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Morton Blackwell's Subject Files
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Ronald Reagan Presidential Library
Digital Library Collections
This is a PDF of a folder from our textual collections.
Collection: Blackwell, Morton: Files
Folder Title: Laubach, Vincent A.
Box: 12
To see more digitized collections visit:
https://reaganlibrary.gov/archives/digital-library
To see all Ronald Reagan Presidential Library inventories visit:
https://reaganlibrary.gov/document-collection
Contact a reference archivist at: [email protected]
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National Archives Catalogue: https://catalog.archives.gov/
addlawbach file fi
le h resure
RE: Attached Order dated December 29, 1982
The attached order is very relevant to my case. It relates
to the "megabuck" cases which were a part of the fraud/collection
cases assigned to me at the Department of the Interior.
Shortly after starting on this assignment, I discovered
approximately $60 million which could be collected by the
government. These were civil penalties due the government
from the years 1978-81, but no effort had ever been made to
collect them. (Indeed, very little was know about these cases
until my involvement.)
I strongly recommended the prompt collection of these monies
as well as the perhaps $100 million in taxes/fees due the
government in other cases. in which coal operators were clearly
defrauding the government by filing false returns, etc..
My supervisors made it clear that they had no intention of
vigorously pursuing collection of the monies due the government.
Although I was assigned the defense of the "megabucks" cases, I
made it clear that I believed our position was indefensible and
that the courts could very well order us to collect this money,
thereby damaging the credibility of the Department. My supervisors'
response was to take me off the cases and to continue to attempt
to defend them. The attached order speaks for itself as to the
final disposition of this case.
Dear Monton.
Thought this would he dely fand To you
I'l call and explain their to you.
My but
Vance
UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
SAVE OUR CUMBERLAND.MOUNTAINS, INC.,
)
et al.,
)
)
Plaintiffs,
)
)
V.
)
Civil Action
)
No. 81-2134
JAMES G. WATT, et al.,
)
)
Defendants.
)
FILED
)
)
DEC 29 1982
ORDER
JAMES F. DAVEY, Clerk
In accordance with this Court's Memorandum Opinion of
September 30, 1982, and upon consideration of Defendants'
Motion for Reconsideration and Plaintiffs' Opposition thereto
and the entire record herein, it is this 28th day of
December, 1982, ADJUDGED, ORDERED and DECREED that:
1. Section 518 (h) of the Surface Mining Control and
Reclamation Act of 1977 imposes a mandatory duty upon the
Secretary of the Interior to assess a civil penalty of not
less than $750 per day against any coal mine operator subject
to regulation under the Act who fails to correct a violation
cited under Section 521 (a) of the Act, 30 U.S.C. Section
1271(a);
2. Since the initiation of the instant suit, the
Office of Surface Mining ("OSM") has assessed formerly
unassessed failure-to-abate cessation orders and is hereby
ordered to assess any remaining unassessed failure-to-abate
cessation orders and proceed with collection activities on
all such cases;
3. The defendants are permanently enjoined, and
directed, to remain current on the timely assessment of
penalties according to Section 518(h) of the Surface Mining
Control and Reclamation Act of 1977 and regulations;
23
- 2 -
4. 30 C.F.R. 723.15 (b) (2) imposes a mandatory duty upon the
Secretary of the Interior and the Director of OSM to take enforce-
ment action pursuant to Sections 518 (e), 518 (f), 521 (a) (4) or
521 (c) of the Surface Mining Control and Reclamation Act of 1977,
against any coal mine operator subject to regulation under the
Act who fails to correct a violation cited under Section 521 (a) of
the Act for more than thirty (30) days beyond the expiration of
the period prescribed for its correction, and to do so within
thirty (30) days thereof;
5. The defendants are permanently enjoined, and directed
to take mandatory enforcement action pursuant to 30 C.F.R.
723.15 (b) (2) (or, where applicable, the identical 30 C.F.R.
845.15 (b) (2) -- when the underlying violation has been issued
during the permanent program). OSM is directed to review each
of the enforcement files in which a cessation order has been
issued and the violation remains unabated, and to determine the
appropriate alternative enforcement action (including injunction,
individual civil penalties, criminal action, suspension or revoca-
tion of permit) for any case determined to have been unabated
after thirty (30) days. The defendants are directed to pursue
immediately and diligently all such enforcement action as required
to reduce and eliminate the backlog of pending cases, taking all
such action as required by the regulation. Defendants are directed
to allocate and commit sufficient personnel and resources to
assure such results and they shall inform the Court of the level
of resources allocated in the report required by paragraph 7 of.
this Order;
6. OSM will review each failure-to-abate cessation order
identified in the review conducted pursuant to paragraph 5 of
this Order and determine whether the cessation order has been
previously terminated; review the file for each cessation order
not previously terminated; and determine on the basis of factors
set forth in the regulation whether to:
- 3 -
a. seek injunction under 521 (c) ;
b. file a criminal action under 518 (e) ;
C. assess and file action to charge the civil penalty
against corporate officers under 518 (f) ; and/or
d. seek suspension or revocation of the permit under
521 (a) (4).
