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Wednesday, February 16, 2005

The Tax Policy Center has published a table that states that taxpayers earning more than $10,000,000 in 2004 paid lower tax rates than taxpayers earning between $1,000,000 and $10,000,000. Among other things, it breaks down the average tax rate by cash income into various income tax categories.

According to the Tax Policy Center, the average tax rate paid by the 9,000 taxpayers earning over $10,000,000 in 2004 was 20.1%, more than 2% lower than the nearly quarter million taxpayers earning between $1,000,000 and $10,000,000. If taxpayers earning over $10,000,000 were taxed at 22.3%, the rate of those earning between $1,000,000 and $10,000,000, the federal government would have received an additional $4.8 billion in revenue.

Taxpayers who earned more than $10,000,000 paid a lower average rate than any category of taxpayer earning over $100,000. Although taxpayers in the $75,000 to $100,000 range paid 18.9% of their income in taxes, 1.2% less than those making over $10,000,000, taxpayers in the $100,000 to $200,000 range paid an average of 20.6%, or 0.5% more than those making over $10,000,000.

Furthermore, the Tax Policy Center’s analysis is described by David Cay Johnston, New York Times columnist and author of Perfectly Legal as “understating the real economic gains of those at the very top, who have perfectly legal ways to defer reporting income for tax purposes.”

The Tax Policy Center is a nonpartisian joint venture of the Urban Institute and Brookings Institution and comprised of nationally recognized experts in tax, budget, and social policy who have served at the highest levels of government.

Saturday, December 24, 2016

A fire on Thursday engulfed at least 140 buildings in Itoigawa, Japan. The inferno injured, by varying reports, at least eight people.

The coastal town in the northern prefecture of Niigata’s many traditional wooden buildings burned easily, fanned by winds of 56kph (35mph). Narrow streets hampered firefighters. “Sparks of fire flew around,” one local resident recounted to Japanese public broadcaster NHK. “That’s why far away buildings unexpectedly caught fire and it became large-scale. I’ve never seen something like this before.”

The national Fire and Disaster Management Agency said the fire started at a Chinese restaurant. The restaurant’s owner yesterday told police he left a stove on and stepped outside. Police said the man told them “I feel deeply sorry for what I’ve done,” and said he went home, returning to find a pot aflame.

Hundreds of residents were evacuated, with 40,000 square metres (about ten acres) of city burning. The fire broke out at around 10:30am local time in a shopping area near the city’s primary train station. It was brought under control by around 8:30pm. Firefighters were assisted by Self-Defence Forces troops brought in at the request of Niigata Governor Ryuichi Yoneyama.

“We will do our utmost effort in supporting those affected”, Yoneyama said yesterday as he inspected the disaster scene. Firefighters remained wary yesterday that ongoing high winds could reignite the charred ruins. Local authorities have begun consulting residents on assistance.

Emperor Akihito paused during his 83^rd birthday celebrations to offer condolences. “Many people had to be evacuated in the cold weather. I hope their health will not suffer,” he said from his Tokyo palace.

Two women in their 40s suffered minor injuries, one via smoke inhalation and one by falling and hitting her head. At least five firefighters also sustained minor injuries. The fire was Japan’s worst non-natural blaze for twenty years. Smoke rose about 300m (roughly a thousand feet) as rescuers worked to contain it. Seventeen fire trucks responded.

Itoigawa is home to around 44,500 people. It faces the Sea of Japan. The mixed neighbourhood features both homes and shops. One local official said it is suspected the timing of the fire led to many residents being out of harm’s way.

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Thursday, February 18, 2010

A small plane crashed into a building, which was one of the Echelon office complex, in north Austin, Texas this morning at 09:56 local time (1456 UTC).

Federal officials say the plane owner was Joseph Andrew Stack III; presumed to be the pilot who set his house on fire on the 1800 block of Dapplegrey Lane in north Austin an hour earlier. He then drove to Georgetown Municipal Airport, approximately 20 miles away, took off and then crashed his private plane into the Echelon complex.

The Federal Aviation Authority indicated the light aircraft was a Piper Cherokee PA-28, as did news reports and eye witnesses. The FAA said the plane had no flight plan and was under Visual Flight Rules.

