Plaintiff alleges Alito conflictSays judge should have recused self
By Sarah Schweitzer and Michael Kranish, Globe Staff
November 3, 2005
Judge Samuel A. Alito Jr. ruled in a 2002 case in favor of the Vanguard mutual fund company at a time when he owned more than $390,000 in Vanguard funds and later complained about an effort to remove him from the case, court records show -- despite an earlier promise to recuse himself from cases involving the company.
The case involved a Massachusetts woman, Shantee Maharaj, who has spent nearly a decade fighting to win back the assets of her late husband's individual retirement accounts, which had been frozen by Vanguard after a court judgment in favor of a former business partner of her husband.
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Maharaj, 50, discovered Alito's ownership of Vanguard shares in 2002 when she requested his financial disclosure forms after he ruled against her appeal to the US Court of Appeals for the Third Circuit.
''I just started seeing Vanguard after Vanguard, and I almost fell to the floor," she said in an interview at the Jamaica Plain home she shares with a friend after losing her own home in the course of the prolonged litigation. ''I just couldn't believe that it could be so blatant."
In 1990, when Alito was seeking US Senate approval for his nomination to be a circuit judge,
he said in written answers to a questionnaire that he would disqualify himself from ''any cases involving the Vanguard companies."After Alito ruled in Vanguard's favor in the Maharaj case, he complained about her efforts to vacate his decision and remove him from the case,
writing to the chief administrative judge of the federal appeals court on which he sat in 2003: ''I do not believe that I am required to disqualify myself based on my ownership of the mutual fund shares."The White House, asked about the seeming contradiction between Alito's two statements, said that Alito was put on the case due to an error by a computer system that should have warned that he was taking a Vanguard-related case, because the investments were listed in the database.
Asked why Alito did not recuse himself after learning that it involved Vanguard, White House spokeswoman Dana Perino
criticized those who are raising questions about Alito's actions....
According to a 2002 court filing submitted by Flym alleging the conflict of interest,
''Alito owned shares worth $390,000 to $975,000 in seventeen Vanguard funds."http://www.boston.com/news/nation/washington/articles/2005/11/03/plaintiff_alleges_alito_conflict/