Lobbyists, Bearing Gifts, Pursue Attorneys General Lobbyists

Transcription

Lobbyists, Bearing Gifts, Pursue Attorneys General Lobbyists
C M YScrutiny
K
Faces
By MICHAEL SCHWIRTZ
and MICHAEL WINERIP
But unlike the lobbying rules
ences and
with thousands of dolNxxx,2014-10-29,A,001,Bs-4C,E2
covering
other elected officials,
lars in campaign contributions.
Mr. Koster told Ms. Kalani that there are few revolving-door rehe was unaware of the investiga- strictions or disclosure requiretion, and he reached for his phone ments governing state attorneys
and called his office. By the end general, who serve as “the peoof the weekend, he had ordered ple’s lawyers” by protecting conhis staff to pull out of the inquiry, sumers and individual citizens.
© 2014
New Yorkvictory
Times
NEW
YORK,Energy.
WEDNESDAY, OCTOBER
A result29,is2014
that the routine loba The
clear
for
5-Hour
The quick reversal, confirmed
Continued on Page A16
Late Edition
Today, periodic clouds and sun, a
shower, warm, high 69. Tonight,
partly cloudy, turning cooler, low
50. Tomorrow, partly sunny, cooler,
high 58. Weather map, Page A24.
In a major shake-up at the New
York City
Correction Depart$2.50
VOL. CLXIV . . . No. 56,669
ment, three high-ranking officials, including the top uniformed
officer, are stepping down amid
mounting criticism over the handling of violence and corruption
at Rikers Island.
With Few Disclosure Rules, State Officials
The chief of department, Wiliam
Clemons,
and
two
deputies
Are Pressed on Inquiries and Policy
xx,2014-10-29,A,001,Bs-4C,E2
— Joandrea Davis, the bureau
2014-10-29,A,001,Bs-4C,E2
By ERIC LIPTON
Bs-4C,E2
chief
of administration, and GregWhen the executives who dis- by Mr. Koster and Ms. Kalani,
ory McLaughlin, theLate
bureau
chief
Edition
tribute 5-Hour Energy, the pop- was part of a pattern of sucular caffeinated drinks, learned cessful lobbying of Mr. Koster by
of facility operations
— are
de- and sun, a
that attorneys general in more the law firm on behalf of clients
Today, periodic
clouds
than 30 states were investigating Late
like Pfizer
and AT&T — and eviEdition
parting, correction
officialshigh
said.69. Tonight,
shower, warm,
allegations of deceptive advertis- dence of a largely hidden dynaming — a serious financial
threat
to
The surprise
departures
came
Today,
periodic
and sun,
icEdition
at workclouds
in state attorneys
gen- a
Late
partly cloudy, turning cooler, low
the company — it moved quickly eral offices across the country.
Late Edition
Late Edition
shower,
high
69.
Tonight,
ust five months
after
all
three
to shut the investigations
down, warm,
Today,
periodic
clouds
and
sun,
a
Attorneys
general
are
now
50. Tomorrow, partly sunny, cooler,
Today,
and
a partly cloudy, turning cooler,thelow
statesun,
at a time.
Today, periodic clouds and sun,
a periodic clouds one
were appointed
to their
current
warm,
high 69. Tonight,
But successshower,
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in
high 58.
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map, Page A24. shower, warm, high 69. Tonight,
shower, warm, high 69.
COURTING
FAVOR
court Tonight,
or at a negotiating
50.table.
Tomorrow,
partly
sunny,
cooler,
Late Edition
posts by Mayor Bill de Blasio’s
partly
turning
cooler,
low
Instead, it low
came
at thecloudy,
opulent ‘The
People’s Lawyers’
partly
cloudy,
turning
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58.
Weather
map,
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partly
cloudy,
turning
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low
Loews
Santa
Monica
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Hotel
50. Tomorrow, partly sunny, cooler, A24.
correction commissioner, Joseph
Today, periodic clouds and sun,50.
a
cooler,
in California,
with its panoramic
50. Tomorrow, partly sunny, cooler,Tomorrow, partly sunny,
objectmap,
of aggressive
high more
58. than
Weather
Page pursuit
A24. by
ocean
views,
where
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shower,
warm,
high
69.
Tonight,
Ponte.
Page
A24.
lobbyists and lawyers who use
$2.50partly
high 58. Weather map, Page high
A24. 58. Weather map,dozen
state attorneys general
campaign contributions, personal
cloudy,
turning
cooler,
low
had
gathered
last
year
for
cockA department
said
$2.50
appeals at lavish corporate-sponNEW spokesman
YORK, WEDNESDAY,
OCTOBER
2014
tails, dinners and fund-raisers or50. Tomorrow,29,
partly
sunny, cooler,
he changes were the result of “a
ganized by the Democratic At- sored conferences and other
means
to
push
them
to
drop
$2.50 inNEW YORK, WEDNESDAY,
OCTOBER
2014map, Page A24.
high 58. 29,
Weather
torneys$2.50
GeneralIMAGES
Association. A
ALEX WONG/GETTY
NESDAY,
29,in
2014
estructuring”
by Mr. Ponte
an
$2.50
9,
2014 OCTOBER
lawyer for 5-Hour Energy vestigations, change policies, negotiate
favorable
settlements
or
roamed the event, setting her
effort to halt brutality on the Emails detail interactions between the office of Attorney
Gensights on Attorney
General Chris pressure federal regulators, an
The Ebola field hospital in Bong County, Liberia, which opened in mid-September, has far fewer patients than anticipated.
Koster of Missouri, whose office investigation by The New York
Continued
on Page A26
eral Pam Bondi of Florida and$2.50
a law firm trying to sway
, 2014
was one her.
of those investigating Times has found.
Lobbyists, Bearing Gifts,
Pursue Attorneys General
, Bearing Gifts,
Lobbyists,Bearing
BearingGifts,
Gifts,
Lobbyists,
Lobbyists,
Bearing
Gifts,
3 Top Officials
Lobbyists,
Bearing
Gifts,
In Liberia,
a Good or Very
Bad Sign: Empty
Beds
Pursue
Attorneys
General
Quit
as Rikers Attorneys General
Attorneys General
Lobbyists,
Bearing Gifts, Pursue
DANIEL BEREHULAK FOR THE NEW YORK TIMES
the company.
“My client just received notification that Missouri is on this,”
the lawyer, Lori Kalani, told him.
Ms. Kalani’s firm, Dickstein
Shapiro, had courted the attorney
general at dinners and conferences and with thousands of dollars in campaign contributions.
Mr. Koster told Ms. Kalani that
he was unaware of the investigation, and he reached for his phone
and called his office. By the end
of the weekend, he had ordered
his staff to pull out of the inquiry,
a clear victory for 5-Hour Energy.
The quick reversal, confirmed
Pursue
Attorneys
General
Iowan’s Playbook,
for
Women
to Win Men’s
Vote
Pursue Attorneys
General
osure Rules,
State Officials
Pursue
Attorneys General
being submitted to Ebola labora-
A robust industry of lobbyists
and lawyers has blossomed as attorneys general have joined to
conduct multistate investigations
and pushed into areas as diverse
as securities fraud and Internet
crimes.
But unlike the lobbying rules
covering other elected officials,
there are few revolving-door restrictions or disclosure requirements governing state attorneys
general, who serve as “the people’s lawyers” by protecting consumers and individual citizens.
A result is that the routine lobContinued on Page A16
has fallen significantly, and
A Fear That Ebola tories
the percentage of people testing
SUAKOKO, Liberia — For days
Faces Scrutiny
positive for the disease has
this month, the ambulances from
Rages On, Far
dropped as well.
this Ebola treatment unit went
“The numbers are decreasing,
out in search of patients, only to
Disclosure
Rules, State Officials
From
Clinics
but we don’t know why,” said With
By MICHAEL
SCHWIRTZ
that
hasFew
helped
her build a surceiling.
return with just one or two susMalin Lager, a spokeswoman at a
andFew
MICHAEL WINERIP
pected cases. And many times,
With
Disclosure
Rules,
Officials
Doctors Disclosure
Without
Bordersgentreat- Rules,
prisingly
enthusiastic
base
of State
“I’m
not
running
on my
With
Few
State
noticed an unexpected
pattern:
those people
up
testing Disclosure
By SHERYL
GAYended
STOLBERG
In a major
shake-up
at the NewOfficials
Are
Pressed
on
Inquiries
and
Policy
With
Few
Rules,
State
Officials
ment center
just outside
MonroThere are far
fewer
people
being
negative for the disease.
