Civil-rights leader Ernesto Pichardo encourages Kristine Svinicki to resign from Southern Company board as she risks criminal and civil penalties

Kristine Svinicki

A civil-rights leader is calling on the former head of the Nuclear Regulatory Commission (NRC) to resign from Southern Company's board of directors due to the firm's alleged involvement in racketeering activity, according to a post today at ban.balch.com.

Kristine L. Svinicki joined the Southern Company board in October 2021 after serving under three presidents, making her the NRC's longest-serving commissioner. But Ernesto Pichardo, who has a history of work on civil-rights issues and now serves as chairman of the board for the CDLU public charity and advocacy group, has sent a message encouraging Svinicki to step away from her Southern Company position as scandal appears to be engulfing the embattled firm.

K.B. Forbes, CEO of the CDLU and publisher of its Ban Balch blog, writes under the headline "Resign, Svinicki, Resign! Did Ex-NRC Chair Violate Federal Law? Southern Company Board Member in Hot Water":

The Southern Company Criminal RICO Enterprise has left carcasses scattered all over the place from ex-Balch & Bingham partner Clark A. Cooper to disgraced ex-U.S. Attorney Jay E. Town, from ex-Balch partner Jeffrey H. Wood to ousted ex-Alabama Power CEO Mark A. Crosswhite.

Will Kristine L. Svinicki be next?

Svinicki has been called on to resign her position immediately on the Southern Company Board of Directors by Civil Rights Champion Ernesto Pichardo.

Pichardo, Chairman of the CDLU’s Board of Directors, sent a brief message to Svinicki:

You should resign immediately from the board of this criminal enterprise. The 30 pieces of silver given to parade you around and defend the concealment and mismanagement of Southern Company is embarrassing. You are much better than them. You don’t need them. Resign, Ms. Svinicki, resign.

Will Svinicki heed Pichardo's words? It might be a good idea, considering her sterling reputation could be sullied by an extended association with Southern Company. 

Longtime Alabama attorney Donald Watkins -- who has filed a criminal RICO complaint against Southern Company, plus a complaint with the NRC challenging the firm's fitness to own and operate the Vogtle Nuclear Power Plant in Georgia -- has written in detail about Svinicki's ties to Southern Company, noting that her board position could land her in rocky waters. Writes Forbes:

And who is Svinicki?

As DonaldWatkins.com posted last night:

On March 28, 2008, President George W. Bush appointed Ms. Kristine Svinicki as a member of the U.S. Nuclear Regulatory Commission (NRC). She served as a Commissioner under three U.S. presidents, thereby becoming the NRC’s longest-serving Commissioner.

On January 23, 2017, President Donald J. Trump appointed Ms. Svinicki as Chairwoman of the NRC. On January 20, 2021, Ms. Svinicki announced her departure from the NRC on the eve of Joe Biden’s swearing-in as the 46th president of the United States.

Ms. Svinicki has decades of public service experience with a distinguished career as a nuclear engineer and policy advisor, working at the state and federal levels of government, and in both the legislative and executive branches.

So where is the controversy? DonaldWatkins.com lays out the influence peddling:

On October 18, 2021, some 10 months after she retired from the NRC, Ms. Svinicki was appointed to the board of directors of the Southern Company.

Ms. Svinicki’s board appointment appears to be a classic example of influence peddling by the parent company of Georgia Power Company and Southern Nuclear Operating Company. These Southern Company affiliates hold NRC-issued licenses as the “owner” and “operator” of the Vogtle Nuclear Power Plant in Waynesboro, Georgia.

There are thousands of highly qualified nuclear engineers in America. There are also scores of individuals with nuclear policy advisory experience that is comparable to Ms. Svinicki’s. However, there is only one person who served as Chairperson of the NRC from 2017 to 2021.

Could her association with Southern Company cause the highly respected Svinicki to step into criminal territory? Forbes addresses that question:

But the real hot water is federal regulations that bar the “revolving door scenario” that Svinicki appears to have violated. DonaldWatkins.com describes the regulations.

