely put in 12-hour days and have no knowledge of the types of chemicals they use. Many suffer headaches and dizziness, and some have had reproductive problems, Duong said. A number of women quit their jobs after hearing of others who had miscarriages. It was the first study of its kind in Vietnam.

“The government thought that the workers work in a very clean room that is very safe,” Duong said. “But from our research we see that electronics is not safe.”

Samsung’s dominance in Korea

Korea is the home of Samsung Electronics, whose presence is felt everywhere. There are apartment blocks with the Samsung name. There are Samsung ships and military equipment. Samsung produces chemicals and sells insurance, securities and credit cards.

The company started in 1938 selling dried fish, vegetables and fruit. Within a few years it had moved into manufacturing flour mills and confectionary machines. It started making televisions in the 1970s, but it wasn’t until the 1990s that it became an international company and a leader in electronics production. Today, Samsung Electronics Korea has more than 90,000 employees and half a million worldwide.

One night in March, a memorial event was held outside Samsung’s 44-story headquarters in downtown Seoul. The aim was to remember a young woman, Hwang Yu-mi, who died eight years ago from acute myelocytic leukemia (AML).

People sat on thin cushions on the sidewalk, drinking hot tea to keep warm. There were testimonials from workers and their families, with a backdrop of poetry and music. Most startling were the photos of the mostly female workers who had died of leukemia and brain, breast and lung cancer. They were strikingly young: 21, 24, 28.

The memorial was organized by Hwang Sang-ki to honor his daughter, Yu-mi, and bring attention to illnesses among other electronics workers, most of whom had been employed by Samsung. When Yu-mi’s co-worker, Yi Sook-young, also died of AML, Hwang said, he thought there must be a connection.

“But I did not have any information about the factory, and all I knew at that time was they used some chemicals, and I heard that some chemicals can be hazardous,” he said.

Hwang had no idea how many workers were sick. He told his story to Supporters for the Health and Rights of People in the Semiconductor Industry (SHARPS), an umbrella group of nonprofits and volunteers. With the help of doctors and lawyers, SHARPS began collecting names of workers who had died and the causes of death. Its database includes more than 300 cases, most from Samsung.

Occupational health physician Dr. Kong Jeong-ok works for the Korean Institute of Labor Safety and Health and volunteers with SHARPS.

“Many people say, even the company sometimes … that this number [300] looks big, but it does not mean anything,” she said. “There's no [statistical significance]. [To] myself, as a doctor, this is a really big alarm.”

The statistical significance to which Kong referred is a scientific evaluation of whether the number of sick electronics workers is large enough to suggest a connection between their illnesses and their jobs. Kong says the SHARPS list of 300 includes only those people who have heard about the group’s work and volunteer their stories. She believes many more sick people are not being counted.

SHARPS heard recently from parents who gave birth to children with physical or mental abnormalities, Kong said. Investigating those cases is next on the group’s list.     

study published in May by the online journal PLOS One found that women who work in the electronics industry in Korea have significantly higher risks of miscarriage and menstrual problems than a control group of Korean women the same age. Researchers from Hanyang University, Kyung Hee University and the nonprofit People’s Health Institute used data from Korea’s National Health Insurance claims between 2008 and 2012.

The researchers noted that not all women who miscarry or have menstrual problems would see a doctor. And “we could not identify particular workers who were potentially exposed to reproductive hazards or working in a specific position,” they wrote. Those factors suggest the risk “is likely to have been underestimated.

“Given that our data came from the three biggest companies in Korea, it is plausible to assume that workers in small-sized companies of Korea or working in developing countries are more exposed to such risk,” the scientists reported. Reproductive problems, the study pointed out, may foretell other health risks, such as cancer.

A public apology

After Yu-mi’s death, her father, Hwang Sang-ki, filed a claim with the Korea Workers’ Compensation and Welfare Service. The agency said there was no evidence that Yu-mi’s leukemia was work related and rejected the claim. With the help of SHARPS, Hwang took the agency to court in 2011 and got a lucky break: An internal Samsung document was leaked to SHARPS administrator Lee Jong-ran.

“It showed a precise list of the toxic materials that were used in every process within the factory, not all the materials but the major ones, and they were really, really toxic,” Lee said.

The list included chemicals such as hydrogen chloride, ammonia, benzene, hydrofluoric acid, sulfuric acid and trichloroethylene.

SHARPS found an expert to look at the list and testify about the dangers of the chemicals. The court agreed to hear testimony from Samsung employees who worked in the same area as Yu-mi; after the workers told their stories, the court overturned the compensation service’s decision.

The three-judge panel said “the prolonged exposure to various toxic chemicals during [Yu-mi’s] work … gave rise to or at least accelerated the development of acute myeloid leukemia; thus, a proximate causal relationship … seems considerable.”

The compensation service appealed. Samsung got approval from the court to intervene in the appeal and hired several of the country’s top lawyers.

In May 2014, after years of ignoring the memorials and the demonstrations, Samsung’s vice-chairman, Kwon Oh-hyun, offered a public apology on national TV.

“We regret that a solution for this delicate matter has not been found in a timely manner, and we would like to use this opportunity to express our sincerest apology to the affected people,” he said. “We should have settled the issue earlier, and we feel deep regret that we failed to do so and express our sincerest apology.”

Samsung promised to stop intervening in court cases brought against the compensation service and to compensate sick workers and the families of those who died, including Yu-mi’s father, Hwang Sang-ki, and Han Hye-kyung, the young woman from Chuncheon who had a brain tumor removed.

Samsung officials declined to be interviewed for this article. Instead, a company spokesman, Park Ji-youn, recorded answers to a reporter’s questions.         

Asked how Samsung protects workers from chemical hazards, Park said, “We closely regulate chemical exposure throughout the manufacturing process from storage to disposal. All Samsung employees receive information during mandated training about the chemicals that they handle including possible harm posed by those substances.”

Samsung refused to provide a copy of its hazardous-materials policy, saying in an email that its internal policies and practices could not be shared. It did not explain why details on its chemical safety training needed to be kept secret.

Asked why Samsung had compensated former employees, Park said, “It was the right thing to do. Not because we have legal or court-ordered mandates to do so or even any scientific evidence to link these illnesses to the workplace.”

In August 2014, the Seoul High Court rejected the compensation service’s appeal and ordered it to provide lost wages and funeral expenses to the families of the two former Samsung workers who died of leukemia.

Hwang Sang-ki believes the decision will change the way future compensation claims are handled.

“Because of this victory I think the more people can get some consciousness about the hazardous workplace problem,” he said. “And also, more workers can be protected in the future and the more victims can be compensated.”

Despite Samsung’s establishment of the financial aid fund last month, activists remain unsatisfied. The company rejected the idea of paying for a nonprofit foundation that would oversee the aid program and develop measures to prevent workplace disease. A non-binding mediation committee has asked the company to reconsider.

The chemical database

Ted Smith lives in the heart of California’s Silicon Valley, where, beginning in the 1970s, electronics workers began complaining of illnesses they blamed on their jobs. Smith, a lawyer, founded the Silicon Valley Toxics Coalition in 1982. His work got laws passed, first in California and then nationally, to force electronics companies to reveal the names of some of the chemicals they use. Smith said the list of reportable chemicals is far from comprehensive and that chemicals used in small amounts are not reportable.

In the 1990s, the industry began moving to Asia and the coalition followed.  It created a global network in 2002 that later became the International Campaign for Responsible Technology. It works to reduce industrial pollution and improve worker safety. Smith, the campaign coordinator, travels throughout Asia to train workers, union officials and doctors.

“We do a number of exercises where the workers get involved in mapping their own factories so that they can identify where the hazards are,” Smith said. “What we are trying to do through this training is to develop enough pressure from the workers themselves, as well as from other sources, to get the companies to make [chemical data] public.”

With the help of other researchers, Smith is building a database of chemicals believed to be used in the industry, and associated health effects.

“We have really had to do it from scratch,” he said. “It is a pretty robust list right now. It has over 1,100 chemicals on it and many of them have very well-defined scientific data behind them identifying them as carcinogens or reproductive toxins or neurotoxins.”

Once the list is finished, perhaps later this year, Smith hopes it will put pressure on companies like Samsung to disclose more of the chemicals they use. The next step would be to convince the companies to start replacing the most toxic ones.

“What the companies will oftentimes say is, ‘We will make changes as our customers demand it. We are customer-driven, customer-focused.’ So, one of the things we’ve tried to do is to organize some of that demand side,” Smith said. “If you can get hospitals, universities, to start demanding safer products, to say to the big brands, ‘We don’t want to buy your stuff until you meet certain minimums,’ that can create pressure on companies to start moving towards safer products and safer chemicals.”

Sandra Bartlett is a freelance writer and radio reporter in Toronto.

A memorial event for former Samsung workers who died of cancer was held outside the company's Seoul headquarters in March.Sandra Bartletthttp://www.publicintegrity.org/authors/sandra-bartletthttp://www.publicintegrity.org/2015/09/11/17936/samsung-blame-cancers

James Bond exposes all that's wrong with super-PACs

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"James Bond" backs dubious Bernie Sanders super-PAC

Seldom do our stories have as much going for them as Michael Beckel’s hard-won piece on the tale of a dodgy businessman-cum-diplomat-cum-lobbyist who’s tangled with the law and his self-created super-PAC supposedly supporting Bernie Sanders. Daniel Craig, the actor who plays 007 James Bond, is apparently one of those drawn in to the web thinking he really was helping the Democratic Party presidential candidate.

The story speaks for itself but let me say that I know it has taken weeks if not months of work by Michael and his colleagues and our lawyer Mike Rothberg to get it this far. Craig wasn’t even in the frame until very recently. It’s a fun story but doesn’t it also expose just how nuts the entire system of Political Action Committees is? That’s why the story was in our wheelhouse from the start and why this 2012 story on the Supreme Court’s Citizens United decision still draws lots of readers and attention.

