Friday, May 26, 2023

Balch & Bingham's roster of lawyers includes two federal inmates, meaning the firm has expanded its "Southeast footprint" in a way that was not intended

Joel Gilbert and Chase Espy
 

Officials at Birmingham's Balch & Bingham law firm have spoken in recent years of plans to expand its footprint in the Southeast -- and it appears to have happened, but not in the way the firm's "big dogs" had planned. Balch now holds the distinction of having two former attorneys with "footprints" in the federal prison system, according to a report at banbalch.com, which operates under the CDLU public charity and advocacy group. For good measure, both incarcerated attorneys had represented scandal-plagued Southern Company. All in all, it's "a public-relations nightmare from hell" for a law firm that operates in a profession where reputation is of prime importance. If Balch has a PR expert on staff, or on retainer, that person faces the monumental task of trying to paint a pretty face on an ugly picture.

Writes K.B. Forbes, publisher of the Ban Balch blog and CEO of the CDLU, under the headline "Ex-Balch & Bingham Attorneys are Now Federal Prison Inmates 04104-510 and 35504-001":

Convicted pedophile and ex-Balch & Bingham attorney Chase T. Espy is now inmate 04104-510 at the Federal Penitentiary in Atlanta, Georgia, while ex-Balch partner Joel I. Gilbert, convicted of money laundering and bribery in the North Birmingham Bribery Scandal, is inmate 35504-001 at the Federal Prison Camp in Montgomery, Alabama.

Balch has boasted these past five-years of expanding their footprint in the Southeast, and now the embattled firm can add two convicted felons in Atlanta and Montgomery.

Both convicted felons represented Southern Company, one of Balch’s top clients currently in the middle of a sex and accounting scandal.

With only 2 percent of Balch partners being people of color, the alleged racist law firm’s partners are 98 percent white while their esteemed convicts are 100 percent white.

So desperate to hide their racist and segregationist past, and links to Governor George Wallace and a Ku Klux Klan highway-funds scandal, Balch recently added its Chief Diversity & Inclusion Officer on the firm's professionals list of attorneys and lobbyists, even though she is not involved in any practice area of law does not participate in government relations.

Why are no other Balch officers listed in such a manner? Forbes provides the answer:

Neither the Chief Operating Officer, Director of Human Resources, Director of Finance, Director of Client and Community Engagement, Chief Information Officer, nor the Chief Marketing Officer.

Could it be because that they are all white?

Tokenism. Tokenism of partners. Tokenism of attorneys. And now tokenism of management officers on their website.

How embarrassing!

But then again Balch managing partner Stan Blanton is collecting make-believe awards for diversity and inclusion.

And then the firm's lawyers wonder why others are laughing.

Merrick Garland has allowed corporate corruption to flourish, raising alarms about Wells Fargo, drug-trafficking, and the roles of Julian Banton and Carol Garrison in the decline of Birmigham institutions

Joe Biden and Merrick Garland

Merrick Garland is the most ineffective U.S. attorney general of the past 50 years and could do Americans a favor by resigning, according to an editorial opinion today at DonaldWatkins.com. Watkins, a longtime Alabama attorney and businessman, writes under the headline "Merrick Garland: The Most Useless Attorney General in Modern History":

I have seen my share of weak, incompetent, and useless U.S. Attorneys General since I graduated from law school in 1973. None of them has been as useless as Merrick Garland.

What is more, Merrick Garland always seems to be “missing in action” when his presence is needed the most.

Forget about "open borders" at the U.S.-Mexican border. That public safety threat pales in comparison to the culture of open lawlessness that Merrick Garland and his fellow eunuchs at the Department of Justice have allowed big Wall Street banks and corporations to enjoy in a carefree manner. These banks and corporations are today's "untouchables," and they know it.

These Wall Street companies also operate as financial predators who gouge ordinary Americans every chance they get -- simply because they can. Under Merrick Garland's so-called “leadership,” no one is policing their conduct.

That is a grim scenario, and it raises this question: How does our country suffer when big-dollar crooks are allowed to operate with impunity because they are "too big to prosecute"? An answer can be gleaned by examining the evolving accounting-fraud/hush-money scandal at Atlanta-based Southern Company, the nation's second largest utility and parent firm to Alabama Power and other subsidiaries. Three Alabama-based blogs -- DonaldWatkins.com, banbalch.com (operating under the CDLU public charity and advocacy group), and Legal Schnauzer -- have written dozens (probably hundreds) of posts about the underhanded ways Southern Company conducts business. Meanwhile, Merrick Garland and his underlings at the U.S. Department of Justice (DOJ) have shown little inclination to take action against the brazen corruption at Southern Company. Does Garland want to avoid getting his hands dirty, while fat-cat CEO's laugh in his direction, knowing they will not be held accountable? That appears to be the case, writes Watkins:

Privately, the CEOs who head big publicly traded companies like the Atlanta-based Southern Company view Merrick Garland and his law-enforcement team at the Department of Justice as a bunch of “punks.” While sipping bourbon and smoking Cuban cigars at private dinners, these CEOs laugh as they brag about the choke hold they have on Merrick Garland and his Department of Justice.

Today, the best opportunity for a career-minded criminal is to embed himself/herself as the chief executive officer of a New York Stock Exchange/Fortune 500 company. From this corporate perch, a crooked CEO can direct subordinates to bribe: (a) elected and appointed public officials (with private jet rides, campaign contributions, and consulting jobs for their wives/mistresses/lovers), (b) state and federal judges (with free hunting trips, private jet rides, and luxury vacations), and (c) state and federal regulators (with complimentary sky-box tickets to sporting events/concerts, and prepaid gift cards for their wives and college-age children) -- all with impunity and without any fear of a federal criminal prosecution.

Occasionally, a powerful billionaire can bribe a U.S. Supreme Court justice with millions of dollars in undeclared and unreported “gifts” and “love offerings,” without worrying about any federal criminal investigation or prosecution.

Yikes, that's a reference to the Clarence Thomas-Harlan Crow bromance, which has helped unmask the U.S. Supreme Court as just another cash grab, which might as well have a sign out front that reads "Justice for Sale. Inquire Within." Watkins has career advice for ethically-challenged up-and-comers who want to climb the career ladder while skipping a few rungs:

Wall Street banks enjoy the freedom to go on nationwide, decades-long crime sprees, without any fear of a federal criminal prosecution. Wells Fargo Bank is the “poster boy” for financial crimes without criminal consequences. Its brazen crime sprees since 2000 inspired Silicon Valley Bank, First Republic Bank, and other publicly traded banks to follow suit.