An employee or member of a federal regulatory agency who participated personally and substantially in a particular matter involving a specific party (e.g., grants, contracts, licenses, permits, applications, litigation, etc.), may never appear before or communicate on behalf of another with any federal department, agency, or court regarding that same particular matter. See, 18 U.S.C. § 207(a)(1). This is a lifetime restriction.

For particular matters involving specific parties under the employee’s or agency member’s official responsibility during his/her last year of government service, the employee or member of a federal regulatory agency is restricted for two years after he/she leaves government service from appearing before and/or communicating on behalf of another with any federal department, agency, or court regarding those same particular matters. See, 18 U.S.C. § 207(a)(2).

These post-government employment restrictions are commonly known as “revolving door” restrictions. They are designed to prevent influence peddling within federal agencies by management-level employees and members of federal regulatory agencies who depart their government positions for high-paying cushy jobs with the very companies they interacted with in their capacity as government officials. 

What about possible punishment for violations of these laws? That's where the statutory language takes on a highly serious tone, Forbes reports:

The enforcement of these lifetime and two-year restrictions is codified under federal law,  and the consequences could be severe. If Svinicki indeed violated federal law, the U.S. Attorney General could file criminal charges against her under 18 U.S.C. § 216:

1) Whoever engages in the conduct constituting the offense shall be imprisoned for not more than one year or fined in the amount set forth in this title, or both.

 

2) Whoever willfully engages in the conduct constituting the offense shall be imprisoned for not more than five years or fined in the amount set forth in this title, or both.

 

Although Svinicki would most likely not be sent to prison, the fine is defined as a “civil penalty of not more than $50,000 for each violation or the amount of compensation which the person received or offered for the prohibited conduct.”

Svinicki appears to be in hot water. Boiling hot water.

As scandal continues to boil around Southern Company and related entities, a new question arises: Who is Kristine L. Svinicki, and why does she matter?

Kristine Svinicki (Getty Images)

Kristine L. Svinicki, former head of the U.S. Nuclear Regulatory Commission (NRC),  joined the Southern Company board of directors in October 2021. In making that move, did Svinicki run afoul of so-called federal "revolving door" laws. Why do the laws exist, and what do they mean for Svinicki's tenure with Southern Company? Donald Watkins, longtime Alabama attorney and businessman -- and a central figure in a multi-pronged effort to expose alleged wrongdoing at Southern Company and related entities -- addresses those questions in an article today at his Web site, donaldwatkins.com. Under the headline "Who is Kristine L. Svinicki, and why does she matter?" Watkins writes:

An employee or member of a federal regulatory agency who participated personally and substantially in a particular matter involving a specific party (e.g., grants, contracts, licenses, permits, applications, litigation, etc.), may never appear before or communicate on behalf of another with any federal department, agency, or court regarding that same particular matter. See, 18 U.S.C. § 207(a)(1). This is a lifetime restriction.

For particular matters involving specific parties under the employee's or agency member’s official responsibility during his/her last year of government service, the employee or member of a federal regulatory agency is restricted for two years after he/she leaves government service from appearing before and/or communicating on behalf of another with any federal department, agency, or court regarding those same particular matters. See, 18 U.S.C. § 207(a)(2).

 What is the purpose behind these statutes? Watkins explains:

These post-government employment restrictions are commonly known as “revolving door” restrictions. They are designed to prevent influence peddling within federal agencies by management-level employees and members of federal regulatory agencies who depart their government positions for high-paying cushy jobs with the very companies they interacted with in their capacity as government officials.

These "revolving door" restrictions are embodied within Title 5, Chapter XVI, Subchapter B, Part 2641 of the Code of Federal Regulations.

That brings us to our question of the moment: Who is Kristine L. Svinicki, and why does she matter? Writes Watkins:

On March 28, 2008, President George W. Bush appointed Ms. Kristine Svinicki as a member of the U.S. Nuclear Regulatory Commission (NRC). She served as a Commissioner under three U.S. presidents, thereby becoming the NRC’s longest-serving Commissioner.