Mr. Stack committed suicide, and a suicide note has been located. Mr. Stack’s suicide note mentions anti-government and anti-corporate ideals, as well as problems with the Internal Revenue Service and that he lost money in the Enron scandal. Although the incident was intentional, a Department of Homeland Security official said that terrorism is not suspected. The online host of the note, T35 Hosting, later removed it in its entirety after the FBI requested its censorship. However, Wikinews has preserved the full text of the letter.

Austin Fire Department reported around 1100 local time (1600 UTC) that two people were transported to local hospitals and one was unaccounted for. One man was admitted at a local hospital under serious condition for smoke inhalation. The other man suffered from second-degree burns on 25% of his back and has been transported by helicopter to Brooke Medical Center in San Antonio and is said to be in stable condition.

The seven-story Echelon Building One is located on 9430 Research Boulevard and contains Internal Revenue Service offices. The Echelon building complex houses a number of federal offices, including Central Intelligence Agency and Federal Bureau of Investigation. Research Boulevard is the service road of U.S. Route 183. The incident has caused severe backups on both Research Boulevard and Route 183.

A witness told The Austin Statesman that he saw the plane flying lower than usual, then it made a sharp turn and hit the building.

An Austin County EMS official, James Shamard, said that smoke is visible from at least a mile from the crash site. Another official for the Austin Fire Department said that two persons who were working in the building are still unaccounted for.

MSNBC reports that there was some form of domestic dispute between Mr. Stack and his wife before the incident. He then reportedly used gasoline to light his house on fire. When the fire department arrived, they rescued his wife and teenage daughter.

According to Jerry Cullen, a pilot and former flight instructor who witnessed the crash, the plane was traveling at high speed at time of impact.

Friday, November 3, 2006

On November 13, Torontonians will be heading to the polls to vote for their ward’s councillor and for mayor. Among Toronto’s ridings is Beaches—East York (Ward 32). Four candidates responded to Wikinews’ requests for an interview. This ward’s candidates include Donna Braniff, Alan Burke, Sandra Bussin (incumbent), William Gallos, John Greer, John Lewis, Erica Maier, Luca Mele, and Matt Williams.

For more information on the election, read Toronto municipal election, 2006.

Tuesday, January 28, 2014

Evansville, Indiana, United States — This past week marked the opening night of an Andy Warhol exhibit at the University of Southern Indiana. USI’s art gallery, like 189 other educational galleries and museums around the country, is a recipient of a major Warhol donor program, and this program is cultivating new interest in Warhol’s photographic legacy. Wikinews reporters attended the opening and spoke to donors, exhibit organizers and patrons.

The USI art gallery celebrated the Thursday opening with its display of Warhol’s Polaroids, gelatin silver prints and several colored screen prints. USI’s exhibit, which is located in Evansville, Indiana, is to run from January 23 through March 9.

The McCutchan Art Center/Pace Galleries at USI bases its exhibit around roughly 100 Polaroids selected from its collection. The Polaroids were all donated by the Andy Warhol Photographic Legacy Program, according to Kristen Wilkins, assistant professor of photography and curator of the exhibit. The Andy Warhol Foundation for the Visual Arts made two donations to USI Art Collections, in 2007 and a second recently.

Kathryn Waters, director of the gallery, expressed interest in further donations from the foundation in the future.

Since 2007 the Andy Warhol Photographic Legacy Program has seeded university art galleries throughout the United States with over 28,000 Andy Warhol photographs and other artifacts. The program takes a decentralized approach to Warhol’s photography collection and encourages university art galleries to regularly disseminate and educate audiences about Warhol’s artistic vision, especially in the area of photography.

Wikinews provides additional video, audio and photographs so our readers may learn more.

Wilkins observed that the 2007 starting date of the donation program, which is part of the Andy Warhol Foundation for the Visual Arts, coincided with the 20th anniversary of Andy Warhol’s death in 1987. USI was not alone in receiving a donation.

