Political Ethicspolitics

Sheldon Silver: N.Y. Lawmaker Arrested on Corruption Charges

By February 16, 2015 No Comments

Is it just New York’s politicians that embroil themselves in scandal? Sadly, no. We have documented scandals from the smallest towns in the southeast to the hallways of Washington D.C.’s massive Sheldon Silverbeaurecratic mazes. Even in the case of New York, we should not denigrate all politicians, for many try to do the right thing for their constituencies.

Nevertheless, New York City, much like Chicago or Los Angeles, Boston or Miami seem to have been rocked by scandal after scandal in the past few years.

A couple of weeks ago, New York’s Assembly Speaker, Sheldon Silver was arrested for his role in a massive kickback scheme that had lasted for at least 10 years and involves many millions of dollars.

The scheme was detailed in a USA TODAY article by Joseph Spector entitled: “Top N.Y. Lawmaker Arrested on Corruption Charges.”

According to Spector:

“Federal prosecutors alleged that Silver, 70, the speaker since 1994, was in a scheme since at least 2000 to defraud the public and use his power to obtain at least $6 million from two outside law firms. Prosecutors said about $4 million of that came in kickbacks from real-estate developers and referrals in asbestos cases in New York City.”

As has become so very typical of these cases, his fellow politicians expressed shock, the politicians of the opposing party expressed outrage and the politician himself says that he will be vindicated.

Spector writes:

“U.S. Attorney Preet Bharara painted a different picture of Silver, alleging that the Manhattan Democrat used New York’s porous ethics laws to hide his scheme — allowing him to become wealthy off his position in power…

Over his decades in office, Speaker Silver has amassed titanic political power, but as alleged during that same time, Silver also amassed a tremendous personal fortune to the abuse of that political power.”

Silver’s personal assets have been seized and he could theoretically be sentenced to many years more than his lifetime. In essence, his corruption charges could easily turn into a death sentence.

“The complaint alleged Silver received payments from two law firms, but that he didn’t do any legal work. The 35-page complaint said Silver received at least $5.3 million from the personal-injury law firm Weitz & Luxenberg in Manhattan since late 2002.”

Silver would use his considerable power and influence to steer asbestos lawsuits to the law firms and the law firms would give him kick-backs.

Porous ethics and widespread consequences

As of last week, Silver still had not resigned from his position as Assembly Speaker as such might constitute an admission of guilt. Nevertheless, as the case has built around him, it would appear that the evidence is overwhelming. It has been noted that since 2000, at least 40 New York politicians have been involved in scandals of this nature. What lessons aren’t our politicians learning?

The prosecutor referred to New York’s “porous ethical laws,” and that is always part of the problem. In fact, it is the main problem.

The overwhelming number our lawmakers are lawyers. It is ironic and sad. It underscores that when a lawmaker violates the law he or she is not in doubt that they are probably violating laws about conflicts-of-interests. Why bells and whistles wouldn’t have gone off in Sheldon Silver’s head every timer he referred business to a law firm is a mystery. What about the many payments he received for doing nothing but his illegal referrals?

Did he grow callous to what he was doing? Did he reach a point of no return where it no longer mattered? Or, simply, was he so arrogant after decades of public service that he felt above the law, and above the judgment of the electorate? Perhaps all three.

While we can’t get inside Sheldon Silver’s mind, I can make a very strong argument for independent, strong and on-going ethical training.

The three points above are very important.

Independent ethical training is key. If one of the political insiders lectures to a larger group of political insiders, what is gained? Will the appointed politicians even make an appearance or will it be one of their aides? For the sake of this discussion, suppose the ethics lessons were mandatory and those who didn’t show would be penalized? An independent ethics program could force behaviors that an insider could not force.

Strong ethical training by an “outsider” is key. Make sure the lawmakers understand what is expected of them by their electorate.

On-going ethics training. Training must be reinforced and at least on an annual basis. Would the training have dissuaded Sheldon Silver from doing what he did? After decades in office it is hard to say. It is hard to say. At the beginning of his career, it might have had a profound effect. Nevertheless, this concept of porous ethics would not have been porous or ambiguous had it been reinforced.

Unless New York and many other states adopt independent, strong and on-going ethics training, it will ethics will always remain the fox guarding the henhouse. We need a new way of doing business.

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