The Chickenshit Club: Why the Justice Department Fails to

Had years of practice cracking jokes that only she might hear or get Her formative prosecutorial experience had been in the US Attorneys Office in Brooklyn the Eastern District of New York where she had overseen mob prosecutions She liked to say that back then the rooftops of Brooklyn were for stashing bodies not kale gardens Eastern District prosecutors liked to think they were scrappier than those in the Southern District in Manhattan Eastern District mafiaprosecutors loved to identify themselves as mafiosi from certain officesdominated the Enron investigative team Caldwell brought in Andrew Weissmann as her deputy In many ways he was her opposite loud aggressive flamboyant Your client is a lying sack of shit hed yell at defense lawyers Caldwell who had worked with Weissmann in Brooklyn admired his trial brilliance Caldwell then turned to Sam Buell with whom shed worked in the Eastern District Buell was then working up in Boston having spent three grueling years on the Whitey Bulger case the notorious Boston mobster wanted in connection with nineteen murders among other crimes Hed been on the lam for sixteen years before being captured in Caldwell had attended Buells wedding When she called about the task force job in early Buell didnt have to think about it He knew he was in His wife a corporate lawyer who had left the workplace to raise their children encouraged him Buell had little white collar experience Hed done only some low level corporate fraud worka money laundering case or two But he understood that prosecutors couldnt shy from difficult cases After attending law school at New York University he had clerked for Jack Weinstein a legendary federal district court judge famous for resolving mass tort cases involving Agent Orange and asbestos From Judge Weinstein Buell drew the lesson that nothing is too complex or too big These people committing the crimes werent smarter than you they too had to learn it all at some point But it always helped to have some expertise on hand So Caldwell recruited Tom Hanusik from Main Justice Hanusik an SEC enforcement lawyer in the mid s had a knack for financial investigation He loved combing through complicated documents and identifying dodgy deals With the addition of one other prosecutor the teamsmart young ambitious and energeticwas set They were all intimidated to take on a fraud so sprawling and complex Eventually the Enron Task Force would have about forty FBI agents and an average of ten prosecutors assigned to it full time bringing cases over the next half decade At least to the public the task force didnt get going fast enough The prosecutors anticipated that Enrons defense lawyers would argue the company may have been aggressive but had technically adhered to the law The defense would point out that lawyers and accountants blessed the companys actions Indeed that was true Prosecutors needed to move cautiously They had to sift through the complexities to find the potential crimes However the public and the press did not understand or sympathize The press assailed the government for moving too slowly and letting the perpetrators walk CNNs Lou Dobbs then one of the most influential business journalists started running an Iran hostage like daily count noting there hadnt been Enron indictments The CNBC show Kudlow Cramer would ask Who is in the pokey Buell saw cohost Larry Kudlow spout some nonsense about how this case should be as easy as locking up someone for dealing drugs on a street corner Jeffrey Toobin CNNs legal analyst swung the other way Explaining how difficult it was to make white collar cases he predicted that neither Skilling nor Lay would go to prison Tom Daschle the Senate majority leader called on the Justice Department to explain why it hadnt indicted anyone When prosecutors turned lower level executives or pressed seemingly tangential cases the media would report as if the investigations into Skilling and Lay had stalled But the talking heads misunderstood what was going on The prosecution team was moving deliberately moving the lower level cases to build the evidence to go after the top Enron officers Privately team members wondered Would they get there They would Though the trials were long arduous but full of good breaks prosecutors won guilty verdicts against the key architects of the Enron fraud through working three main witnesses Delainey Fastow and company treasurer Ben Glisan Jr They were the governments best witnesses its Virgils through the labyrinthine off balance sheet deals and accounting shenanigans The investigators and prosecutors would rely on dozens of executives victims experts witnesses and countless documents to prove their cases beyond a reasonable doubt But the government needed Glisan Delainey and Fastow Without all three the Enron Task Force likely would have failed Prosecutors took a different path to work each of the three Delainey cooperated in a traditional fashion in exchange for leniency Fastow reached a nontraditional agreement in which he cooperated without receiving a reduced sentence Glisan cooperated reluctantly but voluntarily while serving time THE FASTOW FLIP The outside world was helping the government providing a road map for the prosecutors Journalists were breaking stories The Enron board of directors had ordered an internal investigation into what had caused the collapse The three person panel of independent directors headed up by William Powers Jr the dean of the University