Feeling grateful for supporters in the UK and around the world who have demanded my UK travel ban be overturned. Because of you — and the help of UK Member of Parliament John Hemming, it expires today.
To mark the ban’s one-year anniversary, Trevor Pitman, member of the parliament of Jersey (the British Crown dependency where I was conducting research before I got the boot) launched a petition on Change.org, urging the UK government to restore my UK Tier-1 visa.
Without this, it is unlikely I will be able to finish my work. Please, if you believe in defending a free press, take 10 seconds to sign this petition. Surrounded by ocean, Jersey has been isolated in its struggle for a free and fair democracy for far too long. It should be able to welcome journalists, not ban them.
For hundreds of years, Jersey was torn asunder by the territorial pissings of England and France — an accident of geography, really, since the island lies in the English Channel between the two countries. As a result, its roads all have very long, ornate French names, but the people of the island speak the Queen’s English.
Another result: the island has an institutional memory of war, not excluding its status as a major base for Germany in WWII (which regarded Jersey as a great jumping-off point for the final showdown it was planning with Britain). Because of this, Jersey has learned to be extremely wary of outsiders.
Jersey: Tiny, But Complicated
Jersey is a self-governing, parliamentary democracy under a constitutional monarchy with its own financial, legal and judicial systems. Its currency is pegged to the British pound, but it prints its own money, votes for its own senators and makes its own laws. Indeed, Jersey has an extremely polished external image that has earned it a very high ranking among the world’s tax havens, but internally its democracy appears to be foundering.
As someone who fell in love with Jersey when I was living in the UK, I have friends on the island and found myself looking into the problems there. A flashpoint in my research was the scandal surrouding an orphanage called Haut de la Garenne, where unspeakable violence, abuse and possible murder took place against children for decades — and yet the government did not stop it. An investigation finally undertaken in 2008 was shut down and the chief of police was suspended — twice — which seemed gratuitous. Those who stood accused largely went untried, but when the island’s health minister objected to this — and would not stop objecting — he was jailed. Also twice. Some of those who were labeled “priority suspects” by the island’s police are now working in high-level government positions in health and education where they continue to have indefensible access to children.
Exactly one year ago today, I was banned from the UK as a result of my research into these events. I have continued my work from the U.S. and have had many outstanding supporters in the UK who have kept me going. Among them are Deputy Trevor Pitman, a member of Jersey’s Parliament, who put up a petition today in support of my return. If you believe in the power of the press and the right of even a very small, insular island to stand up for its democracy, please sign this petition (ten seconds) and spread the word. My ability to do my job in this case depends on it.
Today, my travel ban will expire due to the efforts of UK Member of Parliament John Hemming.But I will not be able to work safely until my UK visa is restored. Hence, the reason for Deputy Pitman’s petition (which, if you haven’t signed it yet, again, here it is: http://chn.ge/QCp7qy).
In addition, a group of Jersey citizens — including bloggers, current and former elected officials and concerned residents of the island — have issued a statement of solidarity this afternoon. It is their hope that by joining forces online, where they can best reach the international community for help and support, they can make a stand in defense of their island’s democracy. Featured on the Web site of Neil McMurray, one of the lead bloggers, I have posted their statement here:
Jersey’s Citizen Solidarity
Today is not a day to focus on right-wing versus left-wing politics, but the difference between right and wrong.
When a democratic government abuses its substantial legal, legislative and financial powers to crack down on journalists’ freedom of speech, force policemen and elected officials from their jobs and systemically dismantle its own checks and balances so as to deny each of its targets due process, clearly it is a government that has lost its way.
Jersey, the jewel in the crown of the Channel Islands, may be one of the world’s leading offshore financial centres, but it has begun to use its clout against its own people –and it is keeping the rest of its population in the dark about it. This is now a place where court and legislative records – those that are public anyway – can now be redacted. This is an island where secret trials are now allegedly taking place and elected officials are forced to debate key issues in secret. Web content is banned and journalists booted out. This is not the way a democratic government is supposed to be run.
Again, this is not about politics. It is about standing up for truth, honesty and integrity. It is about restoring the good name of our beautiful island whose reputation has been dragged through the mud by those attempting to cover-up the facts surrounding some of the most heinous crimes known to man – crimes of violence against children. Crimes the vast majority of islanders would never defend, yet most of those who stand accused of committing them have not been brought to justice and continue to walk among us and our children. Worse, these alleged perpetrators remain entrenched in some of the very highest echelons of Jersey’s government –working in departments that focus on children. It is beyond comprehensible.
