February 2, 2009
Eric Thorson – Inspector General
1500 Pennsylvania Avenue, N.W.
Room 4436,
Washington, DC 20220
SUBJ: WHISTLEBLOWING UNITED PILOTS ASSOCIATION
Dear Mr. Thorson,
The Whistleblowing United Pilots Association is a national grassroots coalition comprised of employees and retirees from all airlines whose purpose is to help discover the truth regarding alleged white-collar criminality associated with post-9/11 airline bankruptcies and serve justice on the criminals who perpetrated these crimes. I serve as a public spokesperson for this group.
On February 14, 2008, a federal complaint was filed by me on behalf of the association with the office of the Federal Bureau of investigation in Chicago, which has been left open pending forthcoming additional evidence and witness testimony, which is why I write to you today.
As you know, the post-9/11 Airline Transportation Stabilization Act authorized the establishment of a $10-billion loan guarantee program designed to financially assist ailing airlines in the aftermath of that tragic event. Even after multi-billion dollar United Airlines employee concessions, the first application for said monies was denied by the three-voting member Airline Transportation Stabilization Board (ATSB). In their ruling, the board determined that concessions rendered were insufficient to risk the government backed loan, so United Airlines management returned to the bargaining table demanding additional employee concessions to preclude Chapter 11 bankruptcy or, even worse, Chapter 7 liquidation to which the employee groups conceded.
Upon second application, the three-man ATSB voting board members consisted of ATSB Chairman Eddie Gramlich, Treasury Secretary John Snow, and Transportation General Counsel Kirk Van Tine. It was stated in the media that Mr. Gramlich was predetermined to vote in the negative on the application, which left the vote hanging in the balance between Mr. Snow and Mr. Van Tine.
In an August 13, 2004 Financial Times article authored by Caroline Daniels entitled, “The Revolt of the Treasury Secretary (Against His Own Staff!), it was noted that Treasury Undersecretary Brian Roseburo insubordinately voted in the negative against the wishes of his boss at Treasury, John Snow, thereby enabling long-time Bush confidant and Baker-Botts attorney Van Tine to abstain from voting since his vote was rendered moot. That single negative vote thrust United Airlines into Chapter 11 bankruptcy enabling the subsequent total decimation of employee labor contracts and termination of pensions.
Request is hereby made that your office conduct a thorough investigation into this matter and provide our association with the rationale behind this questionably legal decision and offer a reasonable legal opinion as to why this insubordinate vote was cast with impunity, which caused so much pain, loss, and suffering to so many as a result. When one also considers the tremendous financial losses incurred by employees, retirees, and unsecured creditors and vendors in the bankruptcy by a single vote, the apparent criminality begs for a response from the Departments of Treasury and Justice, and the Securities and Exchange Commission. It is believed that this question has been answered by another organization, but a legal opinion from your office is requested as well.
I have filed for whistle blower protection under the auspices of the Sarbanes-Oxley Act of 2002 and have contacted Securities and Exchange Commission Inspector General H. David Kotz, as well as Senator Grassley on these and other matters. Additionally, I am affiliated with the Government Accountability Project in Washington, DC, as well as numerous civic criminal investigation organizations. If investors were bilked out of billions of dollars by illicit means, then the white-collar criminals must be brought to justice.
In light of the hundreds of billions in tax dollars presently being unconditionally doled out to banks without congressional oversight or accountability, the $2.1-billion United Airlines loan application offered during financially healthier times and under extremely stringent financial conditions by the ATSB pales in comparison. Shortly after casting his vote, Mr. Roseburo quietly returned to a position at a prominent Wall Street bank. This was an outrage; it is criminal.
President Obama campaigned on a promise of open government, which included the exposition of white-collar corruption, untoward lobbyist pressures, and excessive executive compensation. Our association efforts are in full support his stated goals, as well as those of the Department of Justice, Treasury, and the Securities and Exchange Commission.
Thank you for the time and consideration. I will patiently await your response for inclusion in my federal complaint file in Chicago.
Very respectfully,
Dan Hanley
Spokesperson – Whistleblowing United Pilots Association
Cc: Senator Charles Grassley – Ranking Member, Senate Finance Committee
Senator Carl Levin – Chairman, Senate Permanent Subcommittee on Investigations
Congressman Henry Waxman – Chairman, Government Oversight Committee
Mary Schapiro – SEC Chairman
Merri Jo Gillette – SEC Midwest Regional Director
Rita Glavin – Acting Assistant Attorney General, Criminal Division
Robert Mueller – FBI Director
Patrick Fitzgerald – District Attorney for the Northern District of Illinois
Robert Grant – Chicago FBI Special Agent-in-Charge
Tom Devine – Government Accountability Project Legal Director
Members of the Whistleblowing United Pilots Association
