The Talented Mr. Magliocchetti: On Sunday the New York Times profiled troubled lobbyist Paul Magliocchetti, whose PMA Group is closing shop next week following reports that federal prosecutors raided his home and office. The article details Magliocchetti’s relationship to Democratic Rep. Jack Murtha, as well as some of the lobbyist’s more colorful tricks of the trade. Suddenly, a lot of congressional staffers are regretting their free dinners.
Somebody’s Hiring: In sunnier lobbying news, the Washington Post reports that even with the economy in a tail spin, business is booming on K Street. For that, we can thank to the stimulus package. More than 2,000 cities, companies and associations have hired lobbyists since the Nov. elections, and firms like Holland & Knight have had to add registered lobbyists to keep up with the workload.
Ousted: General Motors chief executive Rick Wagoner resigned on Sunday under pressure from the Obama administration, which is pushing the company to pursue a more aggressive reorganization plan. The White House has been unhappy with the company’s proposals for revamping itself, and wants bigger concessions from management, labor and creditors. Check out the WSJ for coverage.
A Hell(er) of a Time: The estate of Heller Ehrman and its creditors are suing the defunct firm’s former banks for the $50 million it paid them in the months leading to its collapse. The Recorder writes that it’s unclear whether the banks ever secured their loans, which could make the difference in whether they get to keep the money. So far, the judge seems undecided.
Crackdown: Sure, this financial crisis has been painful for everyone, but it still isn’t often that you hear the words “mortgage fraud” and “dominatrix” uttered side by side. Unless, apparently, you’re in New York. A group there that included several lawyers allegedly used a Manhattan S&M club to recruit straw buyers for a $50 million mortgage-related scheme. One of the lawyers is now challenging the warrant that allowed federal prosecutors to raid his office, the New York Law Journal reports.
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