So Harvard University and economist Andrei Shleifer have
agreed to pay monetary damages to settle the government civil
suit against them. US District Court Judge Douglas Woodlock
last Monday gave the parties sixty days to sign the final
pact, agree on press releases, cut the checks, etc
That means the reins at last are fully in the hands of Sara
Miron Bloom, the federal prosecutor who for eight years has
kept the case against them moving forward to its unsurprising
conclusion.
Some day between now and August 11, Bloom's boss, US Attorney
Michael Sullivan, will call a press conference to announce
the terms of the agreement.
The news that day will consist almost entirely of three numbers:
the amount of money that Harvard will remit for breaching
its contract to provide disinterested advice to the Russian
government; and the sums that Shleifer and his deputy Jonathan
Hay, now a London lawyer, agree to pay for the various frauds
they committed by secretly seeking, with their wives, to amass
fortunes while serving as advisers to the Russian government
on salary from the US Agency for International Development.
Some news stories will appear. Then the matter will seem
to fade away -- pending the appearance of a lengthy magazine
article now being reported by author David McClintick (Indecent
Exposure, Swordfish).
Before attention turns to prosecutor Bloom, the Swarthmore-educated,
Harvard Law School-trained mother of two who withstood tremendous
pressures in order to bring the case (and the several other
government lawyers who worked closely with her), take a moment
to consider the role at the center of the case of Judge Woodlock.
After all, it was thanks to Woodlock that the matter received
a thoughtful and above all persuasive hearing -- the sort
you'd expect from an 58-year-old jurist who may be no more
than midway though a particularly interesting career on the
federal bench.
Douglas Woodlock was appointed to the district court in 1986
by President Ronald Reagan. He possessed an interesting pedigree:
a couple of high school years at Phillips Academy Andover,
a distinguished undergraduate career at Yale, capped by being
chosen for the secret society known as Skull and Bones by
fifteen club members (including George W. Bush) from the class
ahead.
After graduation, Woodlock worked for four years as a reporter
for the Chicago Sun-Times. He wound up covering the Supreme
Court. In 1973, he quit to go to law school, graduating from
Georgetown University Law Center in 1975, then clerking for
a year for US District Court Judge Frank Murray in Boston.
Ten years later, he was named to the seat on the Boston court
vacated by W. Arthur Garrity Jr.
Between times, he practiced law, served four years himself
as an assistant US Attorney in Boston, then left the federal
courthouse to become a partner at Goodwin Procter -- the same
old State Street firm that Harvard later hired to defend it
against the US Attorney's suit.
On the bench, Woodlock has taken on a heavy load of cases,
won admiration from his fellow jurists for thorough and thoughtful
work, and loyalty from his clerks for his personal qualities
-- as well as a reputation around the courthouse of being
something of Renaissance man, with
interests in architecture, travel, history and art. Earlier
this year, he was cited by the Boston Bar Association,
along with Chief Justice Margaret Marshall of Massachusetts'
Supreme Judicial Court, for "judicial excellence."
Woodlock's name appeared frequently in the newspapers last
summer when he described the holding pen that authorities
had arranged for protesters at the Democratic National
Convention in Boston as "an affront to free expression"
and a "festering boil." He refused to order changes
in it, so lines of people entering the convention center had
to file past the site.
The judge probably is better known for the courthouse architecture
he has overseen than for any single courtroom decision he
has made. He served as chairman of the committee that supervised
the design and construction of Boston's and Worcester's new
Federal courthouses, which in 1996 won him the Thomas Jefferson
Award for Public Architecture from the American Institute
of Architects.
And as a charter member of the Committee on Security, Space
and Facilities of the Judicial Conference of the United States,
he advocated forcefully for the design of a series of prize-winning
US courthouses around the country in the wake of the Oklahoma
City bombing, each featuring enhanced security without surrendering
to fortress aesthetics.
Once the government's suit against Harvard and Shleifer came
before him in September 2001, Judge Woodlock sought repeatedly
to simplify and streamline the case. The government sought
treble damages from Harvard, its team directors and
their wives. Almost immediately, he dismissed the charges
against the women, who had not been party to the various agreements.
Not long after that, he asked retired District Court Judge
David Mazzone to undertake a mediation effort -- a negotiation
that sources have said collapsed when the government rejected
a Harvard offer to return more than $20 million of the original
$35 million contract.
When he let Harvard off the hook for fraud and treble damages
in his decision last summer, Judge Woodlock wrote that Harvard
couldn't be faulted for failing to investigate the "rumor-like
allegations" about its team leaders and their wives that
trickled back to Cambridge. He ruled that the various "red
flags" the government had identified never quite reached
the level of an actual alarm. They had more to do with
gossip about the provision of various goods and services to
Russian officials and their families than with the illegal
investments that ultimately brought the project crashing down.
"If the applicable legal standard in this case were negligent
supervision," he continued, "the government would
have a better case against Harvard." Instead, the fraud
law required proof of actual knowledge or reckless disregard
-- a standard he said the government had not met.
Later, the judge conducted a three-day trial before a jury
rather than decide himself whether Professor Shleifer had
been "assigned" to Russia by his contracts and therefore
bound by their provisions against conflicts of interest, or
whether, as Harvard maintained, he wasn't covered because
he did not move to Moscow from Newton, Mass.The jury took
only a couple of hours to decide -- against Harvard.
Before agreeing last week to approve a settlement that would
obviate the need for another jury trial, Woodlock bristled
briefly last week when Professor Shleifer's lawyer indicated
that, from his client's point of view, the settlement negotiation
might not yet be complete.
Four days after Harvard's commencement had taken place, the
judge asked, "Is there any question -- is there any question about this? Because I've been through this
for the past six months, of 'perhaps' and then 'maybe' and
then 'no' and then 'yes.' And so are we at the end point
for purposes of this Court's responsibilities in this case?"
Martin Murphy, the Shleifer family attorney (earlier he represented
Nancy Zimmerman, Shleifer's wife, in her agreement to pay
$1.5 million to settle claims that she had used the Harvard
project to pursue her hedge fund's Russian investments), answered
firmly, "Yes, your Honor," at which point Judge
Woodlock closed the case.