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In our January 17, 2014, OpenCdA post titled So Look Already! we expressed frustration and disappointment that Mary Rook, the Special Agent in Charge of the Salt Lake City Division of the Federal Bureau of Investigation, had not been investigating allegations of public corruption in Idaho.  The Salt Lake City Division is responsible for conducting FBI investigations in Idaho as well as Utah.

In the same post we observed that if Idaho’s US Attorney, Wendy Jo Olson, has sent an implicit or explicit message to the FBI that she is not interested in corruption cases, it’s a safe be that the Bureau would not spend much time and effort building cases likely to be declined by Olson’s office.

It appears we were at least half right. 

As the Washington Times newspaper first reported on Thursday, March 13 in its online story headlined EXCLUSIVE:  FBI blocked in corruption probe involving Sens. Reid, Lee:

FBI agents working alongside Utah state prosecutors in a wide-ranging corruption investigation have uncovered accusations of wrongdoing by two of the U.S. Senate’s most prominent figures — Majority Leader Harry Reid and rising Republican Sen. Mike Lee — but the Justice Department has thwarted their bid to launch a full federal investigation.

Then The Salt Lake Tribune provided more detailed information in its Sunday, March 15 online story titled Names of Sen. Harry Reid, Sen. Mike Lee pop up in probe.

As both newspapers report, the allegations against both Sens. Reid (D-Nev.) and Lee (R-Utah) would be much more appropriately investigated by the FBI using the federal grand jury and other tools available to the feds.  Instead, the US Department of Justice ran away from the federal investigation about seven months ago.  To its credit, the FBI has been providing investigative support to the two local prosecutors in Utah who are trying valiantly to pursue investigations of state law violations.  In effect, the FBI is being required by Holder and Main Justice to work with 1-1/2 hands tied behind its back in providing investigative assistance to the Utah state prosecutors.

The question is, has Holder’s handcuffing the FBI had an stifling effect on potential federal public corruption investigations in Idaho?

Maybe.

Readers may recall our OpenCdA post dated December 11, 2013, titled Former Kootenai County Finance Director Convicted in CA:  Corruption.  In that post we noted that former County Clerk Cliff Hayes had requested FBI technical assistance in assessing the extent and method of the embezzlement committed his predecessor’s Deputy Clerk Sandra Martinson.  After initially approving Hayes’ request, the FBI withdrew it at the direction of the US Attorney for the District of Idaho, Wendy Jo Olson.  Here is the relevant excerpt from that December 2013 post:

In November 2010 former Post Falls Police Chief Cliff Hayes defeated then-Kootenai County Clerk Dan English in the general election.  Hayes, who had three times also served temporarily as Post Falls Acting City Administrator, was installed as County Clerk on January 10, 2011.  One of the Kootenai County Clerk’s statutory duties is to also serve as the County’s auditor.

Hayes recognized that evidence proving the allegations of embezzlement against Martinson would reveal vulnerabilities in the County’s financial transaction processes.  Obviously, the routine annual independent audit conducted by private auditing firms had failed to reveal those vulnerabilities over a period of several years.

Hayes sought to independently identify the vulnerabilities so they could be analyzed and corrected, not covered up or ignored.  To do that, Hayes asked the Federal Bureau of Investigation to assign a Special Agent/Forensic Accountant who would work with him to examine all the financial records under the Auditor’s Office jurisdiction.  As official and ominous as his request might sound, readers should realize that when local criminal justice agencies lack specific expertise in specialized areas, they frequently request  technical assistance from experts in federal law enforcement agencies.  Whenever possible and lawful, that assistance is frequently routinely approved.

The FBI initially and quickly approved Hayes’ request, but then the approval was just as quickly withdrawn.   Hayes had made a relatively routine request for technical assistance to help the County Clerk identify vulnerabilities so they could be exposed and corrected to ensure the integrity of the County’s financial processes.

The FBI’s quick backtracking on its initial agreement to help prompted OpenCdA to contact US Representative Raul Labrador.  Representative Labrador’s office contact with FBI Headquarters elicited this response in a letter dated May 5, 2011, from Kevin L. Perkins, then Assistant Director, Criminal Investigative Division:

“After consulting with the FBI”s Salt Lake City Field Office, it has been determined that the United States Attorney’s Office has recommended that the Idaho state prosecutor continue to handle this investigation, and that FBI involvement was not appropriate at this time.”

So Wendy J. Olson, the United States Attorney for the District of Idaho, decided that whatever investigation of Martinson was being coordinated by the Idaho state prosecutor would be good enough for the citizens of Kootenai County.  Olson was apparently satisfied that the Coeur d’Alene Police Department had sufficient expertise in complex financial crime investigations.

As the  linked newspaper articles clearly state, the FBI routinely provides specialized technical assistance to local investigations.  Yet Cliff Hayes’ request was first approved then rescinded.  It ought to make Idahoans wonder who was afraid of what the FBI might have found going on in Kootenai County and who was involved in it.

Now earlier this month we learned that the FBI was asked by four Idaho legislators to investigate allegations of fraud against Corrections Corporation of America (CCA) in its administration of a state prison under contract with the State of Idaho.  The FBI has agreed and with the blessing of Idaho’s US Attorney Wendy Jo Olson.

OpenCdA hopes the FBI’s investigation into the allegations of fraud by CCA will be allowed to look the other direction as well at any potential involvement by other Idaho officials not only in Boise but in Washington, DC.  If the FBI turns up evidence of criminal involvement by any Idaho officials, whether in Boise or Washington, DC, we hope that Holder’s roadblock will be taken down.