Sunday, December 7, 2014

Morgan v. Fischer lawsuit: Why Ford is worried

Louisville, KY - We have been exclusively covering the lawsuit filed by Jay Morgan against Louisville Mayor Greg Fischer for some time now. We have been trying to figure out why Ford Motor Company has intentionally tried to interject themselves into this case, and why Greg Fischer and Ford are so worried they keep using every play in the book so Fischer does not have to go under oath and be deposed.

In our last article we told you something did not smell right because Ford's Group Vice President of Government Operations  and Community Affairs Ziad Ojakli flew into town for such a meaningless GLI event.

There is a personal history between Ziad Ojakli and Jay Morgan that involves alleged illegal insider trading with Ford executives and Morgan was the whistle blower.

For 23 years Morgan was a dedicated employee who received awards, great performance reviews, and bonuses. All that changed in 2008 when Morgan did what he was required to do by Ford's own standards and the law.

In 2008 Ford, like the rest of the auto industry, was struggling and struggling bad. Their stock had plummeted to anemic levels and Ford was at risk of going bankrupt. Or worse. As the whole world knows by now many meetings were held with various government agencies and everyone was looking for a fix. It ultimately led to the multi billion dollar auto industry bailout. 

James T. Young, then worked as Ford's Director of Government Affairs, Ford Credit Tax and Trade, and/or Director of Ford's Tax and Trade Public Policy. He worked in Ford's Washington, DC office and as one can assume was heavily involved in insider talks about Ford going forward and how government would aid the venture.

In short, he had the inside track to everything Government and Ford.

In late October 2008,  Ford held meetings with the Department of Energy and the US Treasury of which James Young was involved. In short Ford presented a plan that they said would make them profitable and competitive. They went through their plan including product development through 2019.

Shortly thereafter, James Young went into Morgan's office bragging about how he had just bought Ford stock at $2 a share knowing Ford's stock would increase quickly with the government guarantees based on the confidential briefings Young himself participated in.

What to do? Morgan followed his Ford training on illegal insider trading. When Young told him this, Morgan knowing he had an obligation to report it, sought advice. He contacted Ford employees (names redacted from FOIA request), and told them of what Young had told him.

Those sources told him repeatedly to, "report him, report him, report him." Morgan then went to Ford's Director of Corporate Compliance James Carroll and did what he was told to do.

What did Carroll then do? He went and told everyone in the Government Affairs division. More than half of which had personal outside relationships with James Young, the accused.

Why would Carroll do that? To protect his buddy James Young. Those involved include: Ziad Ojakli, Group Vice President and General Counsel, David Leitch, International Affairs Vice President Steve Beigun, Government Affairs Political Manager Alison Jones, Government Affairs Communications Director Christen Baker, and Government Affairs Community Relations Manager Elizabeth Brakebill.

NO ONE contacted Morgan after the complaint as part of any investigation or anything else. The cover up was on.

A few months after the complaint Morgan noticed that the classes regarding insider training for his work group were not on the latest list of available training courses. His only conversation with James Carroll, since the complaint had been made, was when he asked why it was not there. Carroll told him management decided to take that course "off the list for awhile,"  with no explanation forthcoming.

After a clear possible insider trading transaction had been exposed, there was no known investigation, and the company provided training course was eliminated regarding it? Remember folks this is during a time when Ford stock was so cheap they couldn't give it away.

Ziad Ojakli? He was very vocal in his disdain for Morgan openly telling the world he was pissed off at Morgan because of his complaint.

Wouldn't you think that if you had an employee who worked for you following company policy that you trained him on you would be happy not pissed? Ojakli had the power to determine Morgan's fate, but could not fire him knowing he was a whistle blower, so what to do?

Harass and intimidate Morgan. We will provide details on that in upcoming stories.

Alarmingly Ojakli reported directly to Mark Fields, then Ford COO, yep the head honcho himself.  

Was Fields made aware of potential insider trading? If not, why not. Fields was the face and the brains behind Ford moving forward. If Fields was informed then we know why Ford is desperate to shut Morgan up. It means that insider trading went all the way to the top and not limited to a few.

Why was Ziad so angry at Morgan for reporting alleged criminal activity that could destroy Ford's reputation during this crisis? Maybe he was pissed because he didn't get his shares bought before Young bragged to Morgan.

Who knows but now we know why Ford has been trying desperately to stop this case against Fischer from going forward. They are scared that it will lead to the insider trading through testimony.

Greg Fischer himself, in an attempt to cover up his own lies, brought Ford into this whole mess by requesting the information regarding the NDA that Morgan had agreed to from his Department of Labor complaint in 2013. Ford has been pulling the legal maneuvering and delay tactics on behalf of Fischer, in a desperate attempt to financially break Morgan so the case does not move forward, or quiet Morgan up by bullying delay tactics, so they don't get caught trying to cover up a felony crime that includes jail time. It is that simple to me.

Ironically, thanks to FOIA requests it will be made public anyway.

And it all started with Fischer himself trying to cover his lies. Ford is not pleased but desperate and they proved it once again last week.

Why was Ziad Ojakli in Louisville for an unimportant event? Immediately after he left an appeal was filed by the Fischer team on Judge Perry's ruling that his 3rd attempt at dismissing the case was denied and depos could move forward. Coincidence? Not hardly.

County Attorney Joel Frockt, who is handling the case on behalf of Fischer and presumably Ford, is a former law partner/owner of a law practice with appeals court Judge Irv Maze. We will get to them in future articles as well. Let's see what happens now.

In the meantime, there is plenty to come including how the Deputy Secretary of the US Department of Commerce Bruce Andrews figures into this, and just happens to be Jay Morgan's former boss, Bruce Andrews wife, Didem Nisanci, who just happened to be Chief of Staff at the Securities and Exchange Commission, as well as, former Director for the Senate Banking Subcommittee on Securities, Insurance, and Investment, and how Haley Stevens of the BEAM initiative just happened to come to Kentucky. 

I haven't even begun to tell you the rest.

Stay tuned............

Listen daily from 7-8pm at The Ed Springston Show. Also visit Louisville Politics for more details and in depth cover
age of local political and news issues.

No comments:

Post a Comment

Thank you for reading LNP. Open and honest discussions of local politics and relevant issues is important to voter understanding. Please listen to the "Ed Springston Show". We broadcast Monday through Thursday evenings at 7 PM on local media outlets. Please check for the links.
Yours truly,
Ed Springston


The Metro removal hearing case against Dan Johnson ended about the way it began. With many in disbelief. I could not understand how the &q...