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WSJ: Gunning for KPMG - Does Justice really want to repeat its Andersen blunder?
Wall Street Journal ^ | June 20, 2005 | Editorial

Posted on 06/20/2005 5:33:58 AM PDT by OESY

A 9-0 Supreme Court rebuke ought to be a teaching moment. So it is amazing to behold that -- notwithstanding the unanimous recent reversal of its 2002 Arthur Andersen conviction -- the Justice Department may well make the same mistake all over again.

We're referring to the news that Justice may indict the entire KPMG accounting firm for obstruction of justice and the marketing of legally questionable tax shelters. As Andersen's fate made clear, an indictment against a corporation is usually a death sentence, whatever the ultimate legal outcome....

The purpose of criminal law, we had thought, is to punish the guilty and deter future wrongdoing. In KPMG's case, the people responsible for any misdeeds are open to prosecution as individuals and nearly all have already been dismissed by the firm. Most of the 30 partners notified by Justice that they are targets of the investigation have been given the boot....

As for the crimes alleged, it will be up to a jury to decide whether the particular tax shelters sold by KPMG were legal or not. The fact that that is no easy question, given the convoluted IRS tax code with its loopholes and built-in incentives to cheat, is another reason for not issuing a blunderbuss indictment....

A corporate indictment might save Justice the time and long effort of having to prove criminal intent by individuals, but at the price of putting up to 18,200 mostly innocent KPMG employees out of work in the U.S....

A KPMG indictment would also punish its many corporate clients who, thanks to the Andersen assassination, now have only four giant audit firms to choose from. The demise of KPMG would make it three. How that helps the cause of auditing competition, and by extension good corporate governance, is beyond us....

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Crime/Corruption; Editorial; Government; News/Current Events; Politics/Elections; US: New York
KEYWORDS: aig; andersen; antitrust; ceos; comey; gonzales; justice; kelley; kpmg; marshmclennan; oconnor; richter; spitzer

1 posted on 06/20/2005 5:34:00 AM PDT by OESY
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To: OESY
Just another example (Andersen, Enron, WorldCom, et.al.) of laws crafted and driven by demonRATS that our weak-kneed pubbies let go into effect.

The political will (including ill will, and passiveness of our own party) of our current elected officials IS going to be the root cause of the this great country of ours going deep into the crapper - sooner than later.

It's sad, so very, very sad.

2 posted on 06/20/2005 5:50:32 AM PDT by harpu
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To: harpu

"White collar" criminals are anti-freedom.


3 posted on 06/20/2005 5:56:13 AM PDT by PGalt
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To: OESY
The purpose of criminal law, we had thought, is to punish the guilty and deter future wrongdoing.

How sweet and naive.

4 posted on 06/20/2005 5:57:42 AM PDT by thoughtomator (The U.S. Constitution poses no serious threat to our form of government)
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To: thoughtomator

You mean it's meant to entrap the innocent and encourage lawbreakers to send in campaign contributions?


5 posted on 06/20/2005 6:09:25 AM PDT by proxy_user
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To: proxy_user

I'd say that's accurate. The main purpose of law in this day and age is to protect the political establishment from the people.


6 posted on 06/20/2005 6:22:15 AM PDT by thoughtomator (The U.S. Constitution poses no serious threat to our form of government)
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