TRUMP AND THE MORGAN LEWIS MESS

On January 11, 2017, Sheri Dillon and Fred Fielding sullied themselves and imperiled the reputation of their firm, Morgan, Lewis & Bockius. They shilled for a plainly insufficient plan to deal with Donald Trump’s massive business conflicts of interest. In doing so, they traversed far beyond the principle that an attorney should advocate zealously on a client’s behalf. I predicted that Dillon, Fielding, and the firm would regret their roles in the charade. If they haven’t seen the light by now, they never will.

Lawyers Without Boundaries; Clients Without Shame

When it comes to dealing with Trump, ignorance of his tendencies affords his attorneys no excuse. Throughout his life, he has destroyed reputations whenever it helped him fulfill an agenda item of the moment. Once his allies outlive their usefulness — or whenever Trump needs a scapegoat — they become expendable. Remember the rumors about cabinet positions for Chris Christie, Rudy Giuliani, and Newt Gingrich? And how quickly Mike Flynn went from loyal patriot to dishonest traitor!

Trump’s January 11, 2017 press conference made for great theater as he claimed yet another victim. “President-elect Trump wants there to be no doubt in the minds of the American public that he is completely isolating himself from his business interests,” Dillon explained amid a mountain of paper. Some of the documents appeared to be blank and some of the folders lacked labels. Substantively, attorneys knew immediately that the Dillon/Fielding/Morgan Lewis plan was a joke. Every day, it becomes less humorous.

Trump Still Owns Everything

Dillon assured the public that Trump would put his business holdings in a revocable trust — meaningless window dressing. She didn’t mention he still owned and benefited from every Trump asset in his portfolio. And he wasn’t selling any of his most valuable ones involving the family business. Still, she explained, no one should worry because his sons, Eric and Don Jr., would run the company. Trump even joked that he’d return to management in eight years, hoping that they’d done a good job and saying that he’d fire them if they didn’t.

Har-dee-har-har-har.

Six weeks later, Eric Trump told Forbes that he would continue to update his father on the family business: “’Yeah, on the bottom line, profitability reports and stuff like that, but you know, that’s about it.’ How often will those reports be, every quarter? ‘Depending, yeah, depending.’ Could be more, could be less? ‘Yeah, probably quarterly.’ One thing is clear: ‘My father and I are very close. I talk to him a lot. We’re pretty inseparable.’”

It Gets Worse

On April 4, ProPublica reported — and Trump Organization attorney Alan Garten confirmed — that a February 10 version of the revocable trust agreement states: “The Trustees shall distribute net income or principal to Donald J. Trump at his request, as the Trustees deem necessary for his maintenance, support or uninsured medical expenses, or as the Trustees otherwise deem appropriate.”

The Trustees are Don Jr. and Allen Weisselberg, who started his career working for Donald Trump’s father Fred in the 1970s. In other words, Trump can watch his wealth grow and get at his money whenever he wants.

Fallout

At the time of the press conference, self-proclaimed law firm public relations experts urged that mere proximity to Trump would make Morgan Lewis a client magnet. At least one prominent client went the other way. The co-chair of the Wallace Global Fund expressed outrage over the firm’s willingness to aid and abet Trump’s undermining of democracy.

On March 28, H. Scott Wallace sent a blistering termination letter to Morgan Lewis chair Jami Wintz McKeon: “We believe that the legal advice given to [Trump] by your partner Sheri Dillon, in the January 11 press conference and background ‘white paper,’ is not just simplistic and ill-founded, but that it empowers and even encourages impeachable offenses and undetectable conflicts of interest by America’s highest official, and thus is an unprecedented invitation to corruption and an assault on our democracy.”

Wallace, a Villanova Law grad, walked McKeon through the patent defects in the Dillon/Fielding/Morgan Lewis conflicts plan. In great detail, he covered issues that I outlined in my three-part series on the plan’s inadequacies. And he added a few zingers:

  • “Ms. Dillon has legitimized a complete non-solution to Trump’s manifold conflicts of interest….”
  • “She adds a few window-dressing safeguards….”
  • “She absolutely denied the existence of any Emoluments Clause problems….”
  • “The result is an illusion of protection against the President using his office for personal gain. Trump’s entire life has been devoted to personal gain, not a moment to public service.”

