Friday, February 14, 2014

Chris Christie's Entire Career Reeks

It's not just the bridge

 BY ALEC MACGILLIS

Has there ever been a political reversal of fortune as rapid and as absolute as the one just experienced by Chris Christie? At warp speed, the governor of New Jersey has gone from the most popular politician in the country to the most embattled; from the Republicans’ brightest hope for 2016 to a man with an FBI target on his back. 

One minute, he was releasing jokey vanity videos starring Alec Baldwin and assorted celebrity pals; the next, he was being ridiculed by his lifelong idol, Bruce Springsteen. Mere weeks ago, Christie was a straight-talking, corruption-busting everyman. Now, he is a liar, a bully, a buffoon.

What is remarkable about this meltdown is that it isn’t the result of some deep secret that has been exposed to the world, revealing a previously unimagined side to the candidate. Many of the scandals and mini-scandals and scandals-within-scandals that the national media is salivating over have been in full view for years. Even the now-infamous Bridgegate was percolating for months before it exploded into the first major story of the next presidential race.

Case in point: Last year, just before Thanksgiving, I traveled to Trenton to see Bill Baroni, Christie’s top staff appointee at the Port Authority of New York and New Jersey, get grilled by state legislators about the closure of access lanes to the George Washington Bridge in September. 

It was clear that something fishy was going on. Baroni gave a command performance, defending the closures as part of a traffic study, but more than that, as a matter of justice. Discussing whether Fort Lee deserved three dedicated lanes during rush hour, Baroni demanded, “Is this fair?” His voice actually cracked with emotion. “And if it is not fair, how do you not study it?” But there were only a handful of reporters in the room to witness his melodramatics, and it was six weeks before the national media caught on to the story. 

Outside New Jersey, at least, it seemed inconceivable that Christie, good-government evangelist, scourge of Soprano State shenanigans, could preside over a piece of payback so outrageous and so petty.

Now, of course, we know that there was no traffic study and that the lanes were deliberately shut to punish the mayor of Fort Lee, who had declined to endorse Christie for reelection. (“Is it wrong that I’m smiling,” crowed a Christie aide in a text message, even as congestion got so dire that ambulance workers were forced to respond to an emergency on foot.) 

We also know that this act of retribution wasn’t an isolated incident: The mayor of Hoboken, to name just one example, has claimed that Christie’s office pressured her to approve a big development project represented by a Christie crony—or risk losing recovery aid for damage caused by Hurricane Sandy.

And yet, even post-Bridgegate, the prevailing interpretations of Christie fundamentally miss the mark. He has been so singularly successful at constructing his own mythology—as a reformer, a crusader, a bipartisan problem-solver—that people have never really seen him clearly. 

Over the past three months, I talked to more than 50 people who have crossed paths with Christie throughout his career—legislators, officials, Democrats, Republicans, lawyers, longtime New Jersey politicos. (Christie himself didn’t respond to a detailed request for comment.) 

The problem with Christie isn’t merely that he is a bully. It’s that his political career is built on a rotten foundation. Christie owes his rise to some of the most toxic forces in his state—powerful bosses who ensure that his vow to clean up New Jersey will never come to pass. He has allowed them to escape scrutiny, rewarded them for their support, and punished their enemies. All along, even as it looked like Christie was attacking the machine, he was really just mastering it.
Chris Christie
Photo Illustration by Jacqueline Mellow
WOKE UP THIS MORNING AND ALL THAT LOVE HAD GONE

To understand Chris Christie, first you have to understand that he was raised to never give an inch. He grew up in the North Jersey suburb of Livingston, to parents descended from big Newark clans—Sicilian for his mother, Sandy; Irish-German for his father, Bill. The strength of their marriage was exceeded only by the strength of their opinions. They argued constantly—about money, about politics, about pretty much everything.

Chris, the oldest child, was the family mediator—reassuring his younger brother, Todd, and adopted sister, Dawn, or barging into the fray to take his mother’s side. Not that Sandy needed any help. 

Funny, relentless, and willing to punctuate her point with a raised middle finger, she got her way more often than not. “They demanded a lot out of us,” Todd Christie told his brother’s biographers, Bob Ingle and Michael Symons.

Anthony Hope, the baseball coach at Livingston High School, told me about a game when Chris got picked off third base, costing his team the win. That night, all the kids headed to the town’s big Battle of the Bands, except Chris. Hope, who was chaperoning, inquired where he was. He’d been grounded—because of the game.

The Christie brothers were close, but very different. Todd was a bro in the making—“an outgoing, happy-go-lucky type,” says Hope. Chris was the serious one, the type of kid who started running for office long before his first keg party. He was known for introducing himself to other kids on the playground as if he were a first-time candidate at the Iowa State Fair. (“Hi, I’m Chris Christie.”) By the third grade, he was piping up at PTA meetings to give his opinions on field trips and fund-raisers. 

Whenever the neighborhood boys played cowboys and Indians, Todd once reminisced, Chris always opted to be the sheriff. At the age of 14, at Sandy’s urging, he knocked on the front door of the local assemblyman, Tom Kean, and asked for advice on how to get elected. 
Chris Christie and George Norcross
Associated Press
During Christie's term, Democratic boss George Norcross has become more powerful than ever.

Since fate had placed Christie in New Jersey, he was about to get a very particular kind of political education. In his senior year, he was one of two students chosen to represent New Jersey in the Hearst Foundation’s Senate Youth Program. The students were to spend a week with their home-state senators, observing the legislative process from the inside out. Unfortunately for Christie and his partner, the day before they got to Washington, news broke of a massive FBI operation in which a federal agent posing as an Arab sheik had bribed elected officials with suitcases stuffed with cash. 

Thus began the season of Abscam, the elaborate sting that would eventually reel in the mayor of Camden, six members of the House of Representatives, and New Jersey’s senior senator, Harrison Williams, among others. That week, Williams went to ground, and so, while all the other students got pictures in the group yearbook with both their senators, the Jersey kids only got a photo with one—Bill Bradley. “It was an incredible embarrassment,” Christie later recalled. “We were the butt of jokes all week.” In his telling, it was the defining moment that alerted him to “the problem of corruption in New Jersey.”

To say that corruption was a problem in the Garden State was an epic understatement—its political system might as well have been expressly designed to facilitate public fraud. The state’s official history is one of legendary self-dealers: Enoch “Nucky” Johnson built and ruled Prohibition-era Atlantic City from the ninth floor of the Ritz-Carlton. The midcentury mayor of Jersey City, Frank Hague, earned a salary of $8,500 a year and yet left office with a fortune of $2 million. 

His signature accoutrement, according to Jersey lore, was a desk with an outward-facing drawer in which visitors would deposit their bribes. As one mayor of Newark memorably put it, “There’s no money in being a congressman, but you can make a million bucks as mayor.” 

In most of the United States, the big political machines have been broken, or reduced to wheezing versions of their former selves. In New Jersey, though, they’ve endured like nowhere else. The state has retained its excessively local distribution of power—566 municipalities, 21 counties, and innumerable commissions and authorities, all of them generous repositories of contracts and jobs. 

The place still has bona fide bosses—perhaps not as colorful as the old ones, but about as powerful. 

The bosses drum up campaign cash from people and firms seeking public jobs and contracts, and direct it to candidates, who take care of the bosses and the contributors—a self-perpetuating cycle as reliable as photosynthesis. 

When a brash young Christie decided to wade into this swamp, casting himself as a reformer seemed like the smart thing to do. By the time he was 31, Christie had married his college sweetheart, Mary Pat (her first impression of him was as “a student government geek”), gone on to law school, and then to a small firm where he handled medical-malpractice cases and, later, securities litigation and some state lobbying. 

In 1994, he ran for a seat on the Board of Chosen Freeholders in Morris County, the prosperous exurb where he and Mary Pat, a Wall Street investment banker, had settled. It was time, he declared, for an end to the cycle of campaign contributions from those who did business with local government. “I’m sick and tired of people hiring their political friends,” he said.

But even as Christie was running against Jersey’s political culture, he was willing to borrow some of its uglier tactics. One afternoon, Ed Tamm Jr., a Republican he was challenging, got a call from a friend who asked if he’d seen a Christie ad that had just aired during the Devils game, alleging that Tamm and his fellow board members were under investigation. Alarmed, Tamm called the county prosecutor, who reassured him it wasn’t true. It was the final weekend before the Republican primary, leaving no time to respond, and Christie finished first, tossing Tamm and another Republican off the board. They sued him successfully for defamation, but years later, Tamm is still dumbfounded. “Politicians get hammered all the time, but there’s got to be an element of truth to it,” he told me. 

Only four weeks after taking office, Christie announced that he was thinking of challenging a veteran Republican for the state Assembly. His ambition rankled local Republicans. “A lot of people were like, who does this guy think he is?” says Rick Shaftan, the campaign manager for another candidate. 

