White Collar Crime Prof Blog

DOJ "Firings"

To DOJ's credit, they have released the Report of "An Investigation into the Removal of Nine U.S. Attorneys in 2006."  Additionally to DOJ's credit they have authorized that there be an investigation into the conduct outlined in the report, as opposed to sweeping it under the rug. And to their credit, DOJ did appoint an individual who is presently not in a "political" position to handle this investigation. (see here) But it still comes back to why is DOJ not willing to appoint someone who is outside the department - someone independent - to conduct this investigation.  And more importantly, what kind of appointment does Acting US Attorney Nora Dannehy have in handling this case? Attorney General Mukasey says -

"Therefore, I have asked Nora Dannehy to exercise the authority of the United States Attorney for the District of Columbia for purposes of this matter.  In that capacity, Ms. Dannehy will report to me through the Deputy Attorney General." (see here)

It does not appear to be an appointment of a special counsel as was done when Patrick Fitzgerald was appointed to "exercise that authority as Special Counsel independent of the supervision or control of any officer of the Department." (see appointment of J. Patrick Fitzgerald here). 

The report is a long report - 392 pages- and the authors deserve enormous praise for providing transparency to a sad situation. It was especially sad to see that they were not receiving information needed to fully evaluate the situation.  They state, "[t]he White House Counsel’s Office eventually provided to us a heavily redacted version of the document, but the redactions made the document virtually worthless as an investigative tool." - But one also has to ask, isn't this what DOJ does all the time to defense counsel?

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In the News and Blogosphere

Carrie Johnson, Washington Post, No Grand Jury for Gonzales - Report to Call for Continued Probe of U.S. Attorneys' Firings

Question- With all the these findings, why hasn't there been the appointment of an independent counsel? How can you have someone internal to the department investigate allegations that relate directly to people who were employed in the department?

James Vicini, Reuters, FBI said to probe Fannie, Freddie, Lehman, AIG

DOJ Press Release, Las Vegas Personal Injury Lawyer Convicted of Tax Evasion

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Who Says White Collar Sentences Are Dropping Below the Guidelines?

Despite recent Supreme Court opinions that provide some flexibility when sentencing a convicted defendant, guideline sentences appear to be part of a culture that is not changing. A recent white collar case that demonstrates a court not departing below the guidelines, is the recent sentencing of T. Milton Street. A brother of former Philadelphia Mayor John F. Street, T. Milton Street received a sentence of 30 months for his convictions for tax charges. (see Emilie Lounsberry, Philadelphia Inquirer, T, Milton Street Sr. gets 30 months for dodging taxes) The trial was an unusual one, with the accused arguing the unconstitutionality of the tax code (see here).  The jury failed to convict the accused of the fraud charges brought by the government, and also did not convict of all the tax charges that had been brought. (see here).  In addition to the stiff tax sentence, the court failed to grant the accused bail pending his appeal. (see Michael Hinkelman, Philadelphia Inquirer, T. Milton Street Sentenced to 30 Months) This does not, however, preclude him from asking the appellate court for bail.

(esp)(w/ a hat tip to Peter Goldberger)

En Banc Hearing in Nacchio Case

The 10th Circuit heard en banc the appellate case of former Qwest CEO Joe Nacchio.  The Denver Post here  provides details of that argument. The panel had reversed and remanded the convictions (see here) with a statement that "Armchair economics is not the way to decide complex securities cases." But the case immediately went en banc for the full court to consider some issue regarding the merits of the matter, and others of a procedural nature.

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In the News and Blogosphere

Del Quentin Wilber, Washington Post, Attorney for Stevens Tells Jurors Alaska Senator 'Is Honest,' Did Not Lie

DOJ Press Release, New Jersey Hospital to Pay $3.85 Million to Resolve Allegations of Inflating Charges to Obtain Higher Medicare Reimbursement

Kroll Global Fraud Report, Annual Fraud Report 2008-09 here 

DOJ Press Release, Statement of Acting Assistant Attorney General Grace Chung Becker Regarding the Decision Not to Utilize Criminal Prosecutors as Monitors in Polling Places on Election Day

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