Sunday, May 18, 2014

Sunday Globe Special: Cordy's Conflict of Interest

Seems like they all have them.... 

"Justice hearing casino repeal case tied to Suffolk Downs" by Andrea Estes | Globe Staff   May 11, 2014

Justice Robert Cordy of the Supreme Judicial Court led the questioning of casino foes who asked the court last week to allow a ballot question that could repeal the state’s 2011 casino law. He sharply challenged the opponents’ argument that voters can abruptly make casinos illegal after casino companies have spent millions of dollars applying for licenses.

“A five-year exclusive license that’s already been awarded . . . at great cost by the applicants, can simply be taken away with a big never mind?” Cordy asked the lawyer representing the group Repeal the Casino Deal. “You can do that? Without compensation? Wow.”

Well, NO ONE ASKED US FIRST in this Massachusetts DEMOCRACY!

It turns out Cordy has more than a passing familiarity with the difficulties casino companies have doing business in Massachusetts. In the 1990s, Cordy was a lawyer and a lobbyist for Suffolk Downs, one of two possible locations for the Eastern Massachusetts casino, and a second gambling company that was seeking to build a casino in the state.

A$$hole.

Cordy also served as senior adviser to Governor William Weld, who is now an attorney for Steve Wynn, Suffolk Downs’s rival for the Boston-area casino license. 

I think I'm going to be leaving the gaming table.

Cordy’s past ties to the gambling industry came as a surprise to the parties arguing before him Monday and raised questions among some judicial ethicists. Unlike legislators, judges are not required to file disclosures about potential conflicts, and Cordy did not voluntarily notify parties in the case.

“Our attorneys have faith in the impartiality of the Supreme Judicial Court, but, as a grass-roots activist new to this world, I have to say this sure puts some of what we have heard in perspective and is a reminder of the deep tentacles of this industry,” said John Ribeiro, chairman of the casino repeal campaign.

Cordy would not discuss his former work for the gambling industry, but he said through a court spokeswoman that his efforts then were completely unrelated to the debate now before the SJC.

“Justice Cordy has been on the bench since 2001,” said court spokeswoman Jennifer Donahue, “and hasn’t been in private practice for 14 years. None of the work that he did in the 1990s has any bearing on the case presently before the court.”

Donahue said Cordy has recused himself from participating in some cases during his 13-year career at the SJC, but she did not provide specific cases.

Suffolk Downs, in a statement Saturday, downplayed the connection to Cordy, noting that the racetrack had different owners then.

“This has to do with matters from almost 20 years ago under the prior ownership interest,’’ said William J. Mulrow, chairman of Suffolk Downs. “We don’t believe this has any bearing on our current efforts to preserve Suffolk Downs’ 79-year legacy as one of the area’s sports and entertainment venues, and to preserve the hundreds of jobs here and at small businesses and family farms in the Commonwealth.”

As a partner at McDermott Will & Emery in the 1990s, Cordy represented the owners of Suffolk Downs, which was looking to open a slot machine parlor in collaboration with the Wampanoag tribe, the Globe reported at the time. From 1995 to 1997, Cordy hosted meetings at his office in failed attempts to work out a formal agreement, according to the Globe articles.

At least you know where his $ympathies lie.

*****************

Cordy also worked for Hilton Gaming, records show. Hilton was one of three casino operators that financed a successful 1995 campaign to persuade voters in Holyoke to approve casino gambling, records say. Cordy acknowledged at the time that he had lobbied his former boss, Governor Weld, on gambling matters.

(Blog editor just shakes head)

Some 15 years later, Suffolk Downs, one of Cordy’s former clients, is helping to pay for the opposition to the repeal effort now before the SJC. The racetrack is also part of a group that has formally intervened in the case, and a lawyer for the group argued Monday before the SJC.

In addition, a lawyer and a consultant Cordy worked with in the 1990s now work for Suffolk Downs.

Specialists in judicial ethics said judges have to be sensitive to the appearance of impropriety, but they are given a lot of latitude as to when they should step down from cases.