K.C. Maurer, chief financial officer and treasurer at the Andy Warhol Foundation, said 500 institutions received the initial invitation and currently 190 universities have accepted one or more donations. Institutional recipients, said Mauer, are required to exhibit their donated Warhol photographs every ten years as one stipulation.

While USI is holding its exhibit, there are also Warhol Polaroid exhibits at the Tang Teaching Museum and Art Gallery at Skidmore College in Saratoga Springs, New York and an Edward Steichen and Andy Warhol exhibit at the Mary & Leigh Block Museum of Art at Northwestern University in Evanston, Illinois. All have received Polaroids from the foundation.

University exhibits can reach out and attract large audiences. For example, the Weatherspoon Art Museum at the University of North Carolina at Greensboro saw attendance levels reach 11,000 visitors when it exhibited its Warhol collection in 2010, according to curator Elaine Gustafon. That exhibit was part of a collaboration combining the collections from Duke University, located in Durham, North Carolina, and University of North Carolina at Chapel Hill, which also were recipients of donated items from the Andy Warhol Photographic Legacy Program.

Each collection donated by the Andy Warhol Photographic Legacy Program holds Polaroids of well-known celebrities. The successful UNC Greensboro exhibit included Polaroids of author Truman Capote and singer-songwriter Carly Simon.

“I think America’s obsession with celebrity culture is as strong today as it was when Warhol was living”, said Gustafon. “People are still intrigued by how stars live, dress and socialize, since it is so different from most people’s every day lives.”

Wilkins explained Warhol’s obsession with celebrities began when he first collected head shots as a kid and continued as a passion throughout his life. “He’s hanging out with the celebrities, and has kind of become the same sort of celebrity he was interested in documenting earlier in his career”, Wilkins said.

The exhibit at USI includes Polaroids of actor Dennis Hopper; musician Nick Rhodes of Duran Duran; publishers Jann Wenner of Rolling Stone Magazine and Carlo De Benedetti of Italy’s la Repubblica; disco club owner Steve Rubell of Studio 54; photographers Nat Finkelstein, Christopher Makos and Felice Quinto; and athletes Vitas Gerulaitis (tennis) and Jack Nicklaus (golf).

Wikinews observed the USI exhibit identifies and features Polaroids of fashion designer Halston, a former resident of Evansville.

University collections across the United States also include Polaroids of “unknowns” who have not yet had their fifteen minutes of fame. Cynthia Thompson, curator and director of exhibits at the University of Arkansas, Fayetteville, said, “These images serve as documentation of people in his every day life and art — one which many of us enjoy a glimpse into.”

Warhol was close to important touchstones of the 1960s, including art, music, consumer culture, fashion, and celebrity worship, which were all buzzwords and images Wikinews observed at USI’s opening exhibit.

He was also an influential figure in the pop art movement. “Pop art was about what popular American culture really thought was important”, Kathryn Waters said. “That’s why he did the Campbell Soup cans or the Marilyn pictures, these iconic products of American culture whether they be in film, video or actually products we consumed. So even back in the sixties, he was very aware of this part of our culture. Which as we all know in 2014, has only increased probably a thousand fold.”

“I think everybody knows Andy Warhol’s name, even non-art people, that’s a name they might know because he was such a personality”, Water said.

Hilary Braysmith, USI associate professor of art history, said, “I think his photography is equally influential as his graphic works, his more famous pictures of Marilyn. In terms of the evolution of photography and experimentation, like painting on them or the celebrity fascination, I think he was really ground-breaking in that regard.”

The Polaroid format is not what made Warhol famous, however, he is in the company of other well-known photographers who used the camera, such as Ansel Adams, Chuck Close, Walker Evans, Robert Mapplethorpe, and Helmut Newton.

Wilkins said, “[Warhol] liked the way photo booths and the Polaroid’s front flash looked”. She explained how Warhol’s adoption of the Polaroid camera revealed his process. According to Wilkins, Warhol was able to reproduce the Polaroid photograph and create an enlargement of it, which he then could use to commit the image to the silk screen medium by applying paint or manipulating them further. One of the silk screens exhibited at USI this time was the Annie Oakley screen print called “Cowboys and Indians” from 1987.