It’s worth noting that Al Jazeera America ran the story in full and the New York Times picked it up in its campaign coverage today, as did the Washington Post,Bloomberg and Huffington Post,  which kindly just noted it and linked back to our site for the action. The piece is also doing the rounds on Twitter and media columnist and professional flamethrower Michael Wolff noted: "totally fascinating look at latest political hustle--can't make this stuff up”.

As of this morning the piece has been picked up in too many places to list from Variety to Time.

“Big oil, bad air” scoops up another big award

In another category altogether, Jim Morris and the Environment team roll on, and their “Big Oil, Bad air” project exposing the unseen damage from fracking this week won the long form category of the National Association of Science Writers Science in Society Awards. It’s the fifth major industry award for a series which Jim led in partnership with Inside Climate News and the Weather Channel, another great example of our partnership strategy paying off.

The judges said the series was "an extraordinary accomplishment in team investigative science journalism targeted at a crucial energy, environment and health issue that extends well beyond the boundaries of Texas, the project's focus. The reporters set out to get to the bottom of a corrupt regulatory system involving the fracking boom. They found no bottom.” Our communication czar Bill Gray wrote up a note explaining it all.

What do corporations get for their political donations?

Liz Essley Whyte asked that very simple question and came up with answers that should probably worry stockholders. It too is a story right in the center of what Public Integrity seeks to do.

It’s the sort of piece we can expect more as we develop a new unit in Money & Politics, led by Allan Holmes, which will look even more strongly at Business in Politics.

Do no harm falls short

The ICIJ broke more ground on its series on the failings of  the World Bank to fulfill its “do no harm” mission with harrowing stories from Cambodia about ill-treatment by local authorities on projects sponsored by the World Bank.

Follow up and ongoing impact

We’ve talked often about Susan Ferriss’ work in juvenile justice and particularly her narrative on a young boy called Kayleb who personified the problem of kids being treated like criminals. She refused to let go of the story and her latest piece about the child being allowed back to school has 900 likes and the petition related to him has more than 150,000 signatures. This is an interesting intersection between our work to highlight problems and advocates who act on it.

What we’re reading

The Wall Street Journal has put a remarkable amount of effort into a world-beating exclusive investigation into hundreds of millions of dollars which turned up with the Malaysian Prime Minister and have now been traced in theory to the United Arab Emirates. It’s a textbook investigation.

The Financial Times exposed the dystopian world of major state actors recruiting hackers to conduct cyber warfare. [Link may be behind a paywall] It’s an area we’re taking a good look at to see how it might expand our National Security work.

Journalists and editors and anyone who has to write reports might love this piece from a veteran New Yorker writer about how even the most perfect piece needs a good editor. [Yes, I do appreciate the irony of me including this.]

Gordon Witkin notes the Politico 50, a colorful “advent calendar” presentation of the movers and shakers for 2016. Number One is Supreme Court Justice Anthony Kennedy and intriguingly to me as a big fan, New Yorker writer and author and surgeon Atul Gawande is number 50. 

I welcome any feedback on this note.

Peter Balehttp://www.publicintegrity.org/authors/peter-balehttp://www.publicintegrity.org/2015/09/11/17978/james-bond-exposes-all-thats-wrong-super-pacs

On 9/11 anniversary, politicians collecting campaign cash

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The 14th anniversary of the 9/11 attacks did not stop members of Congress from conducting political fundraisers as the 2016 election inches nearer.

In the past, the day has been a time when politicking is put aside. Attack ads are taken down, debates cease and the focus moves away from election season. Despite this, several lawmakers took today to fundraise.

The Center for Public Integrity verified with event hosts that Reps. Mike Bishop, R-Mich; Kevin Cramer, R-N.D. and Elizabeth Esty, D-Conn., fundraised today — with some events costing up to $1,000 to attend.

Esty fundraised with the United Transportation Union in Washington, D.C., asking individuals for $1,000 to attend and $5,000 to host the event.

Cramer raised money at an 8:30 a.m. breakfast at the Capitol Hill Club, asking attendees for a minimum donation of $500.

Bishop’s fundraiser took place this morning at Capitol Hill restaurant Stanton & Greene, where supporters were asked to contribute $500 or more.

Representatives for the three members of Congress could not be reached for comment.

At least nine other members of Congress may have fundraised today as well, according to invitations and scheduling emails reviewed by the Center for Public Integrity, which was unable to independently confirm the events took place.

Gov. Sam Brownback, R-Kansas, and Rep. Mark Takai, D-Calif., did not hold fundraisers today.

But both of the politicians’ campaigns emailed supporters this morning about upcoming fundraising events. Brownback’s gathering required a minimum donation of $250, while the Takai event asked for at least $500.

Fundraising on Sept. 11 has occurred in other recent years: Politico reported that lawmakers fundraised last year too, with Rep. John Kline, R-Minn. hosting a cigar and whiskey tasting event and Rep. Jared Polis, D-Colo., throwing a cocktail event that cost $500 to attend.

Twitter, meanwhile, remained relatively free of political messaging today.

Bishop and Esty tweeted out recognition of the Sept. 11 attacks, using hashtag #NeverForget. Other lawmakers went a step further in remembering the anniversary by attending memorial events, for example, or releasing statements about the anniversary.

Republican presidential candidate Marco Rubio, R-Fla., sent an email out titled “Remembering 9/11” in which he asks supporters to “pause to remember” those who died in the attacks.

“May we also remember that feeling, and keep it with us, as we confront America’s many challenges today,” Rubio wrote.

Unlike most of Rubio’s emails, it did not ask people for a donation.

 

 

A U.S. flag is draped on the side of the Pentagon, Friday, Sept. 11, 2015, where the building was attacked on Sept. 11, 2001.  Cady Zuvichhttp://www.publicintegrity.org/authors/cady-zuvichDave Levinthalhttp://www.publicintegrity.org/authors/dave-levinthalhttp://www.publicintegrity.org/2015/09/11/17977/911-anniversary-politicians-collecting-campaign-cash

EPA plans more aggressive civil-rights reviews

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The Environmental Protection Agency’s Office of Civil Rights will more aggressively evaluate recipients of EPA funding to ensure their compliance with federal civil-rights laws, the office said in a draft Strategic Plan released last week. Billed as an effort that “invigorates the EPA’s civil-rights mission,” the five-year plan commits the agency for the first time to conduct targeted compliance reviews. 

Beginning October 1, the EPA’s civil-rights office will boost the number of proactive reviews of mostly state and local agencies by investigators on the ground. Targets will be chosen based on “statistical data, prior complaints, reports by other EPA offices” and other factors, the plan states. By fiscal year 2018, the office promises to complete six compliance reviews of recipient agencies per year; the annual tally will rise to 11 reviews by 2021, and 22 by 2024.

The office is responsible for investigating environmental-discrimination claims filed by communities of color under Title VI of the Civil Rights Act of 1964. It also processes discrimination complaints lodged by EPA employees.

Last month, a Center for Public Integrity investigation found that, since the mid-1990s, the EPA has dismissed 95 percent of all community claims alleging environmental discrimination without providing any remedy. In a series of stories entitled “Environmental Justice, Denied,” the Center examined how the EPA’s enforcement of Title VI has frustrated minority communities across the country. The series featured suggestions for how to fix the broken civil-rights office. One was to perform more proactive reviews.

The 19-page strategic plan centers on three overarching goals for the EPA’s civil-rights office:  develop a “proactive compliance program,” ensure a “prompt, effective and efficient” complaint process and “strengthen” its own staff. Each aims to support Civil Rights Director Velveta Golightly-Howell’s vision for, in her words, “a model civil rights program worthy of replication.”

“We are steadily moving towards that goal, and much positive change has already occurred,” Golightly-Howell said in a statement introducing the plan. “While recognizing that there is still work to do, we are proud of our accomplishments.” 

Under its plan, the office will provide policy guidelines for recipient agencies, including “examples of promising practices” to avoid environmental discrimination — something that experts, advocates and auditors have all suggested. In the draft, the office said it will “periodically” issue informal guidance and policy memoranda intended to help minority communities, as well as local and state agencies.

The plan does not mention one of the most fundamental and controversial policy debates for the EPA — the legal standards for determining environmental racism. Advocates and recipient agencies alike have called for the EPA to develop such standards for years.

The plan sets timelines for some initiatives that the office has already announced — the 2016 launch of a civil-rights annual report, for instance. It also addresses longstanding criticisms of the office as dysfunctional, committing to annual surveys of civil-rights staff, as well as specialized training.

One new effort is an upcoming “notice of proposed rulemaking” for civil-rights claims. The EPA is considering bringing its Title VI regulations in line with those of other federal agencies, it said, and giving the civil-rights office more “discretion” to handle complaints. Under existing regulations, the office has a 20-day deadline to decide whether or not to investigate Title VI complaints; if so, it has another 180 days to issue preliminary findings.

In its draft, however, the agency said that investigating Title VI complaints under these “self-imposed, inflexible deadlines is impracticable.” It cites what it calls “the scientific complexity” associated with environmental-discrimination claims, as well as “the number of discrimination allegations and theories.”

In a statement to the Center, the EPA said the notice of proposed rulemaking would do away with the 20-day and 180-day deadlines and instead require that complaints be processed "promptly." The agency also would be given the ability to "request and receive compliance information from [funding] recipients on a regular basis."

The EPA’s civil-rights office has long been criticized for failing to meet its own deadlines. The Center found that the office took nearly a year, on average, simply to determine whether to accept a complaint.

Five community groups sued the EPA in July, seeking to force the agency to finish investigating civil-rights claims that have been pending for at least a decade — some as far back as 1994.

Lawyer Marianne Engelman Lado, of Earthjustice, which represents the groups in the litigation, considers the notice “a red flag.” While the draft plan offers little detail, she said, “The only thing that seems clear is that [agency officials] want to roll back the statutory deadline  … the EPA seems to want to take away the only handle we have to make them accountable in these cases.”