York
City
Correction
Departsupport — among men.
der,” she insists.
via, the capital. Its vast campus
“Where are the patients?” an treated for Ebola than anticipatment,
three
high-ranking
offiAre
Pressed
on
Inquiries
and
Policy
of
white
tents,
which
has
a
capacHAMLIN,
Iowa
— Joni
aid worker
wondered
aloud Ernst,
as ed.
Are
Pressed
on Inquiries
Policy
While and
Democrats
rely on womBy
running
to 253
make
history
patients,
had only 90 cials, including the top uniformed
Are
Pressed
on
Inquiries
and
Policy
As of Sunday,
fewer
than
half ity forState
colleagues
puzzled
over
thenominee
empofficer, are stepping down amid
With
Few
Disclosure
Rules,
Officials
he Republican
Senate
Sunday.
en
—
a
key
component
of their
without
Ms.
Ernst,
44,
bedssaying
across onso,
ty beds at the International Med- of the 649 treatment
By ERIC
LIPTON
criticism over the hanERIC mounting
LIPTON
“It’s too early By
to celebrate,”
ical Corps treatment
unit
herestate’s
in the country were occupied, a surn Iowa, motors
along
the
dling
of violence
and
corruption
base
—
to
get
elected,
RepubMs.
Lager said.
is
helping
to
write
a
new
playprising
change
in
a
nation
where
Bong
County,
Liberia,
which
By ERIC LIPTON Are Pressed on InquiriesLiberia
by Mr. Koster and Ms. Kalani,
When
the executives
who
disat Rikers
Island.
By
ERIC
LIPTON
and
Policy
has
long
been
a
focal
BycanERIC LIPTON
patients had long been turned
openedin in
mid-September.
back roads
a tour
bus fesThe
chief 5-Hour
ofneed
department,
Willicans
the
malethe
vote
to win.
By units
ERIC
LIPTON
book
for
Republican
female
point of thedistribute
Ebola epidemic,
the tribute
Energy,
popwasChris
part of
a Ms.
pattern
of sucaway
fromexecutives
Ebola
for lack of who
Around
the
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treatment
hen
the
sights
on
Attorney
General
Koster
of
Misby
Mr.
Koster
and
Kalani,
When
the
executives
who
disby
Mr.
Koster
and
Ms.
Kalani,
liam
Clemons,
and
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with
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most
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and
ooned with
giant
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of herby
Mr.
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and
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Kalani, cessful
When
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whoMs.
dis-Kalani,
space.
centers,
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This
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for
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didates.
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isdisease,
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ular
caffeinated
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—
Joandrea
Davis, the
bureau
byathe
Mr.
Koster
and
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of
Mr.
Koster
by
When
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who
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he popwas part
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atry-pattern
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ment centers
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and national
health
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Energy,
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running
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behalf
of by
clients
By
ERIC
LIPTON
ory
McLaughlin, the bureau
chief learned
ular
caffeinated
drinks,
cessful
Mr.
Koster
learned
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Continued
on Page
A13
ingcessful
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ular
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cessful
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ular caffeinated
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Ms.
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Pfizer
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and
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in
more
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tigating
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ular caffeinated
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cessfuloflobbying
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dvertis-andallegations
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Mayor
de this,”
Blasio’s
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eral
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Susan
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ic
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ing
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to
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ic shut
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ing
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ic at
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itAT&T
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icherself
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ntroduces
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eraland
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eral
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eral
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Representative
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dence
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ferences
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Page
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eral Pam
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opulent
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Monica
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emale combatBut
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success did not come Loews
in
Santa Monica Beach Hotel Iowan’s
opulent ‘The
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morefor
than
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Monica Beach Hotel COURTING
People’s
Lawyers’
Playbook,
Women
to
Win
Men’s
Vote
in
California,
with
its
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races.
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Kay
FAVOR
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or ather
a negotiating
table. in at
California,
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he
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object
of aggressive
pursuit
by use
state
attorneys
general
in California, with its panoramic
ch Hotel
object
ofof
aggressive
pursuit
by campaign
views,
where
more
a Mary
that
has helped her build
a surceiling.
contributions,
personal
object
of aggressive
pursuit
bygathered
Hagan
North
Carolina,
L.
Instead,
it came
at the opulent
old daughter to
Hamlin
—
living
‘The
People’s
Lawyers’
ocean
views,
where
more
than
a
lobbyists
and
lawyers
who
use
had
last
year
for
cockprisinglyordered
enthusiastic base
ocean views, where more than a
“I’m
not running
on my he
gen- had
noramic
Instead,
came
By
the
end
ofLouisiana
the
weekend,
hisof
lobbyists
and
lawyers
who
use appeals
By
SHERYL
GAY
STOLBERG
dozen
state
attorneys
general
at
lavish
corporate-sponlobbyists
and itlawyers
whotails,
use
Loewsof
Santa
Monica
Beach
Hotel
support
—
among
men.
der,”
she
insists.
Landrieu
of
and
dozen
state
attorneys
general
aggressive
pursuit
by
proof of theobject
“mother”
line
in
her
campaign contributions, personal
dinners
fund-raisers
ordozen state attorneys general
HAMLIN,
Iowa
— and
Joni
Ernst,
campaign
contributions,
had
gathered
last
year
for of
cocke than a atinthe
While Democratsand
rely on womBypersonal
running to make
historyconferences
sored
other
campaign
contributions,
personal
California,
its panoramic
Loews
Santa
Monica
Beach
Hotel
staff
to
pull
out
the
inquiry,
a clear
victory
for
had
year for
cockthe
Republican
Senate
nominee
Jeanne
Shaheen
ofwithout
New
Hampappeals
at 44,
lavish
andwith
lawyers
usegathered
ésumé. lobbyists
en —corporate-spona key component of their
ganized
by
the
Democratic
Atsaying
so, Ms. Ernst,
had opulent
gathered
last
year who
for
cockobject of last
aggressive
pursuit
by
appeals
at
lavish
corporate-spontails,
dinners
and
fund-raisers
orgeneral
in
Iowa,
motors
along
the
state’s
push
to
drop
ocean views, where more thantails,
a dinners
appeals
at fund-raisers
lavish corporate-spon— tothem
get elected,
Repub-inis helping to sored
write ameans
new
play-to base
and
orconferences
and
other
shire,
fighting
torneys
General
A female can- licans need the male vote to win.
campaign
personal
tails,
dinners
and
fund-raisers
or- lobbyistsocean
and lawyers
who
use
back
roads
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Attorneys general are now the object of aggressive pursuit by lobbyists and lawyers who
use campaign contributions, personal appeals
at lavish corporate-sponsored conferences and
other means to push them to drop investigations, change policies, negotiate favorable settlements or pressure federal regulators, an investigation by The New York Times has found.
A robust industry of lobbyists and lawyers
has blossomed as attorneys general have joined
to conduct multistate investigations and pushed
into areas as diverse as securities fraud and Internet crimes.
But unlike the lobbying rules covering other elected officials, there are few revolving-door
restrictions or disclosure requirements governing state attorneys general, who serve as “the
people’s lawyers” by protecting consumers and
individual citizens.
A result is that the routine lobbying and
deal-making occur largely out of view. But the
extent of the cause and effect is laid bare in The
Times’s review of more than 6,000 emails obtained through open records laws in more than
two dozen states, interviews with dozens of
participants in cases and attendance at several
conferences where corporate representatives
had easy access to attorneys general.