Wilkins also said Warhol was both an artist and a businessperson. “As a way to commercialize his work, he would make a blue Marilyn and a pink Marilyn and a yellow Marilyn, and then you could pick your favorite color and buy that. It was a very practical salesman approach to his work. He was very prolific but very business minded about that.”

“He wanted to be rich and famous and he made lots of choices to go that way”, Wilkins said.

Kiara Perkins, a second year USI art major, admitted she was willing to skip class Thursday night to attend the opening exhibit but then circumstances allowed for her to attend the exhibit. Why did she so badly want to attend? “It’s Warhol. He is a legend.”

For Kevin Allton, a USI instructor in English, Warhol was also a legend. He said, “Andy Warhol was the center of the Zeitgeist for the 20th century and everything since. He is a post-modern diety.”

Allton said he had only seen the Silver Clouds installation before in film. The Silver Clouds installation were silver balloons blown up with helium, and those balloons filled one of the smaller rooms in the gallery. “I thought that in real life it was really kind of magical,” Allton said. “I smacked them around.”

Elements of the Zeitgeist were also playfully recreated on USI’s opening night. In her opening remarks for attendees, Waters pointed out those features to attendees, noting the touches of the Warhol Factory, or the studio where he worked, that were present around them. She pointed to the refreshment table with Campbell’s Soup served with “electric” Kool Aid and tables adorned with colorful gumball “pills”. The music in the background was from such bands as The Velvet Underground.

The big hit of the evening, Wikinews observed from the long line, was the Polaroid-room where attendees could wear a Warhol-like wig or don crazy glasses and have their own Polaroid taken. The Polaroids were ready in an instant and immediately displayed at the entry of the exhibit. Exhibit goers then became part of the very exhibit they had wanted to attend. In fact, many people Wikinews observed took out their mobiles as they left for the evening and used their own phone cameras to make one further record of the moment — a photo of a photo. Perhaps they had learned an important lesson from the Warhol exhibit that cultural events like these were ripe for use and reuse. We might even call these exit instant snap shots, the self selfie.

Wednesday, October 13, 2010

The rescue of the Chilean miners trapped in the San José Mine in Copiapó, codenamed Operación San Lorenzo (San Lorenzo Operation), began on Tuesday night, at around 20:00 local time (23:00 UTC).

Florencio Ávalos was the first miner to be rescued, at 00:12 local time (03:12 UTC) on Wednesday. He was wearing a shirt signed by all his fellow miners. “The first miner is already with us. We saw it all, him hugging his wife Monica and his son Byron,” said President Piñera shortly after the first rescue. “We still have a long journey.”

“This will be recorded on every single Chilean heart forever,” Piñera added. “I hope the miners’ hope stay with us, just like the [February] earthquake victims’ [hope] and what the earthquake took off. We know that the disasters unite us all.”

All the 33 miners were rescued. The last miner, Luis Urzúa, was rescued at 21:55 Chile time (00:55 UTC). “It is a pleasure to be Chilean, [I’m] proud,” said Luis Urzúa to President Piñera. “In honour of the miners, their families, the rescuers […] let’s sing our national anthem. Viva Chile Mierda!,” said Piñera. Urzúa thanked Mining Minister Golborne and the First Lady Cecilia Morel for “fighting for their lives.” “I’m proud of my fellow miners,” Urzúa added.

Six rescuers, including a miner and a paramedic, descended to the miners’ shelter using the Fénix 3 capsule which was specially constructed for the rescue. They performed check-ups and talk with the miners before taking them back to the surface. The rescuers still don’t leave the mine.

The Fénix 3 capsules are 3.95 metres in height and weigh about 460 kilograms. They have an armour, an oxygen tube and a microphone. The occupants helmets contain an intercom to keep them in contact with the rescue team on the surface.

President of Chile Piñera assisted to the rescue. Bolivian President Evo Morales could not attend Carlos Mamani’s rescue. Mamani is the only Bolivian miner in the group.

A mass for the miners was conducted at 18:00 local time (21:00 UTC). The rescue takes between 15 and 20 minutes for each miner.

