In 2007, a huge forest fire burned 65,000 acres in the Sierra Nevada in California and neighboring states. The Justice Department and the California Department of Forestry and Fire Protection (CalFire) went after Sierra Pacific, the largest landowner in California, claiming its logging operations had caused the fire when a bulldozer hit a rock and struck a spark. Knuckling under to the enormous leverage government has in even civil litigation, Sierra Pacific, which claimed it was innocent, settled for $55 million and 22,500 acres of forest land, which was to be deeded over to the federal government.

But in an almost unprecedented action this month, the chief judge of the eastern district of California, Morrison C. England, Jr., has ordered all federal judges in the district to recuse themselves from the case and has asked the chief judge of the 9th Circuit Court of Appeal to appoint an outside judge, stating the possibility of a fraud upon the court by the Justice Department. A fraud upon the court happens when one party deliberately misleads the court in order to win a case. The chief judge, Alex Kozinski, is likely to oblige, as he has been seriously alarmed by what he calls an “epidemic” of prosecutorial misconduct in recent years.

Sierra Pacific claims that,

The United States presented false evidence to the Defendants and the Court; advanced arguments to the Court premised on that false evidence; or, for which material evidence had been withheld, and obtaining court rulings based thereon; prepared key Moonlight Fire [as this fire was called] investigators for depositions, and allowed them to repeatedly give false testimony about the most important aspects of their investigation; and failed to disclose the facts and circumstances associated with the Moonlight Fire lead investigator’s direct financial interest in the outcome of the investigation arising from an illegal bank account that has since been exposed and terminated.

Their evidence is the sworn testimony of two assistant U.S. attorneys, one of whom was fired from the case for raising ethical considerations and another who quit in disgust as it became plain to him that the Justice Department’s actions in this case were not to find justice but to extract a lucrative settlement, saying,“It’s called the Department of Justice. It’s not called the Department of Revenue.”

The state case against Sierra Pacific has also fallen apart. The state judge not only decided against the state’s case for lack of sufficient evidence, but also ordered it to pay $30 million in attorney’s fees. He wrote in his decision that, “the misconduct is so pervasive that it would serve no purpose for the Court to attempt to recite it all here.” But he recites enough: “CalFire failed to comply with discovery orders and directives, destroyed critical evidence, failed to produce documents it should have produced months earlier, and engaged in a systematic campaign of misdirection with the purpose of recovering money from the defendants.”

The Justice Department under Eric Holder is not only using its power for illicit reasons, it is divvying up the money with its favored pals. The stench of corruption at Justice is becoming overpowering. If this had come out prior to January 20th, 2009, it would be a front-page-above-the-fold story.