Often, the corporate representative is a former colleague. Four months after leaving office
as chief deputy attorney general in Washington
State, Brian T. Moran wrote to his replacement
on behalf of a client, T-Mobile, which was pressing federal officials to prevent competitors from
grabbing too much of the available wireless
spectrum.
“As promised when we met the A.G. last
week, I am attaching a draft letter for Bob to
consider circulating to the other states,” he
wrote late last year, referring to the attorney
general, Bob Ferguson.
A short while later, Mr. Moran wrote again
to his replacement, David Horn. “Dave: Anything you can tell me about that letter?” he said.
“Working on it sir,” came the answer. “Stay
tuned.” By January, the letter was issued by the
attorney general largely as drafted by the industry lawyers.
The exchange was not unusual. Emails obtained from more than 20 states reveal a level
of lobbying by representatives of private inter-
ests that had been more typical with lawmakers
than with attorneys general.
“The current and increasing level of the lobbying of attorneys general creates, at the minimum, the appearance of undue influence, and is
therefore unseemly,” said James E. Tierney, a
former attorney general of Maine, who now runs
a program at Columbia University that studies
state attorneys general. “It is undermining the
credibility of the office of attorney general.”
Private lawyers also have written drafts of
legal filings that attorneys general have used
almost verbatim. In some cases, they have become an adjunct to the office by providing much
of the legal work, including bearing the cost of
litigation, in exchange for up to 20 percent of
any settlement.
Money gathered through events like the
one in February 2013 at the Loews hotel is flooding the political campaigns of attorneys general
and flowing to party organizations that can take
unlimited corporate contributions and then funnel money to individual candidates. The Republican Attorneys General Association alone has
pulled in $11.7 million since January.
It is a self-perpetuating network that includes a group of former attorneys general
called SAGE, or the Society of Attorneys General Emeritus, most of whom are now on retainer
to corporate clients.
Giant energy producers and service companies like Devon Energy of Oklahoma, the Southern Company of Georgia and TransCanada have
retained their own teams of attorney general
specialists, including Andrew P. Miller, a former
attorney general of Virginia.
For some companies, the reward seems
apparent, according to the documents obtained by The Times. In Georgia, the attorney
general, after receiving a request from a former attorney general who had become a lobbyist, disregarded written advice from the state’s
environmental regulators, the emails show. In
Utah, the attorney general dismissed a case
pending against Bank of America over the objections of his staff after secretly meeting with
a former attorney general working as a Bank
of America lobbyist.
That Bank of America case was cited in
July when the two most recent former attorneys general in Utah were charged with granting official favors to donors in exchange for
A16
THE NEW YORK TIMES NATIONAL WE
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golf getaways, rides on
private planes and a luxury houseboat.
While the Utah case
is extreme, some participants say even the daily
lobbying can corrode
public trust.
“An attorney general is entrusted with the
power to decide which
lawsuits to file and how
to settle them, and they
have great discretion in
their work,” said Anthony Johnstone, a former
assistant attorney general in Montana. “It’s vitally important that people
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STEVE CANNON/ASSOCIATED PRESS
Lobbyists, Bearing G
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Emails obtained from more than 20
again
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states reveal
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THE NEW YORK TIMES NATIONAL WEDNESDAY, OCTOBER 29, 2014
Ferguson had made a
personal appeal to the
company.
Secluded Access
Breakfast
was
served on a patio
overlooking the Pacific Ocean — a buffet
of fresh baked goods,
made-to-order eggs,
lox and fruit — as the
Republican attorneys
general, in T-shirts
and shorts, assembled
at Beach Village at the
Del, in Coronado, Calif.
These top law enforcement officials from
Alabama, South CaroliSTEVE CANNON/ASSOCIATED
PRESS
WHITNEY WHITNEY
CURTIS FOR
THE NEW
YORK
TIMES
STEVE
PRESS
CURTIS
FOR THE
NEW
YORK TIMES
na,CANNON/ASSOCIATED
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CHRIS KOSTER
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sin,
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nerally
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nd
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The appeals began the moment the law enPfizer, Comcast and Altria, among other corpoforcement officials arrived, as gift bags were
rate giants.
handed out, including boxes of 5-Hour Energy,
The group had gathered at the exclusive
wine from a liquor wholesalers group and muBeach Village at the Del — where rooms go sic CDs (Roy Orbison for the adults, the heartVegas
Sands,
which donated
$500,000
g to Attorneys
General
for as much
as $4,500 a night and a special key
throb Hunter Hayes for
their
children)
from the
through its chief executive to the Regest donors to
the Republican
and Democratic
General Associations
are companies
or groups
that haveVegas
card
is required
to enterAttorneys
the private
compound
recording
industry.
publican
group
this year,
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urgSands,
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donated
$500,000
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Sands,
which
donated
$500,000
srneys
General
General
vestigations
or are seeking help from attorneys general in challenging federal regulations.
attorneys
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to joinVegas
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— for the most elite event for Republican attorAndy Abboud,through
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its
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through
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epublican
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Associations
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orSands,
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publican
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publican
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neys
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proached
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eeking
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ing attorneys
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ing
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attorpharmaceutical, financial services and other industries.
attorney
general
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Mr.
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neys general by corporate
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to pay for
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andto
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regulation
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that
day.
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state
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financial
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and
other
industries.
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state
attor
financial services and other industries.said, and they agreed to
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neyscome
general
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interests
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C.E.O. of Las Vegas Sands, seeking attorneys general support to ban online poker.
neys
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canstate
be traced
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a simple
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more
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genPushing Democrats
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eral
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But at least as important was the opportunity
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toric
$206
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state
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general
there attorneys
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of Las Vegas
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general
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online
poker.
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of attorney
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general
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the
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Microsoft
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a simitraced
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be traced
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decades
lar
multistate
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from
the
1998
tobacco
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more
than
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state
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yers
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relationships
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the
attorneys
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become
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the
state
investigations.
when
more
than
40
state
attorneys
Pushing
Democrats
to
support
a
narrower
definition
of
“independent
contractor."
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to seeking
supporttoaplay
narrower
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contractor." ing in an anticompetitive scheme by
settlement and
a role indefinition
decisions of
over
regulation of e-cigarettes.
eral back
joined
to challenge
the tobacco
ineral joined
to challenge
the
in
general — and to lobby them in this casual and
It can be traced
two
decades,
when
bundling
its Internet
Explorer
withtobacco
the
dustry,
an
inquiry
that
resulted
in
a
hisdustry,
an
inquiry
that
resulted
in
a
his
Owner
of
an
Arizona
electric
utility
that
could
benefit
from
action
taken
by
the
Windows
operating
system.
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came
Owner
of
an
Arizona
electric
utility
that
could
benefit
from
action
taken
by
the
secluded setting. (A reporter from The Times more than 40 statetoric
attorneys
general
joined to
$206
billion
settlement.
toric
$206 billion
settlement.
e Shield
Members
ofchallenging
thein
network
were targeted,
but
cleared,
in an power
inquiry alleging
antithe
pharmaceutical
industry,
accused of
attorney
generalgeneral
there inthere
federal
rules on
coal-burning
plants.
attorney
challenging
federal
rules
on coal-burning
power
plants.
attended
this event
uninvited
and,
once
spotted,
challenge
the
tobacco
industry,
an
inquiry
that
Microsoft
became
the
target
of a more
simicompetitive practices. Plaintiff's lawyers have urged that new actions be filed.
improperly
marketing
drugs,
Microsoft
became
the and,
target
of a simi
recently,
the
financial
services
industry,
lar
multistate
attack,
accused
of
engagInvolved
in
recent
disputes
over
continuing
payouts
from
the
1998
tobacco
was asked
to leave.)
resulted
in
a
historic
$206
settlement.
lar billion
multistate
attack, accused of engag
Involved
in
recent
disputes
over
continuing
payouts
from
the
1998
tobacco
Seeking help in blocking Obama administration rules governing fracking.
