This Day in Legal History: Japanese PM Convicted of Accepting Bribes
On August 12, 1983, former Japanese Prime Minister Tanaka Kakuei was convicted of accepting bribes from the American defense contractor Lockheed Corporation in one of Japan’s most notorious political scandals. Tanaka, who served as prime minister from 1972 to 1974, was found guilty of taking approximately $2 million in illicit payments to facilitate the purchase of Lockheed aircraft by Japanese airlines. The scandal, part of a broader international investigation into Lockheed’s bribery of foreign officials, became emblematic of the deep entanglement between corporate influence and political decision-making in postwar Japan.
Tanaka’s conviction marked the culmination of years of investigation, during which he retained significant political clout despite resigning as prime minister in 1974 amid allegations. His sentence included four years in prison and a fine, though he remained free on appeal for years thereafter. The Lockheed scandal not only damaged public trust in Japan’s political establishment but also exposed vulnerabilities in the country’s campaign finance and lobbying regulations.
Tanaka’s political machine, known as the “Etsuzankai,” was legendary for its ability to secure votes and wield influence through personal networks, favors, and targeted public works projects. Even after his resignation and conviction, Tanaka’s allies dominated Japanese politics for much of the 1980s, demonstrating the persistence of patronage systems despite corruption scandals.
Internationally, the case was a warning shot to defense contractors and multinational corporations about the legal risks of engaging in covert payments to secure contracts. For Japan, it became a touchstone in ongoing debates about transparency, accountability, and the need for stronger anti-corruption laws. Tanaka, often called “the paragon of postwar corruption,” remained a polarizing figure—admired by some for his populist economic policies and condemned by others for his abuse of public office.
Federal prosecutors in Maryland have expanded their case against SCOTUSblog co-founder Tom Goldstein, alleging he used his law firm’s client trust account in 2021 to hide nearly $1 million from the IRS before purchasing a home. The revised indictment, filed August 8, claims Goldstein moved personal funds into his firm’s Interest on Lawyers’ Trust Account to avoid tax collection. It also adds details about earlier allegations that he misrepresented the source of $968,000 seized from him in 2018—telling a border officer it was gambling winnings, then later claiming to the IRS it was a loan, including from a foreign gambler.
Prosecutors further allege Goldstein misled a litigation funder while seeking help with tax debts and a mortgage, and tried to dissuade a former firm manager from cooperating with investigators. The updated charges correct some dates, moving one alleged diversion of client fees from 2021 to 2020, and expand the time frame for certain tax evasion counts to include conduct through March 2021. These changes follow Goldstein’s motion to dismiss several counts as time-barred.
While the client trust account allegation is new, no new counts were added. Goldstein still faces four counts of tax evasion, ten counts of assisting false tax returns, five counts of willful failure to pay taxes, and three counts of false statements on loan applications. He is represented by Munger, Tolles & Olson LLP in United States v. Goldstein.
SCOTUSblog’s Goldstein Facing New Allegations in Criminal Case
The American Bar Association’s (ABA) policymaking body has passed a resolution opposing government actions that punish lawyers, firms, or organizations for representing clients or causes the government dislikes. This move comes amid heightened tensions between the ABA and the Trump administration, which has restricted DOJ attorneys from attending ABA events, reduced the ABA’s role in vetting judicial nominees, and threatened its authority to accredit law schools.
The resolution warns that the rule of law is endangered if lawyers or judges face retaliation for doing their jobs. It also denounces threats to impeach judges solely for their rulings. The ABA has an active lawsuit against the administration, alleging a coordinated campaign of intimidation against major law firms—claims the DOJ has asked a court to dismiss, arguing the ABA lacks standing and evidence of harm.
Trump has issued executive orders targeting firms over past clients and hires, prompting some firms to agree to provide nearly $1 billion in free legal services to avoid further action. Others have sued successfully to block orders that revoked security clearances and restricted access to government work. The ABA contends these tactics have discouraged public interest legal work and harmed the ability of vulnerable clients to secure representation.
