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WSJ: The Sihpol Vindication - Spitzer belatedly cuts his losses.
Wall Street Journal ^ | October 14, 2005 | Editorial

Posted on 10/14/2005 6:00:41 AM PDT by OESY

Some readers might think that Eliot Spitzer's decision this week to drop his attempt to retry former Bank of America broker Ted Sihpol for after hours mutual-fund trading is an act of prosecutorial compassion.... Mr. Spitzer is belatedly cutting his losses.

Mr. Sihpol, remember, played a bit role in the "late trading" case surrounding hedge fund Canary Capital. A jury in June repudiated Mr. Spitzer's case by clearing Mr. Sihpol of 29 of 33 criminal counts, with just one juror holding out for a mistrial on the remaining four. Mr. Spitzer vowed to re-fight those counts -- that is, until the SEC moved in this week and reached a civil settlement with Mr. Sihpol to pay a $200,000 fine and stay out of the business for five years. Mr. Spitzer said he was satisfied with this outcome and dropped his reindictment.

It's also true that this example of prosecutorial overkill wasn't doing Mr. Spitzer any good in his current campaign for governor. The New York AG has portrayed himself as a champion of the little guy against Wall Street and big business. Yet Mr. Sihpol was the little guy, an average broker who said he'd taken his actions in full view of his superiors and believed they were legal.

His treatment by Mr. Spitzer also stood in vivid contrast to that of Canary's top officer, Edward Stern, a member of one of America's wealthiest families, who wrote Mr. Spitzer a $40 million settlement check and walked away. Mr. Sihpol had no such riches to buy his way out, and because he resisted a guilty plea Mr. Spitzer threw the book at him.

Mr. Sihpol's settlement, in which he neither admitted nor denied guilt, is best understood as a way to put this entire episode behind him....

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


TOPICS: Crime/Corruption; Editorial; Government; News/Current Events; Politics/Elections; US: New York
KEYWORDS: bankofamerica; canary; edwardstern; hypocrisy; sihpol; spitzer

1 posted on 10/14/2005 6:00:47 AM PDT by OESY
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To: OESY

I just got to wonder when Spitzer will go after Cramer of Mad Money ?


2 posted on 10/14/2005 6:04:29 AM PDT by SIRTRIS
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To: OESY
Experience and reality are two different things. If yoi don't know, it always comes down to two words: Denny Crane. And Eliot Spitzer is Stuck On Stupid.

(Denny Crane: "I like nature. Don't talk to me about the environment".)
3 posted on 10/14/2005 6:07:33 AM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives On In My Heart Forever)
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To: goldstategop

My money is on Danny Crane, he's pure genius if not mystical.


4 posted on 10/14/2005 6:10:42 AM PDT by SIRTRIS
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To: SIRTRIS
You should have seen his comment on Tuesday's night show taking that Canadian judge down a peg. "You could be added to the Axis." I was doubling over with laughter.

(Denny Crane: "I like nature. Don't talk to me about the environment".)
5 posted on 10/14/2005 6:13:49 AM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives On In My Heart Forever)
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To: goldstategop

Or his reaction when Alan Shore mentioned Klingons.


6 posted on 10/14/2005 6:25:49 AM PDT by Toddsterpatriot (If you agree with Marx, the AFL-CIO and E.P.I. please stop calling yourself a conservative!!)
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To: goldstategop

I know, remember seeing it! He fits the role perfectly, with a great cast to boot!


7 posted on 10/14/2005 6:26:26 AM PDT by SIRTRIS
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