I could use a toon break...

(Hat-tip, BRAD BLOG toon sherpa Pokey Anderson!)

It's been a bad month for Diebold (DBD), what with the findings in CA that their voting machines drop votes and their audit logs allows deletion of records; their admission that all of their voting machines fail to record ballot deletions, and that their ATMs were hacked, likely by insiders, just to point to a few of their recent embarrassing headlines.

But things are getting still worse by the minute, it seems. This, from Cleveland's Plain Dealer today:

There are more details at the Dealer (though caution is advised: most of their reporting is based on statements given by Diebold, so bring plenty of grains of salt!).

That said, The BRAD BLOG broke an exclusive story, in August of 2007, concerning a mass sell-off by 10 Diebold officers who had all managed to unload hundreds of thousands of dollars' worth of stock, each on the very same day on Aug. 7th, when the share price was near an historic high. It fell quickly and preciptously thereafter (15% in the next week alone) following news of Diebold spinning off its election company into a "new company" named Premier Election Solutions.

The largest sale of stock made on that day, Aug. 7th 2007, was by Kevin Krakora, the CFO who stepped down today. He had sold $167,107 worth of stock (3,150 shares) at the near-historic high of $53.05 per share.

Diebold stock plunged in value more than 50% over the next several months, following the mass Aug. '07 selloff. It's been falling ever since, with one exception in March of 2008 when United Technologies Corp. (UTC) attempted an unsuccessful takeover of the company. The stock shot up momentarily on that news, but has been largely falling again ever since.

Shares of Diebold closed on Wednesday at $21.53, down 5.4% on the day. The last time the stock was at that bargain basement price was prior to George W. Bush's "election" (aided in part, by the way, by a Diebold tabulator in Volusia County, FL, which gave negative 16,022 votes to Al Gore --- an anomaly which has never been explained by anyone).

We couldn't tell you whether the news of Krakora's stepping down today has anything to do with our coverage of the questionable insider trading in August of '07. Or whether it stems from other questionable Diebold activities --- they've been facing a class-action securities fraud lawsuit from shareholders since 2005; under SEC investigation since 2006; and under DoJ investigation since 2007; and admitted overstating '07 earnings in early 2008.

But if we helped in any way, you're welcome, America!

Guest Blogged by Ernest A. Canning

"It will remain one of democracy's best jokes that it provided its deadly enemies with the means by which it was destroyed." - Joseph Goebbels

Gradually, as the veil of secrecy lifts, a growing number of Americans are beginning to comprehend the lawlessness of the cabal which seized control of the White House in 2000 in what amounted to a judicially-aided coup d'etat.[i] This lawlessness extended across the board. It included the packing of federal agencies with lobbyists from industries they were designed to regulate, deception to take this nation into a war of choice, fraudulent no-bid contracts, torture, extraordinary rendition, warrantless NSA eavesdropping on the entire stream of domestic electronic communications, and, if Seymour Hersh's recent allegations are accurate, the creation of a highly secretive "executive assassination ring" which reported only to Dick Cheney's office and which had "been going into countries, not talking to the ambassador or the CIA station chief, and finding people and executing them and leaving."[ii]

The reaction of leading Democratic politicians to these unprecedented high crimes has been ambivalent, at best. Even before she assumed the role of Speaker, Nancy Pelosi announced that impeachment was "off-the-table," thereby enabling two more years of executive lawlessness, not to mention the nation's economic demise. Pelosi evaded so much as mentioning their high crimes until February 2009. President Obama acknowledged that "no one is above the law," but added that the focus of his administration is to look forward, not back.

There are fundamental deficiencies in the President's formulation. First, it is impossible to observe the rule of law without looking back. It would make no sense, for example, for a man charged with armed robbery to come before a judge and say, "Well, the robbery was in the past. You've got to look forward. I have every intention of abiding by the law in the future. So why prosecute me?" Second, looking forward does not mean handling current events at the expense of the rule of law. The point is to look far enough into the future to appreciate that the same people who brought us the last eight years of executive lawlessness could one day return to power...

Michelle Shafer is the "Baghdad Bob"-in-chief of the e-voting industry. She's the VP and spokesperson for Sequoia Voting Systems and spokesperson for the e-voting industry as a whole via the Election Technology Council (ETC), a "trade group" created and sponsored by the nation's top four e-voting companies (ES&S, Sequoia, Diebold/Premier, and Hart Intercivic) to help spread their anti-science, anti-reality, pro-e-voting propaganda.