Presidential corruption matters, and the Dillon/Fielding/Morgan Lewis plan facilitates it. As Wallace observed, “the ethical carnage is mounting”:

  • Just days after Trump reaffirmed the “one China” policy, it granted 38 new Trump trademarks.
  • Trump’s newly hired director of diplomatic sales at his DC hotel has enjoyed tremendous success in foreign bookings, including Azerbaijan, Bahrain, and Kuwait.
  • Trump’s bans on Muslin-majority nations excluded countries where Trump has business interests.
  • China’s government-owned bank is the single largest tenant in Trump Tower and the lease will come up for renewal during Trump’s presidency.
  • Since Trump’s election, initiation fees at Mar-a-Lago have doubled to $200,000.

Wallace could have added that Trump has yet to make good on Dillon’s promise to donate all Trump hotel profits from foreign governments to the U.S. Treasury. And his organization’s post-election success in registering Trump trademarks around the world has been phenomenal.

“It is painfully obvious that Trump is using his office for personal gain,” Wallace continued. “And Morgan Lewis is enabling and legitimizing this… Americans deserve a president of undivided loyalty. Your firm has denied them that.”

What’s Next? Nothing Good for Morgan Lewis

Here is my next prediction: more clients will fire Morgan Lewis. Corporate boards and CEOs will shun a firm willing to tolerate Dillon’s unprofessional performance on January 11. They’ll act on their belief that preserving critical norms of democracy should outweigh a firm’s desire to do almost anything for a client’s billable hour.

But the most discerning of general counsels will leave Morgan Lewis for an entirely different reason that has nothing to do with Trump, politics, the appropriate limits of a lawyer’s role as client advocate, or every attorney’s sworn duty to protect the U.S. Constitution. Substantively, the Trump conflicts plan is embarrassingly bad lawyering.

OPEN LETTER #2 TO PRESIDENT-ELECT TRUMP: YOUR ELECTORAL COLLEGE RANT

Dear President-elect Trump,

Well, that was quick. Within 24 hours of my first open letter pledging to hold you accountable for missteps, you fired up another twitter storm. Your topic was the Electoral College. It’s easy to see why.

Hillary Clinton’s popular win by more than 1 million votes makes you only the fourth president in history to gain an Electoral College victory without support from at least a plurality of the people you will govern. In fact, tiny popular vote margins in three key states tipped the Electoral College balance in your favor: Michigan (12,000 out of almost 5 million votes cast), Wisconsin (27,000 out of 3 million), and Pennsylvania (68,000 out of 6 million).

I’m not a conspiracy theorist, but did you see the tweet from John Dean, former White House counsel to President Nixon?

“What happens when we discover that the Russians rigged just enough votes in Wisconsin, Ohio, North Carolina and Pennsylvania for Trump?” he wrote.

Don’t Believe Everything Newt Tells You

Now you’re turning to the Electoral College for help. But four years ago, you despised it.

On November 6, 2012, you tweeted: “The electoral college is a disaster for a democracy.”

Back then, you thought President Obama would lose the popular vote, but win in the Electoral College. You called for “a march on Washington” to “stop this travesty.” In tweets that you have since deleted, you even urged a “revolution.”

Now you need the Electoral College to override the popular vote that you lost decisively. Throughout the media, critics are asking, “Is it time to eliminate the Electoral College?

At 5:30 am on November 15, 2016, you provided your new answer, starting with this: “If the election were based on total popular vote I would have campaigned in N.Y. Florida and California and won even bigger and more easily.”

Including Florida on that list projects panic. You spent more time there than in almost any other state. As for New York, it defies credulity to suggest that fellow New Yorkers don’t know you by now.

With respect to California, former House Speaker Newt Gingrich told CBS News’ John Dickerson that you would have picked up “at least 2 million votes,” if you’d campaigned there. No evidence supports that claim. Even so, it doesn’t answer the overriding point that yours is only the fourth election in American history where the popular and electoral vote diverged. (The others were George W. Bush in 2000, Benjamin Harrison in 1888, and Rutherford B. Hayes in 1876.)

But there’s a bigger trap in Speaker Gingrich’s argument that you have now echoed in a tweet. It reinforces the budding false narrative that you have a popular mandate. For the reasons explained in my first letter, you don’t.

Don’t Believe Everything You Read

Your second tweet at 5:30 am on November 15 was: “The Electoral College is actually genius in that it brings all states, including the smaller ones, into play. Campaigning is much different!”

Your tweet gives ammunition to those who focus on the speed with which you decry rules that appear to be working against you, only to embrace them when they turn in your favor. The Electoral College that you described as a “disaster for democracy” in 2012 is now “genius.” For your latest flip-flop, The Washington Post awarded you an “Upside-Down Pinocchio for an unacknowledged change in position.”