On an island where children in need of care have been let down by the government for decades – and continue to be let down – we cannot afford to ignore or repeat our mistakes. More broadly, challenging the government’s current decisions, particularly when not made in the best interest of the public, should not require bottomless financial resources and friends in high places. We are supposed to be a democracy, right?
With our checks and balances hamstrung, the international and independent media may be our last chance at reclaiming our democracy and re-establishing rule of law.
Today, Jersey politician Deputy Trevor Pitman launched an e-petition on Change.org in support of the return of U.S. investigative journalist and author, Leah McGrath Goodman, to the island to continue her research into decades of child abuse at Jersey’s state-run “care”homes and allegations of cover-ups in the wake of the government’s removal of the chief of police and shut-down of the investigation.
One year ago today, Ms. Goodman was banned from the UK and Jersey for two years after revealing to the Jersey Customs and Immigration Service during a voluntary meeting that she was writing a book on atrocities against children at Haut de la Garenne. According to the UK Border Force, she was flagged by Jersey Immigration authorities for removal upon her next border crossing – and that is exactly what happened. After the intervention of UK Member of Parliament John Hemming, the ban was reduced to one year and it expires today, 11 September 2012. That said, the UK and Jersey have so far declined to restore Ms. Goodman’s visa or allow her cross the border to continue her research. In order to do so safely, she will need to have her Tier -1 visa status fully restored – hence, the reason for Deputy Pitman’s e-petition.
Leah McGrath Goodman should be permitted to complete her work in order that there is an accurate record based on the available facts and evidence. Jersey needs to confront the failings of its past so it can redress them and, most of all, ensure the safety of our children’s future.
We ask readers who care about the island’s children, who care about the island’s reputation, who believe in a free press and who want the truth to be told to sign Deputy Pitman’s e-petition. We also ask fellow bloggers to copy and paste this blog onto their own Web sites so that we may show the world that Jersey wants the best for its future and its children. It is time to leave our island’s culture of secrecy behind and demand the kind of free and open society our island deserves. Those who would do otherwise are not representative of the majority of islanders.
Please spread the word and sign this petition. The Internet is the one thing Jersey authorities have not been able to lock down. For those who tweet this campaign, please use the #FreeJersey hashtag.
While Jersey may try to keep journalists out, it cannot keep us for letting the truth in.
My close friends — Jonathan and Vahni — flew from London to Jersey this winter to oversee the packing of my things, mostly personal belongings and papers, after the Jersey authorities flagged me for removal at the UK border following my research into the Haut de la Garenne scandal.
These things also included fancy dress shoes, which were of apparent interest to the authorities.
The boxes arrived in the U.S. many weeks later, slashed open by X-Acto knives and in some cases (such as the box pictured below) ripped open by human hands. The boxes arrived with a form stating that a “contaminant” was found inside, but it did not say what that contaminant was. Frankly, it’d be nice to know.
Below, a transcript between Vahni and the United Parcel Service, which was entrusted with my packages, hinting that the possibility of poisonous UK-Jersey soil on my dress shoes had established grounds for a lengthy search of my belongings. All of which makes one wonder why we are allowed to walk off planes in street shoes after taking international flights?
Based on the fact all the boxes were opened and the shipment arrived weeks late, we can only deduce someone had a very strong interest in going through my stuff.
Initial Question:Receiver [Leah McGrath Goodman] has just told me that ALL packages opened/damaged. Things actually spilling out of them. They were just left at side door without knocking. They were delivered after the promised delivery date.
UPS Sammy A.: Hi, this is Sammy A.. I’ll be happy to assist you! Vahni: As you can see – not happy!
UPS Sammy A.: I need to connect you with a representative who can track your international package. Can I connect you now? Vahni: yes please UPS Sammy A. has disconnected. UPS Ursula P.: Hi, this is Ursula P.. I’ll be happy to assist you. Vahni: can you see my prior chat? Very unhappy with the condition of shipment.