7. Beginning March 1, 1983, and continuing thereafter,
the defendants shall file bi-monthly reports with the Court
setting forth the actions taken by the Department in that time
period to 1) assess and collect Section 518 (h) civil penalties
under the Court's Order and 2) to report on the alternative enforce-
ment actions it has taken under paragraphs 5 and 6 of this Court's
Order. This report will set forth all penalties assessed to date,
when each was assessed and what actions have been taken to collect
each penalty in the time period covered by the report. The report
will further identify each cessation order which has not been
terminated and what enforcement action has been taken as to the
case. The plaintiffs shall have thirty (30) days from the filing
of each report in which to review the actions of the Department to
determine whether the Department has complied with the Court's Order,
and to file any objections thereto with the Court. Plaintiffs may
apply for an award of fees and expenses for work reasonably done in
connection with the implementation of this Court's Order.
8. The Court will retain jurisdiction. Plaintiffs are entitled
to an award of reasonable attorneys' fees and costs under Section
520 (d) of the Surface Mining Control and Reclamation Act of 1977 for
work done to date. Plaintiffs are directed to file an appropriate
motion for award of fees and expenses, which motion will also include
the amount claimed.
9. Defendants' Motion for Reconsideration is denied.
Entered: December 28, 1982
Bawifar Parker SPath
United States District. Judge
4
MEMORANDUM
OCT 23 1981
TO:
Deputy Director
Office of Surface Mining
FROM:
Associate Solicitor
Division of Surface Mining
SUBJECT: "Megabucks" Case Lawsuit; Civil Action #81-2134
Attached is a Request for Admissions which necessitates our
immediate attention. Vince Laubach is handling this matter for
our office and needs to know who you wish to designate from your
office to supply the necessary information. Could you have the
person who is to supply this factual imput contact Vince Laubach
as soon as possible? His phone number is 343-4671.
We appreciate your cooperation.
Donald R. Tindal
Donald R. Tindal
Attachments
CC: Associate Solicitor, DSM
Assistant Solicitor, L & E Branch
Assistant Solicitor, Governmental
Relations Branch
All Field Solicitors
bcc: Docket DSM Chron
Sol
DSM Subj
LAUBACH: jh:10/22/81 - EnfDisk 3
Tarker,
IN THE UNITED STATES DISTRICT COURT FOR THE
DISTRICT OF COLUMBIA
:
SAVE OUR CUMBERLAND MOUNTAINS, INC., and
:
COUNCIL OF SOUTHERN MOUNTAINS, INC.,
:
:
Plaintiffs,
:
:
V.
: Civil Action No.
: 81-2134
JAMES G. WATT, Secretary of the
:
Interior, and
:
RICHARD HARRIS, Director, Office of
:
Surface Mining,
:
:
Defendants.
:
FILED
:
OCT 1 1981
\
PLAINTIFFS' REQUEST FOR ADMISSION
JAMES F. DAVEY, Clerk
Pursuant to Rule 36 of the Federal Rules of Civil
Procedure, plaintiffs hereby request that the defendants
admit, for the purpose of this action only, within thirty
(30) days after service of this request, the truth of each
of the following statements:
1. Since 1978, the Secretary of the Interior
("Secretary") and the Director of the Office of
Surface Mining Reclamation and Enforcement
("Director"), have issued notices of violation to
operators of surface coal mining operations, pursuant
to Section 521 (a) (3) of the Surface Mining Control
and Reclamation Act of 1977 ("Act").
2. Pursuant to Section 521 (a) (3) of the Act, the
notices of violation issued by the Secretary and
Director to operators of surface coal mining opera-
tions since 1978 have required the abatement of the
violations cited and have prescribed the period of
time during which abatement of each cited violation
must be accomplished.
3. Operators who failed to abate cited violations
within the period prescribed in the notices of viola-
tion issued to them are subject to cessation orders
issued by the Secretary and the Director pursuant to
Section 521(a) (3) of the Surface Mining Act. The
Secretary and the Director have issued cessation
orders pursuant to that Section.
4. Section 518(h) of the Act requires the Secretary
to assess a civil penalty of no less than $750/day
for failure to abate a cited violation within the
period prescribed.