of Texas Law School came out with its report on February only two months after the bankruptcy The report detailed the self dealing at Enron the dubious transactions and the lax oversight blistering top management The first big case the Enron Task Force brought in March was against Arthur Andersen Enrons accounting firm for obstruction of justice The case consumed Caldwell Weissmann and Buell Meanwhile Tom Hanusik could work in relative peace to start building Enron cases In the Powers report Hanusik saw an intriguing reference to how a British investment bank NatWest National Westminster had helped in a suspicious Enron transaction He retrieved the emails behind the deal and saw right off how damning they were They outlined NatWests effort to help Fastow and Michael Kopper his young right hand man create an off balance sheet entity to hide Enron debt By the summer of he had charged three NatWest bankers with wire fraud in the first of many Enron cases seeking their extradition To outside observers it seemed tangential But Hanusik understood he was essentially publishing a banner headline in a newspaper meant for one man His message came through The young Kopper read where Hanusiks investigation was leading Just three weeks later Kopper came in Hanusik had scored the first Enron cooperator Kopper would help the Enron Task Force start building its case against Fastow But there was another important signal from the case a message sent by the indictment of Arthur Andersen as well prosecutors werent going just after Enron executives They were going after the bankers and accountants who enabled Enron These prosecutors understood the ecosystem of corporate fraud On August Kopper entered into a plea deal for up to fifteen years He was later sentenced to three years and a month The deal created a way to get to Fastow the most obvious target for initial investigation Fastow had been a wunderkind rising to become Enrons CFO in his thirties He was the mastermind behind the most troubling aspects of the Enron frauds its off balance sheet vehicles In October the task force indicted Fastow He pleaded not guilty Larry Thompson the deputy attorney general and Robert Mueller the FBI director held a press conference to celebrate the accomplishment Thompson laid out his approach in clear and simple terms not heard often in the constipated confines of an official Washington media gathering Our strategy is really straightforward We aim to put the bad guys in prison and take away their money he said Skilling and Lay were blaming Fastow for the corporations fraud and collapse like parents who leave the keys to the liuor cabinet when they go away for a weekend and then blame the teenagers for getting drunk The task force scoffed But the executives position helped them They knew Fastows cooperation would be necessary to get Skilling and Lay Over the course of the next several months after they indicted him Fastow stayed as mute as a mob soldier despite all the damning evidence the task force had assembled on him The government needed to bringpressure Weissmann with Caldwells nod metaphorically put a drill to his knees On May the task force indicted Fastows wife Lea charging her with filing a false income tax return Both Fastows faced the prospect of being in prison and away from their young children Lea came from a prominent Houston family She had lost her reputation and standing Now she stood to lose her liberty Fastow wasnt so insensate that he didnt care about his wife He came in His lawyer John Keker was a profane and argumentative legend who ran his own boutiue practice Keker sometimes screamed and swore at the prosecutors True to her style Caldwell remained calm and let him run on like a three year old until he tired himself out Keker proclaimed he never allowed any of his clients to cooperate Of course if it served their interest he would For Fastow it did On January than two years after Enron declared bankruptcy prosecutors struck an uncommon deal Both Fastows pleaded guilty Andrew pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to commit wire and securities fraud He pledged to forfeit tens of millions of dollars and to no longer seek the millions in compensation he claimed Enron owed him Vitally Fastow stated that other top executives shared his culpability I and other members of Enrons senior management fraudulently manipulated Enrons publicly reported financial results Our purpose was to mislead investors and others about the true financial position of Enron and conseuently to inflate artificially the price of Enrons stock and maintain fraudulently Enrons credit rating Fastow agreed to a ten year sentence The agreement stipulated he would not reuest a reduced sentence even if he were particularly cooperative with prosecutors To impugn the prosecutions witnesses defense attorneys highlight the leniency deals witnesses have received to persuade the jury they are likely self serving liars Caldwell Weissmann and Buells agreement with Fastow blunted the defenses ability to argue that Fastow was lying about Skilling and Lay in order to get offeasily Eventually the judge would sentence him to only six years in prison THE GLISAN GAMBIT Kathy Ruemmler the young up and coming star joined the task force after Fastows indictment but before his plea deal Getting the CFO was great but they needed muchevidence to bring Skilling and Lay to justice She and Buell flipped Delainey in September When he stopped lying and came around they worked his information for a month