What is more, the ingratiating look on Garland’s face in the feature photo accompanying this article tells us that Hunter Biden has nothing to worry about at Garland's Department of Justice, despite the growing evidence of criminal conspiracy, wire fraud, and tax evasion offenses committed by First Son Hunter Biden and those who acted in concert with him.

The Wells Fargo sleaze fest might hit closer to home than many Alabamians realize. That's because retired banker Julian Banton, the husband of former UAB president Carol Garrison, helped bring Wells Fargo into the Birmigham community. Here's how it happened: Julian Banton is the former president and CEO of SouthTrust Bank, which merged with Wachovia Bank in 2004, and Wells Fargo purchased Wachovia in 2008. Before Wells Fargo aligned with Wachovia, it became well known that the latter was tied to drug trafficking, as we reported in an August 2012 post:

Julian Banton and drug trafficking--It's undisputed that Wachovia Bank, before it was purchased by Wells Fargo in 2008, was involved in money laundering for international drug traffickers. In fact, bank officials admitted that they had helped move $378.4 billion for Mexican drug cartels and wound up paying $160 million in fines and penalties. The settlement was announced in March 2010, and by that time, many Birmingham residents probably had forgotten a few pertinent facts about our once-proud banking community.

Wachovia had a major presence here, and that's because it merged with Birmingham-based SouthTrust in 2004. Until the merger, SouthTrust was known as one of Birmingham's "Big Four" banks, a quartet that helped make the city one of the top 10 banking centers in the United States.


The SouthTrust/Wachovia marriage did not go so well, to put it mildly. Wachovia made a number of ill-advised acquisitions and took on so many risky loans that it was on the verge of failure before the Wells Fargo purchase. In fact, Wachovia's slipshod practices played a supporting role in the U.S. financial crisis that started in 2007.

Who helped make the SouthTrust/Wachovia marriage happen, costing Birmingham a significant number of banking jobs and exposing the city to a reckless financial culture? Julian Banton was one of the top two executives at SouthTrust, along with Wallace Malone, so he almost certainly played a major hand in it. Banton retired from SouthTrust in 2003, but it appears one of his last acts was to help set the Wachovia merger in motion.

In short, Julian Banton played a leading role in the decline of Birmingham's once-proud banking industry, and his wife led her own ethically challenged administration at UAB before she unceremoniously "resigned" as fall classes were set to begin in fall 2008. (By the way, that's a very peculiar time for a university president to resign.)

How crooked was Carol Garrison's tenure at UAB? Well it involved a romance with former University of Tennessee President John Shumaker, generating enough dirt to prompt us to write a four-part series on the romance and associated corruption. (Note: We will have more in future posts on Wells Fargo, Wachovia, drug trafficking, Julian Banton, Carol Garrison, and the decline of both Birmingham's banking community and UAB.)

Let's return to Donald Watkins' op-ed piece on Merrick Garland:

Merrick Garland is totally useless as a federal law-enforcement official. He uses a laid-back public persona and somber look at press conferences to mask his impotence and incompetence in the job. This manufactured persona is intended to portray Garland as a mature, seasoned, and experienced prosecutor.

This fake persona is not working.

Today, there is a non-stop frontal attack on the constitutional and civil rights of Americans of color, women, the elderly, children, and LGBTQIA Americans by MAGA politicians across the nation. These politicians have sized up Merrick Garland as an extremely weak man and inept Attorney General.

Even though I am NOT a MAGA supporter, I totally agree with this assessment.

In my opinion, Merrick Garland was never fit to serve as the nation's top criminal prosecutor or the chief protector and defender of the constitutional and civil rights of the Americans who are most at-risk in this country.

Personally, I would never rely on Merrick Garland to defend my basic constitutional and civil rights in any courtroom. Neither should you.

What is the solution? Donald Watkins says it is simple: Merrick Garland must go:

One thing is clear to me at this juncture: We cannot get rid of Merrick Garland unless we get rid of Joe Biden. Both men are perennial weaklings who appear to be joined at the hip.

In the interest of full disclosure: I have never been a Joe Biden fan.

Thirty-one years ago, Joe Biden had a chance to kill Clarence Thomas’ nomination as a Supreme Court justice, but he did not have the “balls” to do so. Biden’s failure of leadership as Chairman of the Senate Judiciary Committee 31 years ago has caused tens of millions of Americans of color, women, the elderly, children, and LGBTQIA Americans to lose their constitutional and civil rights in cases where Thomas’ vote on the Supreme Court made the difference.

We all know by now that Clarence Thomas is a "run-of-the-mill crook" who has engaged in a "pay-to-play" scheme for 27 years on the Supreme Court bench. Yet, Merrick Garland has NOT opened a criminal investigation into Thomas' vote-selling and tax-evasion conduct.

I have zero confidence in Merrick Garland as Attorney General of the United States. We cannot expect a man with no backbone to stand up and fight for the rights of the most vulnerable groups of Americans.

Merrick Garland has failed himself, and he has failed America. He needs to resign, now!

Thursday, May 25, 2023

Richard Scrushy denies hiding millions related to $2.87-billion judgment, and it all rekindles memories of my troubling experience with Judge Allwin Horn

Richard Scrushy
 

Part One

Former HealthSouth CEO Richard Scrushy is being accused of hiding millions of dollars related to a $2.87-billion civil judgment against him in 2009. Scrushy, however, denied any wrongdoing and said he welcomes discovery efforts by opposing counsel in the matter, according to a report at al.com.

The story hits close to home here at Legal Schnauzer for several reasons:

(1) It conjures up my longstanding concerns about whether justice was done in the Scrushy civil case;

(2) The case was conducted as a bench trial (both sides apparently agreed to that arrangement), meaning there was no jury, and a solo judge -- the late Allwin E. Horn, was the lone decision maker;

(3) I had the unpleasant experience of seeing Horn operate up close in a separate matter, and I was extremely unimpressed. 

(4) For reasons I don't remember, Horn summoned me to his office, so I sat just a few feet away, on the other side of his desk. Best I could tell, Horn wanted to see me so that he could let me know he had made up his mind on the matter at hand, and there was nothing I could do to change his position. He impressed me as a man who cared little about the law and facts, but got a sick charge out of flouting his authority and playing with people. 

