State AGs -- They're Just Like Us! (If We Take Big Gifts From Biglaw Corporate Lobbyists)

Which Biglaw firm leads the way when it comes to vigorously promoting the interests of corporations who might otherwise find themselves investigated?

Remember when state attorneys general used to band together and take down tobacco companies? The diversified power of state actors accomplished what the centralized federal government — so easily influenced by corporate lobbyists — never could. Ascendant state power short-circuited Washington’s carefully cultivated lobbying relationship. Whether working in conjunction or individually (like in New York, where Eliot Spitzer routinely embarrassed the Feds by taking the time to actually do their jobs), state AG offices became the most important public watchdogs in the country, capable of dealing significant blows to corporate bad actors much faster than any legislature.

But the powers-that-be don’t stay on the mat for long. Biglaw lobbyists have since taken the lead in targeting AGs and zealously advocating for their clients by hobnobbing with top cops at lavish functions and political fundraising events….

In The New York Times, Eric Lipton reports:

A robust industry of lobbyists and lawyers has blossomed as attorneys general have joined to conduct multistate investigations and pushed into areas as diverse as securities fraud and Internet crimes.

But unlike the lobbying rules covering other elected officials, there are few revolving-door restrictions or disclosure requirements governing state attorneys general, who serve as “the people’s lawyers” by protecting consumers and individual citizens.

A result is that the routine lobbying and deal-making occur largely out of view. But the extent of the cause and effect is laid bare in The Times’s review of more than 6,000 emails obtained through open records laws in more than two dozen states, interviews with dozens of participants in cases and attendance at several conferences where corporate representatives had easy access to attorneys general.

The article recounts a number of shocking anecdotes. From Attorney General Chris Koster of Missouri shutting down an inquiry into 5-Hour Energy the very weekend a representative of the company approached him at an opulent retreat for Democratic Party AGs, to a Biglaw firm taking “unusual steps” to promote the career of Attorney General Pam Bondi of Florida… and then being quick to call the Republican’s office to dissuade official action against other clients. From buying speaking positions for executives to plead their case at gatherings of AGs, to dropping hundreds of thousands in campaign contributions.

One former attorney general quoted in the article describing the revelations says, “I have got to admit as an old-time prosecutor, it makes me a little queasy.” No kidding.

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And which Biglaw firm leads the way when it comes to vigorously promoting the interests of corporations who might otherwise find themselves investigated?

Dickstein [Shapiro], and a handful of other law firms, moved to capitalize by offering lobbying as well as legal assistance to deal with attorneys general, whom Dickstein called “the new sheriffs in town.”

In an effort to make allies rather than adversaries, Bernard Nash, the head of the attorney general practice at Dickstein and the self-proclaimed “godfather” of the field, tells clients that it is essential to build a personal relationship with important attorneys general, part of what his firm boasts as “connections that count.”

“Through their interaction with A.G.s, these individuals will become the ‘face’ of the company to A.G.s, who are less likely to demagogue companies they know and respect,” said a confidential memo that Dickstein sent late last year to one prospective client, Caesars Entertainment.

****

Mr. Nash and his team build relationships through dinners at exclusive spots like the Flagler Steakhouse in Palm Beach, Fla., and Brown’s Beach House Restaurant in Waimea, Hawaii, during attorneys general conferences, as well as with a constant stream of campaign contributions, totaling at least $730,000 in the last five years.

Dickstein Shapiro deserves a lot of credit for identifying a lucrative new market — and boy is it a lucrative new market. According to the article, emails reveal that Dickstein pitched Caesars Entertainment on a $35,000/month deal (excluding expenses and actual legal work, obviously) to become the “face” of Caesars with AGs. That’s a good haul for going to parties at exclusive resorts.

Unfortunately, the article hints at vilifying Dickstein over its lobbying practices. Dickstein lawyers are described like shadowy Cold War spies, sidling up to AGs in locations all over the country and cajoling them into compromising the public trust. Indeed, the article is quick to report that Nash is the “godfather” of this practice. Subtle. This derision for the firm is all so misplaced, but, hey, creative non-fiction needs a villain.

The system is broken, sure. But Bernard Nash isn’t sitting in an underground lair twirling his mustache (he doesn’t even have one). He didn’t gut the campaign finance laws. He doesn’t keep states from imposing tougher ethical checks on AGs. And he certainly didn’t invent the lavish junket for high-powered officials. Despite the slant of the article, it just isn’t Dickstein’s fault that the system is rigged to simultaneously give those with the most exposure to public scrutiny the best opportunity to endear themselves to government officials.

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As they say, “Don’t hate the player.”

Lobbyists, Bearing Gifts, Pursue Attorneys General [New York Times]