For instance, Justice Elena Kagan has removed herself from US Supreme Court cases she had been working on months before as a top litigator for the Obama administration. But judges do not automatically disqualify themselves from cases just because they worked on similar ones years before or even because they once represented parties before them

“There is a catch-all provision [in the judges’ code of ethics] that says a judge must recuse if the judge’s impartiality might reasonably be questioned,” said Stephen Gillers, professor of legal ethics at New York University School of Law.

“There are thousands of cases on the subject. But what they all say is you don’t look through the eyes of a suspicious person. You look through the eyes of an objective, fair-minded observer knowing all the facts.”

But Gillers said the general public has a different perception of judicial fairness.

And perception is everything. Propagandists know that.

“What . . . you often hear from the public is a chasm between what the public believes should be the conflict rules for the judges and what judges think the conflict rules should be,” said Gillers. “The scope of disqualification is much narrower from the judicial point of view.”

Attention to Cordy’s past ties comes days after the gambling commission chairman decided to remove himself from the debate over an Eastern Massachusetts casino because of accusations of favoritism.

Articles dealing with that further below.

****************

Matt Cameron, general counsel of No Eastie Casino, said he knew “casino money had infiltrated every branch of government.”

“The attorney general, the governor, the gaming commission have all been directly influenced by casino interests,” Cameron said. “But I wouldn’t have said it about the SJC before you told me this. I watched the oral arguments and was surprised by Justice Cordy’s vehemence.”

And now you are no longer surprised, and it will be up to the court to decide whether the repeal may go forward to the ballot.

Another casino opponent agreed. “It doesn’t surprise me,” said Brian Herr, a leader in the casino repeal campaign and a Republican candidate for US Senate, referring to Cordy’s previous gambling ties. “It’s become obvious to me that the reach of the casino industry is far, wide, and deep, even in a state like Massachusetts that doesn’t have a resort-style casino.”

I think I just found my choice against Markey.

But Carl Valvo, a lawyer for the pro-gambling group that wants to keep the referendum off the ballot, said he has “utmost faith in the system.”

I'm $ure he doe$.

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Related:

SJC questions whether casino repeal would cost Mass.
State’s high court should allow measure to repeal casino law

No ruling yet.

"MGM Resorts 1Q profit leaps on Macau strength" by Michelle Rindels and Michelle Chapman | Associated Press   April 30, 2014

LAS VEGAS — MGM Resorts International’s first-quarter net income soared, bolstered by continued strength in Macau and improved room bookings on the Las Vegas Strip.

Chairman and chief executive Jim Murren said in a statement that MGM Resorts is increasing US convention business at its properties in the middle of the week and hosting a strong slate of events on weekends. Company officials said a $66 million expansion of the Mandalay Bay convention center disclosed last week is expected to help it attract larger events and capture more of the recovering meeting business.

MGM is breaking ground Thursday on a $350 million arena on the Strip, and revealed details this week about ‘‘The Park,’’ an eight-acre, tree-lined outdoor entertainment and dining district in front of the venue. Murren said those projects, combined with new developments citywide and airport improvements, will help push Las Vegas’ annual visitation number up from 40 million to possibly 50 million in a few years.

At CityCenter — the massive development in Las Vegas that is owned jointly with Dubai World — revenue from resort operations edged up 2 percent to $313 million.

MGM China — which runs the MGM Macau casino-resort and is developing a new Cotai resort — reported that revenue rose 26 percent. Macau is the only place in China where gambling is legal. MGM Cotai is on pace to open in early 2016, and will have three times as many hotel rooms as the existing MGM Macau casino.

For the period, the casino operator earned $108.2 million, or 21 cents per share. A year earlier it earned $6.5 million, or 1 cent per share. Analysts expected earnings of 8 cents.

Revenue climbed 12 percent to $2.63 billion from $2.35 billion, topping Wall Street’s average estimate $2.57 billion.

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Looks like a Wynner.

See: MGM looking to Seaport District for a hotel

RelatedRevenue growth seen slowing at Indian casinos

Oh, don't worry about that. Just party it up!

"Mass. gambling official attended Suffolk Downs party; Presence while race track pursues casino questioned" by Andrea Estes and Mark Arsenault | Globe Staff   May 07, 2014

Last Saturday, to mark opening day at Suffolk Downs and the 140th running of the Kentucky Derby, the owners of the East Boston race track threw a private party overlooking the historic oval.

