Category: Uncategorized

Hip-hop mogul’s arrest highlights liquor license consequences

  The June 22 arrest of  Sean “Diddy” Combs on three counts of assault with a deadly weapon has spotlighted the severe consequences of conviction for liquor licensees.  An article in The Observer reports that, if convicted, the legendary hip-hop artist may be forced to divest his holdings in Diageo, the world’s largest producer of spirits.   In almost every U.S. jurisdiction, principals in the manufacture or sale of alcohol are required to hold licenses that are generally not available to people who have a felony conviction. While Combs has had a number of high-profile brushes with the law, he’s never been convicted of a felony. In 2007, in partnership with Diageo, Mr. Combs agreed to help develop the Ciroc vodka brand for a 50 percent share of the profits. Reuters recently reported that since 2007, the company had seen a “40-fold rise in annual sales volumes for the brand’s products.” (That translates to nearly 2 Million cases a year.) Additional Diddy deals came in January 2014, when Diageo and Mr. Combs partnered to acquire what Forbes magazine described as “prestige tequila brand DeLeón.” As Forbes said at the time, “Both sides invested cash to make the purchase, and Diddy, via his newly-formed Combs Wine & Spirits, will be an equal partner with Diageo in equity terms.” The Observer notes that, quite apart from legal restrictions on his ability to retain his business licenses, “there’s the question of whether Diageo, the eighth largest company on the London Stock Exchange, will have concerns about a felon as a partner.” The assault charges arose from an episode involving Mr. Combs’ attack on his son Justin’s UCLA football coach: This attack—according to TMZ, which first reported the arrest, the victim was UCLA strength and conditioning coach Sal Alosi, who was screaming at Diddy’s son Justin Combs, who plays defensive back for the Bruins, as Mr. Combs watched from the sidelines; the alleged assault occurred when the mogul confronted the coach in an office and attacked him with a kettlebell—could prove uncommonly costly even by the standards of hip-hop artists in trouble. Mr. Combs is involved in a number of business ventures beyond the music world, including fashion lines, restaurants, and movie production.  “But none of those businesses face the same legal and regulatory scrutiny that makers of spirits must endure and many questions pertain to whether Mr. Combs will be able to maintain a liquor license if he’s convicted of a felony.” The Alcohol and Tobacco Tax and Trade Bureau, a bureau of the United States Department of the Treasury, requires manufacturers and producers of alcohol to apply for a permit. According to section §1.24 of the federal code, “such person (or in case of a corporation, any of its officers, directors, or principal stockholders) has not, within five years prior to the date of application, been convicted of a felony under Federal or State law, and has not, within three years prior to date of application, been convicted of a misdemeanor under any federal law relating to liquor, including the taxation thereof.” In addition to federal licensing issues, state laws generally restrict a convicted individual from owning or even working in alcohol manufacturing or sales: In California, for example, Business and Professions Code Section 23952 — Felony and law violation, anyone involved in the “manufacture, sale, or distribution of alcoholic beverages [must show that] …the applicant has not been convicted of a felony…” In Michigan, felons cannot own a Michigan liquor license, and in Oklahoma, “To be eligible for a liquor license, you must be pardoned on all felonies…” In New York, according to the State Liquor Authority, “A convicted felon cannot be employed by a licensed manufacturer or wholesaler.” . . . . .According to the Louisiana State website, “Any person who, as a business, manufactures, blends, rectifies, distills, processes, imports, stores, uses, handles, holds, sells, offers for sale, solicits orders for the sale of, distributes, delivers, serves, or transports any alcoholic beverages in the state or engages in any business transaction relating to any such alcoholic beverages must first obtain the appropriate alcoholic beverage permit.” The Cajun site then explains that “Owners or backers of an alcohol company must submit for a permit—and the site then goes on to explain that includes anyone who owns more than 5 percent of an alcohol company.” The Observer article points out that another high profile celebrity has recently encountered conviction-related business license restrictions.  As noted on this site several months ago, Mark Wahlburg is seeking a pardon of a 25-year-old felony assault conviction in order to obtain a concessionaire’s license for Wahlburgers, the restaurant business he owns with his brothers.  A fresh felony conviction is likely to have even more serious ramifications for Mr. Combs’ partnership with Diageo: If a 25-year-old felony—even an awful one like the racially motivated attack Mr. Wahlberg was convicted of—has proven a hurdle to hamburgers, then a brand-new accusation lobbed at an alcohol merchant could be expected to pose very tough hurdles for the music impresario. Read more

Why we need a federal expungement law

