Bureau Of Labor Statistics Caught Red Handed Leaking Confidential Employment Data

Tyler Durden's picture

While this will hardly come as a surprise to any of our regular readers, occasional visitors may be confused to learn that according to a discovery by the Carolina Journal, North Carolina "Gov. Bev Perdue’s press office has received access to confidential employment data from the U.S. Bureau of Labor Statistics hours if not days before its scheduled release, quite likely in violation of federal law." Once again the rabbit hole, which these days is pretty much everywhere, emerges: "Documents and correspondence obtained by Carolina Journal show that the Division of Employment Security, formerly known as the Employment Security Commission, sent a draft of the press release each month to Perdue’s press office. The governor’s spokesmen typically rewrote the text and added a positive spin, even if the data did not support Perdue’s talking points." And while one may say this is a perfectly innocuous leak of otherwise embargoed data, others may highlight the following facts: "While the operation may sound like a harmless effort to add political spin to the release of jobs data, sharing confidential BLS estimates while they are protected by an embargo violates a federal law barring the early release of employment data. This is no small matter: A conviction for breaching the Confidential Information Protection and Statistical Efficiency Act of 2002 carries a fine of up to $250,000, up to five years in prison, or both." Of course, when it comes to breaking the law, both members of the US banking class, as well as America's politicians, are perfectly immune from any repercussions. But at least the next time the market does its usual pre-NFP acrobats, the only question will be: which particular US politicians i) traded in advance of the embargo lift, and ii) leaked the information to ten of their closest friends, who did the same, who did the same, etc.

Furthermore as it turns out, this is not the first time the North Carolina governorship has been caught red handed.

Former Gov. Mike Easley’s administration received an early briefing on the employment reports from ESC staff for several months in 2003 and 2004, if not longer, but those briefings apparently stopped after CJ learned of and reported on them in 2004.

But why stop if nobody was at fault, unless....

As to the particulars of this particular case:

Documents and correspondence obtained by Carolina Journal show that the Division of Employment Security, formerly known as the Employment Security Commission, sent a draft of the press release each month to Perdue’s press office. The governor’s spokesmen typically rewrote the text and added a positive spin, even if the data did not support Perdue’s talking points.

 

The glowing quotes were attributed to Lynn Holmes, director of the employment agency, but the documents show the quotes were approved and probably written by a Perdue press aide, either Chrissy Pearson or Mark Johnson.

 

In several instances, DES spokesman Larry Parker cautioned Pearson or Johnson against using extraneous or unverifiable information in a release to boost Perdue’s image. At times, the Perdue communications team would push back, and the release would undergo several revisions before final publication. 

 

Perdue and her staff may not receive formal briefings, but Parker told CJ in September that he shares the jobs report with Perdue’s staff roughly 24 hours before the announced time for the monthly release. Emails obtained by CJ involving Parker, Pearson, Johnson, and in one instance Department of Commerce spokesman Tim Crowley, show officials discussing the data more than 48 hours before the embargo was lifted.

Enter the BLS with the form denial of everything:

“BLS does not support the release of employment and unemployment data before the established dates and times,” said Janet Rankin, BLS regional commissioner for the southeast office in Atlanta in an email. She notes that states are required to publish the dates they will release employment data on Dec. 31 of the previous year and follow that schedule.

 

She added that state agencies enter a cooperative agreement with BLS to gain access to its confidential data, and that the agreements “state that estimates cannot be shared outside of the LMI unit until they are final and ready for publication. The data are embargoed until the state predetermined release date and time” (her emphasis).

And the smoking gun:

When CJ reported on the briefings Easley received in 2004, Rankin said at the time: “A person associated with developing the data that is caught releasing it or commenting on it prematurely is subject to fines and jail time.”

That's the BLS essentially saying that one of its own employees is committing a felony offense. Over and over. And here we are worried about statistical impossibility of the endless prior upward revisions in Initial Claims, when the fraud runs to the very core of the reporting system. Why for the hardened BLS criminal, the least thing they can and will do is fudge data mercilessly and without fear of consequences. After all, there are "birth/death" adjustments.

The rest of the article, which is worth a read in its entirety goes into details of just how the CJ caught the current governor. And for those forensically inclined, the trail of emails can be found here.

And of course, by simple logical induction, what happens in North Carolina, happens everywhere else. So good luck to all the folks trying to trade in "advance", or just after the release of the 8:30 am NFP number.

What is most ironic in this case, and likely in every other one which involves collocated High Frequency Trading boxes to "front run" the rest of the slower market upon critical BLS data (which is virtually half of the Class A high frequency economic data): all that money for high tech vacuum tubes was spent for nothing. At the end of the day, the slowest trader, who has the best connections with the BLS, ends up trumping the guy with the $5 million a month box parked squarely at the receiving end of NYSE's Mahwah fat pipe.

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Jim in MN's picture

Komplete Kaos and Korruption, bitchez!

