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Wednesday, August 14, 2013

On Diagnoses, and Prescriptions

Khemka v. Government of India

I wrote about Khemka, IAS careers, the politics of power, and of ill-gotten riches, last year - Open Letter for Ashok Khemka, and for all of India

I had no doubts then, that Khemka would become a pariah within his fellow IAS cadre, and a political target of the most 'powerful' in India. Khemka's "indictment" by a panel of political sycophants and career climbing-spineless-bureaucrats & self-serving elected officials, should NOT be a surprise to anyone - after all, isn't that norm across India: "Toe the line, or Else" ? Yes, intimidation is alive and well in India too.

While Khemka's twenty plus year crusade, against corruption, has to be a deeply personal choice, he is not your typical whistleblower. Khemka, trust me folks, will take this fight to the Indian Supreme Court, and he will win if he is 'allowed' to reach that August venue. 


In my mind's eye, Ashok Khemka is a National Hero - in the mould of others, who have come before him and changed the country, by sheer force of their will, their integrity and fortitude.

Arvind Kejriwal's (AAP political party, India, and another IIT alum) offer to Khemka, to run for office on the AAP platform is welcome, but I'm sure the realists (and the stoic) amongst us recognize, that it takes a whole village to raise the metaphorical baby that is India.

The global network of pan-IIT alumni (not just KGP) must now take up anti-corruption lobbying and campaign fundraising, that will support and enable awesome guys like Arvind Kejriwal, Khemka, et al, to run a truly national campaign. The resources exist -
IIT alums are everywhere, including around the world, and we all share the mutual bond of respect for meritocracy (not sycophancy), of integrity of character, and other values we were trained for during the most formative 4 (or 5) years of our lives.  It is no more than a matter of the pan-IIT board having the courage of conviction, to become politically engaged too, and, to rally around the most just, and imperative, causes there can be.   

I feel, that in their hearts, each IIT alum aches for systemic political change for the better. But, change is seldom accomplished without some personal sacrifice. Just as a wise person once said (paraphrased) "All change is because of unreasonable people, for reasonable people compromise too often", and Mahatma Gandhi once said "Be the Change You want to see in the world", it is time for us - the global body of IIT alumni - to step up and step forward.


I believe even reasonable people must turn into unreasonable hard-heads, when they are morally justified in their view of the world, and when faced with questions that query their very soul. We all have a "Dog in this Fight". It is time for the "Cream of the Nation" to not just rise to its economic top, but to also bury the "Scum of the Nation" - the political flotsam of moral turpitude that rules and lords, over India with impunity - with shameless disregard for its Constitution, its Statutes and Civil code.

I doubt the stakes could be any higher. It is about the very future of India. That baby is crying for a different village.



Saturday, July 27, 2013

The Sheriff of Wall Street

Preetinder Singh “Preet” Bharara is by no means a household name in the United States (or for that matter, in India) and I doubt if the average person in the US has heard his obscure name: 

Preet is not an elected Member of Congress, with, or without a halo of a salacious scandal, or a Hollywood celebrity. He has not been on Cable ‘Talk Shows’ sparring with the likes of Anderson Cooper, Piers Morgan, or any of FOX News’ loonies (with due apologies to all Canadians) - take your pick of that litter. He has not been on National TV, as have the likes of Rudy Giuliani, John Boehner, Paul Ryan, Rand Paul, or even Suzie Ormond, or the ‘Mega-Preacher’ Joel Osteen. Unlike former US Senator (and one time Republican Party hopeful running for nomination for President of United States) Fred Thompson, from the Great State of Tennessee, Preet does not sell ‘Government Guaranteed’ Reverse Mortgages, as a spokesperson for AAG (American Advisors Group), to Mr. and Ms. Senior Citizen America from his immaculately manicured yard. There is no obvious reason for Mr. ‘Joe the Plumber’, and his family, to have had to have heard of Preet Bharara.

With apologies to anyone reading this and feeling they just got summarily dumped into a pool of darkness (entirely unintended), Ladies and Gents: it gives me great pleasure and it is my distinct honor to introduce Mr. Preet Bharara, US Attorney for the Southern District of NY since 2009. Preet was born in 1968 in Ferozepur (in the State of Punjab), India. Born to a Sikh dad and a Hindu mom, Preet grew up in Monmouth County, New Jersey. His brilliant academic career spans being valedictorian (1986, Ranney School, Tinton Falls, NJ), magna cum laude from Harvard College (1990), and the Columbia Law School (1993) where he was a member of the Columbia Law Review, aka - being a big deal!

Preet was nominated to become US Attorney for SDNY by President Barack Obama in May 2009, and unanimously confirmed by the US Senate in August of that year. Prior to being nominated, Preet served as the Chief Counsel to Senator Chuck Schumer of NY. Preet is a Naturalized Citizen of the US.

Of course, none of this stands out as an extraordinary exception – Preet Bharara does not have an exclusive claim to being a highly successful professional, or to having a stellar academic and professional career. That bucket is sumptuously full to its brim. However, what does makes Preet the outstanding and unquestionable exception that he is, is his willingness and to investigate criminal violations of Federal Law, regardless of the person or the institution being investigated, and to have the courage of conviction to bring offenders into a Federal Court, put them on trial, and risk it all in the quest for justice.