- 2 -
5. In the period 1978-1981 the Secretary and the
Director failed to issue any Section 518(h) civil
penalty assessments to more than 750 operators who
were issued cessation orders pursuant to Section
521 (a) (3) of the Act for failure to abate cited
violations.
6. A total of over 900 instances exist in which
operators who were issued cessation orders pursuant
to Section 521(a) (3) of the Surface Mining Act in
1978, 1979, or 1980, were not issued Section 518(h)
civil penalty assessments pursuant to those cessation
orders.
7. The cessation orders for which no civil penalties
were assessed comprised a total of over 1,900
separate unabated violations.
8. The total unassessed civil penalty for the
Section 521 (a) (3) failure-to-abate cessation orders
issued to operators since 1978 amounts to approxi-
mately $44,000,000.
9. The Secretary and the Director have deliberately
chosen not to assess the civil penalties due in 1978,
1979, 1980, and 1981 for the Section 521 (a) (3) cessa-
tion orders referenced in #5, #6, #7, and #8 above.
10. No effort has been made by the Secretary and the
Director to collect the unassessed civil penalties
amounting to approximately $44,000,000.
11. In more than half of the instances referenced in
#5, #6, #7 and #8 above in which no Section 518(h)
civil penalty was ever assessed, the operator has
continued for more than thirty (30) days after
October 6, 1980 to fail to abate the cited
violations.
12. Several hundred operators who were assessed
Section 518(h) civil penalties in the period
1978-1980 (prior to October 6, 1980) for failure to
abate cited violations have continued for more than
thirty (30) days after October 6, 1980 to fail to
abate the cited violations.
13. Over 90 operators who were issued Section
521 (a) (3) failure-to-abate cessation orders after
October 6, 1980, have continued for more than thirty
(30) days after the issuance of such orders to fail
to abate the cited violations.
14. Since October 6, 1980, the Secretary and the
Director have initiated no criminal proceedings
against an operator pursuant to Section 518(e) of the
Surface Mining Act within thirty (30) days of an
operator's continuing failure to abate a violation
for more than thirty (30) days after issuance of a
Section 521(a) (3) failure-to-abate cessation order.
15. Since October 6, 1980, the Secretary and the
Director have initiated no criminal proceedings pur-
suant to Section 518(e) of the Surface Mining Act.
16. Since October 6, 1980, the Secretary and the
Director have initiated no individual civil or crimi-
nal penalty proceedings against an operator pursuant
- 3 -
to Section 518(f) of the Surface Mining Act within
thirty (30) days of an operator's continuing failure
to abate a violation for more than thirty (30) days
after issuance of a Section 521(a) (3) failure-to-
abate cessation order.
17. Since October 6, 1980, the Secretary and the
Director have initiated no permit revocation pro-
ceedings against an operator pursuant to Section
521 (a) (4) of the Surface Mining Act within thirty
(30) days of an operator's continuing failure to
abate a violation for more than thirty (30) days
after issuance of a Section 521 (a) (3) failure-to-
abate cessation order.
18. Since October 6, 1980, the Secretary and the
Director have initiated no permit revocation pro-
ceedings pursuant to Section 521 (a) (4) of the Surface
Mining Act.
19. Since October 6, 1980, the Secretary and the
Director have filed no injunction actions against an
operator pursuant to Section 521(c) of the Surface
Mining Act within thirty (30) days of an operator's
continuing failure to abate a violation for more than
thirty (30) days after issuance of a Section
521 (a) (3) failure-to-abate cessation order.
20. In 1981, the Secretary and the Director have
filed fewer than ten (10) injunction actions of any
kind pursuant to Section 521(c) of the Surface Mining
Act.
21. Since October 6, 1980, the Secretary and the
Director have established no formal system for eval-
uating and initiating additional enforcement action
pursuant to Section 518(c), 518(f), 521 (a) (4) and
521 (c) of the Surface Mining Act, against operators
who have failed to abate cited violations for more
than thirty (30) days after the issuance of a
failure-to-abate cessation order.
2 Shnes Dally
Brent N. Rushforth
L. Thomas Galloway
Dow, Lohnes & Albertson
1225 Connecticut Ave., N.W.
Suite 500
Washington, D.C. 20036
L Lee L. Bishop Big
(202) 862-8015
Harmon & Weiss
1725 I Street, N.W.
Suite 506
Washington, D.C. 20006
(202) 833-9084
ATTORNEYS FOR PLAINTIFFS
BLOWING THE WHISTLE
ON CORRUPTION
How to kill a career in
Washington
siona
midmi
Non dictoph
his
this
ni
his
TO
The
NA
Edward
to
the
DO.