In the very last line of an article published on Thursday, on yet another e-voting related issue (which we may cover in more detail later), Michelle "Baghdad Bob" Shafer is quoted thusly:

As irony would have it, Thursday was also the very same day that news broke of the arrest of a cabal of election official insiders --- including a circuit court judge, the school superintendent, and a number of both Democratic and Republican polling place judges --- charged with having used the electronic voting system to compromise election after election, from 2002 to 2006 in Clay County, Kentucky.

Of course, very strong evidence exists that many other elections have been similarly manipulated on electronic voting systems by election insiders (see here, for just one example), including by both election officials and employees of the various private vendors whom Shafer represents. Much of that evidence, however, has been held at arm's length from citizen election integrity advocates under the absurd argument that that information is a proprietary, legally-protected trade secret. That specious argument has been made for years by the very government-funded corporate welfare queens, like Shafer's companies, that have been paid by our government to privatize our public elections.

So it's been difficult, at least until last week, to point disinformation experts like Shafer to the very evidence that reveal her statement, repeated time and again, to be a lie --- thanks in no small part to the "trade secret" claims of folks like Shafer. Get it? It's a helluva self-perpetuating scam...

[Now updated at bottom with details from the indictments.]

Those of us who have demanded transparent voting systems because we understand that only the ability for complete citizen oversight and transparency can effectively counter those who would game elections, have been disingenuously criticized over the years as somehow questioning the integrity of the hard-working, honest election officials out there.

The fact is, those who know anything about computer security understand that it is the insiders who are, by far, the greatest threat to security on such systems, as even the phony, GOP-operative-created Baker/Carter National Election Reform Commission determined in its final report: "There is no reason to trust insiders in the election industry any more than in other industries."

The best election officials in the country, however, will underscore that point, and agree that there is no reason any citizen should ever have to simply "trust" them.

Over the years, we've detailed the arrests and other unsavory behavior of many of the not-so-good election officials who, we were told, should simply have been trusted (our "favorite" has always been the case of Monterey CA's Tony Anchundo, who told us on air we should "trust" him, just a month or two before being arrested on 43 counts).

Well, now we've got a whole passel of still more crooked officials to add to the list. Moreover: The Kentucky officials arrested and indicted today, "including the circuit court judge, the county clerk, and election officers" of Clay County, have been charged with "chang[ing] votes at the voting machine" and showing others how to do it!

Hello?!...

More bad news for a voting machine vendor. This time the California Secretary of State’s office has announced that they have settled their lawsuit against ES&S. It was back in 2007 that the state discovered that ES&S had ignored state laws and sold uncertified voting machines to some counties as if they were certified. CA filed a $15 million lawsuit against the company, and now ES&S has agreed to provide $3.2 M to the state’s coffers by way of settling the suit.

Will it make any difference in the long run? Probably not. ES&S will continue their past bad business practices and many of their customers will continue thinking they only have the choice provided by ES&S....

Guest blogged by Brad Jacobson of MediaBloodhound

Part of the reason I've been off the radar for so long --- my latest investigative report for RAW STORY:

Federal agencies were involved in the decision to raid the office of the Association of Community Organizations for Reform Now (ACORN) in Nevada last October, just weeks before Election Day, the offices of Nevada’s Secretary of State and Attorney General say.

The allegations raise questions of whether politics played a part in the raid and calls into question assertions by the US Attorney’s office that they were uninvolved. Federal guidelines instruct agencies investigating election fraud to avoid action that might impact the elective process.

Bob Walsh, a spokesman for Nevada’s Secretary of State, and Edie Cartwright, a spokeswoman for Nevada’s Attorney General, said that not only were the Nevada US Attorney’s Office and the FBI involved in investigating Nevada ACORN on allegations of voter registration fraud but that all four agencies jointly made the decision to conduct the raid. Both the investigation and the raid were conducted as part of the joint federal-state Election Integrity Task Force announced last July, the spokespersons said.

I guess I'm just in the minority here, but I'm having a bit of trouble getting exercised about $165 million (just to put that into perspective, the movie sequel The Chronicles of Narnia: Prince Caspian had a budget of $200 million) in bonuses to AIG employees.

Yeah, it's a shame that approximately one-tenth of one-percent of the $144 billion made available to the company by the federal government in bailout monies went to such bonuses, but where is all the furor from public officials, media outlets and bloggers --- from both Right and Left --- over the 12 billions of dollars (with a "b") sent over to Iraq as pallets of cash (literally, shrink-wrapped $100 bills), which then simply disappeared into that trillion (with a "t") dollar rat hole without accounting or explanation?

Where is the outrage and accountability there? Nowhere.

How about the $4 billion (with a "b") that went to the Help America Vote Act (HAVA) of 2002 to purchase privately made electronic voting systems which don't work and don't meet the federal standards it was claimed that they did?