This article originally appeared at TalkPoverty.org under the title “New Ruling Highlights Why We Need the REDEEM Act”  On May 21, U.S. District Judge John Gleeson ordered the expungement of the 13-year-old federal fraud conviction of “Jane Doe,” a Brooklyn home health aide. His decision received national attention for being unprecedented in the federal courts, which have no explicit authority conferred on them by Congress to expunge or seal federal criminal cases. Encouraging though it is, Judge Gleeson’s decision is most important for its illustration of the need for Congress to enact such a sealing remedy, as provided for in the bipartisan REDEEM Act (S. 675). As my colleague Rebecca Vallas and I explained in a recent Center for American Progress report, having a criminal record is a major cause of poverty, and cleaning up a criminal record is one of the most powerful tools for overcoming the barriers associated with it. The states have recognized the power of this policy alternative, with 23 states having expanded their record-clearing laws between 2009 and 2014, as documented by the Vera Institute. In contrast, there is virtually no statutory authority to clear records of federal court cases. Indeed, even though nearly every state permits arrests not leading to conviction to be cleared, there is no similar authority for federal cases. Even a person who is acquitted in a federal court has no explicit right to seal that case. Jane Doe was desperate enough that she forged ahead with an expungement petition, even though it was the longest of long-shots. She is a Haitian immigrant who in 1997 was struggling to raise four children on a net monthly income from her home health aide job that was exceeded by her monthly rent alone. She participated in a staged accident as part of an automobile insurance fraud scheme which, had it been successful, would have paid her $2,500. Instead, she was found guilty of a federal charge of insurance fraud. She was sentenced to five years of probation, ten months of home detention, and a restitution order of $46,701 (toward which she faithfully paid $25 monthly, no matter how bad her financial position in later years). But in the eight years since her probation ended in 2007, Jane was fired from home health care jobs a half-dozen times after her background check. As a result, she has been unemployed most of the time. In considering Ms. Doe’s petition, Judge Gleeson had to determine whether he had the authority to expunge a federal criminal case. In the absence of a federal law explicitly permitting expungement, he looked at whether federal courts have “ancillary jurisdiction” for that purpose. He concluded that of the nation’s twelve federal circuit courts of appeal, five may permit expungement, while five explicitly do not (with apparently no ruling in the other two). Even though he serves in one of the five circuits that may permit such a ruling, Judge Gleeson acknowledged that he was “acutely aware that ‘courts have rarely granted motions to expunge arrest records, let alone conviction records.’” Judge Gleeson found “extreme circumstances” warranting expungement of Jane Doe’s case. The factors he pointed to for justification of his ruling included Jane’s otherwise clean record, the 17 years since the offense, the “dramatic” adverse impact on her ability to work, and her role as a minor participant in a nonviolent case. But here’s the thing: While the impact of the federal conviction on Jane might be “extreme,” it is not unusual in the least. At the Philadelphia legal aid program where I work, we received more than 900 new requests for help last year alone by people whose criminal records were preventing them from working. A great many of these people also had old, nonviolent cases that cost them jobs and leave their families in poverty. For instance, consider my following clients who have been involved in federal cases: JT was convicted of sale of heroin in 1985, after a bad decision to try to sell drugs to provide for her children quickly ended when she sold to an undercover cop. She learned her lesson, served five years’ probation, and hasn’t been arrested since. Now 57, JT has been prevented from working with troubled children and from serving as a home care worker because of the 30-year-old case. AA also was convicted of a single drug case in 1994. She too served five years’ probation and has avoided trouble ever since. She too has been threatened with loss of employment in a school because of her 20-year-old conviction. In 1997, PV was convicted by a federal jury of harboring and concealing a person from arrest (she was accused of not turning over her common law husband to police). The judge overturned the verdict after the trial and acquitted her. But her case also remains available to the public and adds to her difficulties in getting work at age 64, despite 23 years in a very responsible position in a university until she was laid off. Because the circuit court in Philadelphia has ruled that our judges have no authority to expunge criminal cases, I cannot file an expungement petition for these three women. Fortunately, the REDEEM Act is a vehicle for change. Introduced by Senators Rand Paul (R-KY) and Corey Booker (D-NY), it would permit all three of my clients – and hundreds of thousands more – to seek to seal their records. The bill is not perfect. It limits sealing to nonviolent cases, including nonviolent arrests. All cases that have not resulted in conviction should be permitted to be sealed. But enactment of the REDEEM Act would be a very important step forward. Judge Gleeson concluded, “[Jane Doe’s] case highlights the need to take a fresh look at policies that shut people out from the social, economic and educational opportunities they desperately need in order to reenter society successfully.” Amen to that. Let’s pass the REDEEM Act and provide the federal expungement remedy that is so desperately needed by people across the country like Jane Doe. Read more