STEVE CANNON/ASSOCIATED PRESS
WHITNEY CURTIS FOR THE NEW YORK TIMES
obbyists,
Bearing
Gifts,
Pursue
ts,
Bearing
Gifts,
Pursue
yists, Bearing Gifts, Pursue
The States’ Attorneys General
ates’ Attorneys
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States’
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case
that
in ascheme
$25 billion
ing in
anticompetitive
by
settlement
and seeking
to play to
a role
decisions
over regulation
of e-cigarettes.
in
an resulted
anticompetitive
scheme
by
settlement
and seeking
play in
a role
in decisions
over regulation
of e-cigarettes.
settlement
in
2012
with
the
nation’s
five
bundling
its
Internet
Explorer
with
the
bundling
its
Internet
Explorer
with
the
Targeted in investigations related to alleged defects in its highway guardrails.
largest mortgage servicing companies.
Windows
operating
system.
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Windows
operating
system.
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ely
use
rened
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The States’ Attorneys General
Money Going to Attorneys General
Several of the largest donors to the Republican and Democratic Attorneys General Associations are companies or groups that have
been targets of investigations or are seeking help from attorneys general in challenging federal regulations.
KEY $0
$100,000
DONOR
$500,000
$2.3 million
AMOUNT GIVEN TO:
Reps.
’14*
RELEVANT ISSUES
Dems.
’13-’14
U.S. Chamber of
Commerce
Pushing attorneys general to curb what it considers excessive litigation against
pharmaceutical, financial services and other industries.
Judicial Crisis Network
Conservative nonprofit groups pushing for limits on federal environmental
regulation and continued challenges to the Obama health care program.
American Future Fund
Sheldon G. Adelson
C.E.O. of Las Vegas Sands, seeking attorneys general support to ban online poker.
Teamsters union
Pushing Democrats to support a narrower definition of “independent contractor."
Pinnacle West Capital
Owner of an Arizona electric utility that could benefit from action taken by the
attorney general there in challenging federal rules on coal-burning power plants.
Altria
Involved in recent disputes over continuing payouts from the 1998 tobacco
settlement and seeking to play a role in decisions over regulation of e-cigarettes.
Reynolds America
Blue Cross & Blue Shield
Members of the network were targeted, but cleared, in an inquiry alleging anticompetitive practices. Plaintiff's lawyers have urged that new actions be filed.
Devon Energy
Seeking help in blocking Obama administration rules governing fracking.
Trinity Industries
Targeted in investigations related to alleged defects in its highway guardrails.
Comcast
Seeking antitrust approval for a proposed merger with Time Warner Cable.
Rent-A-Center
Previously targeted by attorneys general for alleged deceptive marketing practices.
Citigroup
Recently settled a case related to its marketing and issuance of residential
mortgage-backed securities before 2009.
Google
Targeted in an inquiry into allegations that it allows illegal products to be
sold via its search engine.
Coca-Cola
A possible target if attorneys general pursue litigation, as one law firm has
advocated, against the food industry concerning obesity-related health costs.
DirecTV
Antitrust review underway related to a proposed merger with AT&T. Previously
targeted for alleged deceptive marketing.
Herbalife International
Targeted in an inquiry over allegations of fraudulent business practices.
Labaton Sucharow
Plaintiff's law firm seeking to act as contingency lawyer to attorneys general.
5-Hour Energy affiliates
Targeted in a consumer fraud investigation over product labeling and claims.
Pfizer
Targeted in multiple investigations related to alleged fradulent drug marketing.
*Contributions for 2013 are not available for the Republican Attorneys General Association, because until January 2014,
the group was a part of the Republican State Leadership Committee, which also supports other candidates for state office.
Source: Internal Revenue Service
America lobbyist.
That Bank of America case was cited
in July when the two most recent former attorneys general in Utah were
ERIC LIPTON, GRIFF PALMER AND ALICIA PARLAPIANO/THE NEW YORK TIMES
election campaigns, more than any other source.
But he rejected any suggestion that
his office had taken actions as a result of
torneys general, in T-shirts and shorts,
assembled at Beach Village at the Del,
in Coronado, Calif.
These top law enforcement officials
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thr
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Microsoft became the target of a similar
multistate attack, accused of engaging in an
anticompetitive scheme by bundling its Internet Explorer with the Windows operating system. Then came the pharmaceutical industry,
accused of improperly marketing drugs, and,
more recently, the financial services industry,
in a case that resulted in a $25 billion settlement
in 2012 with the nation’s five largest mortgage
servicing companies.
The trend accelerated as attorneys general
— particularly Democrats — began hiring outside law firms to conduct investigations and sue
corporations on a contingency basis.
The widening scope of their investigations
led companies to significantly bolster efforts to
influence their actions. John W. Suthers, who has
served as Colorado’s attorney general for a decade, said he was not surprised by this campaign.
“I don’t fault for one second that corporate America is pushing back on what has happened,” Mr. Suthers said. “Attorneys general
can do more damage in a heartbeat than legislative bodies can. I think it is a matter of self-defense, and I understand it pretty well, although
I have got to admit as an old-time prosecutor, it
makes me a little queasy.”
Republican attorneys general were the first
to create a party-based fund-raising group, 14
years ago. An initial appeal for contributions to
corporate lobbyists and lawyers said that public policy was being shaped “via the courthouse
rather than the statehouse.” It urged corporate
lawyers “to round up your clients and come see
what RAGA is all about.” The U.S. Chamber of
Commerce alone has contributed $2.2 million
this year to the group, making it the association’s biggest donor.
The Democrats at first fought the idea, but
two years later formed a counterpart.
Dickstein, and a handful of other law firms,
moved to capitalize by offering lobbying as well
as legal assistance to deal with attorneys general, whom Dickstein called “the new sheriffs in
town.”
In an effort to make allies rather than adversaries, Bernard Nash, the head of the attorney general practice at Dickstein and the selfproclaimed “godfather” of the field, tells clients
that it is essential to build a personal relationship
with important attorneys general, part of what
his firm boasts as “connections that count.”
“Through their interaction with A.G.s, these
individuals will become the ‘face’ of the company
to A.G.s, who are less likely to demagogue companies they know and respect,” said a confidential memo that Dickstein sent late last year to
one prospective client, Caesars Entertainment.
Executing this strategy means targeting
the attorneys general “front office,” a reference
to the handful of important decision makers.
“Front office interest or lack of interest in
an issue can come from an assessment of media reports and potential media scrutiny; advocacy group requests; political benefit or detriment; legislative inquiries; and ‘pitches’ made
by law firms or other professionals in whom
the front office has confidence,” Dickstein said
in the memo pitching business to executives at
Caesars that asked the company to pay $35,000
a month, plus expenses, for lobbying and strategic advice, not including any legal work.
Mr. Nash and his team build relationships
through dinners at exclusive spots like the
Flagler Steakhouse in Palm Beach, Fla., and
Brown’s Beach House Restaurant in Waimea,
Hawaii, during attorneys general conferences,
as well as with a constant stream of campaign
contributions, totaling at least $730,000 in the
last five years.
Dickstein is hardly alone.
Other dinner invitations have come from
former Attorney General Thurbert E. Baker of
Georgia, whose clients have included AT&T and
the debt buyers industry; former Attorney General Patrick C. Lynch of Rhode Island, who represents payday lenders, Comcast and makers of
online video games; and former Attorney General Rob McKenna of Washington State, who
has been retained by Microsoft and T-Mobile.
In several cases, these former officials are
clearly acting as lobbyists. Mr. Lynch, who declined several requests for comment, tells prospective clients that he can guide them “through
the national network of attorneys general associations and work with them to build relationships,” yet The Times could find no record that
he had registered as a lobbyist in more than two
dozen states where he has worked.
State lobbying laws generally require registration when corporations hire someone to influence legislation, but appeals targeting attorneys general are not explicitly covered, even if
a company is pushing its agenda.