(5) From viewing him up close, I got the sense that Horn wasn't "altogether there." If my memory is correct, this was shortly before his retirement in 2009, and Horn seemed like a man whose brain circuitry was not functioning at full capacity. I remember thinking, "This guy has no business overseeing any complex legal matter," and the Scrushy case certainly fit that description. Horn died in September 2019 at age 75.

(6) On appeal, the Alabama Supreme Court mostly deferred to the trial court, so it is unclear if Horn's ruling ever was reviewed in any serious or objective way. The Supreme Court's ruling can be summarized as "This is what the the trial court decided, it knows the case more intimately than we do, so we aren't going to disturb it in any way."

As for the latest issue in the Scrushy civil matter, al.com's William Thornton reports:

Former HealthSouth CEO Richard Scrushy and others have been ordered to turn over records and documents related to a bank account, which lawyers say  Scrushy was using to hide millions.

In a seven-page order filed Tuesday in Jefferson County Circuit Court, John England Jr., acting as special master in the case, also issued an injunction against any money being transferred out of the account in question.

Opposing counsel's argument centers around Scrushy's relationship with a man named Eddie Briskett. Writes al.com's Thornton:

In 2007 Scrushy was sentenced to nearly seven years in prison. While serving his sentence in a Texas prison, a civil court found him liable for the HeathSouth fraud.

He was ordered to pay $2.87 billion in damages. After serving about five years of his sentence, Scrushy was released from prison. He currently lives in Texas and is representing himself in the court action.

According to England’s order, Scrushy contends he is unemployed and has no assets other than Social Security. However, lawyers for the plaintiffs who are owed damages say Scrushy is conducting business through other entities owned by friends and family.

Plaintiff lawyers say Scrushy controls a bank account in the name of Eddie Briskett, a man currently serving time in the Alabama Department of Corrections for various convictions, including property theft, burglary, assault, and intimidating a witness, according to the ADOC website.

According to the ruling, Scrushy has “exchanged thousands of text messages” with a number associated with Briskett, and written checks totaling $7.3 million on the account, including two checks to himself totaling $3 million.

However. those checks were never deposited in any account previously disclosed by Scrushy, the order states.

In addition, England mentioned a 2020 letter to the Alabama Bureau of Pardons and Paroles by an associate of Scrushy, explaining that Briskett has an investment portfolio of about $7.1 million.

“The evidence presented suggests that Mr. Scrushy may have an interest in the account or in some or all of the proceeds of the account,” the order reads. “At minimum, it appears that Mr. Scrushy, or someone acting in concert with him, opened the account in Briskett’s name and that Mr. Scrushy has control of the account.”

Scrushy contends the evidence does not amount to much. Reports Thornton:

Scrushy, speaking by phone, said he has known Briskett for 20 years through his prison ministry and has exchanged text messages with Briskett’s sister, mainly to set up telephone conversations.

The checks, he said, were “kind of a joke” between the two of them.

“He’s one of the gentlemen that I’ve been helping, being a friend and minister,” he said. “I’ve never signed on any bank account of his. There’s zero truth to any of that. I’ve never been involved with Eddie Briskett on any account, period. I’ve never taken a dime from Eddie Briskett.”

Scrushy said the court filings in the case are a continued harassment to him and his family.

“I’ve never seen such abuse and waste in my life,” he said. “I told the judge yesterday to let those attorneys go and discover anything they want. There is nothing to it.”

This all comes back to Judge Allwin Horn, the one-man overseer of the Scrushy civil case. I have written extensively about that matter -- and about my personal experience with Horn, which left me extremely unimpressed with him as an individual and concerned that he might not have the mental acuity to handle any complex legal case, not to mention such a high-profile matter as the Scrushy civil case.

Should the public have confidence that Horn got it right in the Scrushy case -- or in any matter from that general time frame, 2006-2010? We will examine that question in an upcoming post.

Coming in Part Two: Donald Watkins tells us how efforts to collect the Scrushy judgment turned into a $100-million gravy train for the Bradley Arant law firm.

Tuesday, May 23, 2023

As noted womanizer Chris Womack assumes the coveted Southern Company throne, his supposed "relationship" with a female executive hits the spotlight

Chris Womack and Kim Greene
 

Incoming Southern Company CEO Chris Womack, a noted womanizer and sexual harasser, has told multiple associates that he had a "close personal relationship" with a high-ranking and well-respected woman in the company hierarchy. Womack's statements, however, might not be factual -- and it's unclear what drove him to make them. But it is clear that he besmirched the reputation of the female executive, and when Womack officially ascends to the top of Southern Company tomorrow (May 24, 2023), he will be her superior -- and that creates a dicey workplace situation for the nation's second-largest utility company.

All of this might be driven by the current leadership's assessment that Womack is a weak and compromised leader, who will take no action to stop dubious financial arrangements that are taking place now and likely will continue in the future. That is from a post today at DonaldWatkins.com, under the headline "Southern Company Quagmire: Chris Womack’s Personal Relationship with Kim Greene." Watkins, a longtime Alabama attorney and businessman, writes:

On May 24, 2023, new Southern Company CEO Chris Womack will have direct supervision of a female subordinate with whom he claims to have enjoyed a discreet and previously undisclosed close personal relationship. This circumstance is predicated upon Womack’s braggadocios statements to others.

This is the Southern Company’s newest quagmire with Chris Womack, a notorious womanizer.

Womack has privately communicated his close personal relationship with this woman to multiple people and on multiple occasions. Womack characterized the relationship as a mutual one between two consenting adults who needed intimate attention from each other.

Was Chris Womack telling the truth about his relationship with this woman, or was he lying?

This is a woman with a record of impressive academic and professional achievements -- in fact, her resume likely would easily top that of Chris Womack, as Watkins spells out:

The woman at the center of the Southern Company’s newest quagmire is Kimberly Greene, the recently appointed Chairwoman, President, and CEO of Georgia Power Company. Greene succeeded Womack as Chairwoman, President, and CEO of Georgia Power.

Prior to her current position, Greene served for five years as Chairman, President, and CEO of Southern Company Gas.

For a couple of years while Kimberly Greene was CEO of Southern Gas, Womack was Chairman, President, and CEO of Georgia Power Company. During this period, Womack and Greene reported directly to Southern Company CEO Thomas Fanning.

In her new job at Georgia Power, Greene will report directly to Womack, beginning on May 24th.