Forgiving v. forgetting: A new redemption tool

The following thought-provoking piece about the growing popularity of judicial “certificates of good conduct” was first published in The Marshall Project (www.themarshallproject.org) a nonprofit news organization focused on the US criminal justice system. The “forgiving” approach to avoiding or mitigating collateral consequences is an important alternative to the “forgetting” approach advocated by proponents of expungement or sealing, which tend in any event to be limited to minor dated offenses or arrests not resulting in conviction.         Forgiving v. Forgetting:  For offenders seeking a new life, a new redemption tool. In February of 2003, a much younger Barack Obama rose before the Illinois State Senate to introduce a new piece of legislation that, he said, contained a compromise. The bill would help job-seekers who had long ago been convicted of a nonviolent crime (or two, at most) overcome the barriers to employment that came with having a criminal history. But the bill would do so without expunging their records. Instead, Obama’s bill would create a final, years-later stage on the timeline of these ex-offenders’ cases. They had already completed the stages of arrest, booking, indictment, plea bargaining or trial, sentencing, incarceration and/or probation. Now, ex-felons who had stayed crime-free for a few years would be eligible to come back to court and, in a full-blown hearing before a judge, attempt to “prove” that they had been rehabilitated. Any ex-offender who succeeded in doing so, Obama announced, would be granted one of two new legal documents, the Certificate of Good Conduct or the Certificate of Relief from Disabilities. The certificate would represent an official assurance to employers – though, again, short of full expungement – that the ex-offender should no longer be judged for his or her crimes. More concretely, the good conduct certificate would make the ex-offender eligible for a range of municipal jobs, including in the public schools, the transit system, and the parks; the certificate of relief would remove barriers to a range of licenses, from real estate to barbering, cosmetology, and mortician’s licenses. Finally, any private employer who hired the now officially rehabilitated ex-offender would be insulated from liability suits claiming negligent hiring. Obama’s bill was passed and went into effect one year later. Ever since, the granting of so-called Certificates of Rehabilitation has become an increasingly popular compromise version of full expungement in courts around the country. Between 2009 and 2014, nine states and Washington, D.C. began issuing the documents, also called certificates of relief, recovery, achievement, or employability. “These certificates are a remarkably dynamic new option,” says Kari Hamel, a civil legal aid attorney in North Carolina who is working to make the certificates – available in that state since 2011 – more accessible to more people with criminal records. “It’s a way of showing employers that the crime someone committed probably wasn’t committed yesterday. It makes what has happened since the crime a fully official part of that person’s record, for all employers to see.” “That’s the key,” she adds. “Rehabilitation is absolutely a part of a person’s history of trouble with the law, it’s just the second part, the positive part.” Paul Biebel, the presiding judge for Chicago’s criminal court, agrees that the certificates are a promising new option. “Only over the last few years have we seen more of these coming through the court,” he says of the certificates, “but I feel very strongly that they are an additional tool in a judge’s toolbox to evaluate people. We judges are prepared to send people to prison. But now, if the evidence proves rehabilitation, we also have a tool for redeeming people.” The new certificates have burst onto the scene amid emerging bipartisan consensus that the consequences for committing low-level nonviolent crimes – including the collateral consequences, such as difficulty getting a job[1] years later – should not be interminable. The Redeem Act, a bill sponsored by Senators Cory Booker and Rand Paul that would expand expungement for crimes committed as a juvenile, has picked up steam in Congress. President Obama, meanwhile, has highlighted the issue of the long-term impact of criminal records, particularly through his My Brother’s Keeper[2] initiative. This consensus is rooted in the fact that between 70 and 100 million Americans have an arrest, charge or conviction in their pasts. And, with the rise of the Internet, even a minor run-in with the law has been transformed from a temporary experience into