Brooklyn Law School professor Gregg Macey, who specializes in environmental law, said the notice’s emphasis on “EPA’s enforcement discretion” also raises concerns, especially since the strategic plan stresses use of “alternative dispute resolution” and other ways to settle Title VI complaints. Historically, he said, the civil-rights office has used such voluntary agreements to force improvements in community outreach or non-English language translations, among other things.

“It’s hard to locate in these agreements any improvement of environmental conditions on the ground,” Macey said.

The EPA’s strategic plan will be open for public comment through October 13.

A truck drives toward a dumping area at the Arrowhead Landfill in Uniontown, Alabama.Kristen Lombardihttp://www.publicintegrity.org/authors/kristen-lombardiTalia Bufordhttp://www.publicintegrity.org/authors/talia-bufordhttp://www.publicintegrity.org/2015/09/15/17981/epa-plans-more-aggressive-civil-rights-reviews

Murmurs of change at the troubled EPA civil-rights office

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The Center told you last month about the Environmental Protection Agency’s laggard Office of Civil Rights, which hasn’t made a formal finding of environmental discrimination in more than two decades of fielding complaints from communities of color.

A complainant from Syracuse, New York, summed up her feelings for one of our reporters: “What did the agency do for us? They didn’t do shit for us.”

In recent weeks, the EPA has made encouraging noises about dragging the office into some semblance of functionality. Next year, it plans to begin issuing an annual progress report.

A five-year strategic plan unveiled last week commits the agency to more rigorous reviews of recipients of EPA funding – from the city of Baton Rouge to the Alabama Department of Environmental Management – to ensure they comply with Title VI of the Civil Rights Act of 1964.

All of this is aimed at building, as office director Velveta Golightly-Howell put it, “a model civil rights program.”

The timing of these moves, coming immediately after the Center’s six-part series, “Environmental Justice, Denied,” may be purely coincidental. To be sure, others had pointed out flaws in the program years before we published. Still, our investigation highlighted systemic problems with an unprecedented level of detail, making them impossible to ignore.

We intend to stay on the story.

Jim Morrishttp://www.publicintegrity.org/authors/jim-morrishttp://www.publicintegrity.org/2015/09/16/17992/murmurs-change-troubled-epa-civil-rights-office

Super PACs dominate airwaves in 2016 presidential race

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Republican presidential candidates may tonight battle each other on CNN’s debate stage, but their supportive super PACs have been the dominant forces in the campaign’s television ad war this year.

That super PACs are sponsoring most early ads during the turbulent GOP primary represents a dramatic change from the 2012 election, when candidates’ own committees initially drove TV messaging.

Non-candidate groups, including super PACs and politically active nonprofits, have sponsored nearly nine in every 10 TV ads aired to date during the 2016 GOP presidential primary, according to a Center for Public Integrity analysis of data provided by advertising tracking firm Kantar Media/CMAG.

Such groups face no limits on how much money they may raise or spend.

Candidates, super PACs and other special interest groups have combined to air about 11,000 ads in the GOP presidential race through Monday, Kantar Media/CMAG data indicates.

About 90 percent of these TV spots have targeted voters in either Iowa or New Hampshire — the states conducting the first two presidential nominating contests in February.

In the Democratic presidential primary, about 4,000 TV ads have already aired.

But in that race, the sponsor trend is reversed: Democratic Party frontrunner Hillary Clinton’s campaign accounts for about 90 percent of the TV ads, and a group supporting former Maryland Gov. Martin O’Malley is the only super PAC so far involved in the race.

Sen. Bernie Sanders of Vermont has not yet aired a TV ad, although it hasn’t hurt him any, as he continues to rise in recent polls — even surpassing Clinton in some.

On the Republican side, the most prolific ad buyer has been the Opportunity and Freedom PAC, a super PAC that attempted to boost the fortunes of former Texas Gov. Rick Perry.

It didn’t work: The pro-Perry super PAC aired more than 3,400 ads — nearly one-third of all TV ads in the GOP race to date — but Perry suspended his floundering campaign on Friday.

The next most active ad sponsor among Republicans has been the super PAC New Day for America, which supports Ohio Gov. John Kasich.

The group has mostly focused on New Hampshire, where it has aired more than 1,200 TV ads — representing about one of every nine ads overall in the GOP race.

And a super PAC backing Louisiana Gov. Bobby Jindal, called Believe Again, ranks third, having aired about 1,100 TV ads in Iowa — or about one of every 10 ads in the entire GOP presidential primary to date.

Jindal continues to poll in low single digits and didn’t qualify for tonight’s main stage debate, while Kasich’s standing in the polls has risen after a solid performance last month during the first GOP presidential debate.

Connie Wehrkamp, a spokeswoman for pro-Kasich New Day for America said the super PAC’s ads “are helping to introduce voters to John Kasich.”

Brad Todd, a spokesman for pro-Jindal Believe Again, stressed that TV ads were only one tool the group — which is also hosting town hall meetings featuring Jindal— was using to connect with voters.

“You have to communicate on a variety of platforms to have a meaningful dialogue with voters,” Todd said. “Our goal is to talk with Iowans and not at Iowans.”

He continued: “We are focused on Iowa because it is first on the calendar. If you want to win in South Carolina and do well in the Southern primaries on March 1st, the first step to that success is to do well in Iowa.”

Meanwhile, most GOP candidates themselves are not yet on the air, including Republican Party frontrunner Donald Trump.

"I'm on TV so much, it'd be stupid to advertise,” Trump recently told Rolling Stone. “Besides, the shows are more effective than ads."

According to Kantar Media/CMAG, only the campaigns of former Florida Gov. Jeb Bush, retired neurosurgeon Ben Carson, New Jersey Gov. Chris Christie and Sen. Ted Cruz of Texas have already aired TV ads.

The campaign of Sen. Rand Paul of Kentucky will air its first TV spots during tonight’s debates, while other GOP contenders — including Sen. Marco Rubio of Florida — have reserved air time on TV later this year or already invested heavily in online ads.

Alice Stewart, a spokeswoman for Mike Huckabee, confirmed that the former Arkansas governor hasn’t yet made TV ad buys, but she declined to “reveal details of our ad strategy.”

Officials for other campaigns either declined to comment or did not respond to questions.

Super PAC-sponsored ads will increase dramatically in the days ahead. Pro-Bush super PAC Right to Rise USA, for one, will reportedly spend $24 million on a massive ad campaign that began Tuesday.

Unlike candidates who may collect no more than $2,700 per person, super PACs and nonprofits have no limit on how much money they receive from people, corporations or labor unions. These groups, in turn, can use whatever funds they raise to independently support their preferred candidates.

Super PACs must regularly disclose their donors to the Federal Election Commission, while politically active nonprofits are generally allowed to keep their donors’ identities secret.

Louisiana State University political science professor Johanna Dunaway said she was not surprised by this early super PAC spending spree while candidates have largely kept their powder dry.

“The PAC spending up front allows the candidates to hold on to their campaign-generated money until later in the contests when the stakes are higher,” she said.

Added Iowa State University political science professor David Andersen: “It makes sense given the current legal system surrounding campaign finance. It is much easier for super PACs to raise money.”

Indeed, super PACs have been lapping candidates in the fundraising race.

Groups backing the 2016 White House contenders had raised more than $266 million through the end of June, the period covered by the most recent campaign finance reports.

That was more than twice as much as the roughly $130 million raised by the candidates themselves, as the Center for Public Integrity previously reported.

Cady Zuvich contributed to this report.

This story was co-published with TIME.

Screen shots of super PAC ads featuring Louisiana Gov. Bobby Jindal, former Florida Gov. Jeb Bush, former Texas Gov. Rick Perry and Ohio Gov. John Kasich.Michael Beckelhttp://www.publicintegrity.org/authors/michael-beckelhttp://www.publicintegrity.org/2015/09/16/17995/super-pacs-dominate-airwaves-2016-presidential-race

Pro-Rick Perry super PACs give back millions

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A group of super PACs backing former Texas Gov. Rick Perry’s now-defunct presidential bid has refunded to donors most of the millions of dollars they collected, the groups’ finance chairman said.

“We’re still settling up with a few vendors … but we had a pretty good estimate of what those were so we were able to hold back a little bit of the reserve and refund the rest,” Brint Ryan, the super PACs’ finance chairman who runs a Dallas-based tax services company, told the Center for Public Integrity.

The pro-Perry super PACs, all named variations on Opportunity and Freedom PAC, are legally allowed to accept unlimited contributions.

They collectively reported raising $12.8 million during the first half of the year. Austin Barbour, the senior adviser, said they had received another $4 million contribution from a single donor after the reporting deadline, bringing the total to nearly $17 million.

The bulk of the groups’ money came from a relatively small number of donors. Dallas billionaire Kelcy Warren, Perry’s campaign finance chairman, contributed $6 million. Darwin Deason, also a Dallas billionaire, gave $5 million.

Jordan Russell, a spokesman for the Opportunity and Freedom PAC groups, declined to comment.

It’s unusual for a super PAC to find itself flush with cash after a candidate drops out.

But Perry’s exit — the first this year among major presidential candidates — was abrupt: He suspended his campaign late last Friday in the face of a dwindling bankroll that forced him to lay off staff, as well as a series of polls that showed him slogging along toward the bottom of the Republican field.

Legally, there’s nothing to stop donors from attaching formal conditions to their contributions to super PACs, mandating that the money only be used for certain expenses or stipulating what would happen if a candidate drops out.

But that practice isn’t common.

Barbour initially said he was reviewing what the law allowed the super PAC to do in such circumstances and would discuss options with donors. Deason’s son said publicly that the family expected the money to be returned.

Refunding the money was the right thing to do, said Ryan, adding that he personally controls disbursement of the super PACs’ funds.

“It was my view that those donors may want to make other arrangements with their money, and the sooner we get it back to them, the quicker they could do that,” Ryan said.

The biggest donors to the pro-Perry super PACs are being heavily courted by other candidates.

Ryan, too, said his phone has been ringing, though he wouldn’t say which candidates have called and he isn’t ready to make any commitments.

