AT&T won an ethics award.

I know! I look at that sentence, and even though The Watchdog witnessed this with my own eyes the other day, it still unnerves me.

AT&T winning an ethics award is like Jerry Jones winning an award for Best General Manager.

But the glow among the beaming crew of a dozen or so AT&T employees who attended the Tuesday luncheon of the North Texas Ethics Association in Dallas didn't last long.

Three hours later, the company found itself mired in the detective story of our lifetime. Dallas-based AT&T, we learned through information furnished by Stormy Daniels' lawyer Michael Avenatti, paid Trump's personal lawyer Michael Cohen $200,000 in consulting fees.

Later, various news outlets upped AT&T's payment total to $600,000.

AT&T admits that it paid President Donald Trump's longtime personal attorney Michael Cohen. It said Cohen provided insights, not legal or lobbying work. (Mary Altaffer / AP)

Paying for influence may not be illegal, but it's worthy of an ethics discussion for sure.

AT&T didn't try to duck and hide. In its first statement, the company said that Cohen's shell company, Essential Consultants, was hired in early 2017 "to provide insights into understanding the new [Trump] administration. They did no lobbying or legal work for us."

The final payment was made in January.

In its second statement, AT&T said it "cooperated fully" with Special Counsel Robert Mueller's investigation late last year. The company said it considers "the matter closed."

Hardly. Nice try.

The right track?

AT&T's award — called the 2018 Greater Dallas Business Ethics Award — was accepted by David Huntley, AT&T's senior executive vice president and chief compliance officer.

AT&T Chief Compliance Officer David Huntley, left, accepts an ethics award from Michael Webb, chairman of the North Texas Ethics Association, right, at the 18th annual Greater Dallas Business Ethics Award luncheon in Dallas. Three hours later, AT&T's involvement in Michael Cohen's shell company was revealed. (Louis DeLuca / Staff Photographer)

In a prepared statement, Huntley said, "Operating an ethical company is a top priority at AT&T.... Recognition like this further validates that we're on the right track."

A video showing AT&T Chief Compliance Officer David Huntley talking about receiving an ethics award is played at the 2018 Greater Dallas Business Ethics Award luncheon. Huntley said his company is on the right track ethically but that was called into question a few hours later when AT&T's payments to President Trump's personal lawyer were revealed. (Louis DeLuca / Staff Photographer)

Michael Webb, head of the ethics group, invited The Watchdog to attend the ceremony because, he told me, "For all of these years, I've been kind of watching your column."

Then he knows that for the past dozen years, I've received more complaints about AT&T's putrid customer service than any other company in America.

The award, Webb said, "is based on process, not performance."

He said, "Our philosophy is that ethical lapses and failures will happen, but companies with strong communications and programmatic ethic practices and expectations will be in a better position to avoid and correct ethic failures."

What did the contest judges say about AT&T?

AT&T has "a well-developed and sound ethics approach for a very large company."

"There's a well-stated public commitment from the CEO..."

"The company showed a willingness to publicly speak on values."

"Strong top-down strategic management leadership with bottom-up implementation."

Too bad nobody asked The Watchdog.

Moving jobs overseas

Is sending jobs overseas an ethical issue? Or just a business issue?

Communications Workers of America, the union that represents many AT&T employees, released a report recently that shows that AT&T continues to lay off thousands of long-time employees because it has moved much of its call center operations to Canada, Colombia, Costa Rica, Dominican Republic, El Salvador, India, Jamaica and Philippines.

The union calls this a form of "colonization" because low-wage overseas contractors, often poorly-trained, make much less than their American counterparts.

When foreign workers make mistakes, the union report said, American employees must clean up the mess. (From The Watchdog's mail, I know this to be true.)

Despite a litany of consumer complaints against AT&T over the years, the company won a North Texas ethics award this week. But the glow didn't last long. Three hours after the banquet, the company was embarrassed when its role in paying President Trump's lawyer was revealed. (Louis DeLuca / Staff Photographer)

In bad company

AT&T's money went into the same shell company as money used to pay a porn star to keep her silence about a sexual fling with the president. However, there's no evidence that AT&T's money was used for that.

Still, it's not a very ethical place to be.

Same goes for the Russian oligarch who also paid into Cohen's fund.

AT&T claims it needed "insight" into Trump's thinking, especially with its proposed mega-merger with Time Warner, which is now tied up in a court case. So it paid Trump's self-described fixer a quiet fee. But it didn't work. Trump's Justice Department sued to stop the merger anyway.

President Donald Trump praised AT&T boss Randall Stephenson for doing "really a top job." Did the President know that AT&T was paying his personal lawyer $600,000 for "insights"? (Getty Images)

This reminds me of the International Telephone and Telegraph scandal in the Nixon administration that preceded Watergate. An I.T.T. lobbyist pledged $400,000 for the 1972 Republican convention. In a memo she wrote that the money "has gone a long way toward our negotiations on the mergers."

Is history repeating itself?

A slush fund?

Is Essential Consultants a slush fund, defined as an unregulated fund often used for illicit purposes? We'll find out.

"There does not appear to be any legitimate business rationale for these payments," New Yorker magazine reports.

The magazine adds, "Put another way, did the Russians and AT&T inadvertently help to pay" for a porn star's silence?

What a spot for Randall Stephenson, AT&T's CEO/Chairman/President/Big Kahuna, to be in. Stephenson's tenure as president of the Boy Scouts of America, coincidentally, is scheduled to end this month.

Stephenson has fostered a progressive image and enhanced his reputation by supporting diversity, sustainability and even the Black Lives Matter movement.

Will he mention his company's involvement with Trump's fixer when he gives life advice as he delivers the commencement address on May 19 at Southern Methodist University? Tell the graduates the way the world really works, sir.

I've talked to Stephenson in the past about his company's customer service failures. Every month, The Watchdog sends him a report of all the complaints I receive about his company.

I created the #shameATT hashtag, and I guess I'll bring it out again.

One day, I dream, I'll no longer hear constantly about AT&T's failures with its customers trying to resolve billing and service issues.

The company is too big, and with the Time Warner merger, it wants to grow even bigger.

At the ethics luncheon the other day, nobody would sit next to me. That's a good thing because of what I'm going to say next. I'm going to rain on this sunny parade.

Congratulations to you, AT&T, on your ethics award.

Now give it back. #shameATT.

Staff writer Marina Trahan Martinez contributed to this report.

All alone. Even though he had a front row seat at the Dallas ethics luncheon, nobody would sit by The Watchdog. Not a bad thing, considering The Watchdog now calls on AT&T to give back its ethics award. (Photo by Niki Nicastro McCuistion)

Read more stories about AT&T from The Watchdog

Mom-to-be was so angry at AT&T, she called to complain while having her baby

AT&T, struggling to please customers, now must please President Trump

What happened when our watchdog gave AT&T's CEO a binder full of customer complaints?

In this fantasy trial Watchdog vs. AT&T, customer service malpractice comes to the fore

Antagonized customers still calling out AT&T despite improvements in service

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Michael Hogue

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