a permanent one. This does not mesh well with the American ideal of self-reinvention. Yet despite the emerging agreement that many ex-offenders deserve second chances, not everyone agrees that these new certificates are the best way to go about providing redemption. Sharon Dietrich is one such critic. Dietrich is a civil legal aid attorney in Philadelphia and the author of “One Strike and You’re Out,” a report on the collateral consequences of criminal records, and she believes full expungement is always preferable to certificates. “Forgetting,” she says, “either by expunging someone’s record altogether or by permanently sealing it, is a much better solution than forgiving, which is what these certificates claim to do.” The certificates are a “weak compromise,” she adds, because they “rely on employers to do the right thing. But most employers will ignore the document that says you’ve been rehabilitated, and focus instead on the part about how you were arrested.” Supporters of the certificates argue that “forgetting” is a pipe dream. For one thing, law enforcement agencies often resist expungement, because it purges the record of information that might be useful in future investigations. James Jacobs, a professor of law at New York University and the author of “The Eternal Criminal Record,” says that even if expungement were more available, it would be a kind of “fraud” in the age of the Internet. “Expungement is not amnesia,” he says. “The information remains out there on the Internet. These private background check companies [such as LexisNexis, HireRight, and FirstAdvantage] have no incentive to remove expunged or out-of-date information.” Background checks on job applicants are frequently inaccurate[3] even without expungement, he said. Then again, certificates are not useful at all if ex-offenders – and employers – do not know about them, or do not know who is eligible. And even once ex-offenders know about the option, the process of affirmatively filing for a certificate is extremely complex. The burden to prove rehabilitation is on the applicant, not the prosecution. To be successful requires gathering documents from multiple agencies, letters of support from community members, and proof of sobriety, then arranging all of it into a narrative that demonstrates “rehabilitation.” In other words, the success of these certificates depends heavily on local lawyers, primarily from civil legal aid[4] organizations, taking a grassroots approach to informing people about what certificates are available and how to file for them. In New York, for instance, one of the few states to begin offering the certificates before Illinois, an average of only 261 per year were issued between 1995 and 2005. Between 2007 and 2010, as civil legal aid organizations started educating ex-offenders about the certificates, that number shot up to 2,040 per year. More recently, two of the most robust approaches to making these new certificates more accessible and understandable are underway in Illinois and North Carolina. In Chicago, Cabrini-Green Legal Aid has led the effort to inform people about the certificates. CGLA operates a Help Desk at the downtown Chicago courthouse, as well as a dial-in hotline, to educate ex-offenders about the certificates and get them started with the application process. And, according to Cynthia Cornelius, CGLA’s director of client and community services, the organization has recently begun to meet with and educate local employers. “None of this works unless employers know what these certificates are,” she says, “and why they should respect job applicants who have earned the certificates.” But making the certificates a useful option is not only about education, it is also about representation. So, in a statewide effort called Second Chances,[5] sixteen of the Illinois’ largest law firms have partnered with CGLA, supplying hundreds of pro bono lawyers to help process petitions for certificates. Down in North Carolina, the first step was to make the certificates available under the law, as Obama did in Illinois. Despite the anti-progressive climate in the state legislature, says Bill Rowe, chief counsel of the North Carolina Justice Center, securing “certificate legislation” was politically feasible. “Democrat or Republican, we all know someone here in North Carolina with a minor mistake holding them back,” says Rowe, “and minor mistakes are the types of mistakes we’re talking about forgiving with these certificates, not major mistakes. It’s not a ‘them’ issue, like some of the other divisive issues in the legislature; it’s an ‘us’ issue.” With the certificates in place, the next step was getting the word out. Hamel, the civil legal aid attorney, explains that Legal Aid of North Carolina operates mobile legal clinics deep in the Blue Ridge mountains, informing the people there about the certificates. Before each clinic, Hamel notifies the local newspapers in the towns where she is headed, asks the radio stations to broadcast PSAs, and contacts local domestic violence shelters and V.A. centers to get people to come out for the clinic. To bring employers on board, Hamel has help from Ben David, a local D.A. in Wilmington, North Carolina, who has convened the Hometown Hires program. David meets regularly with hundreds of the top employers in southeastern North Carolina