Greene’s 32-year career in energy began in 1991 when she joined Southern Company as an engineer designing equipment for fossil and nuclear-power generation stations. She has held executive roles for Southern Company and its subsidiaries as well as the Tennessee Valley Authority (TVA), including chief executive officer for Georgia Power and Southern Company Gas; chief operating officer for Southern Company; president of Southern Company Services; chief generation officer for TVA; group president, Strategy and External Relations, TVA; and chief financial officer for TVA.

Greene, a Knoxville, Tennessee native, is a member of the State of Alabama Engineering Hall of Fame. She earned a bachelor’s degree in engineering science and mechanics from the University of Tennessee, a master’s degree in biomedical engineering from the University of Alabama at Birmingham and a master’s degree in business administration from Samford University in Birmingham, Alabama.

Sources tell Watkins that Greene never has claimed to have had a close personal relationship with Chris Womack, and it seems clear she would not need such a relationship to advance her career:

Unlike Chris Womack, Kimberly Greene has never acknowledged the close personal relationship that Womack claims he enjoyed with her. Furthermore, we have found no credible evidence to corroborate Womack's disparaging comments about Greene.

Based upon the information available to us to date, it appears that Womack lied about having an intimate relationship with Kimberly Green in a misguided effort to impress men with similar shortcomings -- all at the expense of Greene's well-respected professional and personal reputation.

What is more, Kimberly Greene is a first-class chief executive officer who has far more objective credentials and successful senior-management experience in the utility-plant operations side of the power-generation business than Chris Womack.

Now, Womack and Greene will work together in a Southern Company organizational structure where she must report directly to Womack. That's a quagmire.

Womack reportedly has been conducting a denial tour since Watkins broke details about his sketchy history with women in the workplace -- or, in some cases, connected to it. Writes Watkins:

After we publicized Womack’s history as a womanizer in an exclusive article published on May 17, 2023, Womack engaged in a campaign of denials in response to inquiries from Southern Company officials and supporters regarding this subject.

Borrowing a page from Donald Trump’s 2016 playbook following his embarrassing comments on an Access Hollywood audiotape and his “hush money” scandal with porn star Stormy Daniels, Chris Womack has doubled down on his denials of being a womanizer.

Southern Company officials knew or reasonably should have known that Chris Womack’s denials with respect to a close personal relationship with the women referenced in my May 17, 2023, article are false. The company's own records show that Womack was forced out of Alabama Power Company in 1998 for inappropriate sexual behavior.

Likewise, Southern Company officials should have known about Womack's inappropriate and unwarranted comments about Kimberly Green. When Womack spun a lie about his personal relationship with Kimberly Greene, he disparaged her reputation for no good reason.

However, the men who run the Southern Company (i.e., CEO Thomas Fanning, External Affairs President Bryan Anderson, former General Counsel James Kerr, II, and board members David J. Grain, Donald M. James, and John Johns) do not care about Chris Womack's sexcapades, lying, or any other misdeeds. After all, a couple of these men suffer from the same womanizing affliction that has impaired Womack’s personal and professional judgment.

How was such an ugly tale allowed to unfold in a once-reputable company, the parent firm of Alabama Power, where Chris Womack spent a number of years in public relations and corporate services? Watkins provides insight:

Chris Womack was handpicked as Thomas Fanning’s successor by Fanning, himself. Womack was appointed to the CEO position by the Southern Company’s male-dominated board of directors.

These men can depend upon Womack to blindly allow Fanning to use the Southern Company’s vast business network and many operating platforms for personal “grifting” deals that go far beyond the personal enrichment program Lead Independent board member David J. Grain is currently enjoying.

Based upon Chris Womack’s lack of significant executive experience, poor leadership skills, professional shortcomings, and history of womanizing, Thomas Fanning and David Grain are confident that Womack is the perfect CEO/enabler for implementing their personal enrichment agendas. These men firmly believe they can control and manipulate Womack in order to continue their “get rich” schemes.

Fanning, whose total compensation in 2022 was $24,006,670, is not content to depart his CEO’s position with a retirement package that is valued at up to $100 million. He wants more -- much more.

For the record, Fanning's retirement package requires board approval, which may place those who vote for the package in legal jeopardy.

Incredibly, Fanning’s total compensation for 2022 was more than 167 times the median annual pay of $143,500 for a Southern Company employee. This compensation disparity has shocked many rank-and-file company employees.

What is worse, Fanning’s total compensation package benefited from and is tainted by a massive accounting-fraud scheme that is ongoing at the Southern Company.

Things could start to get tricky tomorrow when Chris Womack assumes the throne -- and that's because a lot is going on beneath the surface, largely outside public view, reports Watkins:

On May 24th, Thomas Fanning is slated to be reappointed to the board of directors in a move that empowers him to oversee his future grifting activities. These projects will use the Southern Company's many operating platforms to make Fanning a multibillionaire within three years.

A dutiful and compromised Chris Womack is expected to greenlight all of Fanning’s and Grain’s personal-enrichment projects.

This cozy arrangement is the real reason why Thomas Fanning picked Chris Womack as his successor and why David Grain led the board of directors in approving Womack's appointment as CEO.

Within this "Southern male privilege" paradigm, the men who run the Southern Company do not care about complying with the anti-sexual harassment provision of the company’s Code of Ethics, or the elevation of a legendary womanizer to the position of CEO, or the deployable act of bypassing more capable and qualified candidates for the CEO’s position, or anything else, except their own greed.

That's the deal!

Sunday, May 21, 2023

As Chris Womack, a noted womanizer and sexual harasser, assumes CEO role at Southern Company, a stock-dumping scheme signals rocky waters ahead

Chris Womack
 

Southern Company this week is set to install Chris Womack, a noted womanizer and practitioner of dubious workplace conduct, as its CEO and president. That might sound like trouble in the making, but trouble already is brewing beneath the surface in the form of a "pump and dump" stock scheme that involves several high-ranking executives at the scandal-plagued utility. It all points to the likelihood that insiders expect an ongoing stream of bad news to cause the company's stock price to plummet in the near future -- and that Womack, a black man in a corporate culture marked by thinly veiled racism and white privilege, could be designated as the "fall guy" for an accounting-fraud scandal that sits at the heart of the company's woes.

