The doctrine under former AG Eric Holder (documented in Matt Taibbi's brilliant The Divide) was to allow executives to pay fines that were less than the profits from their crimes.
Holder said that he was protecting the innocent employees, suppliers, customers and shareholders of these criminal enterprises by allowing companies to continue operating and financing the US government by taxing some of the wealth generated by their crimes. Curiously, he never used his prosecutorial power to bargain for the breakup of too-big-to-jail enterprises into smaller ones whose C-suite could be led out of their offices in handcuffs without creating systemic risk.
Eric Holder is back in private practice today at Covington & Burling, the corporate law-firm whose clients avoided prison thanks to his strategy of using fines instead of jail for high-ranking corporate criminals.
The new rules, issued in a memo to federal prosecutors nationwide, are the first major policy announcement by Attorney General Loretta E. Lynch since she took office in April. The memo is a tacit acknowledgment of criticism that despite securing record fines from major corporations, the Justice Department under President Obama has punished few executives involved in the housing crisis, the financial meltdown and corporate scandals.
“Corporations can only commit crimes through flesh-and-blood people,” Sally Q. Yates, the deputy attorney general and the author of the memo, said in an interview on Wednesday. “It’s only fair that the people who are responsible for committing those crimes be held accountable. The public needs to have confidence that there is one system of justice and it applies equally regardless of whether that crime occurs on a street corner or in a boardroom.”
Justice Department Sets Sights on Wall Street Executives [Matt Apuzzo and Ben Protess/NYT]
At a followup visit a year after Elizabeth Moreno had a disk removed to successfully treat her crippling pain, her doctor asked her to leave a urine sample; a few months later, Sunset Labs LLC of Houston sent her a bill for $17,800.
Uber trumpeted its Q4/2017 financial statements as evidence of the company's progress towards CEO Dara Khosrowshahi's goal of profitability and IPO by 2019; the company argued that despite losing $4.5 billion in 2017, its cust-cutting in the final quarter of the year was proof that they would eventually go from losing money on each ride […]
Fedex acquired a company called Bongo International in 2014; Bongo specialized in helping North American companies sell overseas and after the acquisition, Fedex renamed the company FedEx Cross-Border International.
Trains may not be the most popular means of conveyance nowadays, but chances are you grew up playing with toy trains or building a model set to wrap around the Christmas tree. In either case, it’s safe to say that locomotives have long carried a unique sense of awe and scale, especially when they’re hundreds […]
When it comes to redesigning or renovating a living space, envisioning changes before they occur can be tricky for most. Thankfully, the web is home to tools that can remove some of the guesswork, like Live Home 3D Pro for Mac. This app lets you create detailed and furnished floor plans for everything from sheds and […]
For many startups and fledgling businesses, web hosting — and the fees associated with it — can take a sizeable chunk out of the company budget and limit growth down the road. But, that’s not to say there aren’t hosts out there who can get your site online while staying within your budget. Arch Hosting is a […]