the
section
was
end
it
might
why
into
had
This
And
to
gi
and
the
what
was
the
run
retal
coult
Vargas
proved
the
low
of
the
the
government
A
you
of
superior,
at
the
also:
Profiling the Criminal Mind
How to Read a Juror
Pornography: One City's
Why blowing
the whistle
on corruption
becomes
The
Sound of
Professional Suicide
"This material might not be earth-
fice dictaphone, had incautiously in-
last night and real-
shaking, but I thought you might be
structed Samuels on how to accept
ly thought about my
interested."
bribes for overlooking sub-par per-
family," he said. "I just
With that modest opener, John
formance.
cannot put them through
Samuels (not his real name) pro-
Whether all of this information
all of this. They don't
ceeded to reveal the fruits of his
would have sparked a congressional
deserve it. I have decided to
private, unauthorized investigation
investigation, captured the attention
forget about this whole af-
into government corruption.
of the public, or initiated a cleansing
fair and go on with my life."
Samuels had come to the Govern-
of his agency will never be known.
Senator Edward Kennedy (D-
ment Accountability Project (GAP) in
Samuels decided to remain silent.
Mass.) had employees such as Samu-
Washington, DC, at the Institute for
As he prepared to volunteer this in-
els in mind when he talked about the
Policy Studies. Each week three or
formation to various members of
vast number of employees who must
four federal employees drop by
Congress, he became tense and
have known about Watergate, FBI,
GAP's offices to discuss ways of pre-
uneasy. His family was scared and
and CIA illegalties, and other politi-
senting their cases to Congress and
the fears were valid. It might cost
cal abuses:
the public, and strategies to avoid or
Samuels thousands of dollars to pro-
"(W)e should ask ourselves why
fight reprisals.
tect his job. Those who had freely
none of the thousands of honest,
The corruption Samuels disclosed
provided Samuels with information
loyal, and sensitive federal
was pervasive. As a construction in-
would probably recant or withdraw
employees who knew or suspected
spector for a federal agency, he had
their friendship. A number of people
such misconduct did not stand up
personal knowledge of shoddy and
might object to his using a dic-
and say, 'Stop. This is wrong.' And
deficient construction practices by
taphone to gather information. His
why none of them
were willing to
private contractors. He knew his
agency would start covering up and
tell the Congress and the American
superiors received free vacations
vent its collective wrath upon him.
people what was happening."
and entertainment, had their homes
The entire federal government might
The answer to that question re-
remodeled and found jobs for their
decide to use him as an example to
quires only a review of what happens
relatives-all courtesy of a private
all those who might be tempted to
to those who do say, "Stop. This is
contractor. These superiors later ap-
launch unorthodox investigations of
wrong." They usually pay a heavy
proved a multi-million dollar no-bid
their own.
price for their fidelity to the public
contract with the same "generous"
As for reporters and writers, they
trust. Dr. Philip Vargas' experiences
firm.
would gather for a few days, then
provide one such example.
Samuels also had evidence that
move on to the next story. He would
Vargas also thought about the con-
other firms were hiring non-union
be left without a job, with fewer
sequences of blowing the whistle
laborers at a low wage while receiv-
friends, with massive battles loom-
before he decided to fight the sup-
ing substantially higher payments
ing, and without the financial means
pression of a government report. As
from the government for labor costs.
of fighting them.
director of the Confidentiality and
A former superior, unaware of an of-
And for what? Would the corrup-
Privacy Study for the Commission on
tion end or just take new forms?
Federal Paperwork, he and his staff
by Louis Clark
Finally, Samuels missed an ap-
had prepared an exhaustive study in-
pointment at our office. When we
to the information practices of the
Staff attorney. Government
called him, he confirmed our suspi-
federal government. In particular, the
Accountability Project
cions. "I am sorry, but I went home
report condemned the illegitimate
10
Alfred Gescheidt/Henry Tyler Locke
You see,
if I had
gone along
with 'the pro-
gram' I would
not have deserved
my son's love and
circum-
respect." Now a year has
vention of the
passed since Vargas became
Freedom of Information and Privacy
the first whistleblower to be ousted
Acts by federal agencies.
during President Carter's ad-
"The deeper we dug into the infor-
ministration. Vargas disclosed his
mation practices (of the govern-
report to Congress and the press,
ment), the more painfully aware I
where it created more interest, great-
became that many officials were not
er praise and far more excitement
going to like what we were discover-
than its watered-down, innocuous of-
ing," Vargas said in describing his
ficial counterpart. That official study
would recommend whistleblowing to
motivation. "When the storm began
was filed and forgotten.
others, he replied with a laugh, "I
to swirl, I thought of my father. He
As for Vargas, after his firing he
would not recommend it. But if I had
was a simple man, a migrant worker
soon learned he would not receive
it to do over, I would do it again."