Preet has taken on syndicated crime families from New York (the Gambino family), and high profile Wall Street institutions (Bank of America, Deutsche Bank among others), Hedge Fund Managers (Raj Rajarathnam, the doyen of Galleon Group), other ‘high-powered’ individuals (Rajat Gupta, former Super-Consultant to the World), and elected politicians, with a laser like focus on sophisticated large-scale fraud, and, on insider trading.

The preceding is by no means anywhere close to being an exhaustive list. Rather, it is illustrative of what Preet Bharara stands for - for justice and for fair play, for integrity of character, for moral strength, for courage of conviction, and for the willingness to prosecute criminal behaviors across far-flung domains. All, to ensure US laws are not violated without consequences, and to level the playing field for all law abiding Citizens. All, to uphold the oath he was sworn to.

He is dogged in his pursuit of just-cause, for good reasons, and, not just-because he can be. He has been accused of possessing overbearing prosecutorial zeal, but such finger pointing, my friends, is inevitable when a US Attorney is able to prosecute and convict powerful, larger-than-life people and institutions.

Today, Preet Bharara’s office filed criminal charges against SAC Capital Advisors - one of the largest and powerfully connected Hedge Funds on Wall Street. Charges allege SAC of running an insider-trading scheme, not unlike the Rajarathnam-Rajat Gupta nexus, that flourished from 1999 to 2010. SAC’s eponymous billionaire founder Steven Cohen was not charged with any crime in today’s filing.

Of course, everyone is assumed innocent until proven guilty in a court of law, and SAC’s truck-full of high-powered attorneys have vowed to fight the charges tooth-and-nail to the bitter end.

Time Magazine named Preet Bharara, in 2012, as one of “The 100 Most Influential People in the World”.  I do not think Preet will be resting upon his laurels, or on that Time Magazine label, anytime soon.

The Sheriff of Wall Street cannot afford to.

http://nyti.ms/18DB591

Monday, July 15, 2013

Unreasonable Doubt

America is many things. It is unique. It is beautiful. It is ugly. It can be everything you want it to be, and it can also be like nothing you may have imagined it to be. Despite its contradiction and paradoxes, our Constitution protects us from unfair imprisonment, and from cruel punishment. It affords every defendant who is charged with any criminal act a fair trial in a court of law, where a jury of our peers is charged with determining guilt or innocence.  The Constitution also provides for the ultimate protection - the accused does not have to testify and may not be forced to (or induced into) being a witness during trial.  Our criminal justice system is built on, and around, these founding principles.  Hence, those accused are presumed innocent until proven guilty, and the State, or prosecution, has the burden to prove their case, or charge of guilt, beyond any reasonable doubt to the jury.  The criminal justice system thus imposes a very heavy burden on the prosecutors.  And rightly so, for someone’s Liberty, or their Life, is at stake.

The American Declaration of Independence proclaimed “Life, Liberty, and the pursuit of Happiness” to be unalienable rights endowed by our Creator. So, Mr. State Attorney, if you think I have committed a crime, and you want to prosecute away my Liberty, you have to prove your case, to a jury of my peers, beyond and to the exclusion of any reasonable doubt.

At about 10 PM last Saturday night, a jury of six women, in Seminole County, Sanford, FL, returned a Not Guilty verdict in the case of State v. George Zimmerman after about 16 hours of jury deliberations.  Zimmerman had been charged with one count of second degree murder and one lesser included count of manslaughter.  Clearly, in the eyes and minds of the jury, the State had failed to prove the criminal charges against Zimmerman, beyond any reasonable doubt.

Zimmerman was a “free” man, as his GPS tracking bracelet was removed in the minutes following the verdict, his bond released, and on his way to wherever he may be.

The Martin family – Trayvon Martin’s dad Tracey Martin, his mother Sybrina Fulton, and his older brother Jahvaris Fulton went home too.  Their lives had changed forever on the night Trayvon Martin was shot.  Last night must have been one of the most difficult of their lives. They had fought for justice for Trayvon. A conviction may have brought some sense of closure to their tragedy, their loss, and to their grief. People say, that for parents, nothing can compare to the emotion losing a child. Losing a child to a violent senseless murder would probably make the pain exponentially more acute.  I am surmising, for I do not know.  I wish I never have to find out.

Such a loss is bound to haunt the family rest of their lives. Time, surely, will be part of their salve.  But it takes a very long time; perhaps never.  The American justice system had spoken, and their son’s killer was a free man.  It had to hurt.  Like nothing else can.

The State Attorneys, though defeated and devastated, were gracious in their press conference “We are bound by the system we have; it is the best in the world, and we respect the jury’s verdict”. 

While all of the above may be true, I believe this jury got it wrong, and that a grave injustice was carried out last night. Trayvon Martin is dead, and his killer is a free man, presumably because of reasonable doubt.

I have watched many high profile trials, and I have always heard attorneys from both sides vehemently implore the jury to examine all the evidence and to use their “common sense”.  I have looked at every piece of testimony and evidence in this case, and I cannot believe this jury found reasonable doubt in the State’s theory of second degree murder, or manslaughter. 