(So determined was Shaftan to beat Christie that, at one point, he went to a local crawfish festival and recruited some overweight drunk guys for an ad that depicted Christie wrestling opponents in a mud pit.) Christie lost that race. Two years later, local Republicans recruited challengers to knock him off the freeholder board, too. On election night, after Christie gave his concession speech, one of his nemeses smacked his lips in his direction and explained, “That’s just me kissing your fucking career goodbye.”
Mapping Chris Christie's Power Plays
Christie had now spent tens of thousands of his family’s money and lost two races in a row. Not long after the election debacle, he had lunch with his Assembly running mate, Rick Merkt. “It was a couple of gut punches,” Merkt says of the defeats. But he saw a path forward for his friend. He suggested to Christie that “the federal route might give him another bite at the apple.” What Merkt meant was that, instead of running for election, Christie should try to get himself appointed to an influential post. In New Jersey, that meant engaging in precisely the sort of grubby glad-handing Christie had condemned. Still, he was in his late thirties and all he had to show for his foray into public life was a middling legal career and a lot of local Republicans who hated him. And so he took Merkt’s advice. 

The “federal route” turned out to be quite straight­forward. First, Christie sought the counsel of Bill Palatucci, a colleague at his firm. Years earlier, Palatucci had served as George W. Bush’s driver when he campaigned for his dad in New Jersey, and he advised Christie to raise money for Bush’s 2000 presidential campaign. Christie and Palatucci proceeded to pull in $350,000, more than enough for Christie to qualify as a Bush “Pioneer”; he and Mary Pat also personally contributed $29,000 to Bush and other Republicans between 1999 and 2001. After the election, it came time for Bush to nominate a U.S. attorney for New Jersey, one of the biggest offices in the country. Palatucci pitched Christie to Karl Rove. It was a competitive field, and Christie had zero experience in criminal law; indeed, he had never so much as filed a motion in federal court. He got the nod.

Only after the September 11 attacks did his qualifications come under any heavy scrutiny. Suddenly, it didn’t seem like a terrific idea to appoint an untested, undistinguished lawyer to the district across the river from Ground Zero. The New Jersey Federal Bar Association, the Newark Star-Ledger, and the state’s junior senator, Jon Corzine, all criticized the choice. But the power to clear the nomination for a vote belonged to the state’s senior senator, Robert Torricelli. The two men met in Torricelli’s office, and the senator told Christie that, in light of the terrorist attacks, Bush was entitled to get the post filled fast. (It was no secret that he also liked the idea of a prosecutor with Italian-American roots, to counter ethnic stereotypes.) Torricelli told me that he imposed only one condition: Christie had to hire a “professional” as his deputy—that is, someone who knew his way around federal court. A few weeks later, Christie and Torricelli saw each other at a Christmas party, hours after the Senate had approved Christie’s nomination. Christie made a beeline for Torricelli to thank him and the two embraced. 
Chris Christie and Joe Vincenzo
Associated Press
Christie has boasted that Joe DiVincenzo (center) has been with him "right from day one."

Torricelli may have had other reasons to want Christie in the job. At the time, the rakish Democrat was under investigation for illegal fund-raising during the 1996 campaign. When it came time for Christie to select his “professional,” his first pick was a former federal prosecutor and close Torricelli confidante. Then it emerged that Christie’s choice had not been candid about a visit he paid to Torricelli’s home while it was under FBI surveillance, and Christie had to find someone else. 

Soon afterward, Christie reshuffled the top staff in Newark. One of the apparent losers was Michael Guadagno, the head of the frauds division who had led the initial investigation into Torricelli. Christie sent Guadagno down to the satellite office in Trenton, a demotion that some in top legal and political circles linked to Guadagno’s work on the Torricelli case. “Christie exiled him to Trenton,” says one New Jersey legal veteran. (The case against Torricelli was dropped after he decided not to run for reelection. He told me he had “no knowledge” of Guadagno’s involvement and praised Christie’s performance as prosecutor: “Chris kept the commitment that he made to me.”)

It wasn’t the cleanest beginning. But Christie had a plan for quashing any doubts about how he got the job: He would unleash the full might of his office against corruption. Fighting public fraud, he announced, would be his office’s top priority after terrorism. “Corrupt politicians will steal your trust, your taxes, and your hope,” he told a New Jersey crowd in 2007. The problem was not, he noted, “an insufficient number of targets.”

Soon after Christie took office, Essex County’s Republican executive, Jim Treffinger, was out walking his dog when seven police cruisers surrounded him. Treffinger knew he was under investigation for awarding no-show jobs to friends and extorting campaign donations in exchange for contracts. He had repeatedly offered to surrender to authorities when the time came. Instead, his wife and daughter watched from the house as he was thrown up against a car and frisked, an image that appeared in the next day’s Star-Ledger, which had been tipped off to the arrest.

At first, Christie said the arrest had been left to the marshals. But later, he cast Treffinger’s treatment in moral terms. Corrupt officials, he said, shouldn’t be coddled—they were “worse than the street criminal because the street criminal never pretends to be anything but what he or she is.” (Local lawyers wondered whether the public shaming might be linked to Treffinger’s observation, caught on a wiretap, that Christie was a “fat fuck” who “wouldn’t know a law book from a cookbook.”) “The perception was that the U.S. attorney was sending a message,” one lawyer told me. 

The next seven years unfolded like a never-ending perp walk, as Christie racked up more than 130 convictions and guilty pleas for elected and appointed officials. He had a knack for extracting the maximum p.r. from every arrest or indictment. “The office leaked like a sieve,” one Democratic operative recalls. “I had reporters calling me at four in morning and saying, [so and so] is going to get pinched.”

Democrats howled that Christie was on a partisan witch-hunt, since he targeted so many more Ds than Rs. But it was hard to take such accusations very seriously. After all, New Jersey’s power structure was dominated by Democrats, and Christie was uncovering undeniable cases of abuse. One state senator pleaded guilty for accepting a low-show job at a medical school in exchange for state grants, another to accepting a $25,000 “success fee” for helping a mining company obtain permit approvals. Longtime Newark Mayor Sharpe James got 27 months on charges stemming from the sale of steeply discounted city properties to an ex-girlfriend. (James’s successor, Cory Booker, is the first mayor of Newark not to be indicted since 1962.) 

Besides, to accuse Christie of protecting Republicans over Democrats was missing the point. True, his office had knocked out a swath of New Jersey’s biggest Democratic power brokers and weakened their organizations in crucial parts of the state. But that meant the bosses left standing had only grown stronger. 

In 2002, an insurance firm in Mt. Laurel received an unexpected e-mail from a man named George Norcross. Congratulations, Norcross told the firm: It had won a big contract for the Delaware River Port Authority, which oversees four bridges in the Philadelphia area. The e-mail was unexpected because the firm hadn’t bid for the job. But there was no need for thanks. The company was simply expected to send Norcross’s insurance company $410,000 over the next few years, as a “finder’s fee.”

This is how things work in the world of George Norcross III. Officially, he is the supremely wealthy chairman of Conner Strong & Buckelew, one of the largest insurance firms in the nation; the chairman of Cooper University Hospital in Camden; and, as of last year, the majority owner of The Philadelphia Inquirer. Unofficially, he is the most powerful man in New Jersey never to have held elected office. 

Close observers of state politics have estimated that more than 50 elected officials in South Jersey owe their positions to Norcross (including his brother, a state senator). Much of the money he raises for candidates comes from people and companies eager to secure government work or development deals, as documented over the years by his local paper, the Courier-Post, among others. Norcross’s own firm holds sway over New Jersey’s large municipal insurance market. (He declined to comment for this article.) “George is probably the smartest politician we have now in the state of New Jersey,” says former Republican State Senator John Bennett. “He knows where the power is and goes to the power. Whether that power is a Republican or Democrat.”

One reason that Norcross is so good at working the machine is that he was born into it. His father, George Norcross Jr.—“Big George”—was a much-loved union chieftain, and he would bring “Young George” along to meetings around the state with governors, state legislators, and CEOs. Young George would go on to drop out of college—Rutgers wasn’t teaching him anything about politics he didn’t already know—and start selling insurance out of a basement office. In 1989, after Big George was snubbed for a spot on the New Jersey Racing Commission, Norcross entered politics, motivated by a specific grudge against the legislator who’d stiffed his father and a more generalized resentment over the slighting of South Jersey. Thanks to Big George’s lessons and his own hyper-confidence, it wasn’t long before he gained control of Camden’s Democratic organization and set his sights on the rest of South Jersey. Today, Norcross is silver-haired and impeccably dressed and runs his operation out of well-appointed boardrooms. He is only foul-mouthed in private.