to convince them to hire people with criminal records, especially people who have these certificates. “This is about working on criminal records,” David says, “which takes a lot of time, because it’s about the long-term, not just the open-and-shut part of the case. But as a D.A., I feel I should take active steps to stop prosecuting folks who are just trying to get jobs, and these certificates and the other new options, I think, are a way of stopping the endless prosecution of job seekers.” But in the end, says Jacobs, even with robust information campaigns, certificates are “not a magic bullet.” “If everyone gets a certificate,” he says, “then the certificate has no credibility, and employers won’t respect it. So we can’t give certificates to people who don’t deserve one.” But the hard truth, Jacobs says, is that a considerable fraction of people with criminal histories do not deserve a certificate, because they “are still struggling with drug addiction, mental illness, and tremendous deficits. They are not rehabilitated to the point of deserving a certificate, but they do deserve our help.” In other words, rehabilitation for most ex-offenders requires actually working with them while they are being rehabilitated, not just rewarding them afterward if they can do it on their own. “Finding a route back to where some of these people have never been,” says Jacobs: “That requires more than just a certificate.”     [1] Over 80 percent of employers run criminal background checks, according to the Society for Human Resource Management. [2]  My Brother’s Keeper initiative is a collaboration between the White House and local businesses, foundations, and cities, aimed at creating more jobs and civic opportunities for young men of color [3] In 2012, 600,000 job applicants received inaccurate FBI background checks. For these reasons, Jacobs argues, ex-offenders are better off if they are equipped with an affirmative document, like a certificate, with which they can respond when employers inevitably find something damning on the Internet. [4] The right to counsel is not guaranteed when there is no active criminal prosecution, which is why civil legal aid lawyers, not criminal defenders, are responsible for helping people with these certificates. [5] The Second Chances program is part of the nationwide IMPACT Project, a project inspired by Vice President Joe Biden to encourage pro bono lawyers to work more closely with legal aid lawyers.     Read more

President promises a more “open” pardon process, more pardon grants

During a Town Hall in South Carolina on March 6, President Obama spoke for the second time in recent weeks about his intention to use his pardon power more generously in the final two years of his term. Responding to a criminal defense attorney who asked what she could do to “increase the number of federal pardons,” the President explained that he was taking a “new approach” to pardons after receiving surprisingly few favorable recommendations from the Justice Department during his first term.  He said he had asked the Attorney General to “open up” the pardon process, and to work with advocacy groups and public defenders to make people more aware of the availability of this relief: [W]hen I came into office, for the first couple of years I noticed that I wasn’t really getting a lot of recommendations for pardons that — at least not as many as I would expect. And many of them were from older folks. A lot of them were people just looking for a pardon so they could restore their gun rights. But sort of the more typical cases that I would have expected weren’t coming up.   So I asked Attorney General Holder to work with me to set up a new office, or at least a new approach, inside the Justice Department. Because historically, what happened was the President would get a big stack of recommendations and then he could sign off on them — because obviously, I don’t have time to go through each request. And so what we’ve done now is open it up so that people are more aware of the process.  And what you can do is contact the Justice Department. But essentially, we’re now working with the NAACP, we’re working with various public defenders offices and community organizations just to make people aware that this is a process that you can go through. The President advised that “typically we have a pretty strict set of criteria for whether we would even consider you for a pardon or commutation,” and directed the inquirer to the Justice Department website where he said those criteria can be found. So my first suggestion would be to go to the Justice Department website.  If the person doesn’t qualify because they may have served time but there were problems when they served time, or if it was a particularly violent crime, or they may just not fit the criteria where we would consider it — a lot of what we’re focused on is non-violent drug offenses where somebody might have gotten 25 years, and she was the girlfriend of somebody and somehow got caught up, and since then has led an exemplary life, but now really wants to be able to start a new career or something like that.  That’s the kind of person, typically, that would get through the process. So, a couple of things about the President’s comments.  