before he pleaded guilty She and Buell reached a traditional cooperating witness arrangement with him He did so in exchange for a deal to keep the charges minimal Ruemmler could worry that the defense would attack the deal later For now she and Buell had to drain Delainey of everything he knew which was plenty about Skilling The key for the Enron prosecutorsfor prosecutors of any white collar crimewas to keep the pressure on Nobody knew who the Feds were interviewing Nobody knew who was talking and who wasnt The day Delainey pleaded Skilling transferred million to OMelveny Myers his defense firm Good thought Ruemmler He understands exactly how much danger hes in The final one of the big three Enron treasurer Ben Glisan cooperated in a different fashion reluctantly On September Glisan pleaded guilty He went straight to prison for his five year sentence the first former Enron executive to be locked up Glisan wouldnt cooperate He wanted no agreement Instead he said he would do his time He made a decision that his children were young and if he had to be sent away he wanted to serve now rather than after a protracted legal battle Glisans position at Enron was so important he could be a font of damning evidenceif he wanted to be So prosecutor Andrew Weissmann gambled Just a few months into his sentence Weissmann brought Glisan from prison to put him in front of the grand jury Ruemmler marveled All the young team members did It was ballsy because Weissmann had no indication that Glisan would be helpful The move carried a huge risk Glisan might offer testimony exonerating Skilling or Lay And it would all be on the record for the grand jury A Houston Chronicle reporter guarded the grand jury every day Prosecutors didnt want Glisans presence before the grand jury to leak US marshals snuck him in through a back door in his green jumpsuit Weissmann immunized him from further prosecution but that was the extent of the deal He would have to serve his prison time no matter what he said Then the task force deputy director started in with his uestions right in front of the grand jury Would Glisan understand all he had to do was tell the truth He did He was candid Weissmann put him on the stand for days Glisan was fantastic Each evening after the sessions the team went out to dinner Ruemmler couldnt believe what Glisan was saying in court He understood every deal He could place Skilling and Lay in the room during crucial conversations Shit I have to go talk to this guy she said Weismann beamed Glisan would later be a star witness in both the Ken Lay trial and Ruemmlers other trial against Merrill Lynch executives who had allegedly helped Enron disguise a loan as revenue known as the Nigerian barge trial The deal had taken place off the coast of the African country Glisan would be immunized at both The Nigerian barge trial was delayed till the fall of Ruemmler and an FBI agent rented a cheap Buick to go see Glisan in prison Kathy had never seen a car with chillers on the seat to keep the driver cool in the Texas summer Bastrop Federal Correctional Institution a low security prison sits a couple hours from Houston When she approached the gray sprawling compound surrounded by barbed wire and huge floodlights Ruemmler thought Every prosecutor should spend a lot of time in prisons They should know where they were sending people and how serious it was to strip them of their liberty Prisoners dont want to be snitches Ruemmlers meeting with Glisan had to be secretive The prison concocted a cover story to get the former Enron executive out of his cell and sneak him into the wardens office Dressed in his olive drab prison garb he was nervous But the former company treasurer soon relaxed and became introspective though never bitter He wasnt overly helpful or ingratiating nor too eager or vindictive Ruemmler and Buell came to respect him impressed by his recall and command of detail Glisan was a patient teacher He had kept careful notebooks of all of his meetings and deals Ruemmler went through every entry with him It was trial gold He corroborated everything Glisan would go over a certain Enron off balance sheet vehicle It was maddeningly complicated Finally Ruemmler would exclaim I get it The next morning shed wake up and realize she no longer understood it any Shed need another session She knew shed never have to go into this level of detail at trial but the defense team had their knives at the ready for evisceration if her jury friendly version was so dumbed down that it was even slightly wrong Glisan had damning information on Skilling Butimportant he had damning information about Lay He made the Enron Task Force feel confident enough to bring a case against Enrons founder On July the Enron Task Force indicted Lay charging him with eleven counts including securities fraud and making false statements He pleaded not guilty calling a press conference to proclaim his innocence and portray himself as a victim of the fraud Andrew Fastow had betrayed his trust and betrayed it very very badly he said There is no CEO that Im aware of who could possibly know about every decision lower level employees make They rely on the advice of lawyers bankers and accountants Now there may be some superman somewhere that thinks they know everything going on in their company in every department in every level in every country and every employee But I think that would be very unrealistic Top corporate executives would continue to make versions of this argument for the next decade especially