One Jersey Democrat described to me the first time he experienced the Norcross treatment. Not long after this politician announced his candidacy, he was summoned to a meeting with the man himself. Norcross was all magnanimity. “He said, ‘You don’t need to do anything. I’ll raise all the money. You just go out there and meet people,’ ” the candidate recalled. 

There was no need for Norcross to spell out the rest of the arrangement: The fate of those who cross him is well known. When Bennett dared to oppose state financing for the arena of a minor-league hockey team Norcross co-owned, Norcross got in a shoving match with him at the State House. In the following months, a stream of critical stories about Bennett appeared in a paper edited by a Norcross friend, contributing to Bennett’s 2003 reelection loss. “He does everything in his power to go after you,” Bennett told me, almost admiringly. “He said, ‘I’m going to get you,’ and then he gets you.” 

On numerous occasions, Norcross’s operation has come under legal scrutiny—from the Securities and Exchange Commission (SEC), state investigators, and the FBI. The cases are labyrinthine, but they all involve some dubious overlap of his many public and private interests. One case in particular threatened to get real traction. In the early 2000s, several New Jersey attorneys general investigated whether he had pressured a Palmyra councilman to fire a city solicitor, Ted Rosenberg, who wasn’t cooperating with the machine. Wiretaps offered a rare glimpse of a man completely convinced of his power. “[Rosenberg] is history and he is done, and anything I can do to crush his ass, I wanna do cause I think he’s just a, just an evil fuck,” Norcross said. In another conversation, referring to then-top Jersey Democrats, he declared, “I’m not going to tell you this to insult you, but in the end, the McGreeveys, the Corzines, they’re all going to be with me. Not because they like me, but because they have no choice.” While discussing plans to remove a rival, he exclaimed: “Make him a fucking judge, and get rid of him!”

In February 2003, Norcross met Christie for a steak dinner at Panico’s in New Brunswick. It was, to put it mildly, highly unorthodox for a U.S. attorney to sit down with a political boss who was the subject of state and SEC attention. But Christie brushed off the criticisms. “I’m very careful with who I would go out with,” he said. “If I’m looking at somebody, I’d try to stay away from them.”

That, to the skeptics, was just the issue. His corruption squad was scrutinizing dozens of lower-profile figures, all the way down to an Asbury Park councilman charged for getting his driveway paved for free. Why wasn’t he looking at Norcross? And didn’t he realize that he might have to in future? Sure enough, the following year the state attorney general referred the Palmyra case to Christie’s office. 

Two years later, Christie issued a scathing six-page letter announcing that he would not bring any charges against Norcross. It was a remarkable document. Not only did Christie openly declare a controversial figure to be home free, but he accused the state prosecutors of bungling the case so badly that they may have been shielding Norcross. “The allegation of some bad motive on the part of the state prosecutors is very unusual,” says Andrew Lourie, a former chief of the Public Integrity Section of the Department of Justice. 

High-ranking legal sources in the state view the letter as the ultimate Machiavellian maneuver. They agree that there may not have been a strong case to bring against Norcross in the Palmyra case after so much time had lapsed. But by publicly accusing his state counterparts of protecting Norcross, Christie was inoculating himself against accusations of favoritism. One of the former attorneys general who’d handled the case, John Farmer, who went on to become senior counsel to the 9/11 Commission and is now dean of Rutgers Law School, told me: “The statements and insinuations contained in that letter were, as I said at the time, utter nonsense. The passage of time has only magnified their essential absurdity.”

Norcross may have been the most formidable player to escape Christie’s net, but he wasn’t the only one. Another was Brian Stack, a state legislator and Union City mayor who exemplifies a Jersey tradition Christie had long railed against: holding paid elected office at both the state and local levels. 
Stack maintains his constituents’ loyalty with acts of largesse such as doling out 15,000 free turkeys at Thanksgiving. He is rewarded with Soviet-style vote totals. (His slate won 92 percent in 2010.) In 2007, Christie conducted a massive investigation into legislative earmarks. It found that Stack had secured $200,000 in state grants that benefited a day-care center run by his then-wife. Charges were brought against other legislators for directing money to entities in which they held a personal interest, but not Stack. 

There was also Joe DiVincenzo Jr., lumbering and gregarious, the protégé of legendary Newark community leader Steve Adubato Sr. In 2002, “Joe D.” ran to replace Treffinger as executive of Essex County, the largest source of Democratic votes in the state. Rumors raged that he, too, was under investigation, for conflicts between his freeholder duties and his job (one of four he held at the time) at a produce company with a county contract. Then, right in the heat of the primary, Christie released a statement denying that Joe D. was under investigation. “It was totally unprecedented. I’ve never seen that done by a sitting U.S. attorney,” said DiVincenzo’s opponent, now-Assemblyman Tom Giblin. “Trying to get a letter out of the U.S. attorney’s office is usually like pulling a wisdom tooth.” After Joe D. took office, he invited Christie to give county workers a symposium on ethics.

Finally, there was Glenn Paulsen of Burlington County, who had become the most powerful Republican power broker in the state in part because of his symbiotic détente with Norcross. 

Norcross got a lot of business for his insurance firm in Burlington County, while Paulsen’s law firm got plenty of municipal work in Norcross territory. In 2006, Christie’s office secured a guilty plea from a Republican operative, Robert Stears, for hugely overbilling several million dollars of lobbying work for the Burlington County Bridge Commission. According to one person with knowledge of the matter, it seemed likely that more revelations would follow and that an investigation of the commission’s spending could draw in Paulsen, and perhaps even Norcross. 

Stears, according to Christie’s announcement, was cooperating with an “ongoing criminal investigation.” In court, he explained that he had been “sucked into a corrupt group of people” and that he had been directed how much to bill the commission and how much to donate to the county Republican Party, which had been led by Paulsen. “Everyone was waiting for the second shoe to drop,” David Von Savage, the former GOP chairman in Cape May County, told me. It never did. “Chris essentially dumped that investigation—he absolutely dumped it,” says one lawyer, who asked to remain anonymous for fear of retribution. “As a favor to these guys, he tanked the investigation completely.” 

By taking down some of the state’s bosses while leaving others off-limits, Christie had effectively turned the supposedly apolitical role of prosecutor into that of kingmaker. It was a brilliant strategy. New Jersey offered such a target-rich environment that Christie was able to get credit for taking down a slew of crooked officials and build alliances with some of the most powerful bosses in the state at the same time. Christie’s allies insist that he wasn’t playing favorites. “I can’t imagine Christie would suggest in any way, ‘I want you to lay off of this guy or go after this guy.’ It’s inconceivable to me,” says Ed Stier, a former federal and state prosecutor. Still, by the end of his tenure, Christie began showing up to administer the swearing-in ceremonies of town officials who were replacing the ones he’d pursued. No one could recall a prosecutor doing so, says one longtime Jersey hand: “It was like he was giving them his blessing.” 

Meet the Christie Machine
In 2004, Todd Christie started showing up at state GOP functions—at one, he distributed boxes of “Christie’s Popcorn” in a not-so-subtle attempt to build his brother’s brand. By now, Chris’s name was regularly surfacing as a potential gubernatorial candidate, although protocol prevented him from openly campaigning. 

Given this restriction, Todd proved to be a useful surrogate. A Wall Street trader, he had made $60 million when his firm was sold to Goldman Sachs. Not long before Christie’s nomination as U.S. attorney, he gave tens of thousands of dollars to county Republican organizations; not long afterward, he gave $225,000 to a subset of the Republican National Committee. 

Todd’s generosity won him entrée to exclusive events at the 2004 GOP convention—an ideal venue to talk up his brother. “You want to do everything you can to stay active at a time when he can’t,” he told a reporter. “I’m not shy in saying I’m one of the people who chirps in his ear that I think he would make a great governor.”

Even though Chris was prevented from overtly running for anything, there were ways he could use his position to quietly lay the groundwork. In 2007, Christie announced a $311 million settlement of a probe into kickbacks given by five manufacturers of knee and hip replacements. Rather than pressing charges, Christie opted for deferred prosecution agreements, under which the companies would pay a fine and accept outside monitors. This approach saved courtroom costs, but it also handed Christie the keys to what amounted to a lucrative patronage system. 

In an unusual step for a prosecutor, he flew around the country meeting with the companies’ boards. The handful of people he selected as monitors all had one qualification in common: a personal connection with Chris Christie. 

John Ashcroft, Bush’s first attorney general and Christie’s former boss, got a contract worth as much as $52 million for 18 months of work. Another went to David Samson, a former Republican state attorney general and founder of one of the state’s most connected law firms. Yet another, for $10 million, went to Christie’s mentor, Herbert Stern, and his friend John Inglesino. Even Christie’s alma mater, Seton Hall Law School, got in on the act: Bristol-Myers Squibb endowed a $5 million professorship as part of its agreement. 