I believe the verdict in State v. George Zimmerman rests upon “Unreasonable” Doubt, masquerading as otherwise. 

But before I go into how my own common sense helped me connect the dots (that is exactly what common sense is supposed to do), let me explain what reasonable doubt is:

No one on this planet has ever actually observed the Earth spinning.  Yet, we all accept that the Earth spins from East to West.  Why do we accept this? We accept it because the Sun rises every morning in the East, and sets each evening in the West. It is common sense that makes us connect the position/direction of sunsets and sunrises, a circumstantial evidence, to conclude that the Earth spins from the East to the West. If anyone doubts that the Earth spins so, they must have a reason for their doubt.  Having a reason behind the doubt is what makes a doubt reasonable.  Of course, the reason itself has to be lucid and not absurd.  Having an absurd or outlandish reason behind a doubt makes for Unreasonable Doubt.  And that is when killers like George Zimmerman walk away with their Liberty.

Zimmerman’s initial Non-Emergency call with the 911 dispatcher ended at 7:13:43 PM.  Remember that by this time Zimmerman was already out of his truck, and walking along the concrete walkway that connects the two streets - Twin Trees Circle and Twin Trees Lane.  According to Google Maps, this walkway is about 217 feet, end-to-end, and the now infamous T-intersection is 125 feet from its Eastern edge.  According to Zimmerman, when he hung up with the Police dispatcher, Zimmerman was already walking back to his truck.  Then we have the “Lauer” 911 call – the one on which we heard the gunshot that killed Trayvon Martin.  The gunshot is at 7:16:55PM, or 3 minutes and 12 seconds after the end of Zimmerman’s non-Emergency call.  Lauer called 911 when she heard screaming from behind her townhome.  The Lauer call connected at 7:16:11PM.  So, at a minimum, the screaming went on for 44 seconds.  Probably more because Lauer testified it took her about 30 seconds from when she first heard the screams to when she called 911.  We also know that Trayvon Martin’s call with his friend Rachel Jentel ended at 7:15:44.  So if we back up 30 seconds from when Lauer first heard the screaming, we are almost at when Trayvon Martin’s call with Jentel ended.  So the question is where was Zimmerman between 7:13:43 (end of non-Emergency call) and 7:15:44? It does not take 2 minutes to walk 200 feet back to your car!  Giving Zimmerman full benefit of the doubt that he was walking back to his truck after he hung up with dispatch, and assuming he was at that time at the far-West edge of the sidewalk – the T-intersection, where Zimmerman claimed Trayvon accosted/confronted him was only 95 feet of a walk back, or about 32 steps.  Go walk 32 steps.  It does not take 2 minutes. Zimmerman was never going back to his truck.  As he told police dispatcher, regarding his location where the police could meet him, “just have them call me”.  Zimmerman was going to continue with his hunt that night.

Zimmerman claimed Trayvon Martin was straddled atop him, and that Trayvon was repeatedly banging Zimmerman’s head on the concrete sidewalk.  Yet, all Zimmerman suffered was two small lacerations (2cm and 0.5cm each) to the back of his skull? If you really want to see what banging a human skull against concrete look like, go get a cantaloupe and bang it on concrete.  Watch it explode.  Zimmerman’s claim does not make sense.  If he were telling the truth, he would have had a serious skull fracture. Zimmerman also claimed Trayvon was pummeling his face with blows, and at one point Trayvon Martin covered Zimmerman’s nose and face, and told Zimmerman “you are going to die motherfucker” and “keep quiet”.  The “keep quiet” bit was supposedly meant to bolster his claim that Zimmerman was the one screaming for help. 

Zimmerman was the one that was armed, and Zimmerman knew he was armed.  When people get into fights/scuffles (and I have seen my fair share), unless one has a firearm/deadly weapon, they do not issue dire warnings/death threats.  Especially not “you are going to die motherfucker”.  To the contrary, the person who has the gun/weapon is more likely to utter such a threat.  I believe Zimmerman’s gun was out of its holster way before he claimed it was, and I believe it was Zimmerman who uttered these words and attributed them to Trayvon Martin, during his police interviews (note that the forensic and DNA evidence that clearly showed that none of Zimmerman’s blood, or DNA was found on Trayvon Martin)

I believe Zimmerman took one punch to his face shortly after he ran into Trayvon, while trying to hunt down the “fucking punks” and “the assholes who always get away”.  That punch was sufficient to throw him off balance, perhaps even land on his back.  In the ensuing struggle, the two grappled down the sidewalk and fell on to the grass. Zimmerman drew his gun, and threatened to end Trayvon Martin’s life, at which point Trayvon would have had to hold Zimmerman’s hands down so Zimmerman could not get a shot off, and scream for help because Trayvon could not keep Zimmerman’s hands pinned indefinitely.  Men who are armed and in a fight do not scream for help.  They fight to get the gun out to end the fight.