“Now I know how the prom queen feels,” he said wryly.

Perry’s campaign reported raising just $1.14 million between his official announcement June 4 and the reporting deadline at the end of June.

After news of Perry’s campaign cash crunch broke, Barbour said the super PACs would fill the void on Perry’s behalf. Super PACs are prohibited from coordinating strategy with the campaigns they support, but many single-candidate super PACs nevertheless maintain close ties with the candidates they back.

The pro-Perry super PACs hired operatives in Iowa and bought more ads than anyone else on the Republican side of the race, airing nearly one-third of all the TV ads in the race to date.

But the efforts came to a halt Friday with news of Perry’s abrupt withdrawal, a move that surprised his backers at Opportunity and Freedom PAC and showed the limits of what super PACs can do to save a campaign starved for cash and support.

Ryan said the super PACs’ efforts were hampered by legal restrictions that prevent it coordinating with the campaign directly.

Super PACs can buy ads and do a lot of things, but they can’t pay a campaign committee’s staff or, in his view, effectively operate a grassroots effort, he said.

“It may be that you get a bunch of wealthy donors whose money is effectively stranded and can’t be used effectively,” he said.

The lessons of Perry’s aborted run have the potential to resonate with other candidates.

Outside groups dedicated to backing specific presidential candidates are playing an unprecedented role in the 2016 election cycle, with nearly every contender boasting one.

Several Republican candidates — former Florida Gov. Jeb Bush, businesswoman Carly Fiorina, Sen. Ted Cruz of Texas and others — are relying heavily on super PACs that have raised many times the money of their campaigns.

In manycases, the super PACs have assumed functions traditionally performed by the campaign and so far, are sponsoring the vast majority of television ads.

Supportive super PACs are “kind of a blessing for candidates” said Iowa State University political science professor David Andersen.

“As long as you have a few very wealthy donors who are willing to finance your campaign through a super PAC, you can last even if your poll numbers are terrible,” he said.

Perry, Andersen continued, could have stayed in the race longer.

“With the rise of super PACs, you don’t need a wide base of support,” Andersen said. “All you need is one billionaire who is willing to give you $20 million and get through the primary system.”

But, as in Perry’s case, the candidates aren’t able to directly control the super PACs’ resources and a super PAC can’t pay a candidate’s expenses. The pro-Perry super PACs’ money couldn’t buy a way around that problem.

Michael Beckel contributed to this story.

This story was co-published with the Texas Tribune.

Former GOP presidential candidate Rick Perry.Carrie Levinehttp://www.publicintegrity.org/authors/carrie-levinehttp://www.publicintegrity.org/2015/09/17/18005/pro-rick-perry-super-pacs-give-back-millions

New filing raises more questions about shady pro-Bernie Sanders group

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Americans Socially United, a super PAC that recently received nearly $50,000 from James Bond actor Daniel Craig, has submitted its first official campaign finance report to the Federal Election Commission.

And it’s a mess: The report from the group that claims to support presidential candidate Sen. Bernie Sanders is riddled with anomalies and raises as many questions as it answers.

The filing by Americans Socially United — whose founder, Cary Lee Peterson, has a history of financial and legal problems and is a wanted man in Arizona — came nearly seven weeks after the mandatory report was due and a week after the Center for Public Integrity raised questions about the super PAC’s operations.

The money from Craig appears to have come at a critical time for Americans Socially United, as the super PAC’s new report states it ended June about $50,000 in the red.

The new report further indicates Americans Socially United had raised about $100,000 from its formation in February through the end of June, although the exact amount is unclear.

That’s because one section of the report lists the super PAC’s total receipts as about $91,000, while other figures indicate it collected about $114,000.

Americans Socially United also states in its report that it refunded a significant portion of the money it collected. But the exact amount is again unclear.

One section of the report states the super PAC refunded about $54,000 in total to donors. Yet another indicates that that number is higher — nearly $80,000 — including $50,000 from a foreign national identified as Alejandro Fernandez of La Paz and $25,000 from a second foreigner simply identified as Anthony Rice.

Only U.S. citizens and green card holders are allowed to donate to federal candidates and political committees.

The report includes the names of about 30 donors but failed to provide federally required information about their addresses, employers and occupations.

Other donations were returned because Peterson’s super PAC got the money by mistake. Some contributions were intended for Sanders’ official campaign, the filing indicates.

Until recently, Americans Socially United listed the names of more than 500 people on its website who had donated, or pledged to give, to the group.

When contacted by the Center for Public Integrity, several of them said they thought they were contributing to the official campaign committee of Sanders, who has himself disavowed all super PAC support as he challenges Hillary Clinton for the Democratic Party presidential nomination.

The Sanders campaign — which has itself collected $2,700 from Craig — even sent Americans Socially United a cease and desist letter in June demanding that Peterson curtail his operation.

Peterson has largely ignored the letter's demands, which include taking down his social media pages and websites, which include BetonBernie.com, BetonBernie2016.com, PledgeSanders2016.com and SociallyUnited.org.

Among the super PAC’s biggest expenses during its first months of existence? Media, although the filing doesn’t offer many details.

Americans Socially United paid a company called EMW Services about $24,500 for “media services,” according to the report.

Two other donors — one from Naples, Florida, and one from Montreal — are listed as making in-kind contributions to cover five-figure media expenses.

Americans Socially United also paid $4,875 to Peterson’s own company — Robert Peterson Fields Associates — for unspecified “professional services” and spent about $2,500 on airline tickets, rental cars and hotels.

Reached via email, Peterson declined to comment for this story.

In a statement included with his super PAC filing, Peterson said he has been a “target of cyber-industrial sabotage and alleged acts of criminal syndicalism committed by specific financial service providers, a financial institution, web service providers and independent contractors.”

Earlier this month, Peterson declined to comment about the two active warrants out for his arrest in Arizona. Both stem from Peterson failing to appear in court for misdemeanor cases, including a disorderly conduct charge and an “extreme DUI” conviction.

Peterson has also routinely run afoul of creditors, as the Center for Public Integrity recently reported.

He most notably stiffed Dow Jones & Co. out of nearly $170,000 after one of his companies failed to pay for advertisements in the Wall Street Journal.

Moreover, Peterson’s been evicted twice from apartments in Texas in recent years for failing to pay rent.

Peterson told the Center for Public Integrity earlier this month that his past run-ins with the law were not relevant to the work he’s doing now — and that he started Americans Socially United because he’s just a fan of Sanders.

“You don’t need to look back on my past,” Peterson said. “I’m going out there trying to make a difference.”

Campaign finance watchdogs have raised concerns about Peterson’s activities, and the FEC has already told him that his group could face “civil money penalties, an audit or legal enforcement action” for his tardy campaign finance filing.

Ann Ravel, the Democrat who currently serves as the FEC’s chairwoman, told the Center for Public Integrity that she couldn’t speak directly to the actions of Peterson or his super PAC, as the agency does not comment on organizations that it might be actively investigating.

But she expressed general concerns about what she calls “sham PACs,” which primarily exist not to support a political candidate or cause, but the personal bank accounts of the people running the super PACs.

She also issued a warning to people to people considering making a contribution to a super PAC they don't know much about.

“Make sure the organization you're giving to is fulfilling the purpose for which you're giving money,” Ravel said. "It would behoove people to talk to the actual candidate's committees first" if they're unsure about a super PAC purporting to support the candidate.

Matthew Petersen, the FEC’s Republican vice chairman, said that in general, people who want to contribute to a candidate’s campaign committee should take care to ensure they’re sending their money to the correct place.

“You really need to be sure to read the disclaimers that indicate whether a committee is an authorized committee” of a particular candidate, Petersen said.

He also said the FEC itself could also review the effectiveness of its regulations and guidance on how unauthorized committees may — or may not — incorporate political candidates’ names into their own.

Save for a few narrow exceptions, super PACs and other political committees are barred from using candidates’ names.

But the FEC hasn’t aggressively enforced these provisions, and a number of groups — chief among them pro-Carly Fiorina super PAC Conservative, Authentic, Responsive Leadership for You and for America, which routinely goes by CARLY for America — have seemingly danced on the fuzzy line between what’s legal and what’s not.

Peterson has also created seven other political committees this year, including several with seemingly official sounding names such as the Congressional Committee on Cuban Affairs and the Congressional Committee on Eurasian Affairs.

None of those groups have yet to file their mandatory mid-year campaign finance reports that were due on July 31.

Screen shot of BetonBernie.com, a website operated by super PAC Americans Socially United.Michael Beckelhttp://www.publicintegrity.org/authors/michael-beckelDave Levinthalhttp://www.publicintegrity.org/authors/dave-levinthalhttp://www.publicintegrity.org/2015/09/17/18009/new-filing-raises-more-questions-about-shady-pro-bernie-sanders-group

California should ensure funds to help struggling students are spent as intended, report says

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California is a couple of years into a closely watched effort aimed at providing more help to  disadvantaged students—kids identified as low-income, English-as-a-Second-Language learners, homeless or in foster care.

But a new report released Thursday argues that the huge Los Angeles school district isn’t investing enough of those state dollars in the children they are intended to support.  Last school year, the report argues, even after receiving $820 million in earmarked funds—on top of other state dollars—the district spent only 3 percent of its total $6.4 billion budget on “direct services, specifically focused on” on the four target groups of children.  

Out of the $820 million, the study found, the district set aside only $145 million for specific and direct services designed for low-income, English learners, homeless and foster kids.  The majority of the L.A. district’s students fall into one or more of these groups. Some schools’ students are virtually all target kids. 

The report said  L.A. school administrators used a sizable chunk—$123 million—of the $820 million earmarked for the four groups of target kids to instead shore up special-education services for the student population more generally. The district has argued that kids with disabilities often fall within the target groups of kids who are struggling with poverty and instability. 

The new report—which urges more accountability and  target services—was issued by the United Way, the Urban league and other groups in Los Angeles that have formed a coalition called Communities for Los Angeles Student Success,  or CLASS. 