There was one monitoring contract that was especially eye-catching. Here’s the backstory: In 2005, the SEC issued civil charges against 20 Wall Street floor traders, alleging that they had illegally traded for their firms’ accounts ahead of those of their customers. Todd Christie was among the 20. 

The U.S. attorney for the Southern District of New York, David Kelley, followed up with criminal charges: 15 traders were marched across a plaza in downtown Manhattan in cuffs. But five of the people named in the SEC action were spared the public humiliation and the threat of a criminal conviction. Todd was one of them. 

Todd’s absence from the criminal indictment puzzles lawyers on the case to this day. Unlike some of the traders who had been charged, he had handled his trades personally rather than relying on an assistant. And under the formula that authorities used to quantify the suspect trades, he ranked quite high—people both above and below him on the list were charged. “It had us scratching our heads,” said Julian Solotorovsky, who represented one of the accused traders.

Over time, the criminal cases crumbled. On the civil side, however, the traders agreed to a range of SEC settlements. Todd’s company paid a fine, and he acknowledged that he had engaged in “inappropriate trading.” Other lawyers from the case dismissed the notion that Todd Christie had gotten special treatment, saying there were plausible legal explanations for why he’d been spared a criminal charge. “David Kelley,” attorney Henry Putzel told me, “is as straight as they come.” 

Two years after Kelley moved to private practice in late 2005, Chris Christie decided to award him one of the monitoring contracts. “What happened with [Todd] Christie was very fishy,” one of the skeptical lawyers told me. “When they skipped over him, I was stunned. And then I heard the other stuff [about the contract for Kelley], and I was like, Holy shit, it’s so blatant. In my opinion, [Todd] definitely got a pass because of his brother. I can’t think of any other reason.” Kelley rejected this suggestion, telling me: “If anybody tries to draw the inference that there was anything untoward in my appointment, they’re being silly and irresponsible and unknowing of the facts.”

House Democrats in Washington would eventually call a hearing on Christie’s use of deferred-prosecution agreements, and Christie was asked whether there was a “perception of a quid pro quo” when Kelley was awarded a contract after having let Todd off the hook. “No, sir, because my brother committed no wrongdoing and was found not to have committed any wrongdoing, both by the Southern District of New York and the SEC,” he answered. The answer begged for a follow-up. The SEC had found wrongdoing, and it was precisely the Southern District’s finding of no wrongdoing in his instance that was at issue1. But the lawmakers didn’t get a chance to press the matter, because moments later, Christie abruptly announced that he had to catch a train and walked out. “It was a strange hearing,” Tennessee Representative Steve Cohen told me. “He just got up and left.”
Todd Christie
Associated Press
Todd Christie (right) is one of his brother's most deep-pocketed boosters.

In late 2008, Christie announced his campaign for governor. His image as an enemy of cronyism served him well against Jon Corzine, who was widely derided as a creature of Wall Street. And behind the scenes, his years as U.S. attorney paid off in other ways. Brian Stack was conspicuously slow to endorse Corzine, while Norcross did not hide his lack of enthusiasm for the incumbent. 

Christie later recounted a telling encounter on the night of his first debate with Corzine, five weeks before he would win the race by four points. After the event, Christie was approached by Democratic State Senator Steve Sweeney, Norcross’s childhood friend who had become a linchpin of his machine. Sweeney told Christie: “I look forward to working with you.” 

New Jersey’s governorship is the most powerful in the nation. It is the only statewide elected office, since the governor nominates attorneys general and treasurers. The governor also determines the size of the budget, fills hundreds of well-paying slots on the state’s many commissions and authorities, and doles out aid to its hundreds of towns and cities. No governor in modern memory has worked these levers as skillfully as Christie. 

First, Christie filled top posts in his administration with loyalists from the U.S. attorney’s office. The most controversial hire was Michele Brown, a longtime close aide who had accompanied Christie on business trips as a prosecutor. During the campaign, it was revealed that Christie had given her a $46,000 loan and failed to disclose it on his tax returns. Christie named her his appointments secretary, a $140,000 post, and put her in the office directly outside his own, a spot typically reserved for the chief counsel. The proximity got tongues wagging, and in 2012, Christie installed Brown as director of the Economic Development Authority, a $225,000 post in an office a block away. 

(Christie joked that he had been forced to rely on former colleagues because so few people answered his ad: “Wanted: People willing to work for a moody, passive-aggressive, demanding, outspoken, unreasonable, fat bully—to make miracles happen in Trenton.”)

Next, Christie hit the road to sell his ambitious plan to clean up the state’s finances—slashing wasteful spending, cutting unsustainable benefits for public employees, and reining in absurdly high property taxes. In the process, he perfected a political persona that was somehow enormously appealing in spite of itself. Christie could be charming when he felt like it: Sometimes, he would pace the stage, stand-up comedian-style, dispensing observational humor about public pensions. More often, though, he was just plain aggressive. 

At one meeting, as one teacher rose to earnestly question his agenda, Christie sloughed off his suit jacket as if it were a boxer’s robe. “If what you want to do is put on a show and giggle every time I talk, then I have no interest in answering your question,” he said. The crowd swooned; the clip got 1.3 million hits on YouTube. (“I love the guy!” said a township committeeman afterward.) Insults that Christie has publicly hurled at his antagonists—reporters, lawmakers, citizens, little old ladies—include, but are not limited to: “stupid,” “jerk,” “idiot,” “hack,” “ignoramuses,” “thugs,” “big shot,” “losers,” and “numb-nuts.” 

It’s no easy feat to become a political hero by yelling at schoolteachers, and yet Christie has managed it. Just as he carefully cultivated his image as an anti-corruption crusader while he was U.S. attorney, as governor, Christie has presented himself as the implacable enemy of fiscal irresponsibility. Even his weight, so often the subject of disparaging speculation among national reporters, has worked to his advantage in these settings. Christie utterly dominates a room—planted center stage, an immovable force. His willingness to get in the face of his critics, his refusal to budge—it all gives the impression of a rare politician who cannot be co-opted or cowed. 

And yet right from the outset, Christie was working as closely with the machine as any recent governor. Well before his election, the Democratic bosses had met at the U.S. Open in Queens to divvy up the leadership spoils. Sheila Oliver, who worked under Joe D. in Essex County, would become the speaker of the Assembly. Sweeney would get the Senate presidency. Sweeney was a union man—an ironworker—but he was a Norcross man first and foremost.* When it came time for the vote on Christie’s proposal to cut public-employee pensions and health benefits, Sweeney delivered the numbers. It was a coup for Christie—national pundits hailed him as a politician more interested in getting results than scoring partisan points.

In hindsight, what is notable is how openly Christie embraced the bosses. He sent massive resources in their direction; when they came under fire, he vouched for them. In early 2011, it emerged that Stack’s wife, now estranged, had been allowed to use city SUVs for personal use and fill up for free at the city’s natural gas pumps. Christie defended him: “I have no reason to question Brian Stack’s integrity.” (Stack returned the compliment, calling Christie “the greatest governor the state has ever had.”) On paper, Union City embodies the kind of waste that Christie has vowed to eliminate—it paid its police chief a handsome $248,000 in 2011 and provides health benefits to part-time elected officials. And yet it has been showered with cash from Trenton—about $12 million per year in discretionary “transitional aid.” 

Christie’s bond with DiVincenzo was just as overt. Corzine’s attorney general had led an investigation into voter fraud by election workers in Essex County, after reams of absentee ballots were filled out to benefit Joe D.-approved candidates. Following Christie’s election, the case was quickly wrapped up with a handful of light sentences for low-level workers. During his term, Essex County has been deluged with millions for big capital projects. The relationship has thrived despite 2012 revelations by The Star-Ledger that Joe D., who makes $153,000 per year on top of a $68,000 pension for the same job (via a legal loophole), has claimed an astonishing list of reimbursements from his campaign funds for personal expenses, such as a trip to Puerto Rico and more than 100 meals over the course of three months. In 2011, Christie observed that Joe D. had been with him “right from day one.”

As for George Norcross, he is more powerful than ever. “It’s not just South Jersey anymore. Now it’s way beyond that,” says the longtime Jersey hand. Christie consented to Norcross’s pick to lead the patronage goldmine that is the Delaware River Port Authority.* The following year, the authority gave a $6 million grant to a cancer center at Norcross’s Cooper University Hospital. Next, Christie pushed through a controversial measure that granted Norcross his desired merger between Rutgers-Camden and nearby Rowan University.2 The result was a well-funded university that will further expand the Norcross empire—boosting beleaguered Camden, yes, but also putting even more jobs, money, and development projects at his disposal. (A former Navy SEAL attending Rutgers-Camden challenged the merger at a town-hall meeting. As he was escorted out by police, Christie hollered after him: “After you graduate from law school, you conduct yourself like that in a courtroom, your rear end is going to be thrown in jail, idiot!”)