Sometime during the time that Trayvon was holding Zimmerman’s hands down, John Good (a neighbor) came out on his patio and told the two “Stop it, I am calling the police”.  I believe this was the moment where Trayvon likely decided that his screams had been answered, and he may have been backing away and relaxing his grip on Zimmerman’s arms.  The fight was over since Trayvon now knew that police were on their way.  But for Zimmerman, his arms and wrists were gaining mobility, which gave him the opportunity to discharge his gun. 

It was not, and cannot be, self-defense.  It was the cowardly act of a grown man who had lost the fight that he went looking for and had gotten beat at.  The rest of how Zimmerman created his story to fit the self-defense narrative is just that – a story.  A story that is unworthy of any credibility and one built upon self-serving, and conniving mind of a cop wannabe.


The only reasonable doubt I have is that George Zimmerman acted (killed Trayvon) in self-defense. 

Thursday, December 6, 2012

The Case Against Rounded Corners

Apple Inc (NASDAQ: AAPL) stock dropped by over 40 points in trading yesterday. With its 940 million share float, the 'arithmetic', as Bill Clinton would say, adds up to about a $36 billion loss in market capitalization (actually, Clinton talks of the math not adding up, but I am simply using the form used by the President). Going back to September 18, 2012, Apple stock has quietly lost 163 points, or, $153 billion in market cap. This loss in shareholder value is just shy of the total market capitalization of Oracle Corp (NASDAQ: ORCL) - $154 billion!

Apple introduced the much hyped iPhone5 along with iOS6 on September12th. Some devout followers (and most hardcore FruitHead haters) will remember that 'The 5th' garnered well over 2 million units in pre-orders within the first 24 hours of its launch/announcement. For interested readers, here is the video link to the iPhone5 announcement: http://bit.ly/YRxhhZ. This is a 1 hour 42 minute video, so I will highlight a few moments with bookmarks:

0:8:00: Nothing new about the iPad, but Tim Cook, CEO, discloses Apple has sold 84 million units to date. That is roughly 30 billion in profits at $400 per unit, on average. Cooky also throws in a dig at 'other' tablets.

0:11:00 - bragging about 700,000 Apps on the App Store

0:12:30 - Phil Schiller, head of marketing introduces the iPhone5: a bit taller, thinner and lighter than the iPhone 4s. 20% lighter, 18% thinner. Retina display. More Apps on each screen (5 rows). More pixels on screen. LTE. A6 chip. Blah, blah, blah. Schiller goes on for a full 24 minutes before revealing - wait - the 'lightning' connector.


Apple just made all your investments in docking and charging devices useless, unless you go buy that 30 pin to lightning adapter.

0:40:00 - iOS6 introduction by Scott Forestall. First up - new Apple Maps App: "Beautiful turn by turn directions". Flyover mode with satellite imagery. Google Maps is no longer supported.

Rest of the video is more 'rah-rah' from Apple staff, along the lines of 'I, too sexy for myself'.

For my taste, I like the following video better: http://bit.ly/RJi538. It is a candid look into the lies, bending the context, and hype-in-overdrive that was belted out during the keynote. Or, this:http://bit.ly/MvvbzL, a critical look at what if anything (hardware) Apple has invented.

The real truth, however, came fast and furious - the Apple Maps App was, and continues to be, broken. It was sending people to the middle of nowhere, even for simple addresses. And, though Cook has since apologized, and Forestall was fired, Apple has not made any concessions to customers who purchased the 5. Then there was the unusual case scratching, explained by Schiller as 'normal'.

I have written earlier about 'iOS: Idiotic Operating System', to showcase how Apple treats customers. I am not out of options/recourse on that, yet, so I will refrain from adding to that conversation. 

Apple is also embroiled, around the world, in lawsuits over so called patent infringements. The substantive argument Apple makes is that it owns the patent on rounded corners, hence no one can sell tablets as such. Bold and audacious indeed.

Truth, I believe, is that Apple is firmly controlled by the bean counters, the lawyers, and the supply chain folks - Cook is one of them. Finally, for all my progressive friends who give a damn about exploitation of labor in China, and elsewhere, read up on the horrors at FoxConn, Apple's primary assembly chop-shop in China.

Apple used to be the innovator, and they brought some great devices - both in design and utility to market. It seems, at least to me, now that Apple is headed in a whole different direction - one where customers do not count for they are like sheep to be herded, where product quality is of no concern, and where innovative competitors must be crushed in courts - all for its own last dollar of profit.

Citius, Altius, Fortius has served the Olympic spirit well. I doubt a mass retail electronics distributor, even the great Apple Inc., can survive on that model alone in the long run.

Case Closed.

PS: Lest readers think I am just another Apple basher, and for full disclosure, I will admit that as of today I own more iOS than Android devices. But that balance is changing, and it is changing fast.


Wednesday, October 17, 2012


An Open Letter for Ashok Khemka, and for all of India:


Dear Ashok,

I always believed, during my teenage years through middle and high school, and during our time at IIT Kharagpur, that notwithstanding the authority, respect, lifestyle, power, and privileges afforded to India's IAS (Indian Administrative Service) cadre, the Service, and, perhaps, in a larger context, the nation was spiraling down the vortex of doom in a self-fulfilling prophetic way.