On Tuesday, Mayor of Copiapó Maglio Cicardini announced that the municipal schools in the city will have no classes this Wednesday “to transform the rescue of the Atacama’s 33 in a familiar meeting,” Radio Cooperativa reported.

“The miners will be taken to the Copiapó Regional Hospital for medical checkup, where they will have to stay for 48 hours,” Health Minister Mañalich said to Televisión Nacional de Chile.

Celebrations are taking place in several Chilean cities. In Santiago de Chile, people gathered in one of the most important points of the city, Plaza Italia. In Pichilemu, tens of cars are passing over its most important streets. In Copiapó, people gathered in its main square to assist a massive concert.

On August 5, 33 miners were trapped more than 700 meters (2,300 ft) underground, in the San José copper–gold mine, located about 40 kilometers north of Copiapó, Chile.

The youngest trapped miner is 19 years old, and the oldest is 63. There were several rescue attempts before reaching the miners’ shelter on August 22. The National Emergencies Office of Chile (ONEMI) released a list of the trapped miners on August 6, which included Franklin Lobos Ramírez, a retired footballer.

Chile is the worlds top producer of copper, according to The Economist. The San José Mine is owned by the San Esteban Mining Company (Empresa Minera San Esteban). The mine was closed down in 2007, after relatives of a miner who had died sued the company executives, but the mine was re–opened in 2008.

It was originally estimated that “it would take three to four months to complete the rescue of the trapped miners”. There were three plans to reach the miners: “Plan A” using a Strata 950 drill, “Plan B” using a Schramm T130XD drill, and “Plan C” using a RIG-422 drill. The first to reach the miners was “Plan B”, early on Saturday 9.

The last step of their rescue, announced by Health Minister Jaime Mañalich, was originally due to begin on Tuesday. Laurence Golborne, Minery Minister said “If it is possible, and the cement sets before and we don’t have any impediments to doing it, it would be wonderful,” in a press conference on Monday. The men will be extracted in a steel rescue capsule 54 cm (21 inches) in diameter.

On September 4, Chilean filmmaker Rodrigo Ortúzar announced plans to film a movie about the accident, called “Los 33” (“The 33”). The film will be released in 2011.

One miner is Bolivian, and the other 32 are Chilean.

Raúl Bustos, 40 years old, is an hydraulics engineer. He left his job in Talcahuano after the February 27 earthquake to work in the mine.

Daniel Herrera, 27 years old, is a lorry driver. He has acted as paramedic assistant in the mine. He said to La Tercera “the miners were unhappy with the psychologist in the rescue team.”

Claudio Acuña, miner, is fan of the Colo-Colo football club. The BBC reports he is aged 56, but El Comercio says he is 44.

Pedro Cortez is aged 24. He joined the mine with his friend Carlos Bugueño. Cortez is an electrician, and lost a finger in the mine a year ago.

File:Juan Aguilar with President Piñera.jpg

A native of Los Lagos, Juan Aguilar is 49 years old. Aguilar is married to Cristy Coronado, according to El Comercio. Aguilar works as a supervisor.

Mario Sepúlveda is a 39 years old electrician native of Parral; he is married. He has been the spokesman of the most of the miners’ videos. Mario Sepúlveda was the second miner to be rescued, on Wednesday at 01:10 local time (04:10 UTC).

Víctor Zamora is a 33 years old auto mechanic. Zamora is married to Jéssica Cortez, who confirmed she was pregnant while he was in the mine.

Osman Araya is 30 years old, and married. He began working as miner four months before the accident.

Florencio Ávalos is 31 years old. He is the brother of Renán Ávalos, who is also trapped in the mine. He worked as driver in San José. Ávalos filmed videos, sent later to his relatives.

Ávalos was the first miner to be rescued, on Wednesday at 00:10 local time (03:10 UTC).

Jorge Galleguillos, 56 years old, has worked all his life in the mine. He said in one video he was feeling unwell; he takes medication for hypertension.

Carlos Barrios is a 27 years old miner. His father, Antenor Barrios, told Agence France-Presse: “I find he’s very strong and has enthusiasm. He spoke loud and clear. I was excited.”