Guests packed the Topsider Room, enjoying an open bar and a buffet with shrimp, clams, and a carving station. The mayor of Revere was there along with several lobbyists and politicians. But the guest who attracted the most attention, according to several people there, was Stephen P. Crosby, the state’s top gambling regulator, and one of five public officers who will decide whether a casino proposal at Suffolk Downs will get a coveted license worth hundreds of millions of dollars a year.

“He was turning heads like a runway model,” said one guest.

While Suffolk Downs and its allies said they saw nothing wrong in Crosby’s attendance and noted he paid his own way, others said he should have stayed away as the commission weighs who will receive the Greater Boston casino license.

It was “wholly inappropriate” for the chairman of the state gambling commission to attend the event, said former Massachusetts Inspector General Gregory Sullivan.

“It’s no different than a judge attending an opulent bash thrown by one of the parties in a legal case he’s presiding over,” said Sullivan, now research director of the Pioneer Institute.

Calling Judge Cordy.

But Mayor Daniel Rizzo of Revere, a strong supporter of the casino project at Suffolk Downs, said that Crosby was justified being there as chairman of the commission, which also oversees racing in Massachusetts. “I didn’t find it out of the ordinary,” said Rizzo. “Historically members of the racing or gaming commission have been invited guests.”

******************

The chairman of Suffolk Downs, William J. Mulrow, said in a statement that “it has been a customary practice here for years to include the state’s racing regulators in our opening day activities. We are careful to ensure that this is done within the appropriate ethical parameters and that we seek reimbursement where required.”

Suffolk Downs said Crosby personally paid $400 to attend the event with other guests, including his wife, other relatives, and friends. The cost reflects a value assigned by Suffolk Downs of $50 per person. None of the other four gambling commissioners attended the event, though several attended a similar event last year.

It's the APPEARANCE of a CONFLICT because of his past history, and because AmeriKa and Massachusetts are rife with corruption.

*******************

Crosby declined to be interviewed, but a leader of an East Boston citizens group fighting against a casino at Suffolk Downs, said it is hard to have faith in the casino licensing process when regulators are mingling at a lavish party hosted by casino proponents.

“A recurring theme has been blurred lines between the industry that wants to take root in the Commonwealth, and our community specifically, and the folks who are tasked with safeguarding us against it, and overseeing it,” said Celeste Myers, a leader of the group No Eastie Casino. “We’ve got commissioners that are socializing with folks who have applications in front of them. Obviously that doesn’t instill confidence in us.”

They only protect you from terrorists -- sort of -- and not looters. Sorry.

“He may have every confidence in himself to remain impartial, but everybody’s looking, everybody’s watching,” Myers said. “I feel kind of like he’s thumbing his nose at us.”

He is part of the elite political cla$$.

Others attending the event were also surprised when Crosby strode into the private reception and was escorted to a prime trackside table.

“It was odd and there were hushed tones everywhere,” said a consultant who was there.

Caesars Entertainment sued Crosby and others after the company was dropped from the earlier proposal, based on findings by commission investigators linking the company to Russian mobsters.

See: Caesars Sues Crosby

Caesars criticized Crosby for waiting a year before disclosing a past business and personal relationship with Paul Lohnes, one of the owners of the Everett site, where Wynn Resorts has proposed its casino.

The ownership of that land has been mired in controversy as federal and state prosecutors work to determine whether a Revere developer with a lengthy criminal record has a hidden interest in the property and may profit from the sale of the parcel to Wynn.

They turned off the Lightbody?

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Related:

Everett to Use Eminent Domain to Wynn Casino
Everett OK’s urban renewal for casino
Awaiting casino outcome, Everett enclave faces change

Looks like a fait accompli 

Gridlock possible in deciding Boston-area casino site
Gambling panel needs assurances to award license
Boston fails to reach agreement with casino operators

Also see:

Crosby’s big gamble
Patrick chides gambling regulator for attending party

It really took because he folded:

"Crosby recuses himself from Eastern Mass. casino vote" by Meghan E. Irons and Andrea Estes | Globe staff   May 09, 2014

The chairman of the Massachusetts Gaming Commission removed himself Thursday from the debate over casino proposals in Greater Boston, acknowledging that his recent actions, including his attendance at a Suffolk Downs party, have raised questions about his impartiality.