THE NEW YORK TIMES NATIONAL WEDNESDAY, OCTOBER 29, 2014
DICKS
OBER 29, 2014
N
firm t
relatio
of wh
A17
DICKSTEIN SHAPIRO In an effort to make allies, the law
strategic advice, not including any legal
firm told clients that it is essential to build a personal
work.
relationship with important attorneys general, part
Mr. Nash and his team build relationships through dinners at exclusive
of what it boasted as “connections that count.”
spots like the Flagler Steakhouse in
Palm Beach, Fla., and Brown’s Beach
House Restaurant in Waimea, Hawaii,
during attorneys general conferences,
The documents obtained by The Times inas well as with a constant stream of
er state
negotiate
with Pfizer
clude dozens of emails
thattoMr.
Lynchdirectly
has sent
campaign contributions, totaling at
on the Zyvox matter, secured a settleleast $730,000 in the last five years.
to attorneys generalment
on behalf
of clients.
Hefour
is times
worth $3.4
million —
Dickstein is hardly alone.
also a regular at thewhat
attorney
Other dinner invitations have come
Missourigeneral
received confer— even though
from former Attorney General Thurbert
Oregon’s
far smaller.
ences, which include
socialpopulation
events islike
trap
E. Baker of Georgia, whose clients have
Pfizer
was
not
the
only
Dickstein cliincluded AT&T and the debt buyers inshooting, fitness training
and
all-terrain-vehicle
ent pleased with the firm’s representadustry; former Attorney General Patrides, in addition to cocktail
parties
and meals.
tion before
Mr. Koster’s
office.
rick C. Lynch of Rhode Island, who represents payday lenders, Comcast and
These conferencesAT&T
alsowas
include
panels
oninvestialso subject
to an
makers of online video games; and forgation
by
Mr.
Koster’s
office,
something
topics like regulation of oil and natural gas pipemer Attorney General Rob McKenna of
that Mr. Nash learned at the conference
Washington State, who has been relines.
held at the Loews hotel. And like Ms.
tained by Microsoft and T-Mobile.
Yet often a seat on
these
panels
in effect,
Kalani,
Mr.
Nash is,
pleaded
his case diIn several cases, these former officials are clearly acting as lobbyists. Mr.
rectly with
Koster.the right
for sale. A large donation
canMr.
secure
Lynch, who declined several requests
Threean
weeks
after the for
conversation
to join a panel or provide
opportunity
a
for comment, tells prospective clients
with
Mr.
Nash,
Mr.
Koster’s
office took a
that he can guide them “through the nahandpicked executive
to
make
a
solo
presenstep that questioned the legal strategy
tional network of attorneys general astation to a room full of
ofaattorneys
general. That
multistate investigation
of AT&T’s
sociations and work with them to build
relationships,” yet The Times could find
billing
practices,
email records
show.
is
what
a
top
executive
from
TransCanada,
the
no record that he had registered as a
Mr. Koster did not officially back out of
company behind thethe
Keystone
did
GABRIELLA
DEMCZUK/THE NE
lobbyist in more than two dozen states
inquiry, XL
andpipeline,
Missouri
ultimately
where he has worked.
BERNARD NASH The head at
of Dickstein’s
attorney
general
practice
and the
field’s self-proclaimed
two
recent
attorneys
general
meetings
in
benefited
from
a
national
settlement
an-“god
State lobbying laws generally require
nounced
this
month.
Utah and Colorado.
registration when corporations hire
someone
to influence
legislation,
but ap“My client just
But frustrating leaders “The
of the folks
multi-at P
DICKSTEIN
SHAPIRO
In an effort
to make allies, the law
peals
targeting
attorneys
are to build a personal
state
investigation,
Mr.
Koster
decided
firm
told clients
that itgeneral
is essential
received notification
are very appre
not explicitly covered, even if a compato join a small group of attorneys gen-
relationship with important attorneys general, part
For the attorneys general, there is a personal benefit, too: Their airfare, meals and hotel bills at these elite resorts are generally covered, either by the corporate sponsors or state
taxpayers.
Ms. Bondi, the Florida attorney general,
for example, received nearly $25,000 worth of
airfare, hotels and meals in the past two years
just from events sponsored by the Republican
Attorneys General Association, state disclosure
reports show. That money came indirectly from
corporate donors.
She has charged Florida taxpayers nearly $14,000 since 2011 to take additional trips to
meetings of the National Association of Attorneys General and the Conference of Western
Attorneys General, including travel to Hawaii.
Those events were also attended by dozens of
lobbyists. Ms. Bondi, in a statement, said the
support she had received — directly or through
the Republican Attorneys General Association
— had not had an impact on any of her actions
as attorney general.
But Matthew L. Myers, the president of the
nonprofit Campaign for Tobacco-Free Kids, who
was on a panel about e-cigarettes at an event in
Park City, Utah, was startled by what he saw:
lobbyists from regulated industries — financial,
energy, alcohol, tobacco and pharmaceutical
companies — socializing with top state law enforcement officers.
“You play golf with somebody, you are much
less likely to see them as a piranha that is trying
to devour consumers, even if that is just what
they are,” said Mr. Myers.
Mr. Tierney, the former Maine attorney general, said that lobbyists were entitled to set up a
meeting with the attorneys general in their offices. But to write a check, for as much as $125,000,
to gain days’ worth of private time with the attorneys general is another matter, he said.
“When you start to connect the actual access
to money, and the access involves law enforcement officials, you have clearly crossed a line,”
he said. “What is going on is shocking, terrible.”
An Ear in Missouri
In Missouri, as in other states, the attorney general’s office has provided a springboard
to higher office, either to the governor’s mansion or the Senate. So even before Mr. Koster
was sworn in for his second term, he was being
mentioned as a candidate for higher office. And
that made him an ideal target for the team at
Dickstein.
The Dickstein lawyers have donated to his
campaigns, invited him and his chief deputy to
be featured speakers at law firm events and
hosted Mr. Koster at dinners, and stayed in
close contact with his office in emails that suggest unusual familiarity.
The relationship seems to have benefited
some Dickstein clients.
Pfizer, the New York-based pharmaceutical
giant, had hired Dickstein to help settle a case
brought by at least 20 states, which accused the
company of illegally marketing two of its drugs
— Zyvox and Lyrica — for unapproved uses, or
making exaggerated claims about their effectiveness.
Instead of participating in the unified investigation with other states — which gives attorneys general greater negotiating power — Mr.
Koster’s office worked directly with Mr. Nash
and Pfizer’s assistant general counsel, Markus
Green.
Mr. Nash negotiated with Deputy Attorney
General Joseph P. Dandurand through a series
of emails, followed by a visit to Missouri in April
2013.
But both Pfizer and Dickstein had already
built a relationship with Mr. Koster. Dickstein
had participated in at least four fund-raising
events for Mr. Koster, with its lawyers and the
firm donating $13,500 to his campaigns, records
show.
Several of those contributions came after
Mr. Nash had invited Mr. Koster to participate
in an “executive briefing” at the Park Hyatt for
Dickstein’s clients. That same day, Mr. Koster
held a fund-raising event, taking in contributions from Mr. Nash and other lawyers involved in matters that Mr. Koster would soon
be, or already was, investigating, the records
show.
Pfizer had directly donated at least $20,000
to Mr. Koster since 2009 — more than it gave
to any other state attorney general, according
to company records. That does not include the
$320,000 that Pfizer donated during the same
period to the Democratic Attorneys General
Association, which in turn has donated to Mr.
Koster’s campaigns.
Mr. Koster said his office was forced to nego-
gal
elaive
in
ach
aii,
es,
of
at
me
ert
ave
inatepnd
orof
re-
ffiMr.
sts
nts
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nd
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tes
ire
ire
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The
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on
at
ich
ng,
cle
nd
annd
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seide
cuo a
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eys
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reby
ay-
enrly
nd
om
GABRIELLA DEMCZUK/THE NEW YORK TIMES
BERNARD NASH The head of Dickstein’s attorney general practice and the field’s self-proclaimed “godfather.”
“My client just
received notification
that Missouri is on
this.”
“The folks at Pfizer
are very appreciative
and excited to hear
from the General.”