who could neither read nor write. But,
help from the White House. Despite
Goverment whistleblowers are
you know, he had more integrity in
an impressive and distinguished
public employees who disclose infor-
his little finger than some very in-
background, he cannot find work.
mation to the public about govern-
fluential people in this town (Wash-
Recently he lost his home when he
ment activity which is illegal, ineffi-
ington) have in their entire bodies.
could not meet the mortgage
cient or wasteful, and which endan-
"I have a doctorate and a Harvard
payments. The Civil Service Commis-
gers the health, safety or freedom of
law degree and neither mean a thing.
sion took 10 months to decide that it
the American public. Many of the
I am a failure unless I can look into my
did not have jurisdiction
revelations of the past decade pro-
son's eyes, like my father could mine.
Asked if despite his woes, he
vide a testament to the power of the
individual conscience to combat the
regulations at the General Services
The administrator of GSA called
forces of institutionalized corrup-
Administration. In 1969 he first
Palman, in effect, a racist, and ped-
tion, wrongdoing and neglect.
observed the eroding of the merit
died false and libelous material to
Defense Department analyst Er-
system at GSA. After four years of in-
Congress and the press. With letters
nest Fitzgerald testified about rthe
ternal protest, he finally requested
of praise from every senior black em-
$2.5 billion cost overruns in the O5A
the Civil Service Commission to in-
ployee within his region, Palman
aircraft program. In describing the
vestigate the "spoils system" which
withstood the smear. The press,
pressure to mislead Congress, he
by that time had supplanted the merit
angry at the attempted manipulation,
recalls, "I was supposed to say that
system.
turned its guns upon the admin-
we were not really sure the cost over-
The commission conducted "the
istrator. But despite this external
runs existed. But we were sure. I was
most exhaustive investigation in its
support, Palman later was forced to
(then) supposed to say that maybe we
history." After affirming that a poiiti-
retire.
had a little overrun, but that the C5A
cai patronage cabal had subverted
In their campaign to identify,
was a grand machine. The fact is, it is
the law, the commission recom-
defuse, isolate and repudiate the
not a grand machine. It is one of the
mended the firing of five senior of-
whistleblower, agencies draw upon
biggest technical disasters in his-
ficials-including two presidential
other retaliatory options besides fir-
tory, exceeded only by a few other
appointees-and the suspension of
ing. A few such techniques are:
contracts we have had with still other
three others. Later, the perpetrators
1) The phony open door.
big aerospacers."
of the abuses escaped unscathed
When John Stockwell, a former
Dr. J. Anthony Morris, a virologist
when the commission dropped the
CIA case officer, charged the CIA
for the Food and Drug Administra-
charges.
with corrupt practices and publically
tign, objected to the swine flu im-
These four whistleblowers ad-
resigned, the agency apparently
munization program as dangerous
hered to the Code of Ethics for Gov-
decided not to be caught off guard
and unnecessary. Beginning in 1960,
ernment Service, adopted by the 85th
again by disgruntled employees.
his job was tp study the risks and
Congress. The code affirms that "any
Citing Stockwell's public letter of
benefits of numerous vaccines. Over
person in government should: put
resignation, CIA Director Admiral
the years his research identified flu
loyalty to highest moral principles
Stansfield Turner established "an
vaccines as ineffectual and highly
and to country above loyalty to per-
open door policy." In a series of
risky-with a possible paralytic reac-
sons, party or government depart-
directives and memoranda, Turner in-
tion as one of the dangers.
ment." It concludes with the admoni-
structed all employees to bring any
Ignoring Morris, the FDA began a
tion to "uphold these principles, ever
evidence of questionable or wrongful
mass innoculation of the American
conscious that public office is a
activity to his personal attention.
public. As the deaths, injuries, and
public trust."
Donald Jordan, 26-year veteran of
lawsuits mounted, it became in-
The courage and determination of
the agency with outstanding perfor-
creasingly evident that the program
whistleblowers to act against the
mance evaluations, notified the
was a fiasco. Critics, such as Morris,
norm is what ignites the public imag-
director of the agency's use of "soft
finally prevailed and the program was
ination. To the beseiged bureaucrat
files"-unofficial, secret informa-
halted.
they are boat rockers. To others they
tion maintained on CIA employees
When HEW's suppiemental appro-
are informers and tattle-tales. And to
who are internal critics. Within days,
priations reached the floor of the
the Carter administration, they are an
two agents from Turner's office paid
House on July 20 of this year, the vote
inconvenience. In actual effect, they
Jordan a visit. "You have drawn your
was 2 to 1 in favor of deleting funds
are the agents of accountability.
last paycheck," Jordan recalls their
for a new flu vaccination program. As
message. "I had 30 minutes to leave
Rep. John Dingell (D-Mich.) said,
The government does not respond
the premises," he added, "about a
"This is swine flu II, brought to you by
to the problems raised by whistle-
minute per year of public service."
the same people who brought you the
blowers. Instead, the government
2) Psychiatric fitness for duty ex-
(original) swine flu fiasco." He added
makes the whistleblower the prob-
amination.
that liability costs of the swine flu
lem.
