Sweetheart deal

Just Jeffrey Epstein's 2008 'sweetheart deal' alone could make the entire America fatally sugar sick, but didn't ... "
Virginia Giuffre

 

Sweetheart deal

sugar sickness?

From Wikipedia, the free encyclopedia

A sweetheart deal or sweetheart contract is a contractual agreement, usually worked out in secret, that greatly benefits some of the parties while inappropriately disadvantaging other parties or the public at large. The term was coined in the 1940s to describe corrupt labor contracts that were favorable to the employer rather than the workers and usually involved some kind of kickback or special treatment for the labor negotiator.

The term is also applied to special arrangements between private corporations and government entities, whereby the corporation and sometimes a government official reap the benefits, rather than the public.[3] No-bid contracts may be awarded to people who have political connections or make donations to influential politicians.[4] Sometimes a sweetheart deal involves tax breaks or other inducements to get a corporation to do business in that city or state.[5][6]

A "sweetheart settlement" may also occur in a legal context. For example, in a class-action lawsuit the attorneys representing a class of plaintiffs may reach an agreement with the defendant in which the primary result is a lucrative fee for the attorneys rather than maximum compensation for the class members.[7]

Noted instances and allegations
In a 1947 unionization dispute, San Francisco area grocery store owners claimed that other stores who had "given in" to union demands had signed sweetheart deals with the unions.[8]
In a 1949 dispute between the rival American Federation of Labor (AFL) and the Congress of Industrial Organizations (CIO) involving unionization of the laundry industry in Indianapolis, Indiana, a lawyer for the 42 laundry and dry-cleaning plants testified before the National Labor Relations Board that an AFL union contract was not a sweetheart deal between the employers and AFL union officials, as alleged by the CIO.[9]
The terms of a 2008 plea bargain to settle criminal charges against financier Jeffrey Epstein have been called a sweetheart deal by many commentators.[10][11]
The Tax Cuts and Jobs Act of 2017 was said to contain an obscure sweetheart deal for certain tech companies.[12]
Legal reform
The 1959 Landrum-Griffin Act was a federal law that attempted to prevent sweetheart labor contracts and other forms of corrupt dealing by unions in the USA.[13]

2019 study
A 2019 study examined the language of government contracts, looking for "sweetheart terms" – wording that is "highly favorable to the firm, but not obviously advantageous to the government". They found that such language is more commonly included in contracts with firms that make political contributions.[14]

References
 Main, Carla T. (2007). Bulldozed: "Kelo", Eminent Domain and the American Lust for Land. New York: Encounter Books. p. 62. ISBN 978-1594032899. Retrieved 2017-01-19.
 Weir, Robert E.; Hanlan, James P. (2004). Historical Encyclopedia of American Labor. Greenwood Publishing Group. p. 478. ISBN 0313328641. Retrieved 2017-01-19.
 Palmatier, Robert Allen (2000). Food: A Dictionary of Literal and Nonliteral Terms. Westport, Connecticut: Greenwood Publishing Group. p. 352. ISBN 0313314365. Retrieved 2017-01-19. Sweetheart deal.
 Sherman, Ted (August 2, 2019). "Political players got sweetheart deals in poor N.J. school district, critics charge". NJ.com. Retrieved 1 September 2019.
 Thomas, Crystal (July 23, 2019). "'Sweetheart deal' or 'wording issue'? Missouri tax credit tailored for Burns & McDonnell". Kansas City Star. Retrieved 1 September 2019.
 "Are corporate tax incentives worth it?". The Week. February 12, 2018. Retrieved 1 September 2019.
 Mathis, Klaus, ed. (2014). Law and Economics in Europe: Foundations and Applications. Dordrecht: Springer Science+Business Media. p. 246. ISBN 978-9400771109. Retrieved 2017-01-19.
 "Store Owners Picket Grocery Shops in Marin". The San Francisco Examiner. Nov 8, 1947. Retrieved September 16, 2019 – via Newspapers.com Free access icon.
 Hunt, Lester (June 17, 1949). "Laundry Labor Dispute Heads For Washington". Indianapolis Star. p. 4. Retrieved September 16, 2019 – via Newspapers.com. Free access icon
 "Alex Acosta made an ethically compromised decision 10 years ago. Today, he should resign". Miami Herald. July 10, 2019. Retrieved 1 September 2019.
 Gregorian, Dareh (December 5, 2018). "Lawmakers demand probe of sex offender Jeffrey Epstein's 'sweetheart deal'". NBC News. Retrieved 1 September 2019.
 Johnston, David Cay (January 26, 2018). "Apple's Sweetheart Tax Deal". DC Report. Retrieved 1 September 2019.
 Summers, Clyde W. (1987), "Some Historical Reflections on Landrum-Griffin," Hofstra Labor and Employment Law Journal: Vol. 4: Issue 2, Article 1, page 210.
 Ferris; Stephen P.; Houston, Reza; Javadhakze, David (January 6, 2019). "It is a Sweetheart of a Deal: Political Connections and Corporate;Federal Contracting". The Financial Review. 54 (1): 57–84. doi:10.1111/fire.12181.
Categories: Contract lawLabour lawTax terms


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Jeffrey Epstein's 2008 'sweetheart deal': Everything you need to know about one of America's greatest judicial travesties
What was this so-called sweetheart deal that Epstein was allowed to cut back in 2008 after his crimes initially came to light? Here's everything you need to know.
BY PRIYAM CHHETRI
UPDATED JUL 15, 2019

Ever since the globe-trotting, wealthy financier Jeffrey Epstein's arrest last week, there's one aspect of the horrifying case that has been spoken about more than anything else  - the plea deal that Epstein initially received, that almost let him get away scot-free. The deal was under the Trump administration's Secretary of Labor Alexander Acosta, who was the US Attorney in South Florida at the time. The renewed spotlight on Epstein's crimes caused a firestorm of backlash for Acosta, who resigned in disgrace recently.