Stephen P. Crosby made the stunning announcement, then left the commission’s public meeting at which the remaining four commissioners unanimously rejected Mayor Martin J. Walsh’s bid to have Boston considered a host community for proposed casino sites in Everett and Revere.

Walsh, who has tried unsuccessfully to reach agreements with both Mohegan Sun and Wynn Resorts that would give Boston residents more say over the projects, was disappointed with the commission’s decision and is “considering all options,” including a lawsuit, said a person close to the mayor.

At least the lawyers will be winning loads of pots.

*****************

After Crosby withdrew, Governor Deval Patrick, who had criticized the gaming chairman for attending the party Saturday at Suffolk Downs, issued a statement praising Crosby’s “unwavering commitment to the integrity of the commission’s work.

(Blog editor just shaking his head)

“I hope this allows the focus to return to the commission’s efforts to implement the gaming law in [Greater Boston],” Patrick said.

*****************

The Boston Globe reported this week that Crosby attended a private party at Suffolk Downs celebrating opening day at the track and the Kentucky Derby. Guests were treated to an open bar and a full buffet. Suffolk Downs officials said Crosby paid $400 to attend with seven other guests, including his wife, other relatives, and friends. None of the other gaming commissioners attended.

After the story was published, Patrick, who appointed Crosby in 2011, criticized him for attending the party, calling it unwise for an official who was about to decide whether to issue a casino license to Suffolk Downs worth hundreds of millions of dollars a year.

“I imagine that, based on some of the reaction to it, he’s going to be thinking twice in the future,” Patrick said. 

It goes to show you how out-of-touch the my-shit-don't-stink elite are.

Though Crosby had defended his attendance as a show of support for the racing industry, by Wednesday night the commission spokeswoman issued a statement from Crosby expressing regret.

At a brief meeting with the reporters Thursday, Crosby said he came to the decision to remove himself at 10 a.m. Thursday and insisted Patrick’s criticism played no role. 

It is impossible for authority or officials to admit the truth, isn't it? 

What scum we have as a leadership cream.

Crosby, who had resisted calls to recuse himself or step down, said he saw nothing wrong with attending the racing event but acknowledged he did not consider how it might appear once it was reported. “It did not pass the sniff test in how that would appear in The Boston Globe,’’ he said.

That got a smile out of me!

“The right thing to do is to recuse myself,’’ he said, adding that people will have to make up their own minds about his actions.

We are and have, scum.

He said the complaints he has fielded so far have been “nothing but noise,’’ insisting they had little substance.

Just like a newspaper.

Crosby said he was terribly disappointed about leaving, noting the complex issues that remain regarding the proposed Everett and Revere casinos.

With that, Crosby departed, and the hearing resumed.

In voting against Boston’s effort to win host community status, the commission said it was a “decision in principle” to once and for all settle the issue of whether Boston should have more say over the casino projects that touch the city’s borders....

I'm not going to be playing at that one, so....

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Related:

Gambling panel needs shakeup, critics contend
Steve Crosby should resign from Gaming Commission
Stephen Crosby recusal avoids reproach, but can casino board operate?
How lucky do you feel?

I'm reading a Globe, aren't I?

"Candidates for governor want gambling panel chair to resign" by Andrea Estes | Globe Staff   May 11, 2014

Five candidates for governor Saturday called on Massachusetts gambling commission chairman Stephen P. Crosby to step down from the panel, just days after he withdrew from deliberations on the Greater Boston casino license amid allegations of bias.

Democrats Steve Grossman, Martha Coakley, and Juliette Kayyem, Republican Charlie Baker, and Independent Evan Falchuk all said Crosby should resign to allow the awarding of the license to move forward without controversy.

Crosby removed himself from the Boston license decision on Thursday, saying that his past actions — including his recent appearance at a private party at Suffolk Downs, a potential casino location — had threatened the panel’s appearance of impartiality. He said he would remain in the job to work on other matters — including the awarding of casino licenses in other regions.

Without Crosby on the five-member commission, Grossman and Baker said they feared the possibility of a deadlocked 2-2 vote.