American Bar Association adopts resolution against Trump's law firm crackdown | Reuters
Taft, Stettinius & Hollister announced it will merge with Atlanta-based Morris, Manning & Martin on Dec. 31, creating a firm with more than 1,200 lawyers across 25 offices and projected revenues exceeding $1 billion. The deal will add 100 attorneys to Taft’s roster and give the Cincinnati-founded firm its first Atlanta office. Taft’s chair Robert Hicks described the move as part of a broader plan to become a “national middle-market super firm” and said the firm is eyeing future expansions into New York and Texas.
Partners at both firms unanimously approved the merger. Morris Manning’s managing partner, Simon Malko, emphasized that the combination was not driven by necessity, despite the firm recently losing lawyers to Reed Smith and Bradley Arant. Merger talks began in February, with both firms anticipating strong performance in 2025.
This marks Taft’s third merger of the year, following combinations with Denver-based Sherman & Howard in January and Florida litigation firm Mrachek Law in June. It also continues a wave of large law firm consolidations, including recent deals involving McDermott Will & Emery, Schulte Roth & Zabel, Kramer Levin, Herbert Smith Freehills, Shearman & Sterling, and Allen & Overy.
Latest US legal industry merger to create $1 billion firm | Reuters
The Congressional Budget Office estimates that President Donald Trump’s recently enacted tax and spending law will leave 10 million more Americans uninsured over the next decade. The July law, passed without Democratic support, extends earlier Trump-era tax cuts, adds temporary tax breaks, and increases certain spending, but offsets the cost by imposing new restrictions and eligibility requirements on Medicaid. Democrats criticized the measure as benefiting the wealthy at the expense of low-income households.
According to the CBO, the poorest Americans will see annual incomes drop by about $1,200 due to combined tax and benefit changes, while middle-income households will gain $800 to $1,200, and the wealthiest will see increases exceeding $13,000. The agency noted these changes will disproportionately reduce resources for households at the lower end of the income spectrum while boosting those in the middle and upper tiers.
10 million Americans will go uninsured due to Trump tax and spend law, CBO estimates | Reuters
And in my column this week: Washington, DC is close to approving a $4.4 billion public financing package to bring the Washington Commanders back to the Robert F. Kennedy Memorial Stadium site, framing it as an investment in affordable housing and equity. Critics argue it’s a familiar tax-subsidized stadium deal that guarantees a new stadium by 2030 but leaves housing delivery vague and far in the future. The legislation secures decades of tax breaks, infrastructure bonds, and zoning exemptions for the team, yet affordable housing commitments are relegated to non-binding promises in a separate term sheet. Official projections suggest 6,000 housing units, with 30% affordable, but without enforceable deadlines, construction could lag until 2040—or never materialize.
Job creation claims are similarly underwhelming: 16,000 positions are projected, but 14,000 are temporary construction jobs, leaving only about 2,000 permanent roles for the $4.4 billion investment. The land involved—180 acres of public property—could instead be used for community-led development, housing trusts, or co-ops with built-in affordability requirements. Critics note that the public is bearing all the legal obligations while promised benefits remain aspirational. If the housing isn’t built, the Commanders would only face paying rent on undeveloped parcels, a minimal penalty. Alternative proposals include redirecting funds currently used to pay off Nationals Park bonds toward a housing bond program, which could deliver thousands of affordable units sooner. Advocates argue any stadium approval should include firm, enforceable housing delivery benchmarks and penalties for missed deadlines to ensure public benefits aren’t indefinitely deferred.
One notable legal element here is the absence of binding contractual obligations for affordable housing delivery—a gap that leaves the city with limited legal recourse if the housing targets are missed, despite billions in guaranteed public subsidies. This matters because it highlights how legislative structure can predetermine the enforceability—or lack thereof—of development promises.
Commanders Stadium Deal’s Housing and Job Promises Are a Facade
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