The study zeroed in on the Los Angeles Unified School District, the nation’s second largest, where working-class neighborhood schools have struggled for decades with an erosion of funding and resources, overcrowding and high teacher turnover.  

“Gov. (Jerry) Brown’s measure (to distribute funds) was intended to create pathways out of poverty for our high-needs students, and we are working with our partners throughout the district and community to make sure that happens,” said Elise Buik, president and CEO of United Way of Greater Los Angeles.

In a statement responding to the report,  L.A. Unified Superintendent Ramon C. Cortines said the district  “ embraces input from community partners.” . He said that last year, the district hosted more than 100 community meetings, many of which were co-sponsored by the CLASS coalition.  “We also met with our internal team to discuss how we could implement our strategic investments and hold ourselves accountable for the results,” Cortines added.

The state’s new funding formula has allowed the L.A. district to replenish some of the teacher and aide ranks decimated over the years—especially, recently, during the recession –as well as develop programs to improve college-prep classes. But some community groups that welcome these improvements have also been upset that more money hasn’t been devoted to counseling and “restorative justice,” a method of resolving fights and disruptions through meetings among students and teachers.

Activists who have pushed for limits on the use of the district’s school police on campuses applauded when the district last spring decided not to ahead with a plan to provide the police with $13 million out of the special funds for disadvantaged kids.  The budget for restorative justice was set at about $7 million.

The CLASS report explains the history and logic of why California embraced a new way to distribute state education dollars and provide more equity for children whose schools have been unable to keep up with their needs in recent years.  

For more than three decades, the state’s schools have struggled with the fallout from Proposition 13, a 1978 ballot measure that restricted raising property taxes that schools depended on.

“As a result, schools in poor areas struggled to maintain high-quality educators, lower class sizes and provide enough counselors or other support services for students,” the report says. The state tried to balance inequities with a funding formula to local districts based on average daily attendance.

In 2013, under Brown, the state shifted to a formula dubbed the “Local Control Funding Formula,” which now provides 20 percent more in funds for each high-need student in a district. On top of the base funding, extra money is provided to a district where at least 55 percent of the students are kids in the target groups.

Local districts then make decisions about how to address the kids’ needs, but they are expected to solicit parent and community input with multiple meetings and transparency in budgeting.

In this Wednesday, April 8, 2015 photo, Students are served breakfast at the Stanley Mosk Elementary School in Los Angeles in April 2015. In this Los Angeles Unified School District program, and in other major urban school districts, breakfast is increasingly being served inside the classroom. An analysis of LAUSD spending under the state’s new local control funding formula, released Monday, June 15, 2015, finds leaders didn’t consistently allocate dollars to at-risk students who generate the additional revenues.   Susan Ferrisshttp://www.publicintegrity.org/authors/susan-ferrisshttp://www.publicintegrity.org/2015/09/18/18007/california-should-ensure-funds-help-struggling-students-are-spent-intended-report

Common solvent keeps killing workers, consumers

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Johnathan Welch was 18 and working through lunch when the fumes killed him, stealing oxygen from his brain, stopping his heart.

The chemical linked to his death in 1999 wasn’t a newly discovered hazard, nor was it hard to acquire. Methylene chloride, which triggered similar deaths dating as far back as the 1940s, could be bought barely diluted in products on retail shelves.

It still can. And it’s still killing people.

The solvent is common in paint strippers, widely available products with labels that warn of cancer risks but do not make clear the possibility of rapid death. In areas where the fumes can concentrate, workers and consumers risk asphyxiation or a heart attack while taking care of seemingly routine tasks.

That hazard prompted the European Union to pull methylene chloride paint strippers from general use in 2011. For reasons that aren’t clear, regulatory agencies in the United States have not followed suit — or even required better warnings — despite decades of evidence about the dangers, a Center for Public Integrity investigation found.

A Center analysis identified at least 56 accidental exposure deaths linked to methylene chloride since 1980 in the U.S. Thirty-one occurred before Johnathan Welch died, 24 after. The most recent was in July. Many involved paint strippers; in other cases victims used the chemical for tasks such as cleaning and gluing carpet, according to death investigations and autopsy reports the Center obtained through Freedom of Information Act and state open records requests.

Teenagers on the job, a mother of four, workers nearing retirement, an 80-year-old man — the toxic vapors took them all. A Colorado resident one year older than Welch was killed his first day at a furniture-stripping shop. Three South Carolina workers were felled in a single incident in 1986. Church maintenance employee Steve Duarte, 24, survived the Iraq War only to be killed in 2010 while stripping a baptismal pool in California.

“People have died, it poses this cancer threat … and everybody knows it’s a bad chemical, and yet nobody does anything,” said Katy Wolf, who recommends safer alternatives to toxic chemicals as director of the nonprofit Institute for Research and Technical Assistance in California. “It’s appalling and irresponsible.”

Two Medical College of Wisconsin researchers writing in The Journal of the American Medical Association criticized the Consumer Product Safety Commission and the Environmental Protection Agency for remaining “mute” on methylene chloride’s ability to trigger a heart attack. Year of publication: 1976.

The EPA says it does intend to take action. It is working on a rule — expected to be proposed early next year — that could stiffen warning labels on paint strippers containing the chemical, add certain restrictions or ban the products. But any regulation would come more than 30 years after the agency first considered such possibilities for methylene chloride.

The industry is lobbying against a rule, saying the chemical already is well-regulated and remains the most effective way to remove paint.

Faye Graul, executive director of the Halogenated Solvents Industry Alliance, a trade group that includes methylene chloride manufacturers, said the way to stop the string of deaths is simple: “Proper use of the product.” Labels on the cans warn against using in areas that aren’t well ventilated.

The Consumer Product Safety Commission, for its part, denied a 1985 petition to ban the chemical in household products, when the issue was cancer, requiring instead a carcinogen warning that appears on cans in fine print. And CPSC staff shrugged off requests by California and Washington state officials in 2012 to consider stiffer regulation in response to the recurring deaths, later contending that the problem is an occupational one — even though consumers have died, too.

“To provide information to the public concerning this matter, CPSC has produced a paint stripper pamphlet,” an agency toxicologist wrote to the state officials in letters obtained by the Center.

The Occupational Safety and Health Administration tightened its rules for on-the-job exposures to methylene chloride in 1997. But OSHA standards don’t cover consumers or the self-employed, and many of the recent fatalities happened at sites that are virtually invisible to the agency until there’s a death — inside residential bathrooms where lone workers strip tubs of old, chipped finishes.

Methylene chloride offers a case study in how products that pose major risks remain on store shelves. Stuart M. Statler, who helped write the Consumer Product Safety Act and served as a Republican commissioner on the CPSC from 1979 to 1986, said too often companies don’t prioritize safety, seeing it as a needless cost. And agencies are unlikely to force the point with bans. He doesn’t see that changing.

“The pendulum has swung so far in the direction of deregulation,” said Statler, now a product safety and regulatory consultant.

‘Too hazardous’ outside controlled settings

Methylene chloride, also called dichloromethane, is briskly efficient in all that it does. It softens old paint in minutes, allowing the coating to be scraped off. But if its fumes build up in an enclosed space, it can kill in minutes, too.

The California Department of Public Health, in its appeal to the CPSC, said the continuing deaths suggest methylene chloride is “too hazardous to be used outside of engineered industrial environments” — exactly what the European Union concluded about the chemical in paint strippers. While these products can be bought at home-improvement and general retail stores across the U.S., the specialty respirators and polyvinyl-alcohol gloves needed to handle them safely cannot, the Department of Public Health says.

Even workers wearing respiratory protection have succumbed. Levi Weppler, 30, who left a widow pregnant with their first child, was among those found dead with a respirator on, slumped over the Ohio bathtub he was refinishing in 2011. The cartridge-style device he used to filter the air wasn’t enough: Only a full-face respirator with a separate air supply, or exhaust ventilation to remove the fumes, is sufficient, OSHA and the National Institute for Occupational Safety and Health say.

By 1985, U.S. agencies considered methylene chloride a probable human carcinogen — the Food and Drug Administration banned it in hairspray as a result. But the rapid-death problem was identified even earlier. In 1976, NIOSH noted that reports of such fatalities dated to 1947, when four men using the chemical for hops extraction were “overcome” and one of them died.

Dr. Kenneth Rosenman, chief of Michigan State University’s Division of Occupational and Environmental Medicine, helped identify the more recent trend of bathtub fatalities from methylene chloride in a 2012 paper that has galvanized efforts by public-health officials.

They fear the fume risk isn’t widely known.

“It’s not surprising to the scientists who have studied methylene chloride in paint strippers when used in small spaces, but I think it’s surprising to the worker and consumer who can purchase the product off the shelf,” said Dr. Robert Harrison, chief of the California Department of Public Health’s occupational health surveillance program.

Methylene chloride exposure triggers regular calls to the nation’s poison control centers. They handled more than 2,700 such cases in the five years ending in 2013, the most recent data.

The number involving inhalation wasn’t recorded, but almost all the exposures were accidental. Hundreds involved children. And about 950 of the exposed people went to the hospital or sought other medical treatment, according to a Center analysis of American Association of Poison Control Centers reports.

The death toll compiled by the Center, meanwhile, almost certainly is an undercount. Poison control centers don’t hear about all incidents. OSHA tracks workplace fatalities, but not cases involving the self-employed or consumers. And Rosenman is sure the true cause of death for some methylene chloride victims is missed, given the chemical’s ability to trigger a heart attack.

Paint-stripping powerhouse W.M. Barr & Co., an employee-owned company in Tennessee that makes several methylene chloride brands, including ones linked to six worker deaths since 2006, sees the safety issue differently.

Barr’s founder helped the Navy develop the product during World War II to avoid fire hazards after a deadly incident on a ship involving a flammable paint stripper, according to Barr’s vice president of risk management, Mike Cooley. Methylene chloride is nonflammable. Several million cans of paint stripper containing the chemical are sold in the U.S. each year, Cooley wrote in an email to the Center.