The Government of India goes to enormous lengths - the UPSC's (Union Public Service Commission) application process, written examination testing across 2 subject majors (unless that has changed now), and its selection interview process to identify and select India's 'Best and Brightest' into the IAS cadre.  

I also spent some time in Musoorie, India, (during the 1980s), at the IAS training campus, and I was very impressed with the post selection training program the Indian government had established for the civil services. The government's investment in recruiting, selecting and training of the IAS cadre (and other civil service cadres) is absolutely necessary and warranted, for the - the IAS cadre was designed to administer a nation of a Billion plus people in the 7th largest country (by geographical land mass) and the 2nd most populous country on Earth.

I decided to walk away from even trying for the IAS service opportunity because of my grave personal concerns about the ability of an individual IAS officer to stand up to, and the change the system, despite my firm belief, even back then, that the service and the system were seriously in need of large scale changes and reforms. Both continue to seemingly suffer from want of such true reforms (despite the socio-economic reforms, in India, of the last 20 some years).  

I had come to truly get to know you as a young man, Ashok Khemka, not just as the brightest young man on campus (trust me, despite his PGDM, the 'other guy' could not hold even a dim candle next to you, even on his best day), but also as one of the most decent, honest, sincere, and 'straight-up guys on campus. We traveled together a few times and I can still recall our conversations. I remember visiting your family home in Calcutta (or, should I say Kolkata), eating a meal with your family, and discussing issues of social and economic concerns across India.  

I knew, at the time we graduated, that you were different from most, and that someday you would change the world. But, that thought was in the context of your education in Computer Sciences, and about you developing some super-cool mathematical algorithm that would solve some extraordinarily complex challenges - the next C. V. Raman, Subrahmanyan Chandrashekhar, or the next Stephen Hawking. 

About 20 odd years ago, I was surprised, and quite shocked, when I learnt about you joining the IAS cadre.  I believed then Ashok, that the system would beat-up your spirit, and bend you to its will.  I did not think, that any individual IAS officer who dared to try to change the system:  to stop corruption, bribery, favoritism, political nexus based exploitation of the nation, in order to serve and protect citizens, and the country, would inevitably be crushed and destroyed by the system – the politicians who IAS officers report to, and the IAS cadre itself.  The cadre, you see, has always had, and continues to have, an ample population of ‘rotten apples’ - those that benefit personally, from acts of omission and those of commission, that enable ‘grand-mal-intended-schemes’ and plots of politicians, and of corrupt businesses.

During the course of the last 20 odd years, I have watched and read about the 'Indian Economic Miracle'.  But, more importantly, I have also followed reports of rampant corruption across most Indian theater: the elected politicians, members of the cadre, and increasingly, opportunistic individuals who bend and abuse the system to gain advantage for personal gain. 

The Indian psyche is seemingly stuck, as if Indians were still under Imperial Colonial rulers when people lived in fear of the British administrators - the Collectors, and the Civil Law Enforcement officers of British elk. The Indian mind, it still seems, is trained from birth to be in awe and fear of authority figures - civil servants, et al.  

Combine that with the inherently selfish values of humans in general and the “Jugard” (the Hindi word for as in making arrangements, legit or otherwise, to achieve a goal most expeditiously and to one's own sole benefit) and expediency based values of Indian people, most of whom only seem to care about 'getting their own personal matters expeditiously resolved, and you have a potent mixture of opportunities for mass exploitation, and, I believe, eventual self-destruction of the democracy, to be replaced with horrors of unimaginable proportions.  

Only this time, the new rulers, of the Indian landscape, will be from among its own people – people of power, privilege, money, and of opportunity, out to accumulate more of the same at any and all costs to the country and its masses.

India's history is, and should always be a reminder that some Indian(s) has/have repeatedly sold out, inviting new dynasties and rulers to occupy and lord over her for hundreds of years.  This is a lesson that cannot, and should never be forgotten, for what is at risk is the largest true democracy in the World, and the Freedom (and all the civil and constitutional rights that flow from being a free country), that was so hard fought by our grandparents and their generation.  

Note: Indians forced the Imperial British to voluntarily leave the country - without a protracted civil war, and without mass bloodshed, because the Indian people collectively, and in sufficient numbers, decided they had had enough of the exploitation, the racial discrimination, and the lack of opportunities that came with being a subject of Her Majesty, The Queen of England.  The Brits did not just get up and leave because the their subjects wanted them to.  They dug in their heels, and retaliated with brute force.  They killed innocent men, women and children.  They threw thousands in to jail. For any reason.  For no reason at all.  However at the end, Great Britain had no choice but to leave a country they had ruled, raped and exploited for over 200 years, because they were no longer welcome, and they realized that they could no longer keep the Indian aspirations of Freedom, Democracy and Equal Rights and Opportunities under Imperial denial.  

But, I digress, and thank the reader for staying with me.  A more detailed note on the British Empire is coming.  Soon. That is a promise.

A national economy that was massively regulated by the Federal government, and State run Enterprises were perhaps the only prescription to India's dilemma of severely under developed industry and infrastructure that was, in 1947, in shambles - both a gift of the British rulers.  