Franklin Lobos Ramírez is a 53 years old retired footballer. He played for Cobresal, Deportes Antofagasta, Club de Deportes Santiago Wanderers and Unión La Calera, and briefly for the Chile national football team. Lobos had worked as a truck driver in the mine.

Yonni Barrios, called “The Doctor”, is a 50 years old electrician. He has knowledge of first aid, and was given responsibility for monitoring the health of his colleagues. “I felt I was in hell,” Barrios said in a letter to his wife.

Carlos Bugueño, 27 years old, joined the mine with Pedro Cortez. Previously, he worked as a watchman.

Alex Vega Salazar is a 31 years old heavy machinery mechanic. He is married to Jessica Salgado, and celebrated his birthday in the mine on September 22.

Ariel Ticona is a 29 years old miner. His wife, Margarita gave birth to his daughter on September 14. She was named Esperanza (Hope), at Ticona’s request.

Richard Villarroel is a 27 years old mechanic from Coyhaique.

Edison Peña is a 34 years old miner. “I want to go out soon,” he said on his first contact with his relatives. “I want to be free, I want to see the sun,” he added. He is a fan of Elvis Presley.

Claudio Yáñez is 34 years old, and works as drill operator.

José Ojeda, 46 years old, is the master driller. Ojeda is widowed and diabetic.

Luis Urzúa is a 54 year old topographer. He is the shift-leader, and was the first miner to talk with authorities. He is known as Don Lucho among the miners. He draw plans of the area of the mine where they are trapped.

Urzúa will be the last miner to leave the mine.

José Henríquez is a 54 years old drill master. He is also an evangelical preacher, and has worked in mines for 33 years.

Víctor Segovia is a 48 years old electrician. He is in charge of writing down everything that happens in the mine.

Pablo Rojas is a 45 years old explosives loader. Married, he had been working less than six months in the mine.

Juan Illanes is a 51 year old miner. He was a sergeant in the Beagle border conflict between Chile and Argentina in 1978, the incident which almost provoked a war between the countries.

Illanes was rescued on Wednesday, at 02:07 local time (05:07 UTC).

Jimmy Sánchez, 19, is the youngest miner. He had been working in the mine for five months before the accident. His role is to check the temperature and humidity in the mine.

Samuel Ávalos is a 43 years miner. His wife Ruth said “he was addicted to the cocaine.” His role in the rescue is to check air quality in the area the miners are living. According to the BBC, “Ávalos has worked in the mine for five months.”

Mario Gómez, aged 63, is the oldest of the miners. He has worked 51 years as miner. His father was also a miner, and is nicknamed “El Navegao” (“The Sailed One”). He was thinking of retiring in November.

Gómez also wrote the message “Estamos bien en el refugio los 33” (“We are fine in the shelter the 33 [of us]”).

Segovia is 48 years old. He is married to Jessica Chille, who said “To hear his voice was a confort to my heart,” after talking with him for the first time in 24 days. His sister María, was nicknamed “La Alcaldesa” (“The Mayoress”) for her leading role at Campamento Esperanza. His father, Darío Senior, was trapped in a mine for a week, and suffered serious injuries after two other mining accidents, according to the BBC.

Carlos Mamani is a 23 years old heavy equipment operator. He is also the only non-Chilean miner; Mamani is Bolivian. He began working in the mine just five days before the accident.

He was rescued at 03:11 local time (06:11 UTC) on Wednesday.

Renán Ávalos is a 29 years old miner, single, who had been working for five months in the mine before the accident. Florencio Ávalos is his brother.

Omar Reygadas is a 56 year old electrician. He began working in the mine shortly before the accident.

Esteban Rojas is a 44 years old miner. Rojas is married to Jessica Yáñez.

Friday, May 25, 2007

The Western Australian Government has announced that after September 1, 2007 all construction approvals for new homes must comply with new Environmental regulations. The new regulations known as Five Star Plus will be implemented in two stages.

Michelle Roberts, minister for Housing and Works, announced that the first stage would increase the cost of a new house by approximately AU$1000 with a second stage to commence next year, at a further cost to homeowners of $1000. “People building new houses should remember these costs would be offset by ongoing savings in water and energy bills of up to $750 per year,” she said.