It's curious, but not particularly surprising by now, the stuff that folks in Congress get selectively pissed off about, the stuff that media (both mainstream and blogosphere) go selectively wall-to-wall over, versus the stuff they don't.

You'll pardon me if I'm not particularly moved much at all by the latest round of AIG sturm-und-drang, hand-wringing, navel-gazing, finger-pointing and speechifying. Oh, and about the still-free bin Laden, and the still-free anthrax killer...well, don't get me started. Guess those things don't much matter.

Guest Blogged by Mitch Trachtenberg, with Brad Friedman

Even the audit log system on current versions of Premier Election Solutions' (formerly Diebold's) electronic voting and tabulating systems --- used in some 34 states across the nation --- fail to record the wholesale deletion of ballots. Even when ballots are deleted on the same day as an election. That's the shocking admission heard today from Justin Bales, Premier's Western Region manager, at a State of California public hearing on the possible decertification of Diebold/Premier's tabulator system, GEMS v. 1.18.19.

An election system's audit logs are meant to record all activity during the system's actual counting of ballots, so that later examiners may determine, with certainty, whether any fraudulent or mistaken activity had occurred during the count. Diebold's software fails to do that, as has recently been discovered by Election Integrity advocates in Humboldt County, CA, and then confirmed by the CA Secretary of State. The flaws, built into the system for more than a decade, are in serious violation of federal voting system certification standards.

The problems may lead to decertification of the company's voting systems, as well as an examination of voting systems made by other companies to determine if they too may have been able to sneak such violations past both federal and state testers...

This was the most remarkable, and enlightening conversation I've seen on television in lord knows how long. Probably since Stewart's last landmark take-down of corporate broadcast media failure in 2004. The conversation here with CNBC's Jim Cramer --- unprecedented over three segments of last night's The Daily Show --- was simply remarkable.

Please take the time to watch this in full, and wonder again why it is that it's a "comic" on a satirical news show who has become America's most out-spoken, most articulate leader on these crucial issues of survival for our nation...

My take-way, though it was never spoken to directly, is that business news and business journalism --- right now more than ever --- must be about real reporting, and real accountability on behalf of the people, as opposed to simply cheerleading on behalf of the business community, as it has been for so long now

Stewart is also owed a great thanks here, in that I believe this may be (or should be) a landmark moment in discussion of this issue. Just as his remarkable October 2004 take-down of Tucker Carlson and Paul Begala on CNN's Crossfire (taken out of our misery shortly thereafter), essentially for the same reason --- using valuable broadcast time to perpetuate blood-sport and/or cheerleading, instead of actual news reporting in the public's interest --- I hope his no-holds-barred conversation with Cramer will lead to a similar re-thinking of the role of broadcast business journalism.

Stewart's similarly stunning October 15th, 2004 appearance on CNN's Crossfire is re-posted below for your convenience, the video, and highlights from the text transcript were originally posted here...

Imagine, if you will, that the situation had been reversed, and that it had been Norm Coleman who was found to have received more votes than Al Franken for the U.S. Senate seat in MN.

Imagine if Al Franken's campaign, as opposed to Norm Coleman's, had now been found to have disclosed the names and credit card numbers of their donors on their own website, where they also inappropriately stored the unencrypted three-digit security codes of contributor credit cards, violated state law by failing to notify anybody about it, and then lied about it.

Imagine if everything --- actually, if any one of the dozens of improprieties --- that Norm Coleman has pulled since the November election, had been done by Al Franken instead.

Might Sean Hannity be repeating, over and over, something akin to the following for three hours a day on the radio (over our publicly-owned airwaves), and during his hour-long solo Fox "News" freak show, five days a week??...

Broward County, FL, has dropped all charges against a local Election Integrity advocate whose arrest, described by an election official and other colleagues at the time as "outrageous," was captured on video tape late last year.

Ellen Brodsky, who had been a non-partisan candidate for Supervisor of Elections in last November's election, was arrested at the apparent behest of the office of the county's current Supervisor of Elections --- Brodsky's Democratic opponent in the race --- Dr. Brenda C. Snipes, while trying to view public, post-election counting and canvassing of ballots.

She was charged, at the time, with "disorderly conduct" and "trespassing," forced to spend the night in jail, and not released until nearly 6:00am the next morning, even though her son had posted the required $25 (twenty-five dollar) bail for her by 8:30pm on the evening of her arrest.