Christie’s administration had set out to change the way Trenton did business. But its behavior has turned out to be all too familiar. Those with close ties to the governor have thrived. According to one senior lawyer, it was made clear to supplicants that their prospects would improve if they hired the lobbying firms that employed Samson (now the Port Authority chairman) and Palatucci (the Bush connection). A Louisiana company that wanted to win the $68 million contract for overseeing Sandy relief funds brought on Glenn Paulsen, the GOP power broker from Burlington County. Last May, Paulsen’s law firm made a $25,000 donation to the Republican Governors Association, which Christie leads, and soon afterward the Louisiana company got the Sandy job. Torricelli, too, has flourished as a lobbyist in the Christie era.

Any hard feelings Michael Guadagno might have had about his 2002 move to Trenton would seem to have been allayed: Christie named Guadagno’s wife to be his running mate in 2009 and he himself was elevated to an appellate judgeship three years later.* But there was no lenience for those who bucked the system. Take Democratic State Senator and former Acting Governor Richard Codey, a Norcross nemesis. First, Christie slashed funding for an anti-postpartum-depression program founded by Codey’s wife. Then, Codey’s former chief of staff lost his state job and Codey’s cousin was fired from his high-paying post at the Port Authority. A personnel report on the cousin’s sexual harassment of another man, years earlier, was leaked to the press. Legislators told me of seeing GOP colleagues who had threatened to defy Christie on key votes leaving his office in tears or drenched with sweat.

In early 2013, as Christie’s reelection neared, the operation kicked into overdrive. Christie was fixated on securing Democratic endorsements to bolster his image as a Republican with crossover appeal. It didn’t matter that he was expected to waltz back into office—people needed to get on the list. The administration’s intergovernmental-affairs staff, who knew which mayor or county official had gotten which grant, was moved almost wholesale to the campaign. Christie himself made repeated calls to mere county-level officers: clerks, sheriffs, registers of deeds. 

For those who got behind the governor, there were incentives. To give but one example: The close-knit Orthodox community in Lakewood had endorsed Corzine in 2009. In March, a coalition of the town’s rabbis and businessmen announced it would be backing Christie this time around. Two months later, the state granted $10.6 million in building funds to an Orthodox rabbinical school in Lakewood, one of the largest expenditures for any private college in the state. (The yeshiva was not exactly cash-strapped: A copy of its application I obtained noted that its endowment “far exceeded” the $1.84 million it was expected to contribute to the project.)

As Election Day neared, you could be forgiven for mistaking Christie for a Democrat. State Republicans were frozen out; candidates were told not to include his name or picture on their literature. “We didn’t get the support,” says George Wagoner, a losing Assembly candidate. Meanwhile, the weight of the Democratic machine swung behind the Republican governor. More than 50 Democratic elected officials endorsed Christie, including Brian Stack (who was hit with a $68,725 fine in July for failing to properly disclose campaign spending) and Joe D. (who also has a large fine looming). In photos and media appearances, Christie kept showing up smiling alongside Sweeney and other prominent Democrats. Norcross didn’t formally endorse Christie, but he made his approval clear. At one event, Norcross said he’d recently seen a man in a “Chris Christie: too big to fail” t-shirt. He told Christie: “You’re not too big to fail—you’re too good and too important to fail us.” 

Meanwhile, Barbara Buono, the state senator who had volunteered to challenge Christie when more prominent Democrats, such as Cory Booker, declined, was unable to raise anywhere near enough money for a credible campaign. Numerous Democratic donors refused to give above the $300 threshold where their names would be disclosed, fearing Christie’s retribution. “I’d say to people, ‘What is going on?’ ” Buono recalls. “This is an election, not a military junta.” She attended one campaign rally in a North Jersey church, at which Sheila Oliver, once a reliable ally of the bosses, railed against unnamed powerful people who were supporting Christie only because he had a “dossier” on them. A month before the election, a picture surfaced on Twitter of Christie and Norcross, arm in arm at a Cowboys-Eagles game in Philadelphia. “I didn’t think [Norcross] would embrace me,” says Buono. “But I didn’t think he’d work directly against me.” In the end, Christie won by 22 points and Republicans gained not a single seat in the state Senate. 

And now we come to the national uproar over the mother of all traffic jams in Fort Lee. Christie has denied any knowledge of the ruse. But it has become increasingly hard to credit his ignorance, given how deeply involved he had been in his team’s political outreach to local officials, not to mention that the names of many of his closest aides were surfacing in communications about the closures. Among national Republicans, even some of Christie’s most vocal backers have started to waver. One Republican strategist told me: “No one’s rushing out there to defend him, because they don’t know where this could go next.”

The Democratic bosses, though, are standing by their man. Norcross declared that, instead of obsessing over the bridge, national Democrats should be “pretty concerned about circumstances involving the implementation of Obamacare right now.” Joe D. struck a blasé tone: “Every place I go, people say, ‘What do I care? Why are we talking about it?’ ” And Brian Stack blasted the claim that Christie had threatened to withhold Sandy aid from Hoboken as “far-fetched.” “My relationship with the governor and his staff and this administration has been one of the best,” Stack said—as if that wasn’t part of the problem. 

What Bridgegate has laid bare is the skill and audacity with which Christie constructed his public image. “It’s almost like people were in a trance,” Buono told me. Christie may have been misunderstood for so long because his transactionalism diverted from the standard New Jersey model. He wasn’t out to line his own pockets, or build a business empire. He wasn’t even seeking to advance a partisan agenda. And yet it was transactionalism all the same. Christie used a corrupt system to expand his own power and burnish his own image, and he did it so artfully that he nearly came within striking distance of the White House. When he got cozy with Democratic bosses, people only saw a man willing to work across the aisle. When he bullied his opponents, they only saw a truth-teller. It was one of the most effective optical illusions in American politics—until it wasn’t.

Alec MacGillis is a senior editor at The New Republic.

*Correction: This article initially misstated Steve Sweeney's former trade. The title of the Delaware River Port Authority official whom Gov. Christie consented to keeping on, John Mattheussen, was CEO, not chairman. And Michael Guadagno's promotion to an appellate judgeship was made by the state's chief judge, a gubernatorial appointee.

Thursday, February 13, 2014

Departed Witcher 3 developers: "There is no bad blood"

"We did everything to make sure nothing bad happens."

By Robert Purchese

Two key members of The Witcher 3 team officially departed CD Projekt Red last week: lead gameplay designer Maciej Szcześnik and gameplay producer Marek Ziemak.

They left for another developer in Warsaw, Poland, called 11 bit studios, known best for Anomaly: Warzone Earth. Their given reason for leaving was to make smaller, more creative games.

But it didn't take long for concern to creep in. Losing a lead gameplay designer months from release - was Witcher 3 development OK? Were there deeper rifts within the team? Why didn't CD Projekt Red say anything?

That's why I phoned Maciej Szcześnik and Marek Ziemak this morning for a chat.

"We did everything to make sure nothing bad happens," Szcześnik assured me of the transition, "there is no bad blood. Other people took our responsibilities and it was quite smooth."

"It wasn't a surprise for the company," Ziemak added, telling me there had been at least a couple of weeks of slowly backing out of the door. Szcześnik nodded. "It wasn't like ... we were gone the next day," he said.

Also, the pair reminded me, The Witcher 3 is made by many. The gameplay isn't just Szcześnik's work, however senior his role. "We were designing this game together," he stressed. And, as Ziemak pointed out: "Most of the stuff is done."

Both men were CD Projekt Red old guard. Szcześnik had been there almost as long as the studio itself, since 2004, and Ziemak joined in 2006.

What I hadn't realized was that they had left before, in 2009, to set up a casual game maker called Sleepwalker Games. "And it didn't work out ... it didn't give us enough money to survive," said Ziemak.

CDPR rehired the pair to help finish The Witcher 2, after which Szcześnik moved from being lead combat designer to leading all gameplay design.

So why now - why wait until only a few months before The Witcher 3's release to leave? They'd been there for a decade, or thereabouts - they couldn't wait a bit longer?

Why wait for some "artificial date", Ziemak asked me. The project was in good hands and he was "burnt out". CDPR, remember, has made only Witcher games for 10 years.

Their desire to make something smaller, more immediate, something different was there, and then along came a proposition. It was a strange time to leave, both admitted, but they had a need to.

In other words, there are no rifts within the team, no apparent falling-outs; just two people satisfying personal creative urges.

So what will these former and senior Witcher developers make now?

Szcześnik will be lead designer of a game he can't say anything about, although it definitely isn't... casual. He told me he wants to make games that comment more on the world around us. Ziemak will be a senior producer.

11 bit studios typically turns out a game a year, and employs around 30 staff. That's not going to change.

When will we hear more? The press release last week said in March. One to keep an eye on.

I've been in touch with CD Projekt Red but no statement about Szcześnik and Ziemak's departure has been forthcoming.

