The resolution of Harvard's Russia
scandal last year sheds some light on the recent unpleasantness
over the Bush administration's decision to fire eight US attorneys.
That successful prosecution of Harvard University, by an attorney
appointed by President Bill Clinton, provides a textbook illustration
of how the system is supposed work, to resist political pressure.
Donald K. Stern, the former US
attorney in Boston who brought the action, described the institutional
arrangement in an op-ed piece in The Boston Globe
the other day. Stern served from 1993 until 2001; today he
is a partner at the Bingham McCutcheon law firm.
"Yes, US attorneys are appointed
by the president (and confirmed by the Senate) for a term,
can be asked to resign or can be removed. Yet this has
rarely happened and certainly never to this extent in the
middle of a president's term.
"This is because the department
generally respected the unique role the US attorneys play
in their respective districts, serving as the chief federal
law enforcement officer -- serving as a representative of the
federal government but able to set priorities for the law
enforcement needs of their local communities.
"Moreover, the US attorneys have
always enjoyed a special brand of independence, even within
the Department of Justice. This unique blend of independence
and accountability provides some tension from time to time,
but more often affords checks and balances on the enormous
power held by federal prosecutors."
Stern should know. He found himself
at the center of a tug of war that began when investigators
for the US Agency for International Development in 1997 shut
down a Harvard advisory mission to Moscow after whistleblowers
reported that the team leader, Andrei Shleifer, a professor
of economics at the university, was aggressively seeking investment
opportunities with his wife, his deputy and the deputy's girlfriend.
Not only did the Harvard administration
quickly dispute the charge that any impropriety had occurred.
But Shleifer's best friend, mentor and fellow Harvard economist,
Lawrence Summers, was Deputy Secretary of the Treasury, soon
to become Secretary, replacing Robert Rubin. He had oversight
of all US economic policy in Russia.
Clearly Summers was in a difficult
position. His man on the inside of Russian policy circles,
his trusted friend, had been fired by USAID, a semi-independent
agency within the State Department. Shleifer's counterparts
in the Russian government retaliated by severing relations
with the rest of the American advisory group. Before long,
Russian would be embroiled in a currency crisis that would
threaten the global financial system; Summers would be lionized
on the cover of Time magazine, along with Robert Rubin and
Alan Greenspan, as "the Committee to Save the World."
Summers later testified, "I came
personally to the following judgments during the time when
I was in the Government: that the project was of enormous
value both to supporting the crucial US objective of encouraging
privatization, encouraging market-oriented institutions, and
to the US objective of establishing relationships of constructive
helpfulness to figures within the Russian government who the
US government had identified as democratic market-oriented
reformers whose hand it wished to strengthen.
"That the termination of the
project, that the termination of Shleifer and [deputy Jonathan]
Hay's role had compromised both those objectives by reducing
a trusted source of advice supporting policies that were in
the broad interest of the US government and rupturing to some
limited extent the feelings of harmony between the US government
and key officials in Russia.
"I had enough knowledge of Russian
mores and Russian practices and Russian views from the conversations
I had with [Anatoly] Chubais and [Dimitri] Vasiliev to be
confident that the set of issues contained in the allegations
were not issues that were consequential for them; and that
they would have, in part, valued advisers more extensively
if they were more involved in actual private-sector activities."
Did Summers do anything to discourage
a prosecution he clearly viewed as unwise and unjust?
Rumors have circulated for years that he made calls on USAID
to abandon its investigation at an early stage. But when asked
in his deposition whether he has engaged in conversations
with anyone else in the government concerning the case, he
recalled none outside the privacy of his office.
Aside from conversations with
Treasury attorneys (which were privileged), he replied, "The
only other present memory I have is of conversations
expressing some irritation about the time commitment and hassle
associated with preparation for the discussion we had in my
office, expressions of complaint on my part about all of this
to members of my personal staff."
What did his staff say in return?
"I think it's probably the case
that there's a certain amount of interagency commentary that
goes around in which one agency doesn't always think the highest
of other agencies, and there was probably a little commentary
of that kind vis-ˆ-vis the Justice Department. But there
was no effort to engage in contentful conversation about it."
That was pretty much the end
of it. For three long years, lawyers for Shleifer and Harvard
fenced with the office of the US Attorney in Boston, producing
documents, giving depositions, even testifying before a grand
jury -- and seeking to persuade the government to drop the
case.
In the end, no criminal charges
were filed against Shleifer. Instead, the government
sought treble damages from Harvard. Government prosecutor
Sara Miron Bloom, asm assistant US attorney in Boston, made
no attempt to tie Summers to the case. Soon thereafter he
was named president of Harvard, and unobtrusively protected
Shleifer behind the scenes. US District Court Judge
Douglas Woodlock conducted a low-key trial.
Very little is known about whatever
representations and back-channel communications took place
among Harvard, the Justice Department and the US attorney's
office in Boston during those three years, much less
what went on in the government itself, among the Treasury,
Justice and State departments (beyond simply staring daggers
at one another, that is). The US attorney in Boston finally
filed his suit near the end of September 2000 -- barely a month
before the presidential election. Stern and Bloom have maintained
principle silence throughout.
What is
known is that the attorney general in those days was Janet
Reno. Whatever appeals were made to her, she declined to interfere.
The suit went forward, resulting in a jury verdict against
Harvard and a finding of fraud against Shleifer.
Without that finding, the rise
of Vladimir Putin and his high favorability ratings would
be harder to comprehend. Commentators routinely note that
among ordinary Russians, the sense of having been taken to
the cleaners by the Americans is widespread. Then, too, ordinary
Americans wouldn't understand that the Russians' grievance
was genuine, if Stern and Reno hadn't stood their ground.
Instead, citizens of both nations
received a vivid illustration of the meaning of the rule of
law -- not even Harvard, for all its friends in high places,
could break it with impunity. The first female Attorney General
of the United States set a high standard, by which her successors
will be judged.