Monday, April 20, 2015

Dear Mike Barber and Zack Matheny; North Carolina Law § 14-118.4. Extortion; Favoritism and Crony Capitalism

Any person who threatens or communicates a threat or threats to another with the intention
thereby wrongfully to obtain anything of value or any acquittance, advantage, or immunity is
guilty of extortion and such person shall be punished as a Class F felon. (1973, c. 1032; 1979,
c. 760, s. 5; 1979, 2nd Sess., c. 1316, s. 47; 1981, c. 63, s. 1, c. 179, s. 14; 1993, c. 539, s. 1184;
1994, Ex. Sess., c. 24, s. 14(c).)
"The interim leader of Downtown Greensboro Inc. said she was given an ultimatum: Hire City Councilman Zack Matheny as the nonprofit group’s next chief executive officer or lose city funding.

DGI interim CEO Cyndy Hayworth said the threat came Tuesday in a telephone call from City Councilman Mike Barber.

“I received a call and was given an ultimatum or a deadline,” Hayworth said in an interview Friday.

“The parameters around that were, ‘If you make a decision on the hiring of a CEO by a certain time, then the City Council would not vote to stop funding to DGI,’ ” she said.

Barber denies making a threat or giving Hayworth an ultimatum.

Hayworth said Barber called a few hours before Tuesday’s City Council meeting. The council would move to cut the funding for DGI during the meeting if the organization did not commit to hiring Matheny, Hayworth said Barber told her.

...Hayworth said Barber told her during their phone call that if DGI committed to hire Matheny, the council would continue its funding.

...Barber doesn’t deny pushing for Matheny’s hiring.

He said he has been doing that for weeks, even to other people at DGI."
North Carolina Felony Crimes by Class and Sentences

Class F felony: 10 to 41 months

...Examples of Crimes in Each Level

...Class F

Involuntary manslaughter
Human trafficking of an adult
"...favoritism is just what it sounds like;
it's favoring a person not because he or she is doing the best job
but rather because of some extraneous feature-membership in a favored group...


Favoritism can be demonstrated in hiring, honoring, or awarding contracts.

A related idea is patronage, giving public service jobs
to those who may have helped elect the person who has the power of appointment.

Sounds about right

...Cronyism is a more specific form of favoritism,
referring to partiality towards friends and associates.

...Cronyism occurs within a network of insiders-the "good ol' boys,"
who confer favors on one another.


...In the public sphere, favoritism, cronyism, and nepotism
also undermine the common good.

...the appearance of favoritism weakens morale in government service,
not to mention public faith in the integrity of government."

Judy Nadler and Miriam Schulman
"Crony capitalism is a pejorative term describing an allegedly capitalist economy
in which success in business depends on close relationships
between businesspeople and government officials.

Especially when they are one and the same.

It may be exhibited by favoritism in the distribution of legal permits,
government grants, special tax breaks, and so forth.

Crony capitalism is believed to arise when political cronyism spills over into the business world;
self-serving friendships and family ties between businessmen and the government
influence the economy and society
to the extent that it corrupts public-serving economic and political ideals.

Like handing out plush employment opportunities
with the help of fellow City Council members
who don't want to run against Zack?

In its lightest form, crony capitalism consists of collusion among market players.

While perhaps lightly competing against each other,
they will present a unified front to the government in requesting subsidies or aid.

Example; DGI

…it is not uncommon for current industry players to gain control of the “watchdog”
and use it against competitors.

This phenomenon is known as regulatory capture.

A famous early example in the United States would be the Interstate Commerce Commission,
which was established in 1887 to regulate the railroad “robber barons;”
instead, it quickly became controlled by the railroads,
which set up a permit system that was used to deny access to new entrants."

Crony Capitalism