Big Government Punishes Consultant for Big Government Corruption

Joe Scudder
Written by Joe Scudder

When Big Government corruption constantly interferes in the market, the market tries to find ways to predict it.

Big Government corruption is the inevitable result of Big Government contradiction. Liberals constantly spout on about how society would be better with “public-private partnerships” where business get help from government and vice versa. But all this means is that free maket forces are not the only ones creating the business environment. To make decisions about the future, people in business have to know what’s coming out of the bureaucratic labyrinth.

David Blaszczak is now being prosecuted because he passed on government plans to reduce reimbursement rates for some procedures and increase others. Blaszczak used to work for the Centers for Medicare and Medicaid Services and the government is basically accusing him of helping insider trading.

How can it be legal for businesses to make money by successfully lobbying the government to take action but illegal for businesses to make money by successfully learning about government actions?

The only way to stop this kind of behavior is to end Big Government.

Bloomberg reports, “Washington Leak Culture Meets Wall Street’s Insider-Trading Cops.

Blaszczak got secrets from sources inside the government, including his friend and former CMS colleague Christopher Worrall, prosecutors say. Worrall — along with Robert Olan and Theodore Huber, Deerfield partners who are now on leave from the fund — are also on trial. All deny wrongdoing; their lawyers declined to comment or didn’t respond to inquiries about the case.

[…]

The trial is the first to focus on Washington intelligence firms, where the currency is government secrets, and not corporate ones. Beginning in 2009, the U.S. sent dozens of traders and executives to prison in a multiyear insider-trading crackdown that included the guilty plea of Steven A. Cohen’s SAC Capital and the conviction of ex-Galleon Group co-founder Raj Rajaratnam.

[…]

“How do you regulate political intelligence?” asked Peter Henning, a professor at Wayne State University’s law school in Detroit. “This is getting into a much grayer area than we’ve seen. This isn’t Raj Rajaratnam getting a tip about an upcoming tender offer for Hilton.”

That’s because Washington’s information ecosystem operates differently than Wall Street’s. There’s a revolving door between the places where policy gets made — Congress and the administration — and lobbying shops on K Street. Rumors flow freely and former staffers are hired for their connections and expertise.

But the porous nature of Washington has created a dilemma. A legitimate effort by a company to find out about a regulation or a law that will affect it can also be useful for an investor.

“This is not national security information. This is how the government is going to provide health-care to millions of people,” Henning said. “How secret is secret with this type of information versus confidential corporate information?”

Read the full story.

The views expressed in this opinion article are solely those of their author and are not necessarily either shared or endorsed by EagleRising.com


About the author

Joe Scudder

Joe Scudder

Joe Scudder is the "nom de plume" (or "nom de guerre") of a fifty-ish-year-old writer and stroke survivor. He lives in St Louis with his wife and still-at-home children. He has been a freelance writer and occasional political activist since the early nineties. He describes his politics as Tolkienesque.

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