As in his BuzzFeed interview ten days ago, and as reported by Greg Korte in USA TODAY, the President seems genuinely willing to consider requests for full pardon from people who have completed their sentences and “led an exemplary life, but now really want[] to be able to start a new career.” This is good news. President Obama has taken a commendable interest in prisoner requests for sentence commutation, but his record of granting full pardons to date has been disappointing: Available statistics indicate that he has granted fewer full pardons than any full-term president since John Adams. On the other hand, the President’s “new approach” to handling clemency requests, and his promise of a more “open” pardon process seems so far not to have materialized.  In fact, the Justice Department’s pardon process appears to be more opaque and overburdened than ever before. This is largely because of the “clemency initiative” announced by the Attorney General in April of last year, which invited federal prisoners serving long prison terms to apply for commutation of sentence. Not surprisingly, many have accepted this invitation. The Washington Post reported on February 29 that “more than 35,000 inmates — about 16 percent of the federal prison population — have applied to have their sentences shortened under the Justice Department-led initiative,” either directly with the Office of the Pardon Attorney (OPA), or with the consortium of private organizations known as Clemency Project 2014.  Most of the applications are being processed through this private screening process.  The Post reports that “a complicated review process” has “slowed” the processing of this “massive influx of applications.”  After a full year, no grants have yet been made to applicants vetted by Clemency Project 2014, and according to the Post article it has to date submitted only 14 petitions to be considered for clemency. In addition to the thousands of prisoner petitions, more than 800 applications for full pardon have been filed with OPA, some of which have been fully investigated and awaiting disposition for some time.  While it is true (as the President said) that many pardon petitioners are interested in restoration of their firearms rights (there is no other way), or are simply seeking official recognition that they have paid their debt to society, many others are badly in need of relief from the harsh consequences of conviction in the workplace and in the community.   With DOJ resources and attention focused on commutation requests, pardon cases appear to have been put on the back burner, and the newly appointed Pardon Attorney has so far declined requests to meet or speak about this neglected aspect of her office’s workload. Never before in our history has the pardon power played a more important role in the justice system, and never before has the official pardon process seemed so dysfunctional.  It is understandable that the President would be reluctant to use an extraordinary constitutional power to address systemic problems with the legal system, but then one might expect to see him encourage legislative substitutes for pardon, such as the judicial certificates whose enactment in Illinois he himself secured a decade ago, or even the federal expungement proposal sponsored by Senators Cory Booker and Rand Paul.  The Justice Department has available to it statutory authority for seeking sentence reduction from the courts, but it has been unwilling to use it except for prisoners who are dying or completely disabled. President Obama’s comments expressing impatience with the output of the Justice Department’s pardon process are eerily reminiscent of President Bill Clinton’s comments expressing frustration with the pardon process shortly before the end of his term: I have done–I haven’t seen the final numbers, but before the last batch at least, I had done fewer than any President in almost 30 years. And part of that, frankly, is the way the system works, something I’m not entirely satisfied with.   The consequences of President Clinton’s dissatisfaction with the official pardon process at the end of his term are well known.  President Bush experienced a similar disappointment in the official process, and attempted to warn his successor.  George W. Bush, Decision Points 105 (2010)(““On the ride up Pennsylvania Avenue on Inauguration Day, I told Barack Obama about my frustrations with the pardon system. I gave him a suggestion: announce a pardon policy early on, and stick to it.”) Let us hope that there is still time before the end of his term for President Obama to get what he wants from the Justice Department’s pardon process, something Presidents Clinton and Bush were not able to do, or to put in place a substitute for it.  If past is prologue, this will not happen if the Justice Department is left to its own devices. Getting the Justice Department’s pardon process to deliver a substantial number of favorable recommendations, whether in commutation or pardon cases, will take direct hands-on intervention from the White House, by people who have an understanding of how the process can and should work to serve the presidency as well as the American public.  Otherwise, one can predict only a token number of commutation grants and a scrum of pardon favor-seekers outside the White House Counsel’s door in the final days of President Obama’s term.  He can’t say he wasn’t warned.     Read more