TruthInSunshine's picture

One leak like this?

There are probably hundreds.

The payola from Goldman, SAC Capital, Jamie BloodDiamond's JP Morgan and all the rest of their ilk, flowing into the hands of those who work in the good governor's office having access to the leaked data, must be massive.

"And this is Jenny, our administrative assistant, proud owner of the Bugatti Veyron that you couldn't have helped but notice parked out front."

Jim in MN's picture

As one who has personally taken an Atomic Fireball from the bin at the Rose Law Firm in Little Rock, while getting the tour past Hillary's old corner office amid much giggling about the paper shredder, I concur. 

The swimming pool in the downstairs is nice too.

macholatte's picture

"While the operation may sound like a harmless effort to add political spin....

 

That sentence may sound harmless, yet when you think about it, the procedure it describes is called "conspiracy to defraud" which is so rampant it is taken for granted. The sheeple are lied to on a regular basis, it's called "a harmless effort to add political spin" which is an acceptable form of propaganda. They continue to graze. Oblivious to the fact they they are being eaten alive from within.

 

I once was lost but now am found,
Was blind, but now, I see.

 

AldousHuxley's picture

In their defense, bad employment figures are not exactly insider knowledge these days.

Gohn Galt's picture

You haven't been watching enough TV.

This is off topic a little.  Has anyone seen these videos from dallasgoldbug?  He spots news stories and matches them up with actors.  The OWS footage is easy to believe (actors playing both protester and police).  I guess I can believe or not believe anything after all of this market fatigue syndrome. 

He is also gone as far back as making a case the South Park guys Matt & Trey comparing their photo's with the Columbine Shooters (trench-coat mafia).  The accusation is that the South Park creators were the Columbine Shooters in a staged production. 

http://wellaware1.com/

http://www.youtube.com/dallasgoldbug

 

 

 

 

nmewn's picture

I believe it was Mzzz. Perdue who "joked" or otherwise stated it might be a good idea to suspend the electoral process for a couple years.

Only from the mind of an elitist can such thoughts spring.

Afterall, they've done such a stellar job so far...why would the common plebes need elections to change course...lol.

CH1's picture

I do believe it was!

It is amazing that people still want to believe in this trash.

MachoMan's picture

Kind of funny considering that Rose is known (at least in my anecdotal circles) for cherry picking the best looking girls from each law class...  I guess that hilary just scared them enough... 

Oh regional Indian's picture

Exactly. Back in the days of the dot.CON boom, I remember seeing insider-info being passed around like peanuts at a post-ipo party.

The real money is made like this. TIPS. TIPS, To Insure Prrrrrompt Servitude. I think it's good for everyone to see the corruption out in the open though, more and more.

With the BLS it's even more ironic. They leak the lie.

The outrage will finally build enough pressure to bring the system down.

ori

/re-capitulation-collaboration/

FEDbuster's picture

The numbers are lies, the market is rigged and if you are still trying to "play" it, you are going to get what you deserve.  Corzine can fucking steal YOUR money, from YOUR account and still be called "Honorable" by our corrupt Congress.  WTF????  You think they play by any set of rules.  Rules are for the serfs.  There is no rule of law.  Don't like it?  STFU or will rendition your ass to some shithole prison where we will torture your ass:

S. 1867 (NDAA): Secret Torture Provisions For Home Grown Terrorists

The Big Ching-aso's picture

 

 

The Lords have flipped the Serfs the bird, raped their daughters, shot their dogs, stole their money, and confiscated their land.    Wait till they start getting nasty.

vast-dom's picture

Thousands, not hundreds! And the entire global economy is working off this leak model and has been. The difference of late is that the leaks serve as much to make profits as they do to prop up the entire system which means desperation will lead to mistakes and that will in turn lead to more trouble for all involved.  

candyman's picture

Good post. WTF  do you have to do to impeach these guys?  I'm pisseed.

CH1's picture

WTF  do you have to do to impeach these guys?

You can't. Party A and Party B are the same corrupt bastards.

It's the state versus the individual... and they are defeating us with the money they take from us.

vxpatel's picture

molatav cocktails for happy hour...

navy62802's picture

<----------- Not surprised.

navy62802's picture

You know it's dangerous to light farts. My cousin burned his ass once trying to do it.

wandstrasse's picture

I was thinking about the possibility that your post might be - perhaps - off topic... but I came to the conclusion that it is not because in a metaphorical sense it describes an issue of the article; the abuse (=burn farts) of privileges (=farting) and the consequences this would have (burn ass) in a more just world.

Thunder_Downunder's picture

"My Cousin"

 

Riiiiiiighht!

 

:P

 

Oh regional Indian's picture

Assfire, you have to stop making potty jokes! They don't go well with your avatar... ;-)

ori

Sabibaby's picture

Hey... if nobody recollects doing anything <ever> is it really a crime?

Troll Magnet's picture

and those who do remember all end up dying right away one way or another.