Ground Zero in the fight for workers' rights

Fight for union rights heads to a Volkswagen plant in Chattanooga, TN, where workers begin voting to unionize with UAW. Ed Schulz and panel discuss.

The new ‘Gestapo’ talking point

Some on the right have started referring to the Obama administration and progressives with Nazi-era terminology. Rev. Al Sharpton is joined by Karen Finney and Joe Madison to discuss that rhetoric.

Tuesday, February 11, 2014

President Obama’s big debt limit win

The House voted Tuesday to raise the debt limit with no cuts and no strings attached. Rev. Sharpton is joined by Dana Milbank to discuss the move’s impact.


Leo the Homeless Coder Finished His App, and You Can Download It Right Now

Leo Grand considers himself lucky when the doorman at the luxury apartment building nearby lets him charge his Samsung Chromebook without issue.
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Leo's app — Trees for Cars — just launched this morning, and the new coder needs to make sure his computer is ready to go for the day. The guys in the apartment building have been a great help; four months ago when Grand started this venture, it was warm outside. That, unfortunately, is no longer the case.

"Trees for Cars" is a mobile application that aims to save the environment by helping users carpool to their destinations, and Grand programmed the entire thing himself from the streets of Manhattan with just 16 weeks of coding lessons. It also provides information on how much CO2 the user is saving with each ride which further encourages environmental awareness, creating within the app a healthy competition amongst users to save the most CO2.

Grand was approached by a young programmer named Patrick McConlogue in mid-August with a choice: Take $100 or take an opportunity to learn how to code. Grand, who had been homeless since 2011 after he lost his job at MetLife and was priced out of his neighborhood when a high-rise went up on the next block, didn't hesitate.

He wanted to learn to code.

The two men met every weekday where Leo sleeps outside for an hour each morning. McConlogue taught Grand how to program using three used books from Amazon and a refurbished Chromebook McConlogue purchased for Grand online.



Business Insider spent a lot of time talking to the men back in the fall, and we even visited a coding class on what would be the coldest day of September. Grand talked a lot about his upcoming app (which, at the time, remained a secret), and how excited he was for its launch. There were naysayers who said this day would never come, but Grand, McConlogue, and thousands of people following their journey on Facebook had kept a positive outlook.

Now the app has arrived to the Apple Store and the Play Store for $.99.

"Trees for Cars is a great way to build relationships, strengthen communities, help each-other financially and energy wise, all under the umbrella of saving the environment," Grand said in an official statement about the app.

Here's how it works: As a driver, simply pick a meeting address and the app will suggest nearby riders. Then, each rider and driver are only connected if they choose to mutually accept the invitations. The app tracks how much CO2 was saved by the passengers who got rides with others.

All of the money the developers receive from this app goes to Grand, who will use it to help him further his programming education.

Here's a video of Leo talking about the app:

 

Who do you trust to get things done this year

I am getting sick of these self righteous, hypocritical, talking out of both sides of their mouths Republicans. 

Lacking trust is the latest GOP talking point to rationalize their inability to get anything done this year. Ed Schultz and Fmr. Gov. Charlie Crist discuss.



Monday, February 10, 2014

That Chemical Subway Ditched? McDonald's, Wendy's Use it Too



This week, Subway found out customers don't like eating a chemical found in yoga mats, shoe rubber and synthetic leather.

After one blogger's petition against azodicarbonamide generated widespread uproar, the sandwich chain announced plans to remove the ingredient from its bread but did not say when. Currently, its 9-grain wheat, Italian white and sourdough breads contain it.

The move has at least one other major chain pondering its own products containing the chemical, but its use at other restaurant chains is fairly widespread.

Although the product is approved for use in the U.S. as a dough conditioner and flour bleaching agent up to a certain limit, Europe and Australia have banned it as a food additive, writes Vani Hari, who drafted the petition and runs the site FoodBabe.com. Hari noted that her site's traffic has doubled since she began the petition. To date, it's drawn more than 75,000 signatures.

According to restaurant websites, here is a list of some products that contain it as an ingredient:
  • McDonald's: regular bun, bakery style bun, bagel and English muffin, Big Mac bun and sesame seed bun.
  • Burger King: specialty buns, artisan-style bun, sesame seed bun, croissant, English muffin, home-style Caesar croutons and French toast sticks.
  • Wendy's: bagel, premium toasted bun, sandwich bun and panini bread
  • Arby's: croissant, French toast sticks, harvest wheat bun, honey wheat bread, marble rye bread, mini bun, onion bread and sesame seed bun
  • Jack in the Box: bakery style bun, jumbo bun, croissant, grilled sourdough bread and regular bun
  • Chick-fil-A: chargrilled chicken sandwich, chicken salad sandwich, and chargrilled chicken club sandwich
Burger King, Chick-fil-A, Wendy's, Arby's and Jack in the Box did not respond to multiple attempts for comment.
"Case reports and epidemiological studies in humans have produced abundant evidence that azodicarbonamide can induce asthma, other respiratory symptoms, and skin sensitization in exposed workers."
Following Subway's announcement, McDonald's spokeswoman Lisa McComb told CNBC: 

"Azodicarbonamide is commonly used throughout the baked goods industry, and this includes some of the bread goods on our menu." She noted the ingredient is recognized as safe and approved by the Food and Drug Administration and the chain would continue to serve "the great tasting, quality food they expect from McDonald's. This ingredient, like all the ingredients we use, is available to consumers on our website."

In an email to CNBC, Dunkin' Donuts said, "There are trace amounts of azodicarbonamide, a common ingredient approved as safe by the Food and Drug Administration, in three Dunkin' Donuts bakery items, including the Danish, Croissant and Texas Toast. All of our products comply with federal, state and local food safety standards and regulations. We are evaluating the use of the ingredient as a dough conditioner in our products and currently discussing the matter with our suppliers."

Following Hari's petition, the nonprofit Center for Science in the Public Interest lobbied for the USDA to consider barring it. It noted that when the chemical is baked in bread, it produces the carcinogen urethane and "leads to slightly increased levels of urethane in bread that pose a small risk to humans" when azodicarbonamide is used at its maximum limit.

Evidence also suggests the product is harmful in its more industrial form. Britain's Health and Safety Executive lists it as a substance that can cause occupational asthma.

Meanwhile, a World Health Organization report states: "Case reports and epidemiological studies in humans have produced abundant evidence that azodicarbonamide can induce asthma, other respiratory symptoms, and skin sensitization in exposed workers. Adverse effects on other systems have not been studied."

At Starbucks, a shift is already underway from the ingredient as part of its transition to La Boulange Bakery products. Currently, the company's butter croissants and chocolate croissants contain azodicarbonamide.

"Our new La Boulange Bakery goods do not contain the ingredients. Our goal is to transition all the stores to La Boulange. We're about halfway through that transition," Starbucks spokeswoman Linda Mills said in a phone interview.

Still, there are no plans to ax the ingredient from stores that have yet to switch.

"We're so close to the transition—so, no, we won't be changing the recipe for the current croissants," Mills said.

Sunday, February 9, 2014

Filthy Republicans Did It Again

Mike Malloy talks about the Senate failing to pass the unemployment benefits extension.

Recall of 9 million pounds of meat not fully inspected

 By Greg Botelho and Janet DiGiacomo, CNN

(CNN) - Some 8.7 million pounds of meat from a Northern California company have been recalled because they came from "diseased and unsound" animals that weren't properly inspected, a federal agency announced Saturday.

The recall affecting Rancho Feeding Corporation products -- as detailed by the U.S. Department of Agriculture's Food Safety and Inspection Service -- marks a significant expansion of one announced January 13, when just over 40,000 pounds of the company's products were recalled.

According to the U.S. agency, Rancho Feeding "processed diseased and unsound animals and carried out these activities without the benefit or full benefit of federal inspection."

"Thus, the products are adulterated, because they are unsound, unwholesome or otherwise are unfit for human food and must be removed from commerce," the FSIS reported. The Petaluma company made the recall.

The government agency noted there are no reported illnesses tied to these products, which went to distribution centers and retail establishments in California, Florida, Illinois and Texas. It was not immediately clear which companies got them, or whether they ended up being sold in some form at any markets or restaurants.

There was no answer Saturday night to a call from CNN to a phone number listed for Rancho Feeding Corporation.

A wide range of products are listed in the recall, including beef carcasses and various parts such as heads, cheeks, lips, livers, feet and tongues in boxes of 20 pounds and bigger. Forty-pound boxes of veal bones and 60-pound boxes of veal trim are included as well.

All of these were produced and shipped between January 1, 2013, through January 7, 2014. They all have "EST. 527" in the USDA mark of inspection and have a case code number ending in 3 or 4.

In the January announcement, the FSIS reported only that the products were being recalled only from January 8, 2014, and that they didn't have a "full federal inspection."