UPS Ursula P.: Yes, I can see the prior chat. Just a moment while I review your tracking information. Vahni: there are 7 packages in that shipment. ALL were opened and not reclosed securely. Vahni: And were left at side door without knocking to see if anyone was there to receive them. UPS Ursula P.: Please give me a couple of minutes to check what happen with your packages and i will also find out about the delivery. Vahni: We’ll be checking carefully through the items to see if anything is damaged or missing. Vahni: if so, what is the procedure for filing a claim? UPS Ursula P.: I understand that you need to know about this packages. I would need a couple of minutes to find all the information for this packages. Would that be okay with you? Vahni: Yes. Basically I need to know why they arrived in such bad condition UPS Ursula P.: Thanks, Just give me a moment. UPS Ursula P.: Thanks for your patience. I review all the information of this tracking number in the system. The system shows that your package was held by the U.S. Customs Agency. The USDA (United States Department of Agriculture) required the package to be cleaned and disinfected the 11 pairs of shoes. Soil from another countries is not allowed to enter the USA. the customs inspector cleaned and disinfected the shoes. Then the package was back to UPS for delivery.
Vahni: Yes. but all the shoes were in one box. All the boxes were opened, and not reclosed properly. Vahni: Things were poking out of them. Vahni: Why? UPS Ursula P.: I am sorry.
When I was 29 and first embarking on my writing career in London, I discovered a beautiful island off the coast of England that I would return to many times in the years to come. Jersey not only has heavenly beaches and culinary delights, but the people of the island are some of the loveliest I have known. After a busy week in the City, a puddle-jump flight could see me there in less than an hour, soaking up the sun on the white sands under wildflower-draped cliffs. The island’s locals would sometimes hint that Jersey’s pristine exterior belied a dark side. But I couldn’t imagine it. How could a place with such warm people have a dark heart?
When I returned to the U.S. in late 2008 with my first book contract, it came as a shock when I witnessed, from a distance, Jersey’s horrific child abuse scandal. Day after day for weeks, I watched the deputy chief of police, Lenny Harper, give interviews to a crush of international press outside the shuttered orphanage of Haut de la Garenne. Harper seemed increasingly alarmed over the human remains his team was finding inside, although what to make of them was hotly debated by the media.
The islanders, who are quiet people, were quietly devastated. The notion that, for decades, their children’ homes might have been used as a sexual cafeteria for the rich and privileged – as hundreds of the victims contended – was distasteful in the extreme. During the probe government officials repeatedly stated that they fully intended to run a thorough investigation. Yet, within months, Harper and his boss, the island’s head constable, Graham Power, had been smeared by the local newspaper, The Jersey Evening Post, as unfit for their jobs and driven from the island. Their main advocate, Senator Stuart Syvret – then-health minister and one of the island’s most popular politicians – also found himself under siege, eventually sacked and jailed twice. The cases made against each man were as flimsy as the headlines were flashy.
It seemed that anyone who attempted to stand up for Jersey’s underprivileged or conduct a proper investigation into their treatment soon found themselves in the fight of their lives.
Evidence found at Haut de la Garenne – including bones that were “fresh and fleshed” before being burned and dozens of children’s teeth with the roots still on them in the furnace area – was turned over to a new police chief who downplayed its significance but also admitted to throwing some of it out. As an investigative journalist, I found it hard to understand how this could possibly inspire confidence. It seemed the situation needed to be looked at by someone without an axe to grind or an ass to save.
After I passed in my first book, which also focused on cultures of corruption (The Asylum: The Renegades Who Hijacked The World’s Oil Market, HarperCollins 2011) I began to travel to the UK on a regular basis to conduct interviews with the victims, senators and law-enforcement officials.
FORTUNE — James Koutoulas walked into one of the worst bankruptcies in U.S. history with almost zero legal experience.
“When I got up the first day in bankruptcy court and saw the look on the judge’s face, I couldn’t blame him,” he says. “Bankruptcy court is a rich man’s club where everyone is old, so I stood out. Honestly, when I’m shaved, I look like I’m about 12.”
Yet Koutoulas, 30, may be one of the only former customers of MF Global, the now-defunct futures brokerage house, with the gumption to publicly object to the way they are being treated. Since filing for bankruptcy Oct. 31, MF Global’s woes have rapidly piled up – chief among them losing an estimated $1 billion-plus of customer funds. The loss directly crimped the wallets of some of the futures market’s most active participants, from small-time farmers to ranchers to hedge funds.
