Archives for 2016

Washington, DC – Cause of Action Institute (CoA Institute) today sent a letter to Secretary of State John Kerry and State Department Inspector General (IG) Steve Linick following confirmation that a yet-to-be named staffer deleted approximately eight minutes from the video record of the Department’s December 2, 2013 press briefing.

“Although the video has now been restored, this deletion raises numerous questions about the State Department commitment to transparency and honest dealing with the American public,” the letter states. “It also has possible criminal implications. It is a federal crime to unlawfully remove, destroy, or mutilate a federal record. The State Department has also revealed that this unnamed staffer did not act alone but that she received a phone call and was told to alter the record.”

To date, there is no evidence that federal authorities have begun any criminal investigation of State Department staff conduct under 18 U.S.C. § 2071 regarding this matter. Moreover, the State Department has stated it would no longer investigate this matter, even with considerable gaps in the information still outstanding.

The letter states: “As the head of the State Department and its Office of Inspector General, respectively, you each have an obligation to refer matters to the Attorney General whenever there is a reason to believe that a violation of federal criminal law has occurred.”

Cause of Action Institute is seeking more information to understand whether this incident could include criminal charges for aiding and abetting or conspiracy under 18 U.S.C. § 371.

The letter requests that Sec. Kerry and the IG immediately refer and report the relevant staff to the Attorney General for possible criminal violations of this statute arising from their alteration of the video record of the Department’s December 2, 2013 press briefing.

Washington, DC – The U.S. Court of Appeals for the District of Columbia today ruled in favor of Rhea Lana Riner and her children’s clothing consignment business in her lawsuit against the U.S. Department of Labor. Cause of Action Institute (CoA Institute) represents Rhea Lana, Inc. The ruling overturns the district court’s dismissal of her complaint and allows the case to proceed.

Rhea Lana: “I am grateful that the Court of Appeals is allowing my case to go forward. The Labor Department’s crusade to classify volunteers as employees has put my business and livelihood in jeopardy. I look forward to presenting my case before the district court in the hopes of being able to run my business without the constant threat of civil penalties from the federal government.”

Rhea Lana founded her clothing consignment company in her living room more than a decade ago. Since the company’s humble beginnings, Rhea Lana, Inc. has expanded as a franchise with 80 locations across 24 states. However, in 2013, the U.S. Department of Labor conducted an audit and sent Rhea Lana a letter claiming that her company was in violation of the Fair Labor Standards Act regarding minimum wages and overtime pay.  The government claimed that volunteers who help at the consignment events where their goods are on sale must be classified as “employees.”

Rhea Lana took the Department of Labor to court, but the complaint was dismissed for lack of a reviewable agency action.  On appeal, however, the Court of Appeals held that the government’s letter to Rhea Lana is subject to immediate judicial review. The ruling states:

“We conclude that the Department’s letter to Rhea Lana is final agency action because it is more than mere agency advice. By notifying Rhea Lana that the company was in violation of its wage-and-hour obligations, the letter rendered knowing any infraction in the face of such notice, and made Rhea Lana susceptible to willfulness penalties that would not otherwise apply. The letter thus transmitted legally operative information with a ‘legal consequence’ sufficient to render the letter final. We therefore reverse the district court’s dismissal.”

CoA Institute President & CEO, and former federal judge, Alfred J. Lechner, Jr.: “We are gratified by the decision of the Court of Appeals.  People who receive agency letters like the one the Department of Labor sent Rhea Lana should be able to go to court to protect their rights.  The outcome of this case will set an important precedent about the right to judicial review, the scope of the government’s control over U.S. commerce, and whether individuals are free to volunteer their time for their own benefit. We believe that the Department of Labor overstepped its authority in this case and look forward to Rhea Lana’s day in court.”

The case now returns to the district court, where Rhea Lana will show why volunteers should be free to use their time to ensure the success of consignment events.

The Court of Appeals decision relied on the United States Supreme Court’s decision this week in U.S. Army Corps of Engineers v. Hawkes Co., which involved a similar question of judicial review.  CoA Institute filed an amicus brief in that case in support of the parties seeking review, who prevailed in the Court.

Washington, DC – Cause of Action Institute (CoA Institute) today filed a complaint in the U.S. District Court for the District of Columbia against the Central Intelligence Agency (CIA) seeking access to records concerning the undue influence of political appointees in processing Freedom of Information Act (FOIA) requests.  The requested records were created by the CIA Office of Inspector General (OIG) but are accessible under FOIA through the CIA. The CIA is one of the few agencies that has refused to release the relevant records without sufficient explanation.

CoA Institute President & CEO, and former federal judge, Alfred J. Lechner, Jr.: “All federal agencies have the obligation to efficiently and effectively respond to FOIA requests. After three years, the CIA has demonstrated it has no intention of providing the requested documents in a timely manner. The current administration has neglected its duties under FOIA and allowed federal agencies to undermine transparency requirements. Despite numerous media reports that have criticized the Obama administration for its poor efforts to ensure transparency and openness, agencies continued to abuse the law and permit political appointees to insert themselves into the FOIA process.”

Congress requested the OIGs of several agencies to conduct audits of their FOIA programs looking into inappropriate influence of political appointees in the processing of records requests.  In two seperate FOIA requests, CoA Institute requested the CIA OIG’s final reports, but the agency has yet to produce the documents.  In one case, the CIA has stonewalled CoA Institute for three years and has twice indicated that it “will not acknowledge or respond to any additional queries regarding the status” of the CoA Institute FOIA request.

FOIA requires an agency to respond to a request within twenty business days or, in “unusual circumstances,” within thirty business days. Although President Obama came into office with promises of transparency, his administration’s actions have not matched such rhetoric.  Under a non-public 2009 White House memorandum, federal agencies were instructed to consult with Office of White House Counsel before producing any documents that involve so-called “White House equities.” The result of this memo is the unlawful expansion of White House control of agency FOIA processes and usurped agency responsibility for finalizing determinations.  Additionally, agencies have politicized FOIA processes by creating “sensitive review” procedures that permit political appointees and agency press officials to intervene in and obstruct the processing of FOIA requests.

In May, Cause of Action Institute filed a lawsuit against 11 federal agencies and the White House to end the Obama administration’s practice of delaying government responses to FOIA requests that the administration considers politically sensitive or embarrassing. Read more HERE.

To access the complaint filed today against the CIA click HERE.