Saturday, February 8, 2014

Chris Christie: Best case scenario

Steve Kornacki explains what has to happen for Chris Christie’s political career to continue.

How Hackers and Software Companies are Beefing Up NSA Surveillance

Companies like Endgame Systems have for years sold information and digital loopholes to the NSA to help bolster spying.

Fri Feb. 7, 2014 9:50 A.M. GMT
This story first appeared on the TomDispatch website.

Imagine that you could wander unseen through a city, sneaking into houses and offices of your choosing at any time, day or night. Imagine that, once inside, you could observe everything happening, unnoticed by others—from the combinations used to secure bank safes to the clandestine rendezvous of lovers. Imagine also that you have the ability to silently record everybody's actions, whether they are at work or play without leaving a trace. Such omniscience could, of course, make you rich, but perhaps more important, it could make you very powerful.

That scenario out of some futuristic sci-fi novel is, in fact, almost reality right now. After all, globalization and the Internet have connected all our lives in a single, seamless virtual city where everything is accessible at the tap of a finger. We store our money in online vaults; we conduct most of our conversations and often get from place to place with the help of our mobile devices. Almost everything that we do in the digital realm is recorded and lives on forever in a computer memory that, with the right software and the correct passwords, can be accessed by others, whether you want them to or not.

Now—one more moment of imagining—what if every one of your transactions in that world was infiltrated? What if the government had paid developers to put trapdoors and secret passages into the structures that are being built in this new digital world to connect all of us all the time? What if they had locksmiths on call to help create master keys for all the rooms? And what if they could pay bounty hunters to stalk us and build profiles of our lives and secrets to use against us?

Well, check your imagination at the door, because this is indeed the brave new dystopian world that the US government is building, according to the latest revelations from the treasure trove of documents released by National Security Agency whistleblower Edward Snowden.

Over the last eight months, journalists have dug deep into these documents to reveal that the world of NSA mass surveillance involves close partnerships with a series of companies most of us have never heard of that design or probe the software we all take for granted to help keep our digital lives humming along.

There are three broad ways that these software companies collaborate with the state: a National Security Agency program called "Bullrun" through which that agency is alleged to pay off developers like RSA, a software security firm, to build "backdoors" into our computers; the use of "bounty hunters" like Endgame and Vupen that find exploitable flaws in existing software like Microsoft Office and our smartphones; and finally the use of data brokers like Millennial Media to harvest personal data on everybody on the Internet, especially when they go shopping or play games like Angry Birds, Farmville, or Call of Duty.

Of course, that's just a start when it comes to enumerating the ways the government is trying to watch us all, as I explained in a previous TomDispatch piece, "Big Bro is Watching You." For example, the FBI uses hackers to break into individual computers and turn on computer cameras and microphones, while the NSA collects bulk cell phone records and tries to harvest all the data traveling over fiber-optic cables. In December 2013, computer researcher and hacker Jacob Appelbaum revealed that the NSA has also built hardware with names like Bulldozer, Cottonmouth, Firewalk, Howlermonkey, and Godsurge that can be inserted into computers to transmit data to US spooks even when they are not connected to the Internet.

"Today, [the NSA is] conducting instant, total invasion of privacy with limited effort," Paul Kocher, the chief scientist of Cryptography Research, Inc. which designs security systems, told the New York Times. "This is the golden age of spying."

Building Backdoors

Back in the 1990's, the Clinton administration promoted a special piece of NSA-designed hardware that it wanted installed in computers and telecommunication devices. Called the Clipper Chip, it was intended to help scramble data to protect it from unauthorized access—but with a twist. It also transmitted a "Law Enforcement Access Field" signal with a key that the government could use if it wanted to access the same data.

Activists and even software companies fought against the Clipper Chip in a series of political skirmishes that are often referred to as the Crypto Wars. One of the most active companies was RSA from California. It even printed posters with a call to "Sink Clipper." By 1995, the proposal was dead in the water, defeated with the help of such unlikely allies as broadcaster Rush Limbaugh and Senators John Ashcroft and John Kerry.

But the NSA proved more tenacious than its opponents imagined. It never gave up on the idea of embedding secret decryption keys inside computer hardware—a point Snowden has emphasized (with the documents to prove it).

A decade after the Crypto Wars, RSA, now a subsidiary of EMC, a Massachusetts company, had changed sides. According to an investigative report by Joseph Menn of Reuters, it allegedly took $10 million from the National Security Agency in exchange for embedding an NSA-designed mathematical formula called the Dual Elliptic Curve Deterministic Random Bit Generator inside its Bsafe software products as the default encryption method.

The Dual Elliptic Curve has a "flaw" that allows it to be hacked, as even RSA now admits.

Unfortunately for the rest of us, Bsafe is built into a number of popular personal computer products and most people would have no way of figuring out how to turn it off.

According to the Snowden documents, the RSA deal was just one of several struck under the NSA's Bullrun program that has cost taxpayers over $800 million to date and opened every computer and mobile user around the world to the prying eyes of the surveillance state.

"The deeply pernicious nature of this campaign—undermining national standards and sabotaging hardware and software—as well as the amount of overt private sector cooperation are both shocking," wrote Dan Auerbach and Kurt Opsahl of the Electronic Frontier Foundation, a San Francisco-based activist group that has led the fight against government surveillance. "Back doors fundamentally undermine everybody's security, not just that of bad guys."

Bounty Hunters

For the bargain basement price of $5,000, hackers offered for sale a software flaw in Adobe Acrobat that allows you to take over the computer of any unsuspecting victim who downloads a document from you. At the opposite end of the price range, Endgame Systems of Atlanta, Georgia, offered for sale a package named Maui for $2.5 million that can attack targets all over the world based on flaws discovered in the computer software that they use. For example, some years ago, Endgame offered for sale targets in Russia including an oil refinery in Achinsk, the National Reserve Bank, and the Novovoronezh nuclear power plant. (The list was revealed by Anonymous, the online network of activist hackers.)
While such "products," known in hacker circles as "zero day exploits," may sound like sales pitches from the sorts of crooks any government would want to put behind bars, the hackers and companies who make it their job to discover flaws in popular software are, in fact, courted assiduously by spy agencies like the NSA who want to use them in cyberwarfare against potential enemies.
Take Vupen, a French company that offers a regularly updated catalogue of global computer vulnerabilities for an annual subscription of $100,000. If you see something that you like, you pay extra to get the details that would allow you to hack into it. A Vupen brochure released by Wikileaks in 2011 assured potential clients that the company aims "to deliver exclusive exploit codes for undisclosed vulnerabilities" for "covertly attacking and gaining access to remote computer systems."
At a Google sponsored event in Vancouver in 2012, Vupen hackers demonstrated that they could hijack a computer via Google's Chrome web browser. But they refused to hand over details to the company, mocking Google publicly. "We wouldn't share this with Google for even $1 million," Chaouki Bekrar of Vupen boasted to Forbes magazine. "We don't want to give them any knowledge that can help them in fixing this exploit or other similar exploits. We want to keep this for our customers."

In addition to Endgame and Vupen, other players in this field include Exodus Intelligence in Texas, Netragard in Massachussetts, and ReVuln in Malta.

Their best customer? The NSA, which spent at least $25 million in 2013 buying up dozens of such "exploits." In December, Appelbaum and his colleagues reported in Der Spiegel that agency staff crowed about their ability to penetrate any computer running Windows at the moment that machine sends messages to Microsoft. So, for example, when your computer crashes and helpfully offers to report the problem to the company, clicking yes could open you up for attack.

The federal government is already alleged to have used such exploits (including one in Microsoft Windows)—most famously when the Stuxnet virus was deployed to destroy Iran's nuclear centrifuges.

"This is the militarization of the Internet," Appelbaum told the Chaos Computer Congress in Hamburg. "This strategy is undermining the Internet in a direct attempt to keep it insecure. We are under a kind of martial law." 


Harvesting your Data

Among the Snowden documents was a 20-page 2012 report from the Government Communications Headquarters—the British equivalent of the NSA—that listed a Baltimore-based ad company, Millennial Media. According to the spy agency, it can provide "intrusive" profiles of users of smartphone applications and games. The New York Times has noted that the company offers data like whether individuals are single, married, divorced, engaged, or "swinger," as well as their sexual orientation ("straight, gay, bisexuall, and 'not sure'").

How does Millennial Media get this data? Simple. It happens to gather data from some of the most popular video game manufacturers in the world. That includes Activision in California which makes Call of Duty, a military war game that has sold over 100 million copies; Rovio of Finland, which has given away 1.7 billion copies of a game called Angry Birds that allows users to fire birds from a catapult at laughing pigs; and Zynga—also from California—which makes Farmville, a farming game with 240 million active monthly users.

