Asked to identify an example of a conflict of interest, Evans told investigators "I'll know it when I see it. I mean that. That's one of the most famous quotes in the Supreme Court of the United States ... and I used that because that's the answer to your question."
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That's a reference to a US Supreme Court Justice Potter Stewart's comments in a 1964 case where he was asked to say whether a particular porn film was criminally obscene. https://www.law.cornell.edu/supremecourt/text/378/184 …
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Anyway, Evans also told investigators that he believes "having a financial interest in a matter before the Council is not problematic under the ethics rules unless the councilmember alters his position after acquiring the financial interest."
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He also incorrectly believed that requirements to recuse only apply to votes.
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Investigators say Evans gave contradictory answers to his attempts to comply with ethical rules. First, Evans attempted to shift some blame to his staff, saying he relied on them to raise any potential conflicts of interest. ...
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However, Evans did not tell his staff who the clients of his private firm, NSE Consulting, were, b/c he believed their identities were confidential, according to the report. "I was using the law firm model," he told investigators.
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Evans expected his CoS, Schannette Grant & Ruth Werner, his leg director, to advise him, but "he could not explain how they were supposed to fulfill that function without access to even the most rudimentary information to inform their analysis or recommendations," the report says
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Neither Grant, nor Werner were aware of Evans' purported expectation of them, both women told investigators.
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Investigators also say Evans' financial disclosure statements were incomplete and inaccurate.
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1. From 2014-'18 Evans wrote "No" when asked if he owns stock exceeding $1,000 when in fact he owned 2,047 shares in Eagle Bancorp, the report says. That equity ranged from $37k to $139k.
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Evans said he did not need to report the stock because Eagle Bancorp wasn't doing business with the District. Investigators point to the DC Code, which explicitly says stock must be disclosed regardless of a business relationship w/ the DC gov. ...
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Even if Evans was right, investigators note, "Eagle Bancorp, by virtue of its subsidiary Eagle Bank, has multiple banking offices within the District's jurisdiction."
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2. Evans reported $0 to $1,001 in income from Manatt in 2015, when in fact he earned $14,500, the report says.
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3. Evans did not identify NSE clients with financial interests in front of the DC government from 2016 to '18, as investigators say he was required to do.
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Evans said he was not required to disclose his clients because they were protected by attorney-client privilege and because that disclosure requirement applies to clients who pay him directly. Evans argued that the clients didn't pay him; his firm, NSE, does.
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BEGA rejected that explanation. Evans was the sole proprietor of NSE. He had no other employees or affiliates. And clients' payments went right from NSE's bank account into Evans' personal account. "Under these circumstances, 'NSE is Evans,'" investigators conclude.
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Evans lawyers argue that he is not required to identify individual clients and the other omissions in financial disclosure statements were clerical errors, which were corrected. https://dccouncil.us/wp-content/uploads/2019/11/Evans_Response_to_OMelveny-Myers.pdf …
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