I have always held Pandit Nehru’s vision for Indian economic development in high regard, but I have also always had trouble accepting the rational of allowing any elected politician (and not just the Prime Minister) the power to control the careers, lives, and destiny of career IAS officers.  

The average Indian politician, today, is nothing short of a hooligan, and a gangster - most of them lack even the basic education, a fact that is perhaps masked with fake college diplomas and degrees that are illegitimately obtained by force of intimidation, or though bribery.  A majority of these village- idiots are quite simply ignorant, and do not have any particular vision or passion that motivates them in to entering Public Life, except their grand design and desires to accumulate wealth and power.

The cadre itself suffers from the 'Orphan Syndrome': while IAS officers are selected by the Federal apparatus (yes, there is a parallel system of state level civil services, but the scope and authority of the IAS officers dwarf those of their state counterparts) and they are assigned to states across India.  All of that is fine, except: the system gives state level ministers the power to assign and reassign IAS officers, at the politician’s whim and fancy.  Even the most insignificant, and inevitably the most corrupt link in the system – the politician, is handed a sword over the lives and careers of the ‘Best and Brightest’.  As a human being with the need for security and safety, even the most upright IAS or civil servant is thus under constant pressure to bow to political master-class.  No one likes to be shunted around jobs, deputations, and different cities across their designated state because the personal upheaval is too enormous.  

I can understand shunting around poor performing officers, but this power structure creates distortions and disruptions that are hurting the country, its citizens, and the IAS officer who dares to make a principled stand against a corrupt nexus between businesses and politicians.

I became aware of the massive public controversy that erupted, last week, in the State of Haryana, India: Ashok Khemka, IAS officer, was reassigned within a few months of taking charge of enforcing, among other things, laws related to government land control – the purchase and sale of government lands to private parties.  Khemka had apparently discovered massive irregularities in land purchase, and sale/transfer transactions between a Mr. Robert Vadra, an Indian business man, and DLF Corporation – one of India’s largest, if not the largest property developer: Mr. Vadra apparently received advanced payments, from DLF, in the millions to purchase ‘farmland’.  But, he was only the front-man: the property was promptly and illegally converted to ‘commercial’ land use status, and sold to DLF, for an estimated 19 times what Mr. Vadra apparently paid for the farmland.  All of this transpired in a short period of about 3 months.

That is a Bribe, if there ever was a Bribe! It is, as they say here in the United States - "Pay to Play" economics.  It is abhorrent, and even in India, it is illegal.
 
On the face of things, Vadra is not a bad investor now, is he?  1900% returns over 3 months, or 7,600% annualized! Perhaps Vadra should immigrate to the United States and help us manage our property woes across America!  

Vadra is no investor extraordinaire though.  He is married to Priyanka Gandhi, the daughter of Sonia Gandhi, the President of India’s Congress Party, and Rajiv Gandhi - son of Indira Gandhi, and grandson of Pandit Nehru, all three being former Prime Ministers of India.  

The patriarch, Nehru, was a Leader and a Statesman of extraordinary caliber; Indira Gandhi, despite her brazen and paranoid acts of fascist proportions during India’s “Emergency” of 1970s, at one point was hailed as “Indira is India and India is Indira”, and Rajiv Gandhi was the leader who set India’s economic wheels of freedom and regulatory reforms in to motion.  

India now has to contend with a dying dynasty without a moral compass, led by the former Italian citizen – Sonia Gandhi, her son Rahul and daughter Priyanka, both rumored to be mediocre leaders at their best.  If they are leaders at all, that is.
 
Given the power and influence of the Gandhi family, in India, even extended family members – Vadra – are out to make the most, as in financially raping, pillaging and looting the public and the country to accumulate vast personal fortunes.  It is estimated by some that Vadra is worth a cool 2 Billion.  That is in US Dollars!  Clearly, his handicrafts based export business did not generate such wealth.  The recent DLF transaction, in it of itself, netted a tidy USD 10 million for the Vadra family. DLF, I am sure would erect yet another mega mixed-use complex on this piece of land and rake in a pretty penny for itself.

Unfortunately, the transactions came under the purview of Khemka.  Knowing what I know about Ashok, he cannot be bought.  Khemka immediately initiated a formal investigation into the land deal transactions of Vadra. The following day, he was ordered ‘transferred’ out of the land control office by the Chief Minister (in the US context, Governor) of Haryana, Mr. Hooda.  Hooda, of course, is in political bed with Sonia and her Congress Party.

Khemka, on his part though is a tough cookie – prior to handing over his official duties and while still vested with the authority of the land control office, Khemka issued orders that effectively nullify the most recent Vadra-DLF transaction.

So, a corrupt system has finally and in a very public manner collided with a truly principled IAS officer.  The Federal and State government are now actively trying to destroy Khemka.  As if his 43 previous transfers in 7 odd years was not enough!

From this point on, Ashok, you will be publicly humiliated.  You and your family will be threatened, and may even suffer harm.  You have put yourself in grave danger because you chose to take on the Gandhi family.  You will find, soon, that none of your IAS colleagues will support you, or want to continue to associate with you.  The isolation that is coming will be complete.  You will face enormous vilification through media.  Your health will suffer and you will have to deal with ever increasing levels of mental stress.