CalibratedConfidence's picture

This done to prepare the HFT for liquidity providing operations and spread tightening, right??

 

http://batstrading.com/resources/press_releases/BATS_Listings_CLP_121911_FINAL.pdf

Van Halen's picture

"quite likely in violation of federal law."

FEDERAL LAW??

C'Mon! No one in a position of leadership pays attention to THAT any more!

Van Halen's picture

Want a good example of how well FEDERAL LAW is working for all of us RIGHT NOW?

I got two words for ya:

John Corzine

EhKnowKneeMass's picture

Exactamundo! And we genuflect in front of the altar of God and the Law. There is no God, and there is no Law, and the insiders know it. Numerous articles on this website have proven the latter. Now, how to prove the former. The insiders have proven that, too. When men of god can rape children with impunity and the house of god protects them, then, that proves all this hocus-pocus thing about God is nothing but BS. We always hear that there is this kind being called God who is looking after his children that is us. And, you go to the Heaven for good deeds and burn in the Hell for the bad deeds. Therefore, who better to know about Heaven and Hell than those who proclaim to be holy men and in constant touch and contact with God. So, if those holy men truly believed in all that, and had the proof that Heaven/Hell exists, then, they would think twice before raping kids. Matter of fact, they would get themselves Bobbitized, chop off their arms and legs, and sew their lips to not go to hell because of their actions. But they don't, and they continue with their behavior, which only proves that God/Heaven/Hell does not exist at all, all this is nothing but Hippo-poo. They know they can get away scot-free as there is not God to fear of; this God/Law thing is indeed good business and a way to keep the masses hooked onto an utopian idea and make them spend oodles of cash keeping the idea/illusion alive. After all, illusion sells. Ask the Kardashian who***.

booster's picture

if persons holy men truthfully supposed in all that, and have the evidence that Heaven or Hell be.

april fool pranks || best facebook status

Godisanhftbot's picture

  what good is a free market if you cant rape and pilliage?

tmosley's picture

Exactly.  That's why we got rid of ours a hundred years ago.

Oh regional Indian's picture

Make that about 400 years Tmos. That is about when the free market died.

Free market and Debt are anti-thetical to each other.

ori

tmosley's picture

WTF are you talking about?  400 years ago was all serfdom.  No free markets ANYWHERE.  Free markets started popping up during the 1800's in what we now consider the developed world.

Terminus C's picture

There never has been such a thing as a free market.

All that happened was that the club got bigger in the 1700's-1800's.

Milton Waddams's picture

The overarching problem is some take the term 'free market' too literally.

wandstrasse's picture

the bad thing is that we got implanted the idea of free markets, in order to accept being hired and fired on booms and busts caused by the fiat currency system and thankfully work our asses off while being hired, and think all of this is justified by 'freedom' and some natural, evolutionary winning of the fittest... the idea of free markets is a handy tool used by the hidden plutocrat central planners.

Misean's picture

Yeah!!!! Cuz nothing screams free market louder than a central planning government created fiat money cartel!

Al Gorerhythm's picture

What does a free market mean? I was under impression that free markets were meant to be unregulated markets. If we are searching for honest markets, then that can't happen without honest money which settles accounts, rather than just a promise to pay with a credit note (falsly claiming that settlement has taken place).

Oh regional Indian's picture

Prior to the hard on-set of industrialization, which I know you love well, people lived simpler lives, where they could grow/make enough to subsist. Most did not need to be in debt to survive.

Debt servitude, urbanization and un-free markets (for the masses), to the degree they exist today, grew or spawned out of the peculiar and unfriendly basis of the women and children powered Industrial Revolution.

ori

Out9922's picture

Their wrists have to be getting red from all of those slaps

SimpleandConfused's picture

Agree with the conclusion; nothing will come of this.  It is an amazing thing to behold, but the law actually does not apply to those in government.  They are in the most literal sense free to do anything they wish.  We have no AGs, in the states or the federal level.  Corruption is complete.  The new defense authorization bill is the final nail in anything left that resembled the rule of law in this country, at least for the common man.

Sad days indeed.

bob_dabolina's picture

All this time I thought government was air tight with this stuff like this. 

/sarc

At least we can score one for the humans.

navy62802's picture

Maybe they'll try to lay it on Bradley Manning somehow. That also wouldn't surprise me.

FEDbuster's picture

We are all Bradley Manning's now.  In a week they will be able to torture him as much as they want to with the blessing of Congress.

S. 1867 (NDAA): Secret Torture Provisions For Home Grown Terrorists

Bansters-in-my- feces's picture

Laws are for peasants......

And consumers.

The Goverment is NOT your friend.

Troll Magnet's picture

try telling that to dumbass liberals who can't fathom living w/o their precious .gov

CH1's picture

Don't worry, no one will go to jail.

Our precious leaders are infallible, and will always be absolved... no matter what it looks like!!