in the wake of the financial crisis Ignorance eualed innocence Lays defense might have worked if prosecutors had charged him with masterminding Enrons accounting frauds But they were too smart and built a different case THE DARK PERIOD By the second half of the young prosecutors of the Enron Task Force faced tough times Leslie Caldwell had left the team in the spring Sam Buell left as well He had never moved from Boston getting on a plane every week for two years His second child was born while he was working the case He regretted barely seeing her Disarray started to cost the team Sean Berkowitz a prosecutor on the team and Ruemmler were exhausted Sometimes they doubted they would ever be able to bring the big cases There were no smoking guns Would juries buy their theory They both entertained leaving the task force Then in mid Weissmann beat them to it announcing his resignation Berkowitz was appointed director He asked Ruemmler to be his deputy The two were stuck in the task force and stuck with a mess For all of his brilliance and gutsiness Weissmann had been no manager Roles werent defined The task force had no focus as it was trying to prepare for the big trials of Skilling and Lay The prosecution teams werent even set Berkowitz had joined in December shortly after Ruemmler came on board Thirty six at the time he had been going through a bad patch A graduate of Harvard Law School he had spent the last five years working in the Chicago US Attorneys Office most recently for US Attorney Patrick Fitzgerald But he was getting divorced from his wife a prosecutor in the same office Desperate to get out he went to Fitzgerald to see if there was anywhere he could go Fitzgerald recommended him for the Enron team Berkowitz had little familiarity with Enron or the investigation but he had some corporate prosecution experience He took it Weissmann had resigned during the trial of executives from Enrons broadband unit It wasnt going well Enron had created a division to market broadband Internet service It was unsuccessful in reality but profitable on paper because Enron booked revenue and earnings right when it signed a deal long before the actual money came through Early on the task force had devoted significant resources and people to probing the broadband unit That expenditure of money and time looked good on July when Ken Rice the CEO of the unit pleaded guilty to one count of securities fraud The next month the chief operating officer of the unit pleaded guilty The task force had also charged five executives of its broadband unit for overstating the strength of the divisions business On April the trial of the five executives began It dragged on for months Members of the prosecution teamwhich didnt include Berkowitz or Ruemmlerclashed They got bogged down in debates about the viability of the technology In July the jury acuitted the executives on some counts and got hung on the rest The judge declared a mistrial Now director Berkowitz normally calm and congenial felt spooked Cases that had looked like fortresses began to appear vulnerable The sprawling defense teams kept filing motion after motion loosing their catapults He and Ruemmler realized they didnt have enough people and help The resource deprivation was inexplicable How could the department have set up this team with such public celebration but not given them the tools to win The FBI had an ancient document management system Task force prosecutors had to call up the FBI ask it to search a term and wait Three days later theyd get the documentsusually Enron was both the first massive electronic discovery investigation and the last of the old style with paper discovery manual searches and files in cabinets After one such failed search Ruemmler reamed out the FBI agents and then came into Berkowitzs office and slumped in a chair Whats the matter Why cant they handle it Berko All Berkowitz could think was When is this going to end They needed to alert the higher ups Berkowitz and Ruemmler went over to Main Justice to meet with John Richter the acting head of the criminal division They sat in a windowless conference room Sean and Kathy beseeched him We are going to lose this case and lose it spectacularly Ruemmler warned Okay okay I hear you Richter said What do you need Everything Berkowitz said They rattled off their reuests document support graphics support trial support They needed a jury consultant They neededbodies to deal with all the defense motions The defense would motion to change the venue citing experts and polling data Were they supposed to stand up there with nothing in response and say Thats wrong Trust us Judge Berkowitz and Ruemmler also analyzed what had gone wrong with the broadband trial A defense attorney summed it up Never prosecute a complex overreaching count case in midsummer in Houston Texas against a passel of good lawyers From now on the task force would keep it simple Prove everything and drop anything you cant Try to prevent the defense from getting down into the detailed muck that puts jurors to sleep They were such common obvious mistakes but so easy to make Prosecutors did it all the time Berkowitz focused the task force The priority was the big trials Weissmann had wanted to do everything to take every case to bask in the publicity Now they just needed to focus on bringing Skilling and Lay to justice THE CASE AGAINST SKILLING The government had less evidence against Lay than Skilling and had brought lesser charges Ruemmler and her team headed up the cases ag.