That's from a post today at DonaldWatkins.com, under the headline "The Southern Company is Ready to Make “Womanizer” Chris Womack CEO Amid “Pump and Dump” Stock Scheme." It's the latest in a string of hard-hitting reports from Watkins that reportedly had top executives on edge Friday at Southern Company's Management Council meeting. They apparently fear that Watkins' journalism -- he is a longtime Alabama attorney and businessman -- will lead to more bad news (perhaps from mainstream news outlets) for a company already drowning in glaring headlines.

The "pump and dump" stock scheme might be the strongest sign that the train has veered wildly off the tracks at Southern Company -- and corporate insiders know it. Writes Watkins:

In the midst of Chris Womack's controversial promotion to CEO, there is a "pump and dump" stock scheme that is lurking in the background. The scheme is led by outgoing CEO Thomas Fanning.

Apparently, Thomas Fanning, Bryan D. Anderson, and Stephen E. Kuczynski (Chairman, President, and CEO of Southern Nuclear Operating Company) know that something is amiss at the Southern Company. Since April of 2023, these three senior-management executives have been dumping shares of Southern Company stock that were “pumped” up in price via creative accounting techniques (a/k/a “accounting fraud”).

On April 10, 2023, Thomas Fanning, who made more than $24 million in total compensation for 2022, sold 50,000 shares of Southern Company stock at $71.54 per share for a total of $3,577,000. On May 10, 2023, Fanning sold another 50,000 shares of Southern Company stock at $75.16 per share for a total of $3,758,000.

On May 8, 2023, Bryan D. Anderson sold 9,491 shares of Southern Company stock at $75.09 for a total of $712,110. On May 10, 2023, Anderson sold 27,426 shares of stock at $75.11 per share for a total of $2,059,967. With respect to both of these transactions, Anderson exercised an option to purchase 9,491 and 27,426 shares of stock at $41.28 per share. The transactions allowed Anderson to acquire the shares and simultaneously sell them on May 8th and 10th for  immediate windfall profits of $320,891 and $927,822, respectively.

On April 10, 2023, Stephen E. Kuczynski sold 5,000 shares of Southern Company stock at $71.89 per share for a total of $359,450. On May 10, 2023, Kuczynski sold another 5,000 shares of stock at $74.96 per share for a total of $374,800. Since joining the company on July 11, 2011, Kuczynski has dumped $12,985,287 worth of Southern Company stock.

It is clear that Kuczynski is diverting himself of Southern Company stock. The question is: Why?

For those keeping score, that is a total of $12,090.040 in stock dumps over about a one-month period, beginning on April 10 of this year. And it does not end there, reports Watkins:

On July 29, 2022, James Y. "Jim" Kerr exercised an option to acquire 25,000 shares of Southern Company stock at $42.16 per share. Kerr authorized the sale of these shares on the same day at $76 per share for a total of $1,900,000. At the time, Jim Kerr was Thomas Fanning’s executive vice president, general counsel, chief of compliance, and chief of staff.

Incidentally, the sale of Kerr's stock occurred approximately one month after Thomas Fanning's girlfriend, Kimberly Tanaka, learned for the first time that she had been the victim of an illegal surveillance operation carried out by Southern Company operatives. Tanaka promptly informed Fanning about the surveillance operation. Tanaka also advised Fanning that she planned to sue the company for this invasion of her privacy. To head off a PR nightmare, Fanning and Kerr arranged to pay Tanaka "hush money" with Southern Company funds that were laundered through a third-party vendor in order to buy her silence.

The Southern Company's “pump and dump” scheme was not limited to the transactions referenced above. Quite a few senior-management employees have sold Southern Company stock within the past six months.

Watkins describes the situation at Southern Company as a "hot mess," and insiders seem to know it might get worse before it gets better. Writes Watkins:

On May 19, 2023, top executives at the Southern Company met for their Management Council meeting. They were reportedly worried that my investigative articles might be picked up by mainstream media organizations that cover New York Stock Exchange companies.

After the meeting, the whispered consensus among many of the Management Council members was that the Southern Company is in one hot mess. Morale at the company is in the toilet.

Here is why:

First, departing CEO Thomas Fanning is embroiled in the “hush money” scheme referenced above in which corporate funds were used to silence Kimberly Tanaka, a victim of the company's illegal surveillance activities. The surveillance campaign and resultant “hush money” scheme were not disclosed to the Southern Company’s board of directors or approved by the board. We have reported the scheme to Fulton County, Georgia District Attorney Fani T. Willis.

Second, Jim Kerr was caught on a 2018 secret audiotape making racially insensitive remarks about the suppression of environmental-justice rights of the Southern Company’s 4,000 black customers in the North Birmingham, Alabama, communities of Collegeville, Fairmont, and Harriman Park. Kerr was not fired for his dismissive attitude towards the Southern Company's black customers. Instead, Kerr was promoted on March 31, 2023, to the position of Chairman, President, and CEO of Southern Gas Company. Black Southern Gas Company employees despise him. Kerr's chameleon brand of racism and elitist attitude appears to be incapable of reform.

Third, Bryan D. Anderson, the Southern Company’s Executive Vice President and President for External Affairs, was exposed for his history of racially discriminatory conduct in our May 19, 2023, article. Anderson, a top executive at The Coca-Cola Company from 1992 to 2010, was responsible, in part, for certain racist employment practices that forced Coca-Cola to pay a record-breaking $192 million to its black employees in a class action settlement. In 2010, Anderson reportedly brought some of his toxic employment practices with him to the Southern Company. Like Jim Kerr, Bryan Anderson’s chameleon brand of racism and elitist attitude appears to be incapable of reform.

The roll call of infamy extends to the board of directors:

Fourth, Lead Independent board member David J. Grain has been exposed as a “grifter” who uses his Southern Company platform for his non-stop “grifting" activities. We detailed a specific example of Grain’s “grifting” in an investigative report on the Southern Fiber Company.

Fifth, board member Kristine L. Svinicki is dripping with conflicts of interest. Svinicki is the former chairwoman of the U.S. Nuclear Regulatory Commission who departed office in Washington on January 20, 2021, and joined the Southern Company board of directors on October 18, 2021.

Sixth, board member Donald James is one of the subjects of a criminal complaint that was filed in April of 2023 with Fulton County, Georgia, District Attorney Fani T. Willis. The other four subjects of the complaint are: Jim Kerr, David Grain, Kristine Svinicki, and Thomas Fanning (who was added to the complaint after we learned of his involvement in the secret “hush money” scheme with Kimberly Tanaka).

