Risk Update

“Speechless” Conflicts Allegation — Firm Investigating Its Former Client?

Posted Dan Bressler

“‘I Was Speechless’: Law Firm Investigated Its Own Ex-Client For Trump VOA Chief” —

  • “Early last June, the Open Technology Fund was scrambling for survival. The nonprofit fosters technology that enables people who live under repressive regimes to communicate securely. It is wholly dependent on the U.S. government for money. And the new CEO of the federal agency that subsidizes the fund had declared war on it.”
  • “So Lauren Turner, the fund’s general counsel, turned to a familiar name for help: the powerhouse law firm McGuireWoods. The firm had been advising the fund pro bono, or without charge, for several months. Its lawyers met with the fund’s board and president to discuss a potential lawsuit against the federal agency.”
  • “And then, word came down from the law firm’s headquarters in Richmond, Va., that McGuireWoods would not represent the fund in this matter. Senior partners suggested the case might be too political, according to three people with knowledge.”
  • “Eight weeks later, the firm made an about-face. McGuireWoods signed a confidential, no-bid contract with the man threatening to take away the nonprofit’s money for the year: U.S. Agency for Global Media CEO Michael Pack, an appointee of President Donald Trump. The agency also oversees Voice of America and other international networks sponsored by the federal government.”
  • “Eight weeks later, the firm made an about-face. McGuireWoods signed a confidential, no-bid contract with the man threatening to take away the nonprofit’s money for the year: U.S. Agency for Global Media CEO Michael Pack, an appointee of President Donald Trump. The agency also oversees Voice of America and other international networks sponsored by the federal government.”
  • “‘I was speechless,’ says Turner. ‘I had no idea that they would ever turn around and represent our actual adversary in a lawsuit, after an attorney in their practice had spoken to our board about our strategy and asked me for internal documents to help frame up the theory of our case.'”
  • “McGuireWoods attorney Greg Guice, who had been giving the fund pro bono advice, says he was blindsided, too. ‘I was shocked to learn of this other work that McGuireWoods was doing,’ Guice says.”
  • “Several McGuireWoods staffers involved with the pro bono effort soon left the firm under duress from senior lawyers, according to two people with knowledge, though the Open Technology Fund work was not cited as a reason for their departures.”
  • “Over the course of less than five months, McGuireWoods partner John D. Adams and his team earned well over $2 million in taxpayer money for work typically done by government employees, according to law firm billing records and exchanges between U.S. Agency for Global Media staffers reviewed by NPR.”
  • “Several outside lawyers tell NPR that McGuireWoods’ handling of the Open Technology Fund appears deeply problematic. ‘This needs to be investigated,’ Richard Painter, the former chief ethics lawyer for President George W. Bush’s administration, said. ‘This needs to be looked into by the government and by the bar association. This is a potentially very serious matter.'”
  • “The contract McGuireWoods sent for Pack’s signature, released under the Freedom of Information Act, stated, ‘We are not aware of any conflicts that disqualify us from representing You.’ The firm also said it retained the right to accept future legal or consulting services for people whose interests were against the agency in matters unrelated to the investigation.”
  • “Revelations about the no-bid contract last week generated sharp criticism; Walter Shaub, a former top White House ethics official under President Barack Obama, suggested on Twitter they might reflect violations of the federal contracting procedures.”
  • “In a comment to NPR, USAGM’s new leadership noted that a federal watchdog called the Office of Special Counsel has found ‘a substantial likelihood of wrongdoing’ over Pack’s suspensions of senior executives and hiring of McGuireWoods to investigate them.”