In other words, we're talking about what is undoubtedly a significant percentage of the connected world unknowingly handing over personal data, including their location and search interests, when they download "free" apps after clicking on a licensing agreement that legally allows the manufacturer to capture and resell their personal information. Few bother to read the fine print or think twice about the actual purpose of the agreement.

The apps pay for themselves via a new business model called "real-time bidding" in which advertisers like Target and Walmart send you coupons and special offers for whatever branch of their store is closest to you. They do this by analyzing the personal data sent to them by the "free" apps to discover both where you are and what you might be in the market for.

When, for instance, you walk into a mall, your phone broadcasts your location and within a millisecond a data broker sets up a virtual auction to sell your data to the highest bidder. This rich and detailed data stream allows advertisers to tailor their ads to each individual customer. As a result, based on their personal histories, two people walking hand in hand down a street might get very different advertisements, even if they live in the same house.

This also has immense value to any organization that can match up the data from a device with an actual name and identity—such as the federal government. Indeed, the Guardian has highlighted an NSA document from 2010 in which the agency boasts that it can "collect almost every key detail of a user's life: including home country, current location (through geolocation), age, gender, zip code, marital status…income, ethnicity, sexual orientation, education level, and number of children."

In Denial

It's increasingly clear that the online world is, for both government surveillance types and corporate sellers, a new Wild West where anything goes. This is especially true when it comes to spying on you and gathering every imaginable version of your "data."

Software companies, for their part, have denied helping the NSA and reacted with anger to the Snowden disclosures. "Our fans' trust is the most important thing for us and we take privacy extremely seriously," commented Mikael Hed, CEO of Rovio Entertainment, in a public statement.

"We do not collaborate, collude, or share data with spy agencies anywhere in the world."

RSA has tried to deny that there are any flaws in its products. "We have never entered into any contract or engaged in any project with the intention of weakening RSA's products, or introducing potential 'backdoors' into our products for anyone's use," the company said in a statement on its website. "We categorically deny this allegation." (Nonetheless RSA has recently started advising clients to stop using the Dual Elliptical Curve.)

Other vendors like Endgame and Millennial Media have maintained a stoic silence. Vupen is one of the few that boasts about its ability to uncover software vulnerabilities.

And the NSA has issued a Pravda-like statement that neither confirms nor denies the revelations.

"The communications of people who are not valid foreign intelligence targets are not of interest to the National Security Agency," an NSA spokeswoman told the Guardian. "Any implication that NSA's foreign intelligence collection is focused on the smartphone or social media communications of everyday Americans is not true."

The NSA has not, however, denied the existence of its Office of Tailored Access Operations (TAO), which Der Spiegel describes as "a squad of [high-tech] plumbers that can be called in when normal access to a target is blocked."

The Snowden documents indicate that TAO has a sophisticated set of tools at its disposal—that the NSA calls "Quantum Theory"—made up of backdoors and bugs that allow its software engineers to plant spy software on a target computer. One powerful and hard to detect example of this is TAO's ability to be notified when a target's computer visits certain websites like LinkedIn and to redirect it to an NSA server named "Foxacid" where the agency can upload spy software in a fraction of a second.

Which Way Out of the Walled Garden?

The simple truth of the matter is that most individuals are easy targets for both the government and corporations. They either pay for software products like Pages and Office from well known manufacturers like Apple and Microsoft or download them for free from game companies like Activision, Rovio, and Zynga for use inside "reputable" mobile devices like Blackberries and iPhones.

These manufacturers jealously guard access to the software that they make available, saying that they need to have quality control. Some go even further with what is known as the "walled garden" approach, only allowing pre-approved programs on their devices. Apple's iTunes, Amazon's Kindle, and Nintendo's Wii are examples of this.

But as the Snowden revelations have helped make clear, such devices and software are vulnerable both to manufacturer's mistakes, which open exploitable backdoors into their products, and to secret deals with the NSA.

So in a world where, increasingly, nothing is private, nothing is simply yours, what is an Internet user to do? As a start, there is an alternative to most major software programs for word processing, spreadsheets, and layout and design—the use of free and open source software like Linux and Open Office, where the underlying code is freely available to be examined for hacks and flaws. (Think of it this way: if the NSA cut a deal with Apple to copy everything on your iPhone, you would never know. If you bought an open-source phone—not an easy thing to do—that sort of thing would be quickly spotted.) You can also use encrypted browsers like Tor and search engines like Duck Duck Go that don't store your data.

Next, if you own and use a mobile device on a regular basis, you owe it yourself to turn off as many of the location settings and data-sharing options as you can. And last but hardly least, don't play Farmville, go out and do the real thing. As for Angry Birds and Call of Duty, honestly, instead of shooting pigs and people, it might be time to think about finding better ways to entertain yourself.

Pick up a paintbrush, perhaps? Or join an activist group like the Electronic Frontier Foundation and fight back against Big Brother.

Ted Nugent's Epic Hatefilled Rant Against Liberals And President Obama: 'An Avowed Racist'

Ted Nugent gave a very disturbing interview to a reporter at the Great American Outdoor Show in Harrisburg, in which he viciously attacked the President and all liberal Democrats.


 
Ted Nugent's form of crazy is very, very scary, to say the least. His vitriolic rhetoric most definitely helped land him on the board of the NRA and a gig on the Outdoor Channel, but that doesn't excuse his actions. Many conservatives cry out loud when somebody on MSNBC says something very inappropriate, but in conservative politics, Ted Nugent's disgusting descriptions are par for the course.

In this interview for Pennlive, he called Obama a racist, liberal Democrat for destroying Detroit on purpose and described Democrats in government as cockroaches.

He was as vicious as I've ever seen him.
Nugent: I scare the living hell out of brain dead psychotic liberal democrats. I'm on a mission doing God's work. I'm exposing the soullessness of the left The evil agenda of the same liberal democrats who engineered the destruction of the greatest city in America, my birth city Detroit
They did it on purpose and now we have a commander and chief who's actually following the recipe for the destruction of Detroit for the whole country.
My most important driving duty as a "We the People" caring, knowledgeable, educated participating in self government is to spotlight the cockroaches that have infested our government and much of our media Joseph Goebbels propaganda ministry of so much of the media in this country, so I'm a very busy man.
A president who's an avowed racist, who claimed because Trayvon Martin was black even though he was a gangster and an attacker and a doper, that he could have been his son -- really?
The Outdoor Channel has a lot of explaining to do:
In January, Outdoor Channel announced a multi-year deal with Nugent, which includes "making talent appearances on the network's behalf at top consumer and industry trade events."
At the time, Outdoor Channel's CEO said, "Ted Nugent symbolizes everything that is right in our industry." Nugent recentlyrepresented Outdoor Channel at the gun industry's annual trade show, where he compared Jewish film executive Harvey Weinstein to a Nazi because of Weinstein's opposition to the NRA.
Nugent also created controversy and faced accusations of racism for an interview conducted at the trade show where he called President Obama a mongrel -- a term for a dog of indeterminate breed.
 This man is a pillar of the conservative movement. Need I say more?

Friday, February 7, 2014

Leno's legacy on political comedy

Jay Leno has interviewed and skewered the biggest names in American politics. On the night of Leno's last show, Lawrence O'Donnell takes a look back.

Saturday, February 1, 2014

Sore loser Ann Romney STILL simply cannot accept the fact that her corporate mannequin of a husband lost to Obama

By Michael Hayne

Ann Romney is no stranger to publicly scolding voters like they were the hired help at one of her galas.  For example,  she previously blamed them for the government shutdown earlier this year.

Once again, she’s proving that she’s the washed up mean girl who married money and now makes fun of you behind your back.

Ann Romney ‘explains’ why America messed up in 2012.

While plugging the Netflix documentary about her husband and his presidential run, Ann Romney stated how she always felt her husband would be elected and was totally shocked when he wasn’t.

And wanting to maintain a pretense of Stepford wife pleasantness, Mrs. Romney claimed the “country lost” but refrained from laying into the president.
I really believe this,”Ann Romney said, “We lost, but truly the country lost by not having Mitt as president.”
“How do you think President Obama’s doing?” Fox News’ Bill Hemmer asked.
“I think I’ll be polite and nice and not comment on that,” Romney replied. (Mediaite)
Here’s the video.



Well, Ann– maybe if Mitt wasn’t  essentially a crappy Christmas sweater that republicans had to feign enthusiasm for;  maybe if he wasn’t  a stiff, out-of touch patrician with a freaking car elevator and sordid background in vulture capitalism; and maybe if didn’t he always stuck a silver foot in his mouth, voters might have given him a chance.

For instance, maybe if we saw more of the guy who slow jammed the news with Fallon, as opposed to the corporate creep on the cover of the Just For Men box, Mitt might have squeezed out a win. Say what you will about the Bush family, but Laura Bush — and even Cindy McCain — have remained classy and come to grips with their husband’s failures.