Looming criminal complaints, and reports of woefully mismanaged construction projects, add to the grim picture:

Seventh, the company and several of its top executives are subjects of formal criminal complaints and law-enforcement reports pending with the U.S. Department of Justice, the Nuclear Regulatory Commission, the Fulton County District Attorney’s Office, and the Roswell, Georgia, Police Department. In general, the complaints allege that the Southern Company has engaged in a long-running racketeering enterprise, a massive $27-billion accounting-fraud scheme, and an illegal surveillance operation.

One of the complaints also contends that the Southern Company is unfit to own and operate the Vogtle Nuclear Power Plant near Waynesboro, Georgia. Two new units under construction at Plant Vogtle are currently $21 billion over-budget. Units 3 and 4 at Vogtle still have not been placed into commercial service after a decade of construction work.

That brings us back to the tawdry tale of Chris Womack, which on the surface, appears to be a head-scratcher. Is the company opening the door to a problem that could have been avoided? Writes Watkins:

On May 24, 2023, the Southern Company is set to install a well-known, perennial stalker and sexual harasser of women as its new Chief Executive Officer. His name is Christopher C. “Chris” Womack.

Womack, who was handpicked for the position by outgoing CEO Thomas Fanning, has a legendary reputation inside and outside of the Southern Company as a “womanizer.” This reputation apparently does not matter to Fanning or the company's male-dominated board of directors.

In a May 17, 2023, exclusive investigative article titled, “Christopher C. Womack: A Legendary Womanizer is Poised to Lead the Southern Company,” we reported on Womack’s reputation for engaging in inappropriate sexual behavior with Southern Company female employees and contractors, dating back to 1995.

Recent history teaches that this kind of conduct can lead to big problems, and unwelcome headlines, in the corporate environment: Writes Watkins:

Since April of 2023, at least two New York Stock Exchange companies have removed their CEOs for inappropriate sexual behavior. On April 23, 2023, NBCUniversal fired CEO Jeff Shell for inappropriate sexual conduct. On May 15, 2023, 3M fired Michael Vale for sexual misconduct. Vale had just been promoted to 3M’s group president and chief business and country officer four weeks ago.

Jeff Shell and Michael Vale are white. Chris Womack is black.

On Wednesday, the Southern Company will ignore Chris Womack’s long history of inappropriate sexual behavior with female employees and vendors in order to elevate him to the position of CEO. The rules governing inappropriate sexual behavior that apply to white CEOs at publicly traded companies apparently do not apply to Chris Womack at the Southern Company.

There is no doubt that Chris Womack is the beneficiary of a new kind of "unspoken" preferential treatment, despite his history of inappropriate sexual behavior.

Watkins describes the Womack promotion as a new form of "wokeness":

The Southern Company’s Code of Ethics contains this provision:

“We are an equal opportunity employer. We do not tolerate inappropriate conduct, intimidation, harassment, or discrimination on any basis, including race, color, religion, sex, national origin, age, disability, veteran status, genetic information, sexual orientation, or gender identity or expression.”

On its face, this provision prohibits inappropriate sexual conduct in the workplace at the Southern Company. This prohibition is fairly common among New York Stock Exchange/Fortune 500 companies.

On May 24, the Southern Company plans to ignore this prohibition in Chris Womack’s case in order to place him in a position of power over women who are at his mercy. This patently insensitive move is unprecedented in the modern era of corporate governance.

Womack’s promotion to CEO appears to usher in a new form of “wokeness," sexism, and preferential treatment at the Southern Company.

The Southern Company appears to be ready, willing, and able to lead all New York Stock Exchange/Fortune 500 companies in making 1990s-era sexism fashionable, once again.

Will Chris Womack's rise to the top end well? Watkins has serious doubts about that:

Based upon the totality of facts and circumstances surrounding Chris Womack’s impending assumption of the CEO position at the Southern Company and considering the board of director's willingness to ignore Womack's well-known reputation as a womanizer, we believe that Womack is Thomas Fanning’s handpicked “fall guy” in the company’s massive accounting fraud scheme. No other explanation makes sense for Womack's elevation to CEO.

Chris Womack is a deeply flawed Southern Company executive who is awash in: (a) four decades of lapses in professional judgment, (b) numerous violations of the company policy prohibiting inappropriate sexual behavior in the workplace, and (c) a litany of personal failings. Yet, Thomas Fanning's handpicked Chris Womack over candidates who were far more qualified and capable than him for the CEO position.

At this juncture, the Southern Company's “ship” is more vulnerable to sinking than the Titanic. The only questions are: How many of the company's top executives will survive the "sinking" in a sea of accounting fraud and racketeering activities? And, who will they be?

Coming Tuesday: Unveiling Chris Womack's most troublesome special personal relationship.

Friday, May 19, 2023

Bryan Anderson used big money and white privilege to build Southern Company's influence machine, with Alabama's Richard Shelby as a prominent beneficiary

Bryan Anderson (right), with CEO Tom Fanning and Sen. Lindsey Graham
 

Bryan D. Anderson, a public-affairs executive at The Coca-Cola Company in the 1990s, was a central figure in a racial-discrimination lawsuit brought by Black employees that resulted in a $192-million settlement in 2001 -- at the time, the largest settlement of its kind in the nation. Anderson reportedly played a significant role in creating the hostile work culture that led to the lawsuit. Being tied to such a massive and historic payout might have been a career killer for many execs. But Anderson simply moved to another Atlanta-based corporate titan -- Southern Company, the nation's second largest utility -- and his dubious views on matters of race apparently fit right in with his new employer.

Anderson has gone on to build a "political fortress" in Washington, D.C., where the "capturing" of influential political figures, especially those from the South, is a form of conducting business. One such politician is retired U.S. Sen. Richard Shelby (R-AL), whose mastery of pork-barrel politics made him an extremely wealthy public servant -- a "winner," you might say, in the game of D.C. palm-greasing. The "losers," it appears, are Southern Company's Black ratepayers, who make up a significant portion of the customer base for a firm that is openly hostile to their social and economic interests.

How are Bryan Anderson and Richard Shelby joined at the hip in this "winner takes all" game of racial insensitivity? That is described in a post today at DonaldWatkins.com, under the headline "Bryan D. Anderson: The Southern Company’s Chief Manipulator in Washington." Writes longtime Alabama attorney and entrepreneur Donald Watkins:

Bryan Anderson’s influence peddling facilitates and enhances the Southern Company’s ability to rip off its 9 million customers, with impunity.