On January 23, 2017, President Donald J. Trump appointed Ms. Svinicki as Chairwoman of the NRC.

On January 20, 2021, Ms. Svinicki announced her departure from the NRC on the eve of Joe Biden’s swearing-in as the 46th president of the United States.

Ms. Svinicki has decades of public-service experience with a distinguished career as a nuclear engineer and policy advisor, working at the state and federal levels of government, and in both the legislative and executive branches.

The record indicates Svinicki was an accomplished and valued government employee for 13 years. But her post-government activities are what matter to us now, and they raise important questions, such as this one: Is Svinicki Involved in Influencing Peddling at the Southern Company? Writes Watkins:

On October 18, 2021, some ten months after she retired from the NRC, Ms. Svinicki was appointed to the board of directors of the Southern Company. According to the Southern Company’s website, Ms. Svinicki’s “leadership skills as the former Chairman of the U.S. Nuclear Regulatory Commission and her expertise as a nuclear engineer and policy advisor are valuable to our Board.”

In its own words, the Southern Company added Ms. Svinicki to its board of directors, in part, because she was the former Chairwoman of the NRC and a policy advisor on nuclear energy for various federal entities in Washington, DC.

Ms. Svinicki's board appointment appears to be a classic example of influence peddling by the parent company of Georgia Power Company and Southern Nuclear Operating Company. These Southern Company affiliates hold NRC-issued licenses as the “owner” and “operator” of the Vogtle Nuclear Power Plant in Waynesboro, Georgia.

There are thousands of highly qualified nuclear engineers in America. There are scores of individuals with nuclear-policy advisory experience that is comparable to Ms. Svinicki's. However, there is only one person who served as chairperson of the NRC from 2017 to 2021.

We also have this question: How much is Southern Company paying Ms. Svinicki? Watkins addresses that:

Ms. Svinicki’s compensation as a Southern Company board member has not been made publicly available for 2021 or 2022. However, the published compensation for other board members shows that they earned up to $365,000 in compensation in 2021, as was case for the Southern Company's lead independent board member, Mr. David J. Grain.

In 2021, the cash portion of Mr. Grain's compensation was $205,000. His stock award for 2021 was valued at $160,000. The Southern Company board of director's position is a part-time job for Mr. Grain.

Ms. Svinicki’s reported base salary as the chairwoman of the NRC in 2020 was $183,100.

That tells us going from government service to a position as board member for a major corporation likely involves a nice bump in salary. But Svinicki's situation is complicated by the recent filing of NRC complaints against Southern Company, Watkins reports:

On February 3, 2023, several individuals and organizations filed complaints with the NRC against the Southern Company. The complaints challenge the "fitness" of the Southern Company’s affiliates – Southern Nuclear Operating Company and Georgia Power Company -- to hold NRC-issued licenses as the owner and operator of the Vogtle Nuclear Power Plant.

The complaints allege that the Southern Company and its affiliates have run an interstate criminal racketeering enterprise for many years. The complaints mirror the allegations of related complaints that were filed against the Southern Company with the U.S. Department of Justice's Criminal Division on January 27, 2023.

One national organization -- Consejo de Latinos Unidos, Inc. (CDLU) – is demanding the revocation of these NRC licenses. CDLU wants a qualified and capable third-party administrator to operate Vogtle.

The extent to which Ms. Svinicki may be participating or assisting in the Southern Company’s defense of these NRC-issued licenses is unknown. What is known, however, is that Ms. Svinicki serves on the board of director’s committee for Business Security and Resiliency and Operations, Environmental and Safety. The pending DOJ and NRC complaints fall within the scope of this board committee’s assigned area of responsibility.

Against this backdrop, there are several burning questions about Ms. Svinicki’s service on the board of directors.

 What are those questions? Watkins spells them out:

1. Did Ms. Svinicki’s appointment to the Southern Company’s board of directors on October 18, 2021, violate the federal statutory and Code of Federal Regulations restrictions on “revolving door” business relationships?