I never doubted, Ashok, that someday you would change the world.  And that moment, it seems, has arrived.  It would no longer serve you, or the country, for you to continue to be a part of the apparatus. Trust me Ashok you have made me extremely proud today.  The mere fact that I knew you in college is an honor.  But, you, and only you have to bear the enormous burden of not letting this firestorm overwhelm you.  

I know you are one of the smartest people in the World.  Put that brilliant mind to work, and put that spirit you have to the cause of ridding India of the malaise of rampant corruption in public life.

I know you can do it.

-from an old time friend.

Tuesday, September 25, 2012

On Tax Amnesty and Running for Office

Did Mitt Romney receive a Tax "Amnesty" from the IRS?

UBS, the 'Giant' (or, shall we say the 'Monster') Switzerland based Investment Bank paid $760 million in 'fines' to the US Government, in 2006-2007, after a prolonged legal fight, to settle potential criminal charges for aiding & abetting Americans taxpayers into criminal tax shelters, aka undisclosed numbered Swiss Bank accounts. 

US tax law is clear: one MUST disclose 
all income, regardless of its source, and pay federal taxes on ALL income.

Tax-Shelters do exactly what shelters do - provide a facility where current income is sheltered from purview, and deferred indefinitely for tax purposes.

So while the 'Magical' Swiss Bank Account Number is available for spending money, none of the income is reported to the US IRS. Hence the taxpayer has no LEGAL obligation to report such income.

Alongside paying fines, UBS also handed over identities of 4,000 US citizens who had availed themselves of such services. The IRS began reaching out to everyone on this list and offered an Amnesty deal: Pay the taxes owed plus a 20% penalty on the gross cumulative undisclosed income, in exchange for Amnesty from criminal prosecution.

For the uninitiated, Al Capone was indicted, convicted, and served time - for not paying his taxes. The Feds couldn't pin anything else on him at that time.

America is still a place where "Due Process" is a constitutional right. So, each person in that 'Elite' group had to make a choice: take the Amnesty deal, or, roll the dice and have their day in court. By way of reference, the folks over at the IRS do play hardball - the penalty rate today is 27% for anyone who's not taken the deal yet.

Mitt Romney, remember, was running for the GOP nomination during the run-up to our 2008 Presidential elections, until he ended his campaign in favor of Sen. McCain.  

Over the past weekend, Romney release all 375 pages of his 2011 tax returns. While there are some interesting takes on Romney's 1040 for 2011 - the effective tax rate paid of 14 odd percent, etc., the real bomb of a story may lie in his 2009 returns which are not required to be released, and which have not been released by Romney.

We know that Romney had Swiss Bank accounts. Mysteriously enough, his 2011 returns make no mention of any assets in Swiss banks. Cayman Islands,yes. But not in Switzerland.  There's now plenty of chatter to outright dismiss the notion, that Romney accepted such an IRS Amnesty deal, as mere political mud-slinging.

Did Mitt Romney do a la Al Capone in not disclosing ALL his income? I am leaning towards the affirmative. And, if that is true, then Mitt has duped every Republican, of all stripes, in the GOP - in running for and securing the GOP Republican Party Candidate for President of the United States of America.

A criminal act in violation of US laws, not withstanding the Amnesty, must preclude such individuals from occupying any elected office. Forget about becoming the US President. If these allegations are true, Romney shouldn't ever be elected to ANY office - municipal, State, or Federal - in our country. Not even to his local Country Club Board.

Gotta say though Mitt, you got some Brass.









Tuesday, September 11, 2012

And, Justice for All

The wheels turn, as if in excruciatingly slow motion, and the proceedings are liberally interspersed with months of "standstill" to accommodate "motion practices" of Defense Lawyers, and in deliberate regard of Defenda
nts' "Due-Process" rights, but when the 'Good Guys' decide Enough-Is-Enough, the entire house of cards can come down:

Financial Fraud Enforcement Taskforce



Don't get me wrong, I am not uncorking my bottle of 'Moet Chandon' yet (sorry, 'Dom' - you are just way too hyped up and freaking overvalued). These 3 men (men they are, but only by their gender) of the house of UBS - Union Bank of Switzerland, convicted recently for their roles in financial crimes in the Municipal Arena, aren't even the proverbial 'Spoke-in-the-Wheel'; They are Minor-Minions of Wall Street, who manipulate the system and perpetrate criminal acts (in this case, on our civic municipalities). And, these 3 men are by no means an exhaustive list of such pin-heads, driven by sheer greed and willing to compromise everything. Just so they can claim a larger paycheck.

Their greed neither imposes, nor recognizes any bounds - social, moral, or otherwise, on their own behavior. They usually travel in packs, for at their core they are essentially opportunistic cowards. Like Hyenas, encircling us, our institutions, and our System, looking for the proverbial weak spots, the loopholes, and for 'like-minded' citizen officials of authority, or for middlemen with access and influence upon officials, and upon our institutions and our Systems.

