Not All Who Launder Are Lost
May 18, 2022
Last week, we shared a story about President Biden’s options for forgiving none, some, or all federal student debt, and we were curious how much student loan debt you feel Biden should forgive (if any). You can find the results of that survey here.
“It is time for parents to teach young people early on that in diversity there is beauty and there is strength.” – Maya Angelou
Not On Board
On Monday, Judge Maureen Duffy-Lewis of the Superior Court of California in L.A. ruled that a 2018 California law created to encourage companies to diversify their boards was unconstitutional. The law was signed by then-Governor Jerry Brown, and required that all publicly-traded companies within the state have at least one woman on their boards by the end of 2019. The goal was that by 2021, companies with at least five directors would need to have two or three female directors, depending on the size of the board, and any company found not in compliance would face financial penalties.
The law was the first of its kind in the country and faced immediate backlash from all over the country. Conservative legal group Judicial Watch brought a lawsuit on behalf of three California residents, and Duffy-Lewis said “The plaintiff’s evidence is compelling,” and agreed that the law would require that candidates be treated differently based on their gender, violating the equal protection clause of the California constitution. The state needed to prove that the law was in the public interest, necessary, and narrowly tailored, but it “has not met its burden,” according to Duffy-Lewis. A spokesman for California Secretary of State Shirley Weber said its counsel was reviewing the verdict.
This is not the first time attempts to diversify boards have hit a snag. Judicial Watch brought a similar lawsuit against another California law, which required public companies in California to have at least one racially, ethnically, or otherwise diverse director by 2021 – that law was also struck down by a judge in the same state court. A lawsuit by the Alliance for Fair Board Recruitment (whose mission is “to promote the recruitment of corporate board members without regard to race, ethnicity, sex and sexual identity”) seeks to fight against a Nasdaq listing requirement that says companies must disclose board diversity details and include at least one director who identifies as female, as a member of an underrepresented ethnic or racial minority, or as LGBTQ+ by 2023. All lawsuits allege that these laws are discriminatory, but board diversity advocates say that the quotas are often the only way to make any headway towards diversity. (WSJ, $)
Queen There, Done That
- On Tuesday, Queen Elizabeth made the trip to Paddington Station to see the completed Elizabeth line, which Transport for London announced with finally open on May 24th after being delayed. The 96-year-old was joined by her youngest son, the Earl of Wessex, for the official visit that marks her first journey outside the Windsor area since she attended the Duke of Edinburgh’s memorial service in Westminster Abbey seven weeks ago.
- The longest-reigning head of state is about to celebrate 70 years as monarch with a Platinum Jubilee celebration in a couple of weeks. There have been long stretches of time between the Queen’s public appearances in recent months, leaving many concerned about her health.
- Prime Minister Boris Johnson, Mayor of London Sadiq Khan, and Transport for London commissioner Andy Byford were there to greet her. All in all, the visit only lasted about 10 minutes, but the Queen did receive her own Oyster card and learn how to use it to ride the railcar line named in her honor – though we can’t imagine that skill is ever going to come in handy for Her Majesty. (BBC)
Macr-On The Right Side Of History
- French President Emmanuel Macron has appointed Elisabeth Borne as France’s new prime minister, making her just the second female prime minister in the country’s history. The centrist politician succeeds former prime minister Jean Castex, who resigned after Macron’s reelection last month.
- The nomination received criticism from France’s far-left parties, with one leader stating that the appointment will usher in “a new season of social and ecological mistreatment,” and that Borne’s previous station as Macron’s labor minister marked “a reduction in the allowances of 1 million unemployed people.”
- For her part, Borne used the appointment to encourage young girls to get into politics, saying: “I would like to dedicate this nomination to all the little girls by telling them ‘Go after your dreams!’ Nothing should stop the fight for the place of women in our society.” (ABC News)
Additional World News
- North Korea has an “explosive” COVID outbreak and 0% vaccination rate (Axios)
- Switzerland votes for organ donation by default (Guardian)
- Yellen warns Europeans about working with China, urges unity (ABC)
- Japan prepares to reopen to tourists for first time since 2020 (Guardian)
- EU says it’s concerned about proposed new UK law on N.Ireland trade (Reuters)
- Cuban parliament approves penal code which activists warn curbs dissent (Guardian)
- Chile finalises new draft constitution to replace Pinochet-era document (Guardian)
- DUER makes clothes that are stylish, comfortable and built with performance features (like cooling tech) so you can do anything you want to in a single pair of pants. Featuring secure pockets, triple stitching for strength, and a signature gusset to avoid pants ripping, DUER bridges fashion with function.