LORI KALANI, a Dickstein
partner, discussing the 5-Hour
Energy case with the state’s
attorney general.
J. B. KELLY, a Dickstein
partner, writing to a Missouri
official about an appearance by
the attorney general at an
event sponsored by Pfizer.
tiate directly with Mr. Nash and Pfizer because
political action committee?
“When you start to connect the actual
soon be, or already was, investigating,
portant public policy issues of concern
a staff
lawyerand
missed
a deadline
torecords
participate
The topic wasto“the
of corporaaccess
to money,
the access
inthe
show.
both importance
the A.G. and the
corporation,”
volves
lawmultistate
enforcementinvestigation.
officials, you
the invitationrelationships
said. “The conference
in the
with
Pfizer had directly tions’
donatedbuilding
at least productive
have clearly
crossed
a
line,”
he
said.
participants
also
would
like
to
hear
$20,000
to
Mr.
Koster
since
2009
—
more
“This was an accident,” Mr. Koster said, A.G.s,” according to an email in March fromhow
“What is going on is shocking, terrible.”
these relationships can help to efficientthan it gave to any other state attorney
adding that since he became attorney
general Dickstein to Mr. Dandurand.
ly address A.G.s’ questions or concerns
general, according to company records.
in
2009,
his
office
has
participated
in
six
cases
“As
you
know,
these they
relationships
aremajor
imporbefore
escalate into
probThat
does
not
include
the
$320,000
that
An Ear in Missouri
multistate investigations
donated
duringtant
the same
period
against Pfizer that brought a totalPfizer
of $26
million
to allow
A.G.slems
and(like
corporations
to work to- or
In Missouri, as in other states, the atwell aspolicy
how they
can carto the Democratic Attorneys
to Missouri.
gether toGeneral
address litigation),
importantaspublic
issues
torney general’s office has provided a
ry over when A.G.s are elected to higher
Association, which in turn has donated
But to
the
emails
show
that
as the
negoof concern to bothoffices.”
the A.G. and the corporation,”
springboard
higher
office,
either
to just
to Mr.
Koster’s
campaigns.
the tiations
governor’s
mansion
or
the
Senate.
on the 2013 case were intensifying,
invitation
said. “The
conference
participants
Mr. Dandurand
worked
to accommoMr. Koster Mr.
said his the
office
was forced
So even
beforechief
Mr. Koster
wasreceived
sworn in an
thehow
request.
tounusual
negotiate invidirectly with
Nash like
and todate
Koster’s
deputy
alsoMr.
would
hear
these relationships
for his second term, he was being menPfizer
because a staffcan
lawyer
missed
a
“Trying
now A.G.s’
to clear questions
his calendar,”
tation:
Would the
general
be interested
help
to efficiently
address
tioned
as a candidate
forattorney
higher office.
deadline to participate in the multistate
Mr. Dandurand wrote back to the Dickflying
Chicago
be the
speaker or concerns beforestein
theylawyer,
escalate
into
major probAndinthat
madetohim
an idealto
target
for keynote
investigation.
before
confirming
that Mr.
the at
team
at
Dickstein.
a breakfast that Pfizer was sponsoring
foran
itsaccident,”
lems (like
multistate
investigations
or litigation),
Koster
would accept the
invitation.
“This was
Mr. Koster
The Dickstein lawyers have donated
said, adding that since he became at“The folks at Pfizer are very appreto his campaigns, invited him and his
torney general in 2009, his office has
ciative and excited to hear from the
chief deputy to be featured speakers at
participated in six cases against Pfizer
General,” J. B. Kelly, a partner at Dick-
er
on
me
wh
Or
P
ent
tio
A
gat
tha
hel
Ka
rec
T
wit
ste
of
bill
Mr
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ben
nou
B
sta
to
era
wa
sub
em
A
con
cau
jus
hal
ves
M
eff
det
for
5-H
of
bel
per
Y
had
ves
pan
“
me
Ko
M
A
San
ado
law
aff
top
tio
ny
em
M
ior
Co
cha
giv
am
ing
“
Ric
Ko
ame
yers
ddional
and
eys
waii.
by
n a
repubn—
ac-
dent
ccobout
City,
lob— fiand
alizoffi-
you
a piumre,”
atwere
e att to
000,
with
tter,
Five days later — and just before Mr.
with his office in emails that suggest unBut the emails show that just as the
Koster was scheduled to give the
usual familiarity.
negotiations on the 2013 case were inspeech — Mr. Dandurand and Mr. Nash
The relationship seems to have benetensifying, Mr. Koster’s chief deputy remet to discuss a settlement in the fraud
fited
assome
wellDickstein
as howclients.
they can carry over
when
A.G.s invitation:
group of
attorneys
general who,
the indusceived
an unusual
Would
the
investigation.
Theytoagreed
that Pfizer
Pfizer, the New York-based pharmaattorney
general
be
interested
in
flying
would
pay
Missouri
$750,000
— at least
are
elected
to
higher
offices.”
try’s
pleasure,
wanted
to
resolve
the
matter
ceutical giant, had hired Dickstein to
to
Chicago
to
be
the
keynote
speaker
at
$350,000
less
than
it
would
Mr.a case
Dandurand
without subpoenas or the threat of a lawsuit,have
the colhelp settle
brought byworked
at least 20to accommodate
a breakfast that Pfizer was sponsoring
lected if it had been part of the multistates,
accused the company of ilthe which
request.
show.
for its political action emails
committee?
state investigation.
legally “Trying
marketingnow
two to
of clear
its drugs
—
his calendar,”
Mr.
DanAT&T
has
been a“Thank
major you
campaign
The
topic
was
“the
importance
of
corfor the contribumeeting,” Mr.
Zyvox and Lyrica — for unapproved
porations’
building
productive
relationNash
wrote
to
Mr.
Dandurand,
after the
durand
wroteexaggerated
back to theclaims
Dickstein lawyer, betor to Mr. Koster’s political causes,
donating
uses,
or making
ships
with
A.G.s,”
according
to
an
email
settlement
meeting
in
Missouri.
“Pfizer
fore
confirming
that Mr. Koster would accept
about
their
effectiveness.
more than $27,000 in just the last two years, half
in
March
from
Dickstein
to
Mr.
Danduis
pleased.”
Instead
of participating in the unified
the invitation.
before and half afterMr.
hisKoster
actions
the a
rand.
saidregarding
Missouri received
investigation with other states — which
“The
folks
at
Pfizer
are
very
appreciative
investigation.
“As
you
know,
these
relationships
are
smaller
payment
from
Pfizer
because
gives attorneys general greater negotiimportant
to
allow
A.G.s
and
corporathe
state
had
less
leverage
after
missing
andpower
excited
hear
from the
General,” J. B. KelMr. Koster said the donations had no effect
ating
— toMr.
Koster’s
office
tions
to
work
together
to
address
imthe
multistate
deadline.
Oregon,
the othworked
directly with
Mr. Nash and
Pfily, a partner
at Dickstein,
replied.
on his actions, adding that he was determined
zer’s assistant
general
counsel,
Markus
Five days later — and just beGreen.
fore
Mr.negotiated
Koster was
Mr. Nash
with scheduled
Deputy At- to
giveGeneral
the speech
— P.
Mr.Dandurand
Dandurand
torney
Joseph
through
a series
of emails,
byaasetand Mr.
Nash
met tofollowed
discuss
visit to Missouri in April 2013.
tlement in the fraud investigation.
But both Pfizer and Dickstein had alThey
that with
Pfizer
would
ready
builtagreed
a relationship
Mr. Koster.pay
Dickstein
had
participated
in
Missouri $750,000 — at at
least
least
four
fund-raising
for Mr.
$350,000
less thanevents
it would
have
Koster, with its lawyers and the firm docollected
been part
of the
nating
$13,500 if
to it
hishad
campaigns,
records
multistate investigation.
show.
Several
of those
contributions
came
“Thank
you
for the meeting,”
after
Mr.
Nash
had
invited
Mr.