2. Has Ms. Svinicki communicated with any NRC Commissioner, NRC employee, or any director or employee of another federal agency on any matter related to the Southern Company since she became a board member on October 18, 2021?

3. Based upon the totality of facts and circumstances, was Ms. Svinicki appointed to the board of directors for the primary purpose of favorably influencing NRC or U.S. Department of Energy decisions involving the Southern Company?

4. Did the business relationship between the Southern Company and Ms. Svinicki constitute a "real" or "apparent" conflict of interest when she was appointed to the company’s board of directors on October 18, 2021?

5. If so, did the designated NRC ethics officer and/or Board of Commissioners waive this "real" or "apparent" conflict of interest prior to Ms. Svinicki's board appointment?

Stay tuned! Much more Southern Company transparency is coming your way from independent journalists in the Southeast who are working on this developing story.

As scandal engulfs Matrix LLC and Joe Perkins, Donald Watkins looks for Southern Company to throw a few people overboard in an effort to save itself

Richard Shelby

How did Alabama's judiciary become such a cesspool, as we have reported in dozens of posts? (See here, here, here, here, and here.) That is a particularly timely question now as the Southern Company/Matrix scandal continues to unfold, with multiple powerful entities, including Alabama Power, the subject of complaints to federal agencies.

Longtime attorney and businessman Donald Watkins, who practiced law in Alabama for more than 40 years, provides a succinct answer to our question. The sorry state of Alabama courts -- at both the federal and state levels -- largely can be placed at the feet of former U..S. Sen. Richard Shelby (R-AL). That is troubling, considering Shelby's deep ties to entities -- Alabama Power, Southern Company, Matrix, Balch & Bingham -- now embroiled in a scandal that is drawing national media attention.

Shelby likely is at the heart of Watkins' own legal troubles, which saw him land in federal prison from 2019 to 2022 on fraud-related charges. Says Watkins:

I started writing about the power company, then I became the target. I fought like hell but I did not understand the full force they have. I was one of the few independent journalists in the state. I must be unbought and unbossed in the media world. I’ve always been outspoken; That makes you controversial in Alabama. I've been in law forever, I've had my own businesses, so they came after me. They wanted to silence my voice. Richard Shelby can pick up the phone and get anybody destroyed. And he and Joe Perkins, of Matrix, are hunting buddies. When you tell the truth now. . . people think, "I've got to destroy this person because I don't want the truth out there."

Richard Shelby is the only person to have the  power to organize a blitzkrieg, where federal agencies come after you at the same time. The IRS came after me; they said  I committed $13 million of fraud, and I paid taxes on what they call fraud proceeds. I never took a salary that I was authorized to have. I wanted to use that money to grow the company. But I'm the bad guy.

Donald Watkins

It started with an investor dispute, and I started the arbitration process, as I was required to do, but the investor took it to the U.S. attorney in New Jersey. The U.S. attorney said we've looked at all of this stuff, and they cleared me.

Shelby and his minions -- Jay Town and Lloyd Peeples -- got me indicted in Birmingham, and Alabama Power controls all of those people. You cannot be a federal judge or U.S. attorney in Alabama unless Richard Shelby supports you. You owe your position to Richard Shelby.

Jay Town was the one who, as U.S attorney in the Northern District of Alabama, made sure Alabama Power was not mentioned in the North Birmingham bribery trial -- even though the company gave $30,000 of the $360,000 in bribes that went to former State Rep. Oliver Robinson (D-Birmingham).

I know from higher ups that my case was rigged. I'm talking about good people in the courthouse and in Washington who let me know what was going on in real time. I don't want to say too much about that now because I’m still exhausting my criminal appeals. But that information will be coming out.

Watkins made his comments in a podcast interview this week with David Meckley, who publishes The Meck Report blog. 