The first stage aims to reduce greenhouse gas omissions by 129,000 tonnes over five years. “This is the equivalent of taking 30,000 cars off the road, and (has) the same benefit achieved by planting 15 trees per household,” said Roberts. The first stage will require house to have a range of measures including Solar, or five star rated gas or heat pump hot waters systems.

“It is estimated that if all homes in Western Australia upgraded to the Five Star Plus standards, there would be water savings of 30 gigalitres over five years,” said Roberts. The standards will require water efficient taps, showerheads and dual flush toilets. As well, all new swimming pools will be required to have a pool blanket to reduce evaporation.

The second stage of Five Star Plus will require the design to include alternative water supplies such as rain water tanks and grey water diversion systems.

Concerns from staff within government have been raised about the influence of the Housing Industry Association (HIA) on the government’s environmental initiatives. According to news source, The Age, a senior government official suggested that a more rigorous “building sustainability index” had been developed, but was dropped after intensive lobbying by Western Australia’s HIA. “It was canned at the last moment after huge lobbying,” said the anonymous government employee. “The HIA was very obstructionist.”

Wednesday, June 1, 2005

The U.S. Supreme Court on Tuesday overturned a witness tampering conviction against accounting firm Arthur Andersen LLP for destroying documents related to now-bankrupt energy giant Enron Corp. The verdict virtually put Andersen, once one of the largest accounting firms in the world and the fifth-largest in the United States, out of business.

In a unanimous opinion written by Chief Justice William Rehnquist, the court threw out the verdict due to serious flaws in the jury instructions. The Fifth Circuit Court of Appeals had upheld Andersen’s June 15, 2002 conviction in Houston.

In the court’s view, the instructions allowed the jury to convict Andersen without proving that the firm knew it broke the law or that there was a link to any official proceeding that prohibited the destruction of documents. “The jury instructions at issue simply failed to convey the requisite consciousness of wrongdoing,” Rehnquist wrote. “Indeed, it is striking how little culpability the instructions required.” Rehnquist’s opinion also expressed grave skepticism at the government’s definition of “corrupt persuasion”–persuasion with an improper purpose even without knowing an act is unlawful. “Only persons conscious of wrongdoing can be said to ‘knowingly corruptly persuade,’ ” he wrote.

The ruling came very quickly, as oral arguments in the case had taken place on April 27. Justice Department attorneys claimed Andersen employees were instructed “undertake an unprecedented campaign of document destruction” in order to impede a Securities and Exchange Commission investigation into Enron’s conduct. Deputy Solicitor General David Dreeben likened Andersen’s behavior to “shredding its smoking guns.”

However, Maureen Mahoney, arguing for Andersen, countered that the employees involved merely followed the company’s policy on destroying unneeded documents, and that the shredding occurred before Andersen received a subpoena on November 8, 2001. She also claimed that under the government’s legal definition of “corrupt persuasion,” acquittal was virtually impossible.

The justices seemed to indicate which way they were leaning very early in oral arguments, as they peppered the government lawyers with hostile remarks.

Justice Antonin Scalia called the government’s theory of prosecution “weird.” Justice Sandra Day O’Connor was particularly troubled by the trouble the jury initially had sifting the evidence. “If this thing is so confusing,” she asked, “how is a businessperson supposed to know? How is a lawyer supposed to know?”

Andersen’s appeal was backed by the National Association of Criminal Defense Lawyers. In a friend-of-the-court brief, the association claimed that the government’s broad definition of “corrupt persuasion” put defense lawyers at risk for prosecution simply for advising clients of their rights to assert legal privileges or review document retention policies.

Despite the ruling, which returns the case to the Fifth Circuit, it is highly unlikely Andersen will ever return as a viable business. It lost nearly all of its clients after its indictment, and was forced to shut down its American accounting practice due to federal laws that forbid convicted felons from auditing public companies. The firm still faces more than 100 civil suits related to its audits of Enron and other companies. Once 28,000 employees strong, the Chicago-based Andersen is now down to around 200 employees who are largely occupied with handling the civil suits and other details of winding down the partnership.