In March of this year, the House
caper had cost taxpayers $1.2 billion.
Despite universal recognition of
Subcommittee on Compensation
Stanley Mazaieski, a scientist for
the truth of his allegations, Fitz-
and Employee Benefits held hear-
the National Institute of Occupa-
gerald was ousted in a one-man "re-
ings on the mandatory fitness for du-
tional Safety and Health, pressed for
duction in force." After a four-year
ty examination. At the hearing, Con-
tighter controls over the chemicals
legal battle, he won reinstatement to
gressman Walter Fauntroy (D-DC) re-
chloroform and cadmium. His data
a "do-nothing" position in govern-
ported the findings of his own hear-
indicated an increased risk of cancer
ment. The fight to regain his former
ings on abuses in administering man-
among workers exposed to both
position is entering the ninth year-
datory psychiatric examinations.
chemicals. When NIOSH did not Im-
at a legal cost of half a million dollars.
Typical of the abuses he recounted
plement tighter standards, Mazales-
Morris-fired six days after object-
were federal employees who, after fil-
ki went public. Afterwards, medical
Ing to the swine flu caper-and
Ing discrimination complaints or
research corroborated the link be-
Mazaleski-fired two weeks after his
making suggestions about how to
tween cancer and cadmium.
public protests-were charged with
end waste, were ordered to take an
Arthur Palman, a regional person-
"substandard performance" and "in-
examination. Employees had told
nel officer, was responsible for Im-
subordination." They are both
Fauntroy that some supervisors fre-
plementing civil service laws and
fighting for reinstatement.
quently use the examinations as a
10
reprisal against disfavored employ-
pleased, for his cost-consciousness
ferred to Oklahoma and Wyoming.
ees who had fallen out of favor.
was embarrassing. He was fired, but
They did not want to go, and lost their
He noted that the order to take the
ordered reinstated six months later
jobs when they refused to transfer.
examinations could not be appealed
by the Civil Service Commission.
Dr. John Nester incurred the wrath
and disobeyance -was grounds for
1, Upon his return he was ordered to
of his agency, the Food and Drug Ad-
dismissal. He concluded that the ex-
take a psychiatric examination. It
ministration, when he charged-at a
aminations had a "severe chilling
took one psychiatrist 20 minutes to
Senate hearing-that his agency was
effect on the free flow of ideas and
destroy a distinguished career.
a captive of the drug industry. For
opinions from lower level to upper
Olson was labeled a "chronic
years he had challenged both his own
level employees" and "have been
paranoid."
agency and drug companies over the
used to suppress complaints.
Eventually he won his battle
approval of new drug applications,
He further testified: "The only
against that charge as well. The Civil
and five times the agency had re-
reason that I found for examinations
Service Commission found the evi-
assigned him to jobs outside his area
being given is that the person had the
dence of instability insufficient, but
of expertise. Finally, after exhaustive
audacity to have a sense of con-
the brand "mentally unfit" remains in
battles, the head of the FDA apolo-
science, to be aggressive and asser-
his personnel file-a weapon de-
gized for the reassignments and
tive in their rights, and wanted to see
signed to follow him wherever he
moved him back to drug evaluation.
the government perform well within
goes and subvert his opportunity for
4) Other methods.
their own particular area of work. So
reemployment. Olson is a victim of
Negative performance ratings,
that if you were not docile, if you were
what he calls "bureaucratic tyranny,
elimination of staff support, suspen-
aggressive enough to assert that
psychological warfare and political
sions, demotions, denial of access to
there ought to be some improve-
psychiatry."
meetings, unpleasant or impossible
ments or if you were aggressive
3) Transfer and reassignment.
tasks, and removal to smaller offices
in your own aspirations for promo-
The Malek Manual, Nixon's for-
are additional methods of reprisal.
tion or pursuing disdrimination com-
mula for politicizing the federal civil
Used in combination, these actions
plaints, somebody decided that you
service, described transfer and reas-
alienate and frustrate critics and
had to be crazy. For example, if you
signment as two effective methods
whistleblowers.
thought the government should be
to eliminate "undesirables." The
The process is a cynical one. One
saving money, you had to be crazy."