George Wallace was one of the few politicians who refused to jump in bed with Alabama Power, Watkins says:

Alabama is a very political state and has been for a long time. One company seemed to have a lock on all the politicians, all the judges, and all the regulatory entities. After George Wallace left office, Alabama Power went on a concerted program to buy or rent every elected official who they perceived. had any power that could impact their monopoly in the state. Alabama Power is the only power company in the nation that has a guaranteed minimum rate of net return of 5 percent on equity. The people who guarantee that rate are the taxpayers of Alabama. If the company's profits dip below 5 percent, taxpayers must kick in money to take them up to 5 percent.

Wallace had two pet peeves while he was in office – One was segregation yesterday, today, and forever -- and he later abandoned that. Two, he set up a division in the governor's office that fought rate increases for the power company. They could not stand George Wallace and tried to get Richard Nixon to indict him. The idea of trying to put your perceived political enemies in prison started with George Wallace.

How does Alabama Power maintain its tight grip on the state? Watkins explains:

Today, Alabama Power controls politicians in several ways: It has a healthy foundation that will contribute to your pet project if you don’t question anything they do; Next, is campaign fundraising,  they can deliver real money very quickly. Also, they control the Public Service Commission;  Third, they control politicians with Matrix. It's supposed to be a public-relations or political-consulting firm. In reality, Matrix conducts dirty tricks against perceived enemies of Alabama Power. Joe Perkins is a confessed law breaker, but he's been on the Alabama political landscape for more than 40 years.

What the public did not know is that the success Alabama Power achieved in Alabama was replicated in Georgia. Alabama Power is an affiliate of Southern Company, which is a New York Stock Exchange company. We knew Southern Company not only was aware of Matrix's activities, they were blessing it. This  was company policy. They basically controlled the regional office of the United States Security and Exchange Commission. More recently, we then learned, through Matrix, they were buying positive media in Florida for Florida Power & Light and NextEra Energy. That scheme got exposed last year in Florida because of reports on ghost candidates and money laundering. That whole scheme of controlling the news cycle blew up on Florida utilities because the company conducting dirty tricks in Florida was based in Alabama. And Matrix had secret contracts and got paid millions of dollars. from a publicly traded company without invoices or written reports, and this went on for decades. 

I did the HealthSouth case and saw how fraud is done by lax oversight. When everyone fails to do their jobs, it happens When regulators are compromised, it happens, When a federal prosecutor has no balls, it happens. When a state attorney general is busy fighting windmills, it happens. When everyone fails to enforce the law, and media organizations have been bought off, it happens.

As for the $30,000 Alabama Power contributed to the Oliver Robinson bribery fund, that figure has been reported at a number of news sites, including energyandpolicy.org and theroot.com.

Where is the Southern Company scandal headed? Watkins has ideas:

Jeff Pitts, in litigation with Joe Perkins, accused Matrix of using a RICO enterprise in September 2021. Abusing the legal system is racketeering conduct; engaging in criminality as a business enterprise is racketeering. My son and I were victims of obstruction of justice, fabricated evidence. Chris Womack is about to become the CEO of Southern Company in March. My advice to him is: Make these people flush their own toilets that they've defected in. Let them flush their own feces that they've left everywhere. If you don’t do that, it will be on you and your watch.

Southern Company is in bad trouble. They can’t come clean with their shareholders. They don't have to worry about the mainstream media because they own them. And every month, al.com is paid not to write anything negative about Alabama Power.

If you want a non-prosecution agreement, you usually say, "Don’t indict me as an organization because it will hurt my stock," so you throw someone overboard. That usually is accompanied by having a few people prosecuted. If anybody is indicted in this case, I think it might be Perkins, Matrix, Crosswhite, and maybe Jay Town on the North Birmingham bribery case.

My goal is to hold these people accountable. Personally, I don't want a racketeering enterprise to be running a nuclear power plant in America. They have that in Russia. Why do we need that in the United States? The Southern Company and its affiliates aren't the only ones qualified to own or operate a nuclear power plant. There are non-racketeering companies that have the qualifications to do it. We want to make sure these people are fit. You wouldn't want the Gambino family to operate a nuclear power plant, so why would you let Southern Company run it?