“When the chairman, who is the voice and the face of the gaming commission, cannot play the critical leadership role he needs to play every day, it undermines the commission’s ability to do its job,” said Grossman, the state treasurer and one of five Democratic candidates. “The commission needs five full time members who are not constrained in any way.”

Related: Grossman Was in Greenfield

He is shackled to Patrick (to be paid for with public funds) and EMC.

In statements, the candidates said Saturday that Crosby hadn’t gone far enough in recusing himself.

“Boston is contentious,” said Baker, one of the Republicans running for governor. “The possibility of a 2-2 tie is certainly real. I’ve known Steve for years. He’s a good man, and he’s always been willing to step up and serve the public. But we have a math problem here. They have no provision that I’m aware of to break a tie. It’s obviously important that this one be as clean as possible.”

See: 

Baker Close to Christie 
Baker oversaw firm where pension funds were invested

Looks like you got a lot of flour on yourself, Chuck.

Also see: 

GOP asks that state put Fisher on ballot
A ‘letter’ to Mark Fisher from the Democratic Party

I never opened it. 

NEXT DAY UPDATE: Mark Fisher says GOP aide offered money for his withdrawal

So that is what wa$ in it.

Coakley said Crosby had “left us without a fully functioning gaming commission. I believe it is critical that we have a fully functioning commission in order to move ahead with the gaming process, and most importantly to get it right. Therefore, he should resign and allow for a replacement to fill that role immediately.’’

She said we can't vote it down.

Jesse Mermell, a spokeswoman for Governor Deval Patrick, said in a statement Saturday that the governor “continues to believe that the Chairman’s recusal should allow the focus to shift back to the work the Commission is doing to implement the gaming law.”

****************

The Crosby controversy is the latest hurdle in the state’s efforts to legalize casino gambling, which has faced lawsuits, conflict of interest allegations and a possible ballot initiative that would repeal the casino law.

Related:

Mohegan Sun sues landowner in Palmer
No sure bet on casinos

****************

The candidates were lining up against his continued presence on the commission Saturday. Kayyem, another of the Democrats seeking to succeed Patrick, said the commission “must be held to the highest of standards. The recent actions of Commissioner Crosby call into question the objectivity of the gaming commission, which is why I believe he needs to step aside.”

Related: Kayyem Pepper

****************

Democrat candidate Donald Berwick and Independent Jeff McCormick said Crosby’s recusal — not a resignation — was the appropriate action.

***************

Crosby’s action came days after the Globe reported that Crosby and his wife and friends had attended a private party — with an open bar and lavish buffet — at the East Boston racetrack, which has a deal to lease its property in Revere to Mohegan Sun for a casino.

Crosby defended his attendance as a show of support for the racing industry, which the gambling commission also regulates. But that event capped months of criticism by the city of Boston and some license applicants, who accused him of bias in favor of the Wynn Resorts project in Everett.

***************

Meanwhile, the gambling commission was sued again on Friday — this time by one of the unsuccessful applicants for a slot parlor license. Raynham Park owner George Carney asked the Supreme Judicial Court to revoke the license awarded to Penn National Gaming for a slot machine parlor at Plainridge Racecourse. 

I'll bet there will be a lot more lawsuits before the first casino opens.

Carney argued that under the terms of the sales agreement signed when Penn National bought the track from Ourway Realty, the seller will continue to make money after the slots parlor opens next year.

The gambling commission found Ourway Realty unsuitable to hold a license.

Under the state’s new gambling law, the suit says, the commission cannot issue a license to an applicant if anyone who benefits from the gambling business has been found unqualified.

“The gaming commission determined, back when this was an issue, to disqualify Ourway,” said Carney. “Yet Ourway is going to participate from a financial point of view. I think it’s a flagrant violation of what the commission has tried to do since day one.”

Penn National’s $225 million proposal won approval by the commission in a 3-2 vote in February....

See: Casinos Already Costing Massachusetts

It's the court and attorney's fees so far.

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"Candidates quiet on repeal vote for Mass. casino law" by Michael Levenson | Globe Staff   May 18, 2014

They position themselves as bold and gutsy truth-tellers.

But when asked about the thorny issue of casinos and whether they believe voters should be allowed to repeal the state gambling law, some candidates running for governor and attorney general resort to sidestepping and evasion.