Koutoulas, chief executive of three-year-old commodities fund Typhon Capital Management, stumbled into the courtroom drama accidentally. His Chicago firm, which conducts the bulk of its business in the futures market, discovered shortly after MF Global’s bankruptcy that $55 million of its $70 million under management had been dragged into the proceedings. This was a surprise, because, by law, customer funds are supposed to be kept completely segregated from a brokerage firm’s own assets. That wasn’t the case with MF Global. For Koutoulas and tens of thousands of other MF customers, it was a rude awakening.
It’s official: when a Wall Street powerhouse suddenly collapses and (possibly) more than a billion dollars goes missing, it’s no longer just the ordinary taxpayer’s problem. Now, it has moved up the chain. Below, the piece I wrote today for Fortune on what traders do when you misappropriate their money.
While Occupy Wall Street was holding its two-month anniversary rally in Manhattan last week, traders were quietly mounting a rather more sophisticated version of OWS on their own. Call it Occupy Wall Street Bankruptcy Court.
FORTUNE — Big institutional investors are getting a taste of what many frustrated taxpayers experienced during the financial crisis: Being on the hook for losses of a major financial firm against their wishes.
This time, of course, it’s MF Global at the center of the dispute. A once-trusted brokerage with roots dating back to the 1700s, MF Global is now a bankrupt firm suspected of misappropriating customer funds to the tune of at least $600 million.
More than two weeks after MF Global’s Halloween bankruptcy filing, there are more questions than answers and a surfeit of conflicts in an investigation that should be aiming to restore the public’s confidence, but is doing the opposite. On Monday, the bankruptcy trustee for the case announced that there may be much more than $600 million missing from MF Global accounts — perhaps as much as $1.2 billion.
Hundreds of millions of dollars of trading capital and collateral were frozen without notice, dramatically disrupting the derivatives marketplace and ushering in a phalanx of federal prosecutors, regulatory agencies and forensic accountants working around the clock to determine where the missing money is. This, after a lawyer for MF Global assured a New York judge earlier this month “there is no shortfall.”
What’s different about this case? One hedge fund executive summed it up best: “What is scary about MF Global is that there is no political will in this country to look out for people. Let this be a lesson that, if someone tries to steal from you, there is no one who is going to save you. I mean it is literally the most frightening thing that can happen in finance.”
Our national discourse on the nature of wealth has been a good cure for sanity of late.
News that a book coming out from the surviving son of Bernard Madoff, mastermind of the largest Ponzi scheme in history, elicited comments from readers that could be called anything but charitable. Alongside an interview with Madoff’s wife, Ruth, whose picture speaks volumes about the toll the scandal has taken on her life — not in the least the suicide of her other son — are comments that plainly show how bitter the feud has become between the rich and the working class in our country. In response to Ruth’s claims of not knowing of her husband’s illegal financial dealings, readers wrote:
“What a bunch of lies. Anyone in the industry knows that the returns had to be made up…the sons knew it, the wife knew it, everyone knew it.”
“I do not think Ruth knew, but she strikes me as remarkably incurious and shallow.”
“This is a woman who married at 18 and never took responsibility for her own financial security. True, she raised their children but she chose to ignore the choices made by her husband. Now she claims to be a victim. I am sorry but I do not buy this. She chose to remain ignorant.”
Aside from Madoff-venting, the debates rage about the solutions. At Occupy Wall Street, which I visited last week, you have, on the one hand, a number of concerned Americans questioning — or outright decrying — capitalism in all its trappings. They suggest that the only solution is to raze and rebuild the entire political and financial system.
Unfortunately, they are still experimenting with new models to offer in its place.
On the other, you have national leaders quick to denounce the financial crisis, but just as quick to vote down any new rules aiming to prevent a financial crisis in the future.
Already, we are seeing the results of this splintering of the populace: we remain effectively paralyzed to redress our own fragility, forced to lurch from one crisis to the next. Large financial powerhouses continue to fail spectacularly as the Department of Justice, the Federal Bureau of Investigation, the Securities and Exchange Commission and a smattering of other government agencies struggle to keep up with reports of unchecked theft, negligence and fraud amid budget cuts frequently meant to hobble them (as if the backlog of cases they’re drowning in wasn’t enough).