Koster
to
Mr. Nash wrote to Mr. Dandurand,
participate in an “executive briefing” at
the settlement
meeting
theafter
Park Hyatt
for Dickstein’s
clients. in
THE FORMER ATTORNEYS GENERAL From left, Rob McKenna of WashThat
same day,“Pfizer
Mr. Koster
held a fundMissouri.
is pleased.”
ington
State, Patrick C. Lynch of Rhode Island and Thurbert E.
raising Mr.
event,
taking said
in contributions
Koster
Missouri reBaker of Georgia. Each now represents major corporations and othfrom Mr. Nash and other lawyers inceived
a smaller
from er clients that have business before state attorneys general.
volved
in matters
that Mr.payment
Koster would
Pfizer because the state had less
leverage after missing the multistate deadline. Oregon, the other state to negotiate directly with Pfizer on the Zyvox matter,
secured a settlement worth $3.4 million — four
times what Missouri received — even though
Oregon’s population is far smaller.
Pfizer was not the only Dickstein client
pleased with the firm’s representation before
Mr. Koster’s office.
AT&T was also subject to an investigation
by Mr. Koster’s office, something that Mr. Nash
learned at the conference held at the Loews hotel. And like Ms. Kalani, Mr. Nash pleaded his
case directly with Mr. Koster.
Three weeks after the conversation with
Mr. Nash, Mr. Koster’s office took a step that
questioned the legal strategy of a multistate
investigation of AT&T’s billing practices, email
records show. Mr. Koster did not officially back
out of the inquiry, and Missouri ultimately benefited from a national settlement announced this
month.
But frustrating leaders of the multistate investigation, Mr. Koster decided to join a small
to investigate the company for its deceptive billing practices. With 5-Hour Energy, he added, he
pulled out of the investigation because he did
not believe it was merited — adding that he personally uses the energy drink.
Yet he said he was angry that his staff had
not notified him before joining investigations
into these two major companies.
“Its stock price would move at the mere
mention of our involvement,” Mr. Koster said,
referring to AT&T.
Mr. Nash’s appeals were not finished.
A month after returning from the Santa
Monica meeting, Mr. Koster adopted a new office policy requiring lawyers and managers in
his consumer affairs division to get approval
from his top aides before opening any investigations involving a publicly traded company or
any company with more than 10 employees.
Mr. Nash and Lisa A. Rickard, a senior executive from the U.S. Chamber of Commerce,
were so pleased with the change that they
asked Mr. Koster to give a talk about his new
so
M
D
th
M
te
D
to
th
w
ve
bu
D
ra
an
A
de
M
an
Pa
he
bi
by
un
ho
op
do
th
office policy at a meeting of attorneys general
in Washington.
“This is going to be titled my Lisa Rickard
memorial presentation,” Mr. Koster said at the
February 2014 meeting. “She was the one who
initiated this idea.”
The email records also reveal the personal
nature of the relationship between Mr. Koster’s
office and the lawyers at Dickstein.
In an August 2013 exchange, in which the attorney general’s office assured Mr. Nash that it
would not share potentially damaging information on a Dickstein client with another state attorney general who was investigating the company — saying the documents were considered
confidential — the conversation took a sudden
turn away from business.
“Let’s go bowling sometime,” Mr. Dandurand wrote.
“Thanks,” Mr. Nash wrote back. “I’d rather
eat and drink with you any time, any place.”
And an Ear in Florida
The email records show a similarly detailed
interaction with the office of Ms. Bondi, the
Florida attorney general and a fast-rising star
in the Republican Party.
Mr. Nash and his partners worked to help
Ms. Bondi further her political ambitions at the
same time they were lobbying her office on behalf of companies under investigation by it.
Accretive Health, a Chicago-based hospital bill collection company, whose operations
in Minnesota had been shut down by the attorney general’s office there for abusive collection
practices, had turned to Dickstein Shapiro to
try to make sure that other states did not follow Minnesota’s lead. Mr. Nash contacted Ms.
Bondi’s chief deputy and urged the office to take
no action.
“We persuaded A.G.s not to sue Accretive
Health following the filing of a lawsuit by the
Minnesota A.G.,” Dickstein wrote in a recent
marketing brochure.
Bridgepoint Education, a for-profit online
school that has been under scrutiny for what
Mr. Miller, the Iowa attorney general, called
“unconscionable sales practices,” turned to
Dickstein to set up meetings with Ms. Bondi’s
staff, to urge her not to join in the inquiries underway in several states. Again, her office decided not to take up the matter, citing the small
number of complaints about Bridgepoint it has
received.
Dickstein set up a similar meeting for
Herbalife, which has been investigated by federal and state authorities for sales practices related to its nutritional shakes and other products. No investigation was opened; again, Ms.
Bondi’s staff said her office had received few
complaints.
Perhaps the greatest victory in Florida
for Dickstein relates to a lawsuit filed by Ms.
Bondi’s predecessor against online reservation
companies, including Travelocity and Priceline,
which Dickstein then represented, based on allegations that they were conspiring to improperly withhold taxes on hotel rooms booked in
the state.
Local officials in Florida were confounded
by the fact that the case, which was filed before
Ms. Bondi was sworn in, suddenly seemed to
come to a halt.
“As our state’s highest-ranking law enforcement official, and as the people’s attorney, you
have the authority to pursue action on behalf of
the citizens of Florida,” Mayor Rick Kriseman of
St. Petersburg, a Democrat, wrote to Ms. Bondi
in 2011, while he was a state legislator, estimating that Florida was losing $100 million a year.
Behind the scenes, Dickstein had been
working to get the case dropped.
“Thank you so much for chatting with me
last week about the online travel site suit,” said
a January 2012 email to Deputy Attorney General Patricia A. Conners from Christopher M.
Tampio, a former lobbyist for the convenience
store industry who was hired to work in Dickstein’s attorney general practice, even though
he is not a lawyer or a registered lobbyist in
Florida.
A year later, a second round of emails arrived in Ms. Bondi’s office: first, one inviting
Ms. Bondi or her top aide to dinner at Ristorante Tosca in Washington, and then one from a
Dickstein lawyer pointing out that similar online travel cases had recently been dismissed
by Florida judges.
The email records provided to The Times
show no response to Dickstein, other than
a terse “thanks.” But two months later, Ms.
Bondi’s office moved to do what the firm had
sought.
“Dismissed before hearing,” the state court
Bearing Gifts, Pursue State Attorneys Genera
to get the case
McKenna, the
general, and M
been his top d
much for chating their forme
week about the
in months of
uit,” said a Janlast year, on b
o Deputy Atcluding Micro
tricia A. Conemails show.
pher M. TamFor Mr. McK
ist for the cona turnaround.
ustry who was
bile in Septemb
Dickstein’s atproposed me
ractice, even
Now, as a cor
a lawyer or a
McKenna was
in Florida.
ings with his s
econd round of
guson, to ask
Ms. Bondi’s ofwith federal
ing Ms. Bondi
bile’s behalf in
inner at Ristowhether the c
shington, and
ing to preven
ckstein lawyer
from acquirin
similar online
was too large a
recently been
able federal wi
da judges.
“I write toda
ds provided to
millions of con
o response to
and mobile co
than a terse
PHOTOGRAPHS BY SANDY HUFFAKER FOR THE NEW YORK TIMES
said a letter, d
months later,
T-Mobile, but s
HOTEL
DEL
CORONADO
A
conference
of
the
Republican
Attorneys
General
Association
was
moved to do
guson in Jan
held in June in Coronado, Calif. Representatives from the U.S. Chamber of Commerce,
ought.
made no me
ore hearing,”
Pfizer, Comcast and Altria, as well as a Dickstein Shapiro lawyer, attended the event.
played by the c
cket shows, as
mer attorney g
d in April 2013
Email recor
officially taken
intervention b
behalf of Wash
or Ms. Bondi
Microsoft, wi
d dropped the
brought praise
uding, as Dickrate executive
that state tax
Microsoft was
us. The office
you made your
Legislature to
McKenna wro
. But several
last October. “T
ave continued
Mr. Baker a
er, taking it to
are both regula
Court.
general retrea
took unusual
torneys gener
Ms. Bondi’s pospecial guests
dockettects
shows,
as the
case
was
in April
appear made
at an event
Washington
included
former
attorney general
The innext
day, Mr. that
Milsteen
Floridians
from
unfair
andclosed
ciety of Attorn
ers helped2013
ar- even
appealsup
almost
to wrote back. “I’ve talked to Sam,” itus.
deceptive
business
practices,
and taken
before
it was
officially
by immediately
the firm’s clients.
le for Ms. Bon- absolutely no access to me or my his former office.
he said,
he isthe
fineassistance
with you
They have
the court.