The refusal of several candidates of both parties to say whether they support placing a repeal referendum on the ballot in November and how they would vote on that question underscores how fraught the politics of casinos have become in Massachusetts, three years after lawmakers opened the state to Las Vegas-style gambling.

The issue leapt into the public debate earlier this year after Attorney General Martha Coakley, the early frontrunner for the Democratic nomination for governor, said no to a proposed ballot question to repeal the casino law, ruling that it would violate the state Constitution. Casino opponents took the issue to the Supreme Judicial Court, which is currently weighing whether the ballot question passes legal muster.

Unlike more partisan issues such as taxes, the debate on the proposed ballot question has created unpredictable political crosscurrents among Democrats and Republicans, with some simply refusing to state where they stand.

In the governor’s race, Democrat Steve Grossman would not say whether he believes voters should be allowed to repeal the casino law.

“Now that this important matter is in the hands of the SJC, I’m certain the court will make the right call and look forward to supporting it,” he said.

He added, however, that he would personally vote against a repeal of the gambling law, arguing it “holds the potential to create 15,000 good-paying jobs.” 

Why am I not surprised considering he oversees the lottery?

Charlie Baker, the Republican gubernatorial candidate, was also evasive on the casino issue.

Unclean.

He said he would support placing the repeal referendum on the ballot but would not say how he would vote on such a repeal. “Charlie will make that decision once it is determined whether it is on the ballot or not,” said his spokesman, Tim Buckley.

Related(?)Suffolk Downs offers to abandon racing for casino

Must be a different Charlie Baker.

In the attorney general’s race, Democrat Warren Tolman initially declined to say where he stands on placing the question on the ballot, instead issuing a statement that spoke to his general philosophy on ballot questions. Pressed again for an answer, an aide said Tolman would vote against a repeal but “hopes it does get on the ballot.”

Related:

Mass. AG hopeful aided online gambling venture
Warren Tolman gives up investment in betting game firm

Democrat, Republican, it's all a gamble when you cast a vote in Massachusetts.

John Miller, a Republican candidate for attorney general, said he sees no constitutional reason to keep the question off the ballot but would not say how he would vote on the referendum.

“If my personal views are made public, any decision that I make would be clouded and tainted by politics,” he said.

Boston College political scientist Dennis Hale said the candidates may be reluctant to state their views because “so many players have a lot invested in this, and by players I don’t mean just the casino owners,” but also powerful local officials and unions.

Some candidates, however, were forthright in their answers. Democrat Donald Berwick, independent Jeffrey McCormick, and Republican Mark Fisher, all candidates for governor, said the question should be on the ballot, and said they would vote for it.

“The evidence is strong that the casinos harm small businesses and distort the lives of neighborhoods,” Berwick said.

McCormick offered a similar argument, saying casinos “bring some obvious downsides, such as a predatory effect on hard-working people, increased crime, gambling addiction, and the potential erosion of surrounding small businesses.”

Fisher said casinos foster crime and addiction and “separate people from their hard-earned cash.”

Democrats Juliette Kayyem and Joseph Avellone and independent Evan Falchuk, all running for governor, said they would support placing the question on the ballot, but would vote against it.

Avellone said that although he is “not a big supporter’’ of casinos, “we have a law that allows for local control, it is working and we should let it play out. I don’t believe in government by referendum.”

Falchuk also said he would vote “no” on the repeal “because I think we are stuck in this country with an endless back-and-forth on so many issues.”

Coakley rejected the ballot question in May, ruling it would “impair the implied contracts” between gambling firms and the state and illegally break those companies’ contract rights without compensation.

If the SJC overrules her and places the repeal on the ballot, Coakley said she would vote against it.

“If implemented correctly, gaming has the potential of creating thousands of jobs and millions in economic development,” she said in a prepared statement.

Maura Healey, a Democrat and former Coakley aide running for attorney general, said she disagrees with her former boss and believes voters should be allowed to repeal the casino law. She also said she would support such a repeal.

“I believe casinos are bad for Massachusetts and that the state should support industries that create jobs without preying on consumers,” she said.

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Related: State Getting Cut of Your Casino Pot 

That's all government wants. How much more proof do you need?