“One cannot but help conclude that for the vast, vast majority of consumers, the products were and continue to be safe,” he wrote. “Like many products, there are hazards related to the use of [methylene chloride] paint removers. However when used in the proper setting and as directed, they are not only effective but safe.”

Swift death

Setting aside longer-term health concerns, such as cancer, the danger posed by methylene chloride is its one-two punch when fumes accumulate. Because it turns into carbon monoxide in the body, it can starve the heart of oxygen and prompt an attack. The chemical also acts as an anesthetic at high doses: Its victims slump over, no longer breathing, because the respiratory centers of their brains switch off.

An open flame, meanwhile, can transform methylene chloride to phosgene. That’s the poisonous gas used to deadly effect during World War I, responsible for more fatalities than chlorine and mustard gas combined. (Whether methylene chloride became phosgene in any of the deaths the Center tracked isn’t clear; full records were not available in all cases.)

The 1986 triple-fatality shows how swiftly death can come.

Several contracting firms were working on projects at a dam pumping station in Laurens, South Carolina. One had employees applying paint stripper to an underground area, described by OSHA in records as a basement and a pumping pit. Those workers managed to evacuate after the fumes built up, but when one man went back in, he was overcome so quickly he couldn’t get out.

He died. The emergency medical responder who tried to rescue him had to be hospitalized. Two of another contractor’s employees went through the same exercise, one entering the area to turn on the sump pump and passing out, the other felled while checking on him, according to OSHA records. The first man survived; the would-be rescuer did not.

To top it off, an electrician working aboveground “heard an unusual noise,” according to OSHA, and died in the basement when he went to see what it was.

Four years ago at a California paint company, Gary de la Peña discovered a co-worker lying unconscious in a nine-foot-deep paint-mixing tank. The man had been cleaning it with paint stripper and collapsed. De la Peña rushed in, pulled off his colleague’s useless respirator and put him over one shoulder to carry him out. That’s all he remembers. Already — in just a matter of seconds — the fumes had overcome him, too. 

The man he was trying to save died. De la Peña, now 49 and living in Mexico City, still doesn’t know how he survived. He was in the tank for at least 45 minutes, green foam flowing from his mouth when he was finally pulled out. He had to be resuscitated and was hospitalized for four days, according to a state investigation

He wasn’t able to finish his medical treatments before his immigration status forced him back to Mexico. His health has never been the same. 

“I guess it attacked my nervous system,” said de la Peña, who knew nothing about methylene chloride until after his brush with it. “It’s a really dangerous chemical.” 

Sufficiently concentrated, methylene chloride will kill anyone. But people with heart conditions face higher risks because it doesn’t take as much carbon monoxide to trigger an attack. Smokers can be affected more quickly, too, given their already-elevated carbon monoxide levels.

In one incident, detailed in the 1976 Journal of the American Medical Association article, a 66-year-old retiree had three heart attacks — the last one fatal — that each began as he was stripping a large chest of drawers. 

“Nobody warned him,” said Rosenman, the Michigan State professor.

What agencies have done — and left undone

Judy Braiman remembers reading about the heart-attack risk in the 1970s, probably in that same JAMA article. Around 1977, her Empire State Consumer Association in New York petitioned the CPSC to require a warning on methylene chloride paint strippers that “particular care … must be exercised by persons with heart problems or impaired lung function” because carbon monoxide would form in the body from use. The CPSC, alarmed, announced that its staff was drafting a proposed warning.

Braiman, a former CPSC advisor and president of the since-renamed Empire State Consumer Project, clearly remembers seeing the carbon monoxide cautions appear on cans afterward — only to disappear a few years later. The CPSC never did require them, the agency says. 

Today, some labels tell customers with heart problems to check with a physician before using paint strippers. The Center could find none that specifically warned about carbon monoxide or heart attacks.

Alex Filip, a spokesman for the CPSC, said by email that he doesn’t have much information on the agency’s methylene chloride work in the 1970s because the staffers involved are all gone. As to why the commission didn’t consider regulation more recently, he suggested that its hands are tied — something that was not communicated to the state officials in the letters responding to their requests for help.

“One fact that stands out in our early investigation is that the injury and death information indicates that this is largely a workplace issue, which is outside of our jurisdiction,” Filip wrote. CPSC staff tell him their review of epidemiology data found no people who died as a result of using the products as consumers, and they believe the agency's stance on warning labels is "still appropriate."

Yet deaths from the solvent that involve consumers, though far harder to track than worker fatalities, have occurred in the U.S. The CPSC, in fact, said in its 1978 announcement of proposed warnings that it was aware of “at least three” heart-attack deaths among people using methylene chloride paint strippers in 1976 alone. In 1990, a coroner blamed the chemical after Julette “Julie” Jenkins, a 28-year-old Ohio woman who had been stripping a desk in her attic, dropped dead on the first floor, teacup in hand. And an 80-year-old man died from unintentionally inhaling methylene chloride in 2013, the poison control center system reported.

As the CPSC notes, another agency is working on the issue now — the EPA. Paint strippers with methylene chloride are a test case, one of a handful of chemical uses the EPA recently assessed in hopes of using the weak Toxic Substances Control Act, or TSCA, to actually control toxic substances.

“About one person per year over the last dozen years or so has died, usually in an enclosed space like a bathroom,” Jim Jones, assistant administrator for the EPA’s Office of Chemical Safety and Pollution Prevention, said of methylene chloride strippers. “Certainly [that] is what jumped out at us. But when we did the assessment, we also found cancer risks.”

The solvent industry opposes the effort. After the EPA identified methylene chloride in 2012 as a chemical it intended to assess, the Halogenated Solvents Industry Alliance told the agency it was “mystified” by the attention. Methylene chloride “is more than adequately regulated” already, wrote Graul, the group’s executive director.

Paint stripper warning labels, in Spanish as well as English, all advise against using the products in poorly ventilated areas, she said in a recent interview. Some give bathrooms as an example.

“There are precautions on how to use it, how not to use it,” Graul said. “Amateurs were taking it and stripping bathtubs with it, with no ventilation, and there were fatalities as a result.”

But a Center review of products sold at 15 home-improvement stores in the Baltimore-Washington region did not turn up any that explained, on the label, the potentially fatal consequences of using without sufficient airflow. The closest to it: that “intentional misuse” — so-called huffing to get a chemical high — could result in death.

Graul said there are products that explain the inhalation risks, although she could not name them — paint stripper manufacturers are not her organization’s primary members. But such a warning is not required, she added. The trade group, which prefers stronger warnings to bans, twice suggested such a move to the CPSC after the EPA began assessing the products.

“They were interested, but … because they couldn’t put any staff on it, they couldn’t make any commitments to do anything,” Graul said of the consumer agency.

A reassuring thought for manufacturers as they wait for the EPA’s proposal is that products are very hard to ban under TSCA. The EPA must prove it tapped the “least burdensome” option that would be effective; warning labels are one of the lighter alternatives. When the agency tried to ban asbestos under TSCA, the blanket prohibition was overturned in court in 1991.

Asbestos exposure kills thousands a year. The court loss reverberated.

“EPA has never tried again to ban a chemical on the market,” said Richard Denison, lead senior scientist for the Environmental Defense Fund.

The EPA already tried the pretty-please approach for methylene chloride strippers. It met with manufacturers to ask them to voluntarily switch to another substance. The agency got no takers.

“There is nothing as effective,” Graul said. “There are even … two EPA staffers at that meeting who admitted they have old homes and use methylene chloride for paint stripping.”

Lower-risk ways to remove paint

Less-toxic paint strippers have been on the market for years — California authorities recommend ones with benzyl alcohol, soy or dibasic esters — but they represent the minority of products.

Wolf, with the Institute for Research and Technical Assistance, found benzyl alcohol to be a reasonably effective replacement for commercial and consumer furniture stripping because it loosens all the same coatings for approximately the same overall cost. It doesn’t do so as quickly as methylene chloride in some cases. But it doesn’t have the expense of methylene chloride’s OSHA-required protections, she noted.

Graul called Wolf’s 2006 tests “extremely outdated.” The Halogenated Solvents Industry Alliance will hire a firm to take a new look at methylene chloride alternatives because California will require it, likely next year. Methylene chloride paint strippers are in the first wave of that state’s effort to get firms looking at how to make hazardous products safer.

When foreseeable uses of a product are dangerous, fixing the underlying hazard is much better than warning against those uses, argues Rachel Weintraub, legislative director at the Consumer Federation of America, the group that petitioned the CPSC to ban methylene chloride in household products in 1985.

“What’s more effective in protecting consumers? Is it to blame them and say it’s their fault, not ours, or is it to design the hazard out of it?” she said. “Consumers just assume that a product is safe.”

Swapping one chemical for another is often a hazard trade-off. A methylene chloride replacement used in some paint strippers — N-Methylpyrrolidone, or NMP — faces EPA scrutiny as well because animal tests have showed reproductive problems and harm to unborn babies.

And benzyl alcohol, recommended because of its lower toxicity, isn’t nonflammable. But it’s a “fairly insignificant” fire hazard, said Guy Colonna, a division manager with the National Fire Protection Association. (Some paint strippers with methylene chloride are flammable, too, due to other ingredients mixed in.)

Sometimes, the alternative that works best isn’t another chemical. Jon Shelton with Seattle Bathtub Guy, a firm that fixes tubs, swears by sanding. He finds it works quicker than using a chemical stripper, and the potential hazard it creates — dust — is easily controlled by turning on the faucet.

He has no desire to go back to methylene chloride.

“I don’t want anything to do with it,” he said. “I knew if I was going to work with this stuff every day, there was going to be a point that I made a bad decision … and then what do you do when it’s too late?”

Dead at 18

Johnathan Welch was one of the youngest victims.

At age 16, he took an after-school job stripping furniture for a small business near Chattanooga, Tennessee, called Dip’n Strip. Dizzy spells came on some months in. In 1998, he passed out at work and needed medical treatment, according to records later obtained by state investigators.