Perhaps the inspiration for your second tweet came from reading Dr. Larry Arnn’s Wall Street Journal op-ed that morning. He’s president of Hillside College and defends the Electoral College as “anything but outdated.” His conservative credentials include board membership on the Heritage Foundation and, in 1996, founding chairman of the California Civil Rights Initiative, which prohibited racial preferences in state hiring, contracting, and admissions. Stated simply, he’s one of your growing circle of new best friends.

Alexander Hamilton Is More Than A Hit Play

“Consider for a minute why the Electoral College was invented,” Dr. Arnn writes.

Characterizing your million-plus vote loss as a “whisker,” Dr. Arnn’s historical discussion ignores the most important source of contemporaneous insight into the origin and purpose of the Electoral College: Alexander Hamilton. Conservatives regularly cite The Federalist Papers in defending an originalist interpretation of the Constitution. (You’ve said that you want your Supreme Court nominee adhering to that approach.) In Federalist No. 68, Hamilton explained some of the concerns that led to creation of the Electoral College.

On one hand, Hamilton observed, the framers believed that the will of the people deserved respect. But they also worried that citizens were vulnerable to an unqualified demagogue — someone with “talents for low intrigue, and the little arts of popularity” lacking “a different kind of merit to establish him in the esteem and confidence…necessary to make him a successful candidate for the distinguished office of President of the United States.” The Electoral College became the nation’s safety valve.

What If Every Vote Counted?

Dr. Arnn concludes that binding electors to support the candidate who wins the national popular vote would be a “disaster.” He worries about the 10 states and the District of Columbia — representing 165 electoral votes — that have already signed the National Popular Vote Interstate Compact. It binds each signatory state’s electors to vote for the national popular winner. If a handful of states accounting for another 105 electoral votes sign on and bring the total to at least 270, the Compact will become effective without a Constitutional amendment.

Among the remaining states that in various combinations could put the Compact into effect are Colorado, Connecticut, Delaware, Florida, Georgia, Michigan, Minnesota, North Carolina, New Hampshire, Ohio, Pennsylvania, Virginia, and Wisconsin. Don’t be surprised if those who voted against you now turn their attention to state legislatures that could render the Electoral College irrelevant by 2020. At some point, the constitutionality of the Compact would probably be litigated, but serious scholars believe it would survive.

What Would Hamilton Do?

You can see the irony of your precarious situation. In an unprecedented bipartisan display, the most respected leaders of your own Republican party outlined publicly and repeatedly the dangers that you — their nominee — would pose to America and the world. But the story of the 2016 election is that the people could be trusted. Most voters did not buy your “low intrigue” from someone versed in the “little arts of popularity.” And they reached their decisions, even as FBI Director James Comey, unnamed Bureau leakers of false information, Russian hackers, and Wikileaks distorted the election in your favor. Those clouds will always hang over you.

Dr. Arrn glossed over the fact that on December 19, the Electoral College could still approve the nation’s collective decision and deprive you of the Presidency. Twenty-nine states and the District of Columbia impose some type of requirement that electors vote in accordance with their states’ individual voter totals. But the penalties for noncompliance typically are insignificant. And in the remaining 21 states — including Pennsylvania — electors are free to vote as they see fit.

Would Alexander Hamilton be among the more than 4 million signatories to a current petition urging electors to do what they believe best for the country, rather than blindly follow their individual states’ voting results? We’ll never know. But you’re making a mistake by inviting a focus on the original motivations for the Electoral College. They work against you now.

 

ONE LAWYER’S DILEMMA

Paul Manafort is campaign chairman and chief strategist for Donald Trump. He also has a law degree from Georgetown. That combination has landed him in a tough spot.

The J.D. from Georgetown means Manafort can’t plead ignorance about the significance of Trump’s escalating attack on the rule of law. As The New York Times reported recently, reliably conservative legal scholars express deep concern over Trump’s failure to acknowledge the limits of presidential power. Uniformly, every high-level Republican has repudiated Trump’s criticisms of Judge Gonzalo Curiel, the Indiana-born federal judge presiding over the cases against Trump University:

Senator Mitch McConnell: “I couldn’t disagree more with what he had to say.”

Representative Paul Ryan: “I completely disagree with the reasoning behind that.”