These are men (in general, very few women of Wall Street are involved in such criminal enterprise. But, there are some. Recent cases remind me of the 'Sex Queen' of Hedge Funds, the one who was co-convicted along with her 'Men of Money' (Raj Rajarathnam, Anil Kumar, et alii) who bring their fraternal ways right out of college frat-houses, and into our lives. They seem to believe they are entitled, that they have earned the right, to a boat-load of money simply because they have a degree in 'Business Administration'.

Such values are fostered and further nurtured in the workplace, as most of them put in that obligatory and mindless 2 to 3 year 'Junior Associate' stint across Wall Street, and, across Consulting and Accounting type Corporations. This is when they encounter their eventual teachers and mentors – their 'Seniors' - the 'Made Men' (Any resemblance to the Mafioso worlds is entirely intended). who are slightly older versions of their own distorted 'Id', their uncoordinated 'Ego', and their dysfunctional 'Super-Ego'. The future criminal mind is conceived (or triggered), as witness to a variety of underhanded, and less than aboveboard shenanigans of their Seniors, that are rewarded instead of being discouraged, as they themselves go about their mundane responsibilities of 'Making Copies' and 'Stapling Presentations'.

Junior Associates are constantly encouraged by the system, to go get that MBA degree. Almost as if, if one wanted be a 'Master Criminal', one would need a Master’s Degree in Business Administration. So, off they go. To ‘Preferred’ schools such as Harvard, Yale, Princeton, NYU, Columbia, Wharton, Cornell, and the likes, GMAT scores and all in hand, begging for a slot, polishing up their 'Liar Resumes', more than likely forging References Letters, and almost certainly writing essays, as part of their application process, that convey a strong desire and determination to 'Change the World'.

No, I am neither a pessimist nor a cynic . There is a large body of MBA candidates who get in and graduate the right way, and for the right reasons, even among the 'Wall Street' wannabe crowds on MBA graduate school campuses. But the ones who truly end up changing the world are regular folks with ferocious determination and drive to do good, and not the obnoxiously vocal types that bring only couched and unbridled ambition along. I am yet to meet someone who has proclaimed "I want to change the world", and then gone on to actually do something about it. Talk and rhetoric continue to be free.

So 2 years in, and they graduate, with all the 'Power and Privileges' of the diploma bestowed upon them (I never understood the Power and Privileges bit). They graduate, usually with enormous financial baggage. Of up to $100,000 in tuition they paid over 2 years, and other accumulated living expenses, which can be in the 50,000 to 100,000 range. The pressure to make money is just starting.

Wall Street covets MBA graduates from the Ivy Leagues. I spent a bit of time on Wall Street, trading and selling derivative products. I witnessed roughly 10 annual rites of passage for freshly minted MBA grads – the recruiting season, the Super Saturdays, etc. I never understood Wall Street's fascination with Ivy League MBA graduates.

With the exception of a handful of recruits (over a ten year period), most of these Ivy League MBA wielding folks, in my mind’s eye, were completely worthless as Finance majors, lacking even the basic understanding and even a working knowledge of finance and economics. Listen, if you carry an MBA, with a Finance Major, and yet somehow are unable to calculate simple interest on a constant Principle, you need to surrender that MBA diploma. I shall refrain from speculating upon 'How' such MBAs got through the system.

And, I witnessed, first hand, what these people are capable of when presented with ‘Opportunities’ - Sheer Collateral Damage, to their clients, to their employers, to colleagues – subordinates, peers, and managers. It is almost as if they lay waiting for their ‘Moment’, waiting to strike, rip someone’s face off, and smirk it all off on their way to collecting larger paychecks, aka bonuses.

Wall Street also covets ‘Producers’. Despite most producers not having real management talent or skills, a disproportionate number of them ultimately end up at the top of the Wall Street’s internal food chain – as CEOs, CFOs, or, as Global Head of ‘Something-Something’.  
But, the road to such ascension is not inevitable. Despite their sense of being ‘Masters of the Universe’, and their accumulated wealth, sometimes the lawman catches up with their criminal misdeeds: A casual (albeit restricted) search for 'Municipal Finance Fraud FBI Justice Department' reveals a telling story. I knew a fair number of these now convicted felons. They happened to work at the same employer, during my time.  

Wall Street itself is a whole different animal. It is, today, metaphor (Yes, I am aware of the street named 'Wall Street', that runs East to West in lower Manhattan, from Church Street, to the South Street Seaport, that begins at a Graveyard, and ends at the East River. How prophetic). Wall Street is an ecosystem (see note on Ecosystems and Food Chains). Over the past 30 years, Wall Street has come to pervade every aspect of our lives. Wall Street is - Our Credit Cards, our Bank Accounts, our Car Loans, in our Homes through the Mortgages we have, our Education Loans, and in a global sort of way, in every aspect of our life where our money changes hands, or where we sign a contract to borrow/pay money. 


It used to be that Wall Street was restricted to our brokerage accounts. Everything else went through our bank. And our banks used to be institutions with integrity, worthy of our trust. Not anymore. Over those 30 years, our banks have turned into, or have been taken over by Wall Street.

So, we sort of understand why Americans lost their jobs, homes, credit scores, their savings, pensions, etc. When Justice does catch up, and at times it does, the perpetrators lose “Everything”.

Or, do they?