A 1997 NIOSH guide for controlling methylene chloride in furniture-stripping shops warned that dizziness was a sign of “high exposure.”

But Johnathan’s mother, Rita Welch, said he hadn’t been warned about the hazards of the methylene chloride in the tank he worked over — the state found no records of such training — so his family didn’t connect what happened to his job. A doctor diagnosed him with sinus problems, and Johnathan kept stripping furniture. After high school, he went full time.

He took to working through lunch to get out faster. On Aug. 18, 1999, the week before he was to start college, the rest of the staff went into an adjoining room to eat while the 18-year-old kept going. Thirty-five minutes later, he was found collapsed over the tank, his hair brushing the chemical mixture that was 70 percent methylene chloride, one burned and swelling arm in the liquid.

Doctors tried to save him, but Johnathan was brain dead. Chemical inhalation, according to their diagnosis, had starved him of oxygen. The next day Rita Welch and her ex-husband agreed to take him off life support.

Sixteen years later, the death of her only child is as raw as a fresh wound. Every August when the anniversary arrives, she said, “I have to take the whole week off of work.”

Who’s responsible?

In the absence of bans or voluntary substitutions, the first link in the chain that ends with customers exposed to methylene chloride is the manufacturers.

The one certain way they can get safety information into customers’ hands is to put it on the can’s warning label. But paint stripper warnings don’t clearly communicate the risk of death.

Take Jasco Premium Paint & Epoxy Remover, a widely available product that felled de la Peña’s co-worker in the paint-mixing tank in 2011. It’s made by Barr, whose other methylene chloride paint remover brands include Klean-Strip and Goof Off.

The Jasco can warns on the front that the contents are poisonous if swallowed, that they can irritate the eyes and skin, and that the vapor is “harmful.”

The instructions on the back of the can warn several times against using in poorly ventilated areas, including bathrooms, but don’t say why — other than the risk of chronic effects, such as cancer. The possibility of death is mentioned only in connection with swallowing and huffing.

To get a more explicit warning about the risks of using the product to strip paint, users have to track down the manufacturer’s safety data sheet online or find the “IMPORTANT SAFETY NOTICE,” dated June 2015, on the Jasco website.

The Jasco warnings are typical for the market, according to a Center review of labels on seven other brand lines. Cooley, the official with Jasco’s manufacturer, Barr, said by email that the CPSC had reviewed and approved the company’s labels.

“We strongly believe that the products are safe for their intended uses when the directions and warnings are followed,” he wrote. “Sometimes that means the product should not be used, such as when the intended setting is a room with poor ventilation.”

Donna Riley, an engineering professor at Virginia Polytechnic Institute and State University who studies consumer product risks, co-wrote a 2000 paper about warning labels on methylene chloride strippers. They struck her the same way as most consumer-product warnings: “They’re terrible in so many ways. … They aren’t designed with the user in mind.”

What the warning labels are good for, lawyer Jason Rowe says, is limiting liability.

“The warning is very inadequate for a consumer, but it’s got enough room to drive a truck through in a legal case,” said Rowe, who represented the mother of the church maintenance worker who died in 2010. She settled, in part because of the poor track record for the few civil cases decided by judges or juries.

After manufacturers, the next link in the methylene-chloride chain is retail stores. Don’t count on life-saving advice here, either.

After two California workers died in paint-stripper accidents, the state Department of Public Health sent specialists posing as consumers to stores that carry the products. Methylene chloride strippers were more widely available than safer alternatives, they found, and none of the store clerks warned about the fatal implications of improper use.

Some, in fact, said the products posed no danger. The department’s 2013 report quoted a clerk insisting that a brand linked to one of the California fatalities wasn’t deadly: “If it were, it wouldn’t be sold on our shelves.”

After that, the state distributed safety posters to stores to put alongside paint strippers. The poster calls strippers with methylene chloride “extremely toxic,” lists necessary safety protections and recommends safer alternatives.

The Center, which did not see similar information in Baltimore-Washington stores, asked Lowe’s, the Home Depot and Ace Hardware whether they post safety warnings elsewhere in the country.

Ace said in a statement that, because it is a cooperative of independently owned stores, locations are not required to post warnings but “many may choose to do so as our retailers are committed to the safety and education of their customers.” Lowe’s would not answer the question, saying instead that it encourages customers to follow manufacturers’ usage recommendations. Home Depot did not respond.

Unsafe workplaces

When products are destined for worksites, employers are the final link in the distribution chain. They have a legal duty to provide a safe work environment and must follow OSHA rules about air measurements, control methods and respirator use when using methylene chloride. Since that standard went into effect in 1997, OSHA air samples testing positive for the chemical topped the exposure limit nearly 20 percent of the time, a Center analysis shows.

Almost all the companies whose workers died from methylene chloride were found in violation and fined. But the typical penalty came to less than $3,000. Fatal accidents often draw small fines; OSHA chief David Michaels has urged Congress to give his agency’s enforcement more teeth.

Johnathan Welch’s 1999 death prompted a fine of $1,508. The Tennessee Occupational Safety and Health Administration found that the Dip’n Strip had no emergency eye-flushing station, no proof of hazardous-chemical training and no labeling on the tanks to ensure employees knew what they were working with.

Shop owner Larry Coxey, who hadn’t notified TOSHA about the death as required, contended that it wasn’t work-related. He suggested to the inspector that Johnathan could have committed suicide — a claim TOSHA noted in the file but did not accept. The agency sought help from NIOSH, which drew up recommendations for engineering controls to fix ventilation problems at the shop. Estimated cost: about $9,000.

TOSHA didn’t check on the business again until 2006, after Johnathan’s mother insisted. This time, the fine hit $11,300.

Coxey hadn’t installed the controls, TOSHA found. Neither of his two employees had been properly trained about methylene chloride hazards. One, age 24, told the inspector that he would get lightheaded there sometimes and would have to leave the stripping area to feel better. The other, while working without a respirator at a chemical tank, explained his method of avoiding overexposure: to “not breathe when leaning far over the tank.” Air samples showed methylene chloride levels nearly 10 times the federal standard.

The shop, in a rundown block of Red Bank, a city surrounded by Chattanooga, is still operating. Coxey, reached by telephone, gave a deep sigh when asked about the case. He’s convinced Johnathan’s death wasn’t from methylene chloride “because he had an aneurysm.” Told about the diagnosis, Coxey said the death certificate blamed asphyxiation. Told that methylene chloride asphyxiates people at high enough levels, he said he didn’t want to talk about it.

“That’s something I’d just rather forget about,” he said.

TOSHA administrator Steve Hawkins, recalling the case, called it “very upsetting.” The reason the agency hadn’t gone back sooner, he said, is that Coxey had no employees when the death investigation wrapped up. Coxey told TOSHA that he alone would handle the chemical dipping, Hawkins said.

Some people honestly don’t know that methylene chloride is dangerous, Hawkins said. He suspects others don’t want to know. Either way, it’s available in thousands of stores.

“It’s pretty crazy, really,” he said, “the stuff that you can buy.”

A mysterious death

Julie Jenkins’ 1990 death in her Columbus home stumped the coroner. What would cause a healthy 28-year-old to collapse, heart stopped, while walking in her house with a cup of tea?

At some point before, she’d partially stripped a desk in her attic with Dayco Marine-Strip. But it wasn’t until a second-hand furniture dealer suggested to her relatives that the product was dangerous — and they alerted the coroner — that anyone thought about methylene chloride. It’s not a routine toxicology test.

The chemical was in Jenkins’ body. The coroner’s report called the amount “consistent with toxic levels” and declared it the cause of death.

After the family sued, manufacturer James B. Day & Co. disputed that the amount — 2.2 parts per million as measured in her eye — could have killed her. The company told the jury in 1995 that another cause was just as likely, such as a heart attack related to prescription diet pills Jenkins had recently stopped taking.

The jury agreed.

“I still find it hard to believe that the jury would find the warning label to be inadequate … and then fail to find the methylene chloride to be the cause of death, despite the coroner’s testimony and the autopsy report,” Eugene L. Matan, the family’s lawyer, wrote to Jenkins’ parents the following month.

Day dissolved almost a decade later. But Gerald P. Sthay, a lawyer and chemist who was the company’s representative at the trial, remembers the case. In his pre-trial research, he couldn’t find examples of deaths like Jenkins’, which didn’t involve asphyxiation. Such cases would very likely go unrecognized, he knows, but he doesn’t see how the amount in Jenkins’ system could have triggered her death.

“I had no fear of the product myself, having worked with methylene chloride strippers,” said Sthay, now with a healthcare firm. “There’s no product that does what it does as well as it does.”

Claudia Sloan, Jenkins’ oldest sister, hasn’t changed her mind about the case, either.

“I have no doubt that methylene chloride killed her,” said Sloan, who had hoped the trial would lead to better warning labels. “There was nothing wrong with Julie. … She shouldn’t be dead.”

In the intervening time, more than two dozen people died while using paint strippers. Thirteen years after Jenkins’ death, a worker suffered a fatal heart attack OSHA attributed to methylene chloride exposure earlier that day. Twelve years after Jenkins’ death, a man working with Dayco Marine-Strip asphyxiated in an Illinois bathroom.

Seven years after Jenkins’ death, Rita Welch’s son took an after-school job stripping furniture.

Welch, now 59, is haunted by what could have been. If only Johnathan had had training and protective equipment. If only she’d known what he was working with. If only she’d never heard about that job.

If only people working with the same chemical weren’t still dying.

“I don’t want nobody else to go through the hell I did,” Welch said.

This story was co-published with Slate.