manual suggested transferring such
whistlebiower, asking that his name
Charles Olson is a whistleblower
employees to "places where they
be withheld because he had "had it
whose career was destroyed by the
would rather resign than go."
with publicity," described his ex-
dreaded "psychiatric fitness for
Sandy Kramer and Valerie Koster
perience.
duty" examination. An electronics
disclosed the substandard care and
At a departmental meeting he pre-
engineer for the Defense Depart-
unhealthy conditions at an Indian
sented concerns about a design be-
ment, he traveled across the country
health service hospital in Shiprock,
ing developed by his agency, a prob-
evaluating munitions contracts. He
New Mexico. An investigation sub-
Iem obviously within the scope of his
sought ways to save taxpayers'
stantiated the charges, but the
duties to help correct.
money and to avoid costly delays.
nurses were fired nonetheless. When
The Defense Department was not
they won an appeal, they were trans-
(Please turn to page 19)
GAP: Assistance and Protection for the Whistleblower
The Government Accountability Project traces
nalists, union representatives and interested
back to the early 1970s when the Project on Official
citizens to explore ways to expand and protect the
Illegality (POI) was formed at the Institute for Policy
disclosure rights of government workers.
Studies. At first, POI concentrated solely on prob-
Shortly after the conference, the name of POI was
lems faced by national security whistleblowers
changed to Government Accountability Project
such as Daniel Ellsberg and Victor Marchetti. But in
(GAP) to reflect the organization's expanded con-
1976 POI widened its area of concern when
cern about the breakdown in accountability of
research disclosed a pattern of illegality and
government toward the American public. GAP's
whistleblowing that extended beyond the national
first two projects were to develop model legisla-
security apparatus.
tion, the "Openness in Government Act," and pub-
Outraged workers who locked horns with their
lished A Whistlelower's Guide to the Federal
agencies over harmful and irregular practices were
Bureaucracy.
turning up at the Departments of Health, Education
This past May, GAP held its second national con-
and Welfare, Argiculture, Labor, Housing and Urban
ference on whistleblowing entitled, "Whistleblow-
Development, Interior as well as several regulatory
ing in National Security Agencies." The conference
agencies. POI sought to encourage and support
explored the special problems encountered by
these federal employees.
whistleblowers in national security agencies and
In June 1977, POI held the first annual national
included participants from the CIA, FBI, the armed
conference on whistleblowing, bringing together
forces, the Nuclear Regulatory Agency and
federal employees, legislators, lawyers, jour-
municipal police departments.
Whistleblowers
(Continued from page 13)
"After my slide exhibit, one official
issues, encourage silence, and avoid
Whistleblowers disrupt this process.
had me reshow my very first slide,"
embarrassment. And they are nearly
In this scheme everyone has a de-
he recounted. "When I did, he said,
always more powerful than the whis-
fined and narrow role to play. Adher-
'That is the last one I liked.'
tleblowers. History records few sur-
ence to the code of ethics for govern-
He was assigned temporarily, then
renders to one person armies.
ment employees and whistleblowing
permanently, to the supervisor who
A scandal made public has a ripple
violates the established rules of the
had expressed the most resistance
effect. Like precisely placed domi-
bureaucratic game. These bureau-
to his ideas of design modification.
noes, a bureaucracy has a chain of
crats would just as soon let those
"My new job was humiliating. They
command. If one wrongdoer falls, he
who create waves drown in the resul-
had me taking notes at meetings. I
or she may bump against and knock
tant wake.
was a highly paid stenographer," he
over others. The "others" are those in
Politics is the struggle of com-
said. He lost staff and his office.
the bureaucracy who failed as man-
peting interests. Too often it is the
He submitted a grievance and a
agers to detect or investigate
public interest that is ignored.
year later had the results. "I had won.
abuses. Rather than admit nonfeas-
Whistleblowers represented that in-
But the agency administrator re-
ance, they find It preferable to rally
terest. When citizens-as con-
ceived the recommendations, then
against the "boat-rocking" whistle-
sumers, participants in public in-
supposedly reviewed the volumi-
blower.
terest groups or voters-are cut off
nous records and reversed the ex-
By not "going along to get along"
from the information, they are disen-
aminer. All in a single day."
whistleblowers are not only locked
franchised. When government of-
He continued to pursue the issue
into confrontation with misfeasants
ficials violate the public trust for
of the design flaw. Six months after
and nonfeasants, but also with the
private benefit, the taxpayers lose.
the reversal of his grievance he went
power brokers throughout the bu-
Whistleblowers serve the public
to the White House about the defect.
reaucracy and private industry. When
as agents of government accoun-
As he recalls, "No one was much in-
the House of Representatives turned
tability. They are treated as pariahs
terested." Two weeks later he was
down HEW's bid for a new flu in-
by those bureaucracies that have
fired.