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On The Ron Track
- On Monday, Florida Governor Ron DeSantis signed into law a bill that bans protests in front of private residences, making it a second-degree misdemeanor, meaning the possibility of jail time and fines for protestors. Under the new law, protestors can be arrested only if they ignore law enforcement’s orders to disperse.
- If they are arrested, second-degree misdemeanors in Florida can lead to 60 days in jail and fines of up to $500. The bill follows protests by abortion rights protestors, as well as other protests outside the Florida homes of Marco Rubio and Rick Scott.
- “Sending unruly mobs to private residences, like we have seen with the angry crowds in front of the homes of Supreme Court justices, is inappropriate,” DeSantis told news media. “This bill will provide protection to those living in residential communities and I am glad to sign it into law.” Democrats oppose the bill’s passage, saying that it infringes on the First Amendment right to free speech. (AP, CNN)
Tunnel Vision
- U.S. authorities announced on Monday the discovery of a six-football-field-long drug smuggling tunnel running from Tijuana to an industrial warehouse in San Diego near the Otay Mesa border crossing. The area has held other sophisticated tunnel networks in the past.
- Authorities noted that they had no clue how long the tunnel had been in operation. Six people (all Southern California residents) were charged in the investigation involving the tunnel, and 1,762 pounds of cocaine, 165 pounds of meth, and 3.5 pounds of heroin were seized as well. The tunnel housed a variety of features, including rail and ventilation systems, electricity, and reinforced walls.
- The tunnel ran under one of the most fortified sections of the U.S.-Mexico border, highlighting the limits of border walls and checkpoints. Walls might be able to stop smaller, crude tunnels called “gopher holes,” but more sophisticated efforts such as this tunnel require more investment to prevent. (NBC News)
Additional USA News
- FDA announces it will make it easier to import some baby formulas to ease shortage (CNN)
- Biden will travel to Buffalo on Tuesday following mass shooting, official says (CNN)
- Biden to lift Trump-era restrictions on Cuba (WaPo, $)
- US Air Force tests troubled hypersonic missile (CNN)
- Buttigieg sends $5B to cities for safety as road deaths soar (AP)
- Another round of free COVID-19 antigen tests available for residents (CBS)
- North Carolina Rep. Cawthorn seeks nomination after missteps (AP)
Not All Who Launder Are Lost
- Late last week, a federal judge revealed that the Justice Department has launched its first criminal prosecution involving the use of cryptocurrency to allegedly evade U.S. economic sanctions. U.S. Magistrate Judge Zia M. Faruqui of Washington, D.C. said he approved a criminal complaint against an American citizen accused of transmitting more than $10 million worth of bitcoin to a virtual currency exchange.
- The transaction, which would have taken place in Cuba, Iran, North Korea, Syria, or Russia, is subject to sanction laws because of recent action taken by the Treasury Department’s Office of Foreign Assets Control. Cryptocurrency is often considered to be a fringe financial sphere outside the traditional system, but Faruqui says this is not actually the case.
- The opinion reads, “The Department of Justice can and will criminally prosecute individuals and entities for failure to comply with OFAC’s regulations, including as to virtual currency.” The case and the defendant’s identity remain a mystery, as is normal with an ongoing case, but represents the country’s commitment to ensuring no money laundering escapes their purview. (WaPo, $)
Additional Reads
- ‘We have to do it’: Cannes 2022 jury emphasise vital role of cinema in turbulent world (Guardian)
- Swiss voters look set to approve ‘Lex Netflix’ TV streaming funding law (Reuters)
- ‘A Skull and Bones-type vibe’: Spy agencies grapple with how much to share at UFO hearing (Politico)
- A 24-year-old man mistakenly received an entire Japanese town’s COVID-19 relief money. He kept the cash and disappeared. (Yahoo)
- Former NASA leaders praise Boeing’s willingness to risk commercial crew (Ars Technica)
- ‘Wagatha Christie’: the sensational court battle that became a fashion face-off (Guardian)