Former majority leader Newt Gingrich, who has made no secret of his vice-presidential ambitions on a Trump ticket: “This is one of the worst mistakes Trump has made. I think it’s inexcusable,”

And that backlash came before June 5, when Trump added all Muslims to his growing list of “possibly” biased judges who can’t give him a fair shake in a courtroom because their ethnicity collides with his most vile public policy pronouncements.

Manafort Knows Better, Even If His Client Doesn’t

Trump is no stranger to litigation. According to USA Today, his personal and business interests have been involved in more than 3,500 state and federal legal actions — 70 of them filed after announcing his presidential bid. Playing a game that’s worse than identity politics, he’s now engaged in a full frontal assault on the integrity of the judiciary for obvious personal gain in a private lawsuit. At best, it’s unseemly. At worst, it’s could be an unlawful attempt “to influence, intimidate or impede” a judge “in the discharge of his duty” (18 U.S.C. Section 1803) and/or “obstruct the administration of justice” (18 U.S.C. Section 401).

At Georgetown, Paul Manafort learned the legal rules governing every litigant’s right to challenge a judge’s fairness. Prevailing on a motion to recuse requires a factual showing, not a racist rant. The law is well settled that ethnicity or national origin is not a valid basis for disqualification. In fact, a recusal motion on those grounds would be on the receiving end of sanctions for frivolous pleading. It’s no accident that Trump’s outside lawyers — led by the widely respected Daniel Petrocelli at O’Melveny & Myers — haven’t pursued that path.

Enter Manafort

When Trump hired Manafort in April, Senator Ted Cruz was collecting more than his share of delegates from states where Trump had won the popular vote. Trump complained that the system was “rigged,” “corrupt” and “crooked.” Manafort’s assignment was to corral Trump delegates and keep them in line to avoid a contested convention.

In 1976, Manafort was involved in a similar task. Only two years out of law school, he was was President Gerald Ford successful “delegate-hunt coordinator” for eight states during Ronald Reagan’s attempt to wrest the nomination. After Ford lost the general election, Manafort spent three years working for a private law firm in Washington, D.C.

When Reagan prevailed in 1980, the president nominated him to the board of directors of the Overseas Private Investment Corporation — the government’s development finance institution. At that point, what would become Manafort’s lucrative career began. Since 1981, he’s been a lobbyist and consultant, sometimes for notorious international clients.

Master of Extreme Makeovers

In 2005, Manafort became an adviser to Viktor Yanukovych, whose political career seemed over after losing the Ukranian election for prime minister. With the help of Manafort, Yanukovych won in 2010 by exploiting popular frustration with government, exacerbating cultural divisions within the Ukranian electorate, and railing against NATO.

Sound familiar? History may not repeat itself, but sometimes it rhymes. Cue the Trump assignment.

His Latest Client Makeover

On April 21, 2016, newly appointed Manafort assured members of the Republican National Committee that Trump’s rhetorical antics were just an act for the crowd.

“That’s what’s important for you to understand – that he gets it, and that the part he’s been playing is evolving now into the part you’ve been expecting…”

A month later, Manafort had accomplished his delegate mission and received a new title: campaign chairman and chief strategist. Since then, Trump’s attacks on the rule of law have intensified. It now appears that, in contrast to Manafort’s April 21 prediction, the only thing that Trump has “played” is Manafort as he dutifully lined up establishment Republicans who fell in line.

As uncomfortable as Trump’s statements have made those establishment Republicans, none has stepped forward to defend their candidate’s recent outbursts. None has repudiated his or her endorsement, either. Even as they decry Trump’s comments as deplorable, they implicitly suggest that his problem is speaking vile thoughts, not that he has them.

What Could Be Worse?

The same supporters rationalize their continuing support of Trump by assuring themselves that Hillary Clinton as president would be worse. They can’t possibly know that. Senator Bob Corker said that Trump — who turns 70 this month — “is going to have to change.” But change to what? Has anyone ever tried to change a 70-year-old billionaire’s fundamental beliefs, character, or behavior? Besides, Trump has made it clear that he has no desire to change. His approach has worked.

Corker’s position is a triumph of hope over reality. As for Trump’s positions, beyond divisive and destructive rants and branding tag lines –“We’ll make America great again” and “We’ll build a wall” — no one can state with confidence what they will be in five minutes, much less what they would become if he won the presidency.

Which takes us back to Paul Manafort, who assured RNC members in April that Trump was evolving. He went on to say, “Fixing personality negatives is a lot easier than fixing character negatives. You can’t change somebody’s character, but you can change the way a person presents himself.”