In the meantime, too much money in all the wrong places undercuts the healthy cleansing that might otherwise be achieved through a democratic elections process. As one hedge funder told me while in New York last week: “Nothing can pass C0ngress, because the Republicans believe all regulation is bad. They don’t want another financial crisis, but they don’t approve of any new rules either. They haven’t quite worked out their dogma yet.” And we know Obama and the Democrats, whatever the dogma, do not appear capable of executing a plan.
Last week, former U.S. senator, New Jersey governor and high-ranking Goldman Sachs executive, Jon Corzine, stepped down from a job he held for just over a year as head of the world’s largest futures brokerage house. The 200-year-old-plus brokerage, MF Global, handled traders’ transactions in the multitrillion-dollar futures market, where people bet on the future prices of everything from soybeans to gasoline to interest rates.
Corzine’s company, which sought to become a mini-Goldman Sachs, filed for bankruptcy after betting more than $6 billion on bonds tied to the European debt crisis and getting caught short. Corzine, a self-described son of an insurance salesman who grew up on a “small family farm” in Illinois, raked in hundreds of millions at Goldman as he ascended to its highest echelons after starting out as a bond trader there.
Given his trading background, Corzine very likely understood exactly what kind of risk his brokerage was taking ahead of its downfall. (“A good rule of thumb is, if the guy is not a former trader, he probably didn’t know what hit him,” the hedge funder told me over a nice-sized steak. “But if you’re a former trader, you get the joke. You probably wrote the joke.”) Continue reading A Certain Stylishness In Hating The Rich→
A midlife crisis can take many forms. Cheating on your spouse. Purchasing a Maserati. Wearing Billabong. Buying into The Lynx Effect. Just being a jerk. But putting up an “execution” list on your Web site of high-ranking financial and government officials and urging people to buy guns to help you kill them is one I haven’t heard of. Among those on the hit list of the smiling man in the orange tie to your left: the head of the Securities and Exchange Commission Mary Schapiro and the chairman of the Commodity Futures Trading Commission Gary Gensler — both heavyweight Wall Street watchdogs.
“Go buy a gun, and let’s get to work in taking back our country from these criminals,” he wrote on his site, according to prosecutors. “I will be the first one to lead by example.”
I remember when I first read about Rupert Murdoch as a kid, how he barnstormed the British media in the 1960s and published anything that might put the nation’s panties in a bunch: its journalistic establishment, its finance establishment, its trade union establishment, its royal establishment. You name it, if it was a pillar of something-or-other, he wanted to chop it down. Then I learned about his blackheartedness, his don’t give a damn attitude and total lack of self-awareness and accountability. God help me, I thought, I love a psychotic.
While I worked at Dow Jones, we all watched as Rupert Murdoch outfoxed the utterly dundering Bancroft family, owners of The Wall Street Journal. Somehow he managed it so that the family’s only representative on the board was a 27-year-old aspiring opera singer. Even then I reckoned, well, if the family that owns this paper doesn’t realize what a jewel it has, maybe they don’t deserve to own it.
We were also sick of the Bancrofts doing things like selling off all their Dow Jones stock while insisting on keeping their controlling power. It seemed dysfunctional and cheap. Despite his faults, Murdoch was never cheap with the paper — in fact, he’s been spending on it like a drunken sailor — and he seemed to genuinely love and covet it. With Murdoch, coveting is the most you can ask for.
Since then, many have left the Journal, as not everyone favors Murdoch’s rarefied brand of journalism. And while he used to go after the establishment, it seems now what he has always desired was to become the establishment. Continue reading Oh Roop, It Didn’t Have To Be This Way→
The whole Dominique Strauss-Kahn affair looks like it’s coming to a painful close (with even the close itself looking painful in some such terms as, when will it close?).
As we look askance, I am trying to ask myself…what have we learned? Not much. Except perhaps that Americans still believe the French to be rutting perverts (and rutting-pervert enablers) and the French still believe ugly Americans are ugly and…well, American. Not necessarily an oxymoron.
File the 20 minutes of DSK-maid time in Room 2806 of the Sofitel New York next to the 18 and a half missing minutes from Nixon’s “Watergate Tapes,” Jimmy Hoffa’s burial ground and Lord Byron’s lost canto.