Anderson has built an impenetrable political fortress for the Southern Company in Washington. From this fortress, the Southern Company rewards its political friends, attacks its critics, and "captures and controls" the White House, key members of Congress, and various federal agencies (e.g., U.S. Department of Justice, Federal Energy Regulatory Commission, Federal Trade Commission, U.S. Securities and Exchange Commission (SEC), Department of Energy, U.S. Nuclear Regulatory Agency, etc.) that impact the company's future.

Bryan Anderson uses his puppet-master skills, together with the Southern Company's immense financial resources and entrenched Washington political relationships, to manipulate the federal bureaucracy into advancing and protecting the Southern Company's corporate interests, as dictated by the company to a bevy of greedy politicians and hapless bureaucrats.

Perhaps the No. 1 beneficiary of The Southern Company's influence-peddling game is Alabama's Richard Shelby, Watkins reports:

The Southern Company “buys” or “rents” Democrats and Republicans, alike. Typically, these politicians are “for sale” the moment their right hand comes off the swearing-in Bible.

From 1987 to January 2023, Senator Richard Shelby (R-Alabama) was the Southern Company’s main “go to” guy in Washington. Whatever the Southern Company needed from Congress, or the White House, or any federal regulatory agency, Richard Shelby was able to get it.

This is particularly true with respect to political initiatives that: (a) minimized and/or rolled back consumer-protection rights for Southern Company customers, (b) suppressed environmental-protection rights for the Southern Company’s black and poor white customers, and (c) “fixed” potential criminal cases at the Department of Justice and SEC involving the Southern Company, its affiliates, and their top executives.

Richard Shelby was an original COINTELPRO prosecutor in Tuscaloosa, Alabama, during the 1960s who railroaded thousands of Black defendants in the local municipal-court system in a futile effort to crush Dr. Martin Luther King, Jr.'s civil-rights movement in Alabama.

As a U. S. Senator, Richard Shelby was always ready, willing, and able to limit or suppress the rights of Southern Company customers, particularly those federally protected rights that benefited the company’s Black and poor White customers.

Under Bryan Anderson’s leadership, the Southern Company and its affiliates rewarded Richard Shelby handsomely for flexing his political muscle in Washington on the company’s behalf. Anderson's Washington office funneled campaign contributions, other tangible economic benefits, and a dazzling array of corporate perks to Shelby as a reward for his loyalty and unparalleled political support in Washington.

The amount of "gifting" and "love offerings" that Richard Shelby reportedly garnered from parties affiliated with the Southern Company dwarfed the estimated $3 million in undisclosed "gifts" that U.S. Supreme Court Justice Clarence Thomas received from billionaire Harlan Crow.

Richard Shelby hardly was alone as a captured beneficiary of The Southern Company's largesse. The back-scratching game has affected lawmakers from both sides of the political aisle, Watkins writes:

Richard Shelby’s motto as a Washington politician was simple: “Too much money ain’t never enough.

Shelby’s ability to get filthy rich from his 44 years as a “public servant,” who was living on a modest government salary as a House member and Senator in Washington, was rivaled only by fellow Southerners, Bill and Hillary Clinton. Shelby never explained the sources and methods of his wealth creation in Washington.

Interestingly, Bill Clinton is one of the operatives in the Southern Company's stable of political "fixers" of criminal cases at Joe Biden's notoriously weak, inept, politicized, and weaponized Department of Justice. Clinton reportedly gets paid $5 million per case to secure non-prosecution agreements from the Department for big Wall Street corporations. These agreements are routinely handed out to big-time Wall Street crooks, no matter which political party is in power.

At the Southern Company’s request, Shelby has also used his considerable political “juice” in Washington to sic a blitzkrieg of federal agencies on critics of the company and/or its affiliates. These agencies dutifully complied with Shelby’s requests, as a matter of political courtesy.

Federal judges in Alabama who received Richard Shelby-sponsored appointments to the federal bench between 1987 and 2022 openly "railroaded" defendants whom Shelby personally targeted for annihilation in their courtrooms. For example, former Chief U.S. District Judge Mark E. Fuller accommodated such a request when he railroaded former Alabama governor Don Siegelman (a Democrat) and former HealthSouth CEO Richard Scrushy in his courtroom during their 2006 trial on phony public corruption charges that were devised, orchestrated, and pushed by White House political operative Karl Rove.

Fuller resigned his judgeship on August 1, 2015 after we exposed his August 10, 2014, arrest in Atlanta for viciously beating his second wife, Kelli, in a drunken rage. As it turned out, Fuller was a serial wife beater.

Bryan Anderson and "de facto" Southern Company CEO Jim Kerr have built what Watkins calls a "political chokehold" on Washington --in part, it seems, because the two men share a thinly veiled antipathy toward people of color, who make up a major segment of their company's customer base. Watkins provides background:

During the 1990s, Bryan D. Anderson had a reputation at The Coca-Cola Company for smiling in the faces of black corporate executives, company employees, and public officials, while reportedly calling them “niggers” behind their backs.

Anderson, a Georgia native, worked at Coca-Cola as Director of Government Relations (1992 to 2002), Assistant Vice President for Government Relations and Public Affairs (2002 to 2004), and Vice President for Government Affairs and Public Relations (2004 to 2010).

During his tenure at The Coca-Cola Company, Anderson reportedly contributed to a corporate culture that was extremely hostile to the company’s Black employees.

This hostile work environment prompted four Black plaintiffs to file a 1999 class action racial discrimination lawsuit against The Coca-Cola Company on behalf of themselves and a class of 2,200 former and current salaried black employees. In general, the lawsuit alleged that Coca-Cola employed racially discriminatory employment practices that limited the professional advancement of Black employees.

The specific allegations in the lawsuit that are relevant to Bryan Anderson's story in this article appear below:

Paragraph 30 of the Complaint: “When a senior-level African-American employee of Coca-Cola moved from Minute Maid to the Company's Atlanta headquarters in 1991, [Coca-Cola CEO M. Douglas] Ivester communicated that the ‘environment’ at the Company ‘isn't very accepting’ and that the African-American employee might hear some racially motivated comments. Ivester went on to say that the Company needed ‘those people’ who might make racist comments.”

Sources who were familiar with the case at the time claimed that Bryan Anderson was one of “those people.”