And as with
Mr. “and
Koster,
incalled Inside- staff is going to have any bearing
Mr. Baker, who left his post as adding him to the letter.”
the SAGE club
spokesman
forprotect
Ms. Bondi
office
cluded
direct
contributions.
Mr. Nash
distributed to A on
my efforts to
Florid-said
A spokesman
for Mr. Olens
theher
state’s
attorney
general
in political
en of the mem
, and invited
had dropped
the matter after concluding,
as wrote
wasrepeatedly
a sponsor
anheelaborate
ians,” she said.
saidofthat
saw nothingfund-raising
wrong yers and lobb
January 2011,
Koster, toDickstein
apthe exchanges
because
that law
year was
to the office
of his
suctions, or work
had argued, that state tax
event
this
yearwith
in Ms.
Bondi’s honor
at Mr.
the Marn Washington
Baker
was
acting
as
a
lawyer,
not
cessor,
Sam
Olens,
and
to
Mr.
firms that are
The Revolving
Door
ambiguous.
The office
urged the State Legisla- a-Lago Club inasPalm
Beach, owned by Donald
rm’s clients.
a lobbyist, and therefore was commission-ba
Olens’s chief deputy, who had
clarify
matter.
But
several
J. Trump,
which
is considered
one of
Koster, theture
as- to In
at leastthe
31 states
and in
Conexempt
from the one-year
banthe
— most
servedFlorida
in the same
role during
then sue corpo
direct political
gress,
officials
are Mr.
whichincovers
only lobbying
of the behalf.
tenure,
to ask them
counties
haveelected
continued
to pursue
theBaker’s
matter,
opulent
mansions
the United
States.
Nash was
a banned
from
lobbying
their foror the said
governor,
to take actions that would
benefit
The schedul
taking
it to the
State
Supreme
Court.
Ms.
Bondi,legislature
in a statement,
nonenot
of these
rate fund-rais- mer colleagues during a cooling- AT&T, which he had been hired to the attorney general.
eral conferenc
unusual
to proefforts had affected
herBaker
decisions.
in Ms. Bondi’s Dickstein
off period, also
whichtook
is intended
to steps
But Mr.
declined, when year is laid ou
represent.
mote
political
career.
officeasked
aggressively
protects
Floridians
a-Lago Club
in Ms.
limit Bondi’s
their ability
to cash
in on
by The Times,
to identify
a for the electio
“Hi Thurbert,” Jeff “My
Milsteen,
d by Donald J. The
their
contacts.
Once they
do start
single
legal filing
concerning
Georgia’s
chief deputy
set for the Fo
firm’s
lawyers
helped
arrange
a cover
from attorney
unfair and
deceptive
business
practices,
onsidered one to lobby, they are required to reg- general, replied to one of the AT&T that he had been involved in Miami Bea
article for Ms. Bondi in a magazine called In- and absolutely no access to me or my staff is got mansions in ister to disclose the work.
emails that Mr. Baker sent to him with. He wrote back to say that sons Hotel at
sideCounsel,
which
is like
distributed
corporate
ingsought
to have
bearing
on my
efforts to
protect
this
definition
of “lawyer”
was
But even
in states
Georgia, to
Las Vegas and
in 2011,
as Mr. Baker
hisany
too
narrow.
tatement, lawyers,
said where
and
her, as
it offidid Mr.
Koster, public
to support
Floridians,”
theinvited
law prohibits
state
resort on Maui
successor’s
for the she said.
ts had affected cials from registering as lobby- proposed merger between T-Mo“Lawyers are advocates,” he ers. The invita
sponsorships
ists or engaging in lobbying for bile and AT&T. “I’ll let you know said.
In Washington State, both Mr. sent.
ressively pro- one year after leaving office, a as soon as I can.”
The Revolving Door
In at least 31 states and in Congress, elected
officials are banned from lobbying their former
colleagues during a cooling-off period, which is
intended to limit their ability to cash in on their
contacts. Once they do start to lobby, they are
required to register to disclose the work.
But even in states like Georgia, where the
law prohibits state officials from registering as
lobbyists or engaging in lobbying for one year
after leaving office, a former attorney general
made appeals almost immediately to his former
office.
Mr. Baker, who left his post as the state’s
attorney general in January 2011, wrote repeatedly that year to the office of his successor, Sam
Olens, and to Mr. Olens’s chief deputy, who had
served in the same role during Mr. Baker’s tenure, to ask them to take actions that would benefit AT&T, which he had been hired to represent.
“Hi Thurbert,” Jeff Milsteen, Georgia’s
chief deputy attorney general, replied to one of
the emails that Mr. Baker sent to him in 2011, as
Mr. Baker sought his successor’s public support
for the proposed merger between T-Mobile and
AT&T. “I’ll let you know as soon as I can.”
The next day, Mr. Milsteen wrote back. “I’ve
talked to Sam,” he said, “and he is fine with you
adding him to the letter.”
A spokesman for Mr. Olens said that he saw
nothing wrong with the exchanges because Mr.
Baker was acting as a lawyer, not as a lobbyist, and therefore was exempt from the one-year
ban — which covers only lobbying of the legislature or the governor, not the attorney general.
But Mr. Baker declined, when asked by The
Times, to identify a single legal filing concerning
AT&T that he had been involved with. He wrote
back to say that this definition of “lawyer” was
too narrow.
“Lawyers are advocates,” he said.
In Washington State, both Mr. McKenna,
the former attorney general, and Mr. Moran,
Stacey Solie contributed reporting from Seattle.
Griff Palmer and Kitty Bennett contributed
research.
who had been his top deputy, were pressing
their former colleagues within months of leaving their jobs last year, on behalf of clients including Microsoft and T-Mobile, emails show.
For Mr. McKenna, it was quite a turnaround. He had sued T-Mobile in September
2011 to block its proposed merger with AT&T.
Now, as a corporate lawyer, Mr. McKenna was
setting up meetings with his successor, Mr. Ferguson, to ask him to intervene with federal officials on T-Mobile’s behalf in the inquiry over
whether the company was seeking to prevent
its competitors from acquiring what it thought
was too large a share of the available federal
wireless spectrum.
“I write today on behalf of the millions of
consumers of wireless and mobile computing
services,” said a letter, drafted initially by T-Mobile, but sent out by Mr. Ferguson in January,
although it made no mention of the role played
by the company or the former attorney general.
Email records show a similar intervention
by Mr. McKenna on behalf of Washington Statebased Microsoft, with outcomes that brought
praise from the corporate executives. “I know
that Microsoft was very pleased that you made
yourself available,” Mr. McKenna wrote to Mr.
Ferguson last October. “Thank you again.”
Mr. Baker and Mr. McKenna are both regulars at the attorneys general retreats. As former
attorneys general, they are also special guests
at events of the Society of Attorneys General
Emeritus.
They have good company in the SAGE club:
More than a dozen of the members are now lawyers and lobbyists for corporations, or work at
plaintiff’s law firms that are seeking to secure
commission-based contracts and then sue corporations on a state’s behalf.
The schedule of attorney general conferences for the coming year is laid out — after a
pause for the elections — with events set for the
Fontainebleau resort in Miami Beach, the Four
Seasons Hotel at Mandalay Bay in Las Vegas
and the Grand Wailea resort on Maui, among
many others. The invitations for corporate
n
sponsorships are already being sent.