Back in April, I did a blog entry looking at the disturbing trend in the US justice system for prosecutors to do special deals with companies accused of wrongdoing in the form of deferred prosecutions.
Some good insights into this last month from political writer Cheri Cabot . As she points out, it's not just a legal question. It's a deeply political issue. "Besides the problem of adverse publicity, companies have the potential of being barred from doing business with federal, state and local governments," Cabot writes. "That could put a crimp in those no-bid contracts the Bush Administration is so fond of."
Russell Mokhiber, Editor of corporate crime Reporter sheds more light on the issue in this interview with David Uhlmann, former head of the Environmental Crimes Section at the Justice Department. Uhlmann says it's simply wrong and bad application of the law.
But no doubt, these sweetheart deals will continue while this administration is in place. One of its many damaging legacies.
Yes, the deferred prosecution agreements avoid the icky convictions or other legal conclusions which would cause debarment – prohibition from doing business with the government. That was one of the very “intended” benefits of KPMG’s deal over th tax shelter mess. KPMG audits the Department of Justice and can continue doing so. http://www.retheauditors.com/2006/11/too-few-to-fail-or-something-more.html
These deals stink and I have said so at my blog. They are little more than legal extortion by DOJ employees looking to set themselves up in private practice once they leave the DOJ.