Paragraph 32 of the Complaint: “For example, in or about 1996 or 1997, one of the few African-American Assistant Vice Presidents attended a meeting in Atlanta with some representatives of the bottling companies. He was the only African-American at the meeting, but high-level Caucasian marketing executives from Coca-Cola were present. The head of marketing of the bottling company for the state of Alabama introduced himself as the "Grand Cyclops" of Alabama. Despite the obvious Ku Klux Klan reference, no Company employee responded to this outrageous comment at the Company meeting. This type of comment highlights the challenges facing African-American employees who are required to work with the bottlers on a regular basis, and who cannot penetrate the glass ceiling or overcome the glass walls because of the connections between these bottling companies and Coca-Cola.”

Sources who knew Bryan Anderson at the time reported that he coddled this brand of racism while working at Coca Cola.

Paragraph 35 of the Complaint: “These discriminatory practices extend to Coca-Cola's relationships with ethnic marketing agencies. Upon information and belief, David Weldon, a Caucasian employee who was then the Vice-President of Advertising, told an African-American advertising agency in or about 1997, words to the effect that ‘I don't hire you to do good advertising, I hire you to do black advertising’ and ‘it's not my fault you are black -- it's yours’."

Sources close to the Southern Company today say that Paragraph 35 fairly reflects the current views of Bryan Anderson on marketing activities and related expenditures within the company. The Southern Company’s Form 10-K for 2022 appears to corroborate this view, as well.

The parties in the Coca-Cola case reached a $192-million settlement that was approved by an Atlanta federal court in June 2001. At the time, the settlement was the largest employment discrimination settlement in the nation’s history.

In addition to the monetary relief, the settlement mandated a sweeping overhaul of Coca-Cola’s hiring and promotional practices, performance evaluation procedures, and employee appeals from adverse performance evaluations and personnel actions.

The lawsuit and resulting settlement overcame a hostile work environment that was reportedly created, in part, by Bryan Anderson and other white Coca-Cola executives of his ilk. The settlement, itself, transformed The Coca-Cola Company into one of the most progressive work environments for racial minorities (and women) in the 21st century.

Anderson continued his climb up the corporate ladder by shifting to The Southern Company, which apparently embraced him --ugly baggage and all. Writes Watkins:

Today, Bryan Anderson is Executive Vice President and President of External Affairs for Southern Company. He Left The Coca-Cola Company and joined the Southern Company in 2010.

Reportedly, Bryan Anderson brought his negative racial views of black executives, black-owned marketing agencies, and black public officials with him to the Southern Company.

We are told that the only blacks Anderson seems to tolerate are the ones he can control and manipulate, regardless of the titles they hold at the Southern Company or offices they occupy in government.

We have confirmed that Chris Womack, the incoming CEO of the Southern Company, is one of these controlled Blacks. For reasons that some Southern Company "insiders" do not fully understand, Womack has prostrated himself to Bryan Anderson's dominion and control.

Bryan Anderson also serves on the Southern Company’s Executive Management Council.

Is Southern Company a "customer friendly" outfit? Not exactly, writes Watkins, especially if you have dark skin:

Additionally, Bryan Anderson is responsible for the Southern Company’s branding, corporate communications, public relations, security policy, and additional external affairs functions.

Since joining Southern Company in 2010, Bryan Anderson has directed the company’s political, policy, and regulatory activities in Washington. He also manages the company’s Washington, D.C., office.

Bryan Anderson’s chief job in Washington is to peddle whatever influence is necessary to ensure that the Southern Company’s 9 million customers have as little consumer protections and environmental-justice rights as is possible. The customers of Mississippi Power Company, Alabama Power Company, Georgia Power Company, Southern Gas Company, and the Southern Company’s other service companies pay a lot of money in monthly power and gas bills to support Anderson’s influence peddling in Washington.

An estimated 25% of the Southern Company's 9 million customers are Black. They paid an estimated $15 billion in 2022 in outrageously high electric and gas bills. Yet, the Southern Company has consistently financed politicians on Capitol Hill who eagerly undercut their civil, environmental, and human rights as a course of conduct.

By all accounts, Bryan Anderson is aggressive in his style of influence peddling. No high-ranking Black executive in the Southern Company, including Chris Womack, dares to cross him. Anderson reportedly views Womack as extremely weak and highly compromised in view of Womack's well-known propensity for engaging in inappropriate sexual behavior with the company's female employees and vendors.

Some Southern Company “insiders” liken Bryan Anderson to James Y. “Jim” Kerr, II, the Southern Company’s former Executive Vice President, General Counsel, Chief Compliance Officer, and Chief of Staff to CEO Thomas Fanning. Kerr is an "Old South" racist who now serves as the Chairman, President, and CEO of Southern Gas Company.

Jim Kerr is the top Southern Company executive who was caught on a secret audiotape in 2018 dissing the environmental justice rights of 4,000 mostly black Alabama Power Company customers in the Collegeville, Fairmont, and Harriman Park communities of North Birmingham, Alabama. Kerr smiles in the faces of blacks, but denigrates them in private.

When compared to Jim Kerr, Bryan Anderson is reported to be a smug, Washington-polished, racist on steroids.

What is the current status of "The House that Bryan Anderson and Jim Kerr Built"? You might call it a monument to the power of big money and white privilege. Writes Watkins:

Today, Bryan Anderson operates a Southern Company political and marketing apparatus that has a chokehold on Joe Biden and his Department of Justice. This chokehold reportedly allows the Southern Company to control, stall, and/or kill any enterprise-threatening federal criminal investigations by the Department of Justice and/or the SEC into the Southern Company's business affairs and misconduct.

The political chokehold is a favorite Southern Company weapon of choice. It is routinely deployed at the federal, state, and local levels of government. The chokehold is why no elected or appointed official in federal, state, or local government will oppose a Southern Company political initiative -- no matter how badly the initiative harms the company's 9 million customers.

Finally, the continued presence of Bryan Anderson and Jim Kerr at the Southern Company signals that one of the nation's premier utility companies is a sanctuary for white executives who reportedly harbor furtive racial attitudes towards blacks.

Bryan D. Anderson and Jim Kerr are now the self-appointed and proud guardians of this bastion of "Old South" values in a New York Stock Exchange/Fortune 500 company.

Stay tuned for Part 2 in the Christopher Womack series of investigative articles. It gets much worse for all parties involved.