Rita Welch looks at photos of her son, Johnathan. He died on the job at 18 while stripping furniture with methylene chloride.Jamie Smith Hopkinshttp://www.publicintegrity.org/authors/jamie-smith-hopkinshttp://www.publicintegrity.org/2015/09/21/17991/common-solvent-keeps-killing-workers-consumers

Insurers using lobbying muscle, campaign cash to push mergers

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The CEOs of Aetna and Anthem, the two big insurers that have offered to pay more than $90 billion to buy two competitors, Humana and Cigna, will testify before a Senate panel Tuesday, in an effort to persuade lawmakers that the deals will be good for consumers. Physician and hospital trade groups and health care advocates are among those that disagree,

Appearing before a Senate Judiciary committee that oversees antitrust issues will be Aetna CEO Mark Bertolini and Anthem CEO Joseph Swedish. The two men undoubtedly will try to make the case that, even though Aetna and Anthem would  increase their presence in many markets across the country if regulators approve the acquisitions, there will be little need to sell any of their health plans to pass regulatory muster.

During a House Judiciary subcommittee hearing earlier this month, the American Medical Association said the two mergers would exceed antitrust guidelines in 97 metropolitan areas in 17 states and create a much less competitive marketplace in lots of other markets.

Executives of the firms involved in the proposed deals have insisted that consumers will benefit in the form of lower premiums, despite historical evidence that insurance industry mergers have actually resulted in just the opposite: higher premiums. While it’s true the companies that emerged from previous acquisitions were able to force doctors and hospitals to accept lower reimbursement, the insurers pocketed the savings instead of passing them along to their customers.

The AMA’s concern, of course, is that the same thing will happen if the Justice Department approves the Aetna-Humana and Anthem-Cigna deals and the health insurance marketplace becomes even more dominated by big for-profit insurers.

At the Sept. 10 House hearing, the AMA reminded lawmakers of a Justice Department guideline that a merger enhances corporate leverage “if it is likely to encourage one or more firms to raise price, reduce output, diminish innovation, or otherwise harm customers as a result of diminished competitive constraints or incentives.”

We can expect the Aetna and Anthem CEOs to dispute the AMA’s contentions, and we probably can expect the members of the Senate Subcommittee on Antitrust, Competition Policy and Consumer Rights to ask mostly softball questions. That’s because the companies’ political action committees have been generous to several members of the subcommittee.  According to the Center for Responsive Politics, the companies’ PACs have contributed several thousand dollars to the campaigns of all five Republicans on the subcommittee over the past five years, including subcommittee chair Mike Lee of Utah, and one of the four Democrats, Chris Coons of Connecticut. (Connecticut is home to Aetna and Cigna.)

The companies also spend large sums of money every year lobbying members of Congress. Aetna alone spent $3.5 million in internal and external lobbying expenses in both 2013 and 2014, according to its own disclosures and published reports. (It spent $5.5 million in 2010, the year Congress debated and finally approved the Affordable Care Act.)

There is good reason to expect that the company’s lobbying total will spike again this year. As POLITICO and Modern Healthcare, a trade magazine, have reported, Aetna has expanded its stable of lobbyists this year to include six K Street firms: Bloom Strategic Counsel, CGCN Group, The Gibson Group and West Front Strategies, Capitol Hill Consulting Group and Sidley Austin.

Those were strategic hires. Seth Bloom of Bloom Strategic Counsel, for example, is the former top lawyer for the Senate subcommittee that Aetna’s Bertolini will appear before this week. And Joseph Gibson of the Gibson Group previously served as the chief minority counsel to the House Judiciary Committee.

Something else we can expect: the two companies will get major league support from big business allies, including the U.S. Chamber of Commerce and the Business Roundtable. In a report detailing its political contributions for 2014, Aetna said it gave the Chamber $250,000 and the Business Roundtable $235,000 that year. Bertolini and Swedish are both on the Roundtable’s board of directors. And Aetna’s chief financial officer, Wayne DeVeydt, is on the Chamber’s board.

While Aetna has to disclose how much its PAC spends each year, it refuses to provide other information that some shareholders would like to see. Among those shareholders: Thomas DiNapoli, New York state’s comptroller, who’s responsible for the state’s $184.5 billion in pension assets, some of which are invested in Aetna stock. DiNapoli filed a shareholder proposal earlier this year asking the company to disclose the names of the tax-exempt groups it gave money to that were created specifically in support of certain political candidates. The proposal did not get enough support from other shareholders to pass, and it’s not likely Aetna will provide the information voluntarily.

An Aetna spokesman was quoted as saying that, “The overwhelming majority of our shareholders agree that additional disclosure is not warranted.”

Meanwhile, keep in mind that all the money Aetna and the other insurers are spending on lobbying is not just intended to influence Congress. The real lobbying focus will be on persuading Justice Department officials to approve the acquisitions.

Wendell Potter is the author of Deadly Spin: An Insurance Company Insider Speaks Out on How Corporate PR is Killing Health Care and Deceiving Americans and Obamacare: What’s in It for Me? What Everyone Needs to Know About the Affordable Care Act.

Wendell Potterhttp://www.publicintegrity.org/authors/wendell-potterhttp://www.publicintegrity.org/2015/09/21/18019/insurers-using-lobbying-muscle-campaign-cash-push-mergers

White House report says lack of competition barrier to broadband adoption

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A group recently formed by President Barack Obama released a report today that asserted the high price of broadband, brought about by too few Internet service providers, is a major barrier to adoption that has left almost one-third of Americans unable to afford an Internet connection — findings that directly contradict assertions the telecommunication industry has made for years.

In its report, the Broadband Opportunity Council highlighted the inability of low-income families to afford the price of an Internet subscription as the primary reason that more than 25 percent of American households don’t have a broadband connection at home.

One of the primary reasons broadband prices are too expensive, the report notes, is because there is a lack of competition among Internet providers.

“Lowering barriers to deployment and fostering market competition can drive down price, increase speeds, and improve service and adoption rates across all markets,” according to the report.

The high-speed Internet market in the U.S. is dominated by Comcast Corp., AT&T Inc., Verizon Communications Inc., Time Warner Cable Corp. and a handful of others.

The council’s focus on income and competition contradicts reasons offered by the telecommunications industry and conservative think tanks — often financially supported by broadband companies — for why more than a quarter of American households still are not connected.

People choose not to pay for an Internet connection mostly because they don’t believe the information is relevant to them or they believe they don’t have the computer skills to navigate the Internet, industry and think tanks have argued. The report is important in that it doesn’t emphasize computer training or an effort to engage in widespread outreach to show the unconnected what the Internet offers — although it does mention these factors in the report — as the primary reasons for the digital divide.

In numerous investigations, the Center for Public Integrity found that U.S. broadband prices are higher than those in countries similar to the United States and that price, not a perception of relevance, influences the decision to buy an Internet subscription. And the reason for the high prices is the lack of competition.

The federal government, however, doesn’t have a lot of levers to pull to increase competition.

Among its key recommendations, the council advises agencies to rework programs, valued at about $10 billion, to include spending on expanding broadband as an eligible expenditure, including, for example, the Agriculture Department’s Community Facilities program, which will help communities connect health clinics and recreation centers.

The council also recommends streamlining program applications and broadband permitting to encourage and foster competition, cooperation and public-private partnerships, a common policy refrain.

But with the telecommunications industry having spent $78 billion on broadband infrastructure in 2014 alone, assigning a portion of $10 billion to broadband expansion may not be enough. A better way, broadband policy experts say, may be getting rid of laws that ban thousands of cities from building or expanding their own networks that compete with Internet providers.

Allan Holmeshttp://www.publicintegrity.org/authors/allan-holmeshttp://www.publicintegrity.org/2015/09/21/18022/white-house-report-says-lack-competition-barrier-broadband-adoption

11 things we learned investigating how the government sells mortgages to investors

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1. Over 98,000 “bad” mortgages have been sold to investors through a government program since 2010.

2. The Department of Housing and Urban Development (HUD) sells mortgages to investors at a steep discount — at times as little as 41 percent of the mortgages’ collective value.

3. Homeowners typically aren’t informed when their mortgages are sold. This prevents them from advocating for better terms, which they’re entitled to under Federal Housing Administration protection.

4. Wall Street investors pay only two-thirds* of the full mortgage value when they buy mortgages from the government (*median price). 

5. Homeowners aren’t so lucky: they must pay about 124 percent* of the property value to keep their homes (*median price).

6. HUD sells the mortgages in bundles as large as 5,944 loans. HUD designed the program to include nonprofits and community organizations, but the size of the bundles means large, institutional investors have a leg up in blind auctions. Currently only 2 percent of sold mortgages go to nonprofits.

7. HUD’s mortgage sales program is meant to help distressed homeowners avoid foreclosure. But rather than offering better terms to borrowers, the new owners of these homes often flip them for a profit, advocates say.

8. Only 16.9 percent of the mortgages HUD sold to investors between 2010 and 2013 have avoided foreclosure.

9. Of those 16.9 percent, less than a third are performing, and over 10 percent have either sold through a third-party sale or been handed over through a deed-in-lieu, still resulting in a homeowner without a home.

10. Even if a home isn’t foreclosed, there’s a high chance that the homeowner will lose their house anyway. According a Center for Public Integrity analysis of address data, Bayview Loan Servicing, LLC, took ownership of 1,319 properties. Other beneficiaries: JP Morgan Chase: 841 properties. Bank of America: 639.

11. Many homeowners say they were still involved in renegotiating their loans while their mortgages were sold to investors. HUD’s own rules state the lender can only turn the loan over to HUD for sale once all efforts to keep homeowners in their home are exhausted.

Read the investigation for the full story. Then tell us what you think in the comments section below.

Jared Bennetthttp://www.publicintegrity.org/authors/jared-bennettKimberley Porteoushttp://www.publicintegrity.org/authors/kimberley-porteoushttp://www.publicintegrity.org/2015/09/23/18032/11-things-we-learned-investigating-how-government-sells-mortgages-investors

How bulk home loan sales benefit hedge funds over homeowners

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 Yue Qiuhttp://www.publicintegrity.org/authors/yue-qiuChris Zubak-Skeeshttp://www.publicintegrity.org/authors/chris-zubak-skeesJared Bennetthttp://www.publicintegrity.org/authors/jared-bennetthttp://www.publicintegrity.org/2015/09/23/18020/how-bulk-home-loan-sales-benefit-hedge-funds-over-homeowners
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