Either Manafort shares responsibility for encouraging Trump’s subsequent evolution, or he has an uncontrollable client. If it’s the former, he has put his candidate and his country on a treacherous course; he knows that from his legal training at Georgetown. If it’s the latter, his Trump-tarnished reputation will continue to deteriorate as he remains the campaign’s top strategist. Either way, he’s already lost. And so has the country.

EYE OF NEWT

This post is not about politics. It’s about much more.

The Republican Presidential debates have generated many surprising applause lines, but Newt Gingrich delivered this one on December 15 and it should scare all freedom-loving Americans. So should the crowd reaction.

“[T]he courts have become grotesquely dictatorial, far too powerful, and I think, frankly, arrogant in their misreading of the American people,” Gingrich proclaimed in the final debate before the Iowa caucuses. “I taught a short course in this at the University of Georgia Law School. I testified in front of sitting Supreme Court justices at Georgetown Law School. And I warned them: You keep attacking the core base of American exceptionalism, and you are going to find an uprising against you which will rebalance the judiciary.”

[“Testified in front of sitting Supreme Court justices at Georgetown Law School”? Maybe he means “giving testimony” in his newly-found religious sense.]

Anyway, Gingrich — the man who racked up a $500,000 Tiffany’s tab, but decries “elites” — then proceeded to explain exactly how he’d accomplish a “rebalance”: abolish courts that disagreed with his views; subpoena sitting judges for Congressional appearances; ignore Supreme Court decisions that he didn’t like.

For a candidate who fancies himself a historian, ironies abound. For someone who is given to rhetorical flourishes while comparing himself to Winston Churchill and analogizing his adversary’s policies to Nazism, the remarks are astonishing. They’d be funny, too, if they weren’t so frightening.

Newt justice

Stalwart conservatives, including Ann Coulter, Bill O’Reilly, and former Bush administration Attorneys General, Alberto Gonzalez and Michael Mukasey, have roundly condemned Gingrich’s assault on the federal judiciary. So did the National Review.

Lest you think that his Iowa remarks were impromptu outbursts, Newt’s October 7, 2011 White Paper, “Bringing the Courts Back under the Constitution,” lays it all out. (Gingrich brags about not being a lawyer; unfortunately for Vince Haley, a 1992 University of Virginia Law School graduate, the White Paper lists him as its senior editor.)

This post considers just one of Newt’s ideas: subpoenaing judges before Congressional committees to explain their reasons for decisions that he doesn’t like. His White Paper describes it this way:

“Judicial Accountability Hearings

Congress can establish procedures for relevant Congressional committees to express their displeasure with certain judicial decisions by holding hearing [sic] and requiring federal judges come [sic] before them to explain their constitutional reasoning in certain decision [sic] and to hear a proper Congressional Constitutional interpretation.”

Problematic grammar aside, the stated rationale is disingenuous. In decisions that matter, federal judges routinely explain their reasoning in written opinions. The losing party may disagree, but the process is transparent. If there’s an appeal, at least three more judges review the case; they usually explain themselves, too. A few reach the Supreme Court, where yet more judicial elucidation occurs.

Unless the purpose is to pursue judicial impeachment — the constitutional remedy for misconduct — anyone who seeks to command a sitting judge’s appearance before Congress has a single goal: winning through intimidation. That takes me to Newt the historian, who sometimes ignores history’s most important lessons.

Precedent

Following World War I, Germany’s Weimar Constitution established an independent judiciary. On August 20, 1942, Adolf Hitler appointed Otto Thierack as Reichminister of Justice. Six weeks later, Thierack issued the first of his “Letters to All Judges.” According to an article from the U S. Holocaust Memorial Museum, the Letters set forth “the state’s position on political questions and on the legal interpretation of Nazi laws.” German judges understood the importance of following those “suggestions.”

But the article also notes that even Hitler’s SS grasped the potentially explosive implications of Thierack’s intrusions.  The fear of a public backlash led to classifying the Letters as state secrets. In a May 30, 1943 report, the Security Service of the SS declared, “The people want an independent judge. The administration of justice and the state would lose all legitimacy if the people believed judges had to decide in a particular way.”

During the final Iowa debate, Gingrich listed U.S. Supreme Court Justices Roberts, Scalia, Thomas, and Alito as his favorites. That endorsement should make them squirm and, as another history lesson confirms, react publicly:

First they came for the Socialists, and I did not speak out — Because I was not a Socialist…”