The "disorderly conduct" charges were dropped some time later, following the release of a video tape of the incident as posted by The BRAD BLOG in the days following the arrest. The tape, reposted again at the bottom of this article, revealed that Brodsky's conduct had been anything but disorderly when the county police were summoned by Fred Bellis, a deputy election official from Snipes' office, and Brodsky was thrown into handcuffs and hauled away.

While Brodsky's trial on a "trespassing" charge had been set to start today, a last-minute offer to drop all charges, in exchange for admissions by Brodsky that she would not be disruptive in the future, was sent to her last night from Snipes' attorney.

"There was no way I was gonna agree to such demands," Brodsky told The BRAD BLOG today, following the county's dismissal of the court case. "We offered our own compromise," she said. "We will accept a withdraw of all charges, and will, as I've always done, agree to follow Florida law regarding public meetings." It was an oral agreement.

Her attorney, Tanner Andrews, echoed her sentiment. "We agreed to do what we're already doing. We'll obey the law," he explained during a phone call this afternoon. "I could agree not to rob the bank next Sunday and it'd have the same legal effect," he added...

In the Minnesota Independent's coverage of former Sen. Norm Coleman's latest push for a "do-over" election, they also point to our recent coverage of GOP chair Michael Steele's obnoxious and absurd fund raising email to GOP members:

Well, that's a good point, isn't it? With Steele, the Republican Senatorial Campaign Committee, the Republican National Lawyer's Association, and all of their affiliated wingnuts claiming over and over that Franken is "stealing" the election (as we detailed and linked in our report), why aren't the Republicanists calling for criminal charges to be brought against him?

It does seem rather gracious of them to allow Franken to compete in a "do-over" for a U.S. Senate seat which they claim to have evidence of him trying to "steal" in the first place, no?

Are the wingnuts just nice that way? Or are they just full of shit? Hmmm, tough call.

(BTW, with all of those charges by the Republicanists, before the election, of ACORN committing massive "voter fraud," shouldn't Coleman and the Republicanists have brought forward their evidence for that during this important election contest trial, since they seem to have lost by only about 250 votes? Especially in MN, where ACORN helped to register more than 42,000 new voters prior to last year's election? With all of those fraudulent ACORN voters, and with Coleman's team having gone over every single vote cast with a fine-tooth comb, you'd think the GOP could have offered evidence of at least one case of "voter fraud" committed by ACORN in MN, no? Apparently not.)

[See update at bottom of article, for response from whistleblower in Don Siegelman case.]

Given the questions concerning whether or not Karl Rove and Harriet Miers will be required to testify under oath as part of their agreement to give "transcribed depositions under penalty of perjury" concerning the U.S. Attorney purge scandal, as announced yesterday by House Judiciary chairman John Conyers, we thought we'd seek some clarification.

We asked a senior source on the U.S. House Judiciary team whether or not taking an oath before testifying would be required, or whether the agreement requires Rove and Miers not be placed under oath. Writes our source in reply:

See the copy of 18 USC, Sec. 1001, as sent by the House Judiciary source below...

Just in from Conyers' office. Rove and Miers will testify, under oath [see explanation in update below], in "transcribed depositions under penalty of perjury"...

Wednesday, March 04, 2009

House Judiciary Committee Secures Rove and Miers Testimony in U.S. Attorney Firings

In an agreement reached today between the former Bush Administration and Congressman John Conyers, Jr. (D-Mich.), Chairman of the House Judiciary Committee, Karl Rove and former White House Counsel Harriet Miers will testify before the House Judiciary Committee in transcribed depositions under penalty of perjury. The Committee has also reserved the right to have public testimony from Rove and Miers. It was agreed that invocations of official privileges would be significantly limited.

In addition, if the Committee uncovers information necessitating his testimony, the Committee will also have the right to depose William Kelley, a former White House lawyer who played a role in the U.S. Attorney firings.

The Committee will also receive Bush White House documents relevant to this inquiry. Under the agreement, the landmark ruling by Judge John Bates rejecting key Bush White House claims of executive immunity and privilege will be preserved. If the agreement is breached, the Committee can resume the litigation.

Chairman Conyers issued the following statement:

"I have long said that I would see this matter through to the end and am encouraged that we have finally broken through the Bush Administration's claims of absolute immunity. This is a victory for the separation of powers and congressional oversight. It is also a vindication of the search for truth. I am determined to have it known whether U.S. Attorneys in the Department of Justice were fired for political reasons, and if so, by whom."

UPDATE 3/5/09: A U.S. House Judiciary source tells The BRAD BLOG that no oath will be given, and none is necessary, as lying to Congress is already a federal crime. Details now posted here...

UPDATE 3/6/09: The complete agreement with Rove and Miers is now posted here...