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But what was this so-called sweetheart deal that Epstein was allowed to cut back in 2008 after his crimes initially came to light? Here's everything you need to know.

What did Epstein get in the deal?
The plea deal, called a non-prosecution agreement, helped Epstein settle all potential federal criminal liability from his sex-trafficking activities prior to 2007 by pleading guilty to a state prostitution charge. He pled guilty to two state prostitution charges in 2008 and spent 13 months prison in a county jail, which he could leave during the day as he pleased. The cushy deal had him register as a sex offender, and pay restitution to victims identified by the FBI.




The plea deal, called a non-prosecution agreement, helped Epstein settle all potential federal criminal liability from his sex-trafficking activities prior to 2007 by pleading guilty to a state prostitution charge. (AP)
It not only made him safe, but it also helped grant immunity to some the alleged co-conspirators - they weren't even identified in the agreement. According to the seven-page agreement, obtained by CNN, all of the evidence proved that Epstein was actually sex trafficking while he had been let go with just a prostitution charge.

Plus, it wasn't put on public records and was sealed - only unsealed by a federal judge in 2015 after a civil lawsuit.


How is Acosta involved?
Prosecutors had identified 36 victims of Epstein, most of whom had no knowledge of the plea deal and had no opportunity to give inputs in the case. It had appeared a little out of character for Acosta, who was known to push for longer sentences. However, it was a meeting with Epstein's lawyer attorney Jay Lefkowitz that allegedly smoothened the deal. According to an investigation by Miami Herald's Julie K. Brown, the two former colleagues, who had their career roots in Washington-based Kirkland & Ellis, had met at the Mariott Hotel, West Palm Beach while the negotiations were still underway for Epstein's convenient plea.


Labor Secretary Alex Acosta stands with U.S. President Donald Trump while announcing his resignation to the media at the White House on July 12, 2019 in Washington, DC. Acosta has been under fire for his role in the Jeffrey Epstein plea deal over a decade ago when he was a U.S. Attorney in Florida. (Getty Images)


At the time, as Herald reports, Leftkowitz's wealthy client was facing a 53-page federal indictment and could have ended up in federal prison for the rest of his life. Acosta has not denied meeting with the attorney but has insisted that he met him after the deal had already been through. However, the negotiations had still been going on, Brown has said. Acosta said that the meeting that happened over breakfast took place in October, while Epstein's deal was struck in September, he said. However, the deal had been pled many times by his lawyers until June the next year, says Brown because it hadn't been to his satisfaction.

It was also during this meeting that they decided not to inform the victims, the investigation has alleged.

How strong was the evidence?
A Washington Post in-depth piece alleges that Acosta had been scared of the consequences that would come if he brought Epstein to justice, something he was supposed to. He suffered the kind of pressure only "a rich and powerful man could generate — the pressure exerted through political, financial and emotional means" the story alleges. The article also said that Acosta and his team knew about the "massages" and they knew that Epstein and his legal team were lying.


It was an open and shut case, the article alleges. The in-depth investigation by the Miami Herald in November 2018 also uncovered police records alleging Epstein molested dozens of underage girls. One detective told the paper the evidence supporting the girls' claims was "overwhelming."


Two of the purported victims of multi-millionaire Jeffrey Epstein, Michelle Licata (L) and Courtney Wild leave a Manhattan courthouse after a hearing on sex trafficking charges for financier Jeffrey Epstein on July 08, 2019 in New York City. Epstein is charged with having operated a sex trafficking ring in which he sexually abused dozens of underage girls. (Getty Images)
Court documents show that Epstein's Palm Beach, Florida mansion was where at least 40 underage girls were brought for what turned into sexual encounters. Authorities say he had female fixers who would look for suitable girls, some local and others recruited from Eastern Europe and other parts of the world.


Lawyer Alan Dershowitz, who also helped negotiate the controversial plea deal was also accused to have been a part of the sex trafficking ring. Virginia Roberts Giuffre, who is one of Epstein's accusers as well claimed that Dershowitz had sex with her, while she was underage all those years ago. He has vehemently denied the claims. Dershowitz was previously on the legal defense team of O.J Simpson as well as Harvey Weinstein.


Will it still hold up?
The plea deal let Epstein get off the hook at the time and it may hinder his current case. According to the National Review, although the US attorney for the Southern District of New York's (SDNY) indictment against Epstein is fresh, he is still being charged for the same crimes that Acosta had decided to shelter Epstein from, causing the case to turn into double jeopardy, with a possibility of crumbling the new case. The publication argues that the SDNY should have a new offense to charge Epstein with and that just having new evidence isn't enough.