noculation program, partly because
ceased to serve the public. Yet the
To date, this whistleblower has
of whistleblowing on a previous pro-
whistleblowers are the true heroes of
mortgaged his home and spent 15
gram, HEW and FDA lost funds.
the bureaucratic age. They are those
years of retirement funds fighting for
There is another group, not so
very few, praised by Thoreau, who
reinstatement. In the meantime, the
directly affected, who, while they
"serve the state with their con-
faulty design has come back to haunt
might be embarrassed for insuffi-
sciences also, and so necessarily
the agency. Whether corrections will
cient oversight, mainly are interested
resist it for the most part, and are
gloss over or solve the problem is not
In 8 smooth-running bureaucracy.
commonly treated as enemies by it."
known. There is no critic there to
check.
When asked if he would do it again
if given an opportunity, he shot back,
"No! I followed the code of ethics for
government workers. I did put loyalty
to nation above loyalty to depart-
ment. But 1 paid, and am paying, a
heavy price. 1 should have thought
about my family first. There won't be
a next time. That is a truly sad com-
mentary about this country."
Whistleblowers violate a powerful
taboo. They have deserted their agen-
cies for the enemy-the public. As a
result, powerful interests are af-
fected, interests that command far
greater influence than any individual
whistleblower can muster in opposi-
tion.
These interests may or may not
form a conspiracy. There need be no
communication or knowledge of
common involvement among them.
All have common goals-to discredit
the whistleblowers, obscure the
10
United States Department of Justice
UNITED STATES ATTORNEY
EASTERN DISTRICT OF MICHIGAN
817 FEDERAL BUILDING
DETROIT. MICHIGAN 48226
May 3, 1976
There you are notes
Mr. William B. Gray, Director
Executive Office for U. S. Attorneys
Department of Justice
Washington, D. C. 20530
Re: Vincent A. Laubach
Assistant U. S. Attorney
Dear Mr. Gray:
On May 5, 1976, Assistant U. S. Attorney Vincent
Laubach will have completed an additional year of Federal
service. Enclosed is a Form 52 requesting an increase
for Mr. Laubach from his present salary of $26,900 to
$28,600. This increase is consistent with your most
recent salary schedule dated October 16, 1975.
Mr. Laubach joined our staff after completing his
tour of duty as a trial attorney with the Tax Division
of the Department of Justice. We specifically recruited
Mr. Laubach to do complicated litigation with emphasis on
major fraud trials. Since joining our staff, Mr. Laubach
has been in trial almost continuously and has done an
excellent job. He has had to work giant amounts of over-
time in order to keep up with his trial schedule as well
as prepare his complicated fraud cases for trial. As you
know, working with fraud cases also requires that
considerable time be spent with the investigators.
Mr. Laubach is a willing worker who gets along well
with his associates, and is highly regarded by the judges
and the court personnel. He is a real credit to our staff,
-
AUNA
Re: Vincent A. Laubach
Assistant U. S. Attorney
Eastern District of Michigan
and we were very pleased when he made the decision to
join this office after leaving the Tax Division.
Your favorable concurrence in this recommendation
will be appreciated.
Sincerely,
United States Attorney
RBG/mp
Encs.
C
United States Department of Justice
UNITED STATES ATTORNEY
EASTERN DISTRICT OF MICHIGAN
817 FEDERAL BUILDING
DETROIT. MICHIGAN 48226
April 18, 1977
Mr. William B. Gray, Director
Executive Office for U. S. Attorneys
Department of Justice
Washington, D. C. 20530
Re: Vincent A. Laubach
Assistant U. S. Attorney
Dear Mr. Gray:
Mr. Vincent Laubach will have completed another year of
service with this office on May 23, 1977. I am asking that
he be rated an "outstanding" Assistant U. S. Attorney and am
requesting a salary increase of $1,000.00, raising his salary
from $30,600.00 to $31,600.00. The appropriate Form 52 is
attached hereto. This increase is consistent with your
memorandum of October 16, 1976.
As his personnel file will reflect he joined our staff
as an experienced attorney coming from the criminal tax
section of the Department of Justice. For that reason
he was assigned to the fraud section and has played a major
part in our prosecution of both HUD violations and Welfare
Fraud Cases. These are intricate cases. Mr. Laubach has
done an excellent job with this category. He has devoted
many hours of overtime to successfully handle his assignment,
and has done so willingly. He is a most dedicated government
employee.
Mr. John Conley, Chief. of the Criminal Division concurs with
this recommendation.
Park Very truly yours
PHILIP VAN DAM
United States Attorney
me