chickenshit kindle club free justice pdf department ebok fails book prosecute mobile executives ebok The Chickenshit ebok Club Why free Club Why the Justice pdf Chickenshit Club Why download Chickenshit Club Why the Justice download The Chickenshit Club Why the Justice Department Fails to Prosecute Executives ePUBHad years of practice cracking jokes that only she might hear or get Her formative prosecutorial experience had been in the US Attorneys Office in Brooklyn the Eastern District of New York where she had overseen mob prosecutions She liked to say that back then the rooftops of Brooklyn were for stashing bodies not kale gardens Eastern District prosecutors liked to think they were scrappier than those in the Southern District in Manhattan Eastern District mafiaprosecutors loved to identify themselves as mafiosi from certain officesdominated the Enron investigative team Caldwell brought in Andrew Weissmann as her deputy In many ways he was her opposite loud aggressive flamboyant Your client is a lying sack of shit hed yell at defense lawyers Caldwell who had worked with Weissmann in Brooklyn admired his trial brilliance Caldwell then turned to Sam Buell with whom shed worked in the Eastern District Buell was then working up in Boston having spent three grueling years on the Whitey Bulger case the notorious Boston mobster wanted in connection with nineteen murders among other crimes Hed been on the lam for sixteen years before being captured in Caldwell had attended Buells wedding When she called about the task force job in early Buell didnt have to think about it He knew he was in His wife a corporate lawyer who had left the workplace to raise their children encouraged him Buell had little white collar experience Hed done only some low level corporate fraud worka money laundering case or two But he understood that prosecutors couldnt shy from difficult cases After attending law school at New York University he had clerked for Jack Weinstein a legendary federal district court judge famous for resolving mass tort cases involving Agent Orange and asbestos From Judge Weinstein Buell drew the lesson that nothing is too complex or too big These people committing the crimes werent smarter than you they too had to learn it all at some point But it always helped to have some expertise on hand So Caldwell recruited Tom Hanusik from Main Justice Hanusik an SEC enforcement lawyer in the mid s had a knack for financial investigation He loved combing through complicated documents and identifying dodgy deals With the addition of one other prosecutor the teamsmart young ambitious and energeticwas set They were all intimidated to take on a fraud so sprawling and complex Eventually the Enron Task Force would have about forty FBI agents and an average of ten prosecutors assigned to it full time bringing cases over the next half decade At least to the public the task force didnt get going fast enough The prosecutors anticipated that Enrons defense lawyers would argue the company may have been aggressive but had technically adhered to the law The defense would point out that lawyers and accountants blessed the companys actions Indeed that was true Prosecutors needed to move cautiously They had to sift through the complexities to find the potential crimes However the public and the press did not understand or sympathize The press assailed the government for moving too slowly and letting the perpetrators walk CNNs Lou Dobbs then one of the most influential business journalists started running an Iran hostage like daily count noting there hadnt been Enron indictments The CNBC show Kudlow Cramer would ask Who is in the pokey Buell saw cohost Larry Kudlow spout some nonsense about how this case should be as easy as locking up someone for dealing drugs on a street corner Jeffrey Toobin CNNs legal analyst swung the other way Explaining how difficult it was to make white collar cases he predicted that neither Skilling nor Lay would go to prison Tom Daschle the Senate majority leader called on the Justice Department to explain why it hadnt indicted anyone When prosecutors turned lower level executives or pressed seemingly tangential cases the media would report as if the investigations into Skilling and Lay had stalled But the talking heads misunderstood what was going on The prosecution team was moving deliberately moving the lower level cases to build the evidence to go after the top Enron officers Privately team members wondered Would they get there They would Though the trials were long arduous but full of good breaks prosecutors won guilty verdicts against the key architects of the Enron fraud through working three main witnesses Delainey Fastow and company treasurer Ben Glisan Jr They were the governments best witnesses its Virgils through the labyrinthine off balance sheet deals and accounting shenanigans The investigators and prosecutors would rely on dozens of executives victims experts witnesses and countless documents to prove their cases beyond a reasonable doubt But the government needed Glisan Delainey and Fastow Without all three the Enron Task Force likely would have failed Prosecutors took a different path to work each of the three Delainey cooperated in a traditional fashion in exchange for leniency Fastow reached a nontraditional agreement in which he cooperated without receiving a reduced sentence Glisan cooperated reluctantly but voluntarily while serving time THE FASTOW FLIP The outside world was helping the government providing a road map for the prosecutors Journalists were breaking stories The Enron board of directors had ordered an internal investigation into what had caused the collapse The three person panel of independent directors headed up by William Powers Jr the dean of the University of Texas Law School came out with its report on February only two months after the bankruptcy The report detailed the self dealing at Enron the dubious transactions and the lax oversight blistering top management The first big case the Enron Task Force brought in March was against Arthur Andersen Enrons accounting firm for obstruction of justice The case consumed Caldwell Weissmann and Buell Meanwhile Tom Hanusik could work in relative peace to start building Enron cases In the Powers report Hanusik saw an intriguing reference to how a British investment bank NatWest National Westminster had helped in a suspicious Enron transaction He retrieved the emails behind the deal and saw right off how damning they were They outlined NatWests effort to help Fastow and Michael Kopper his young right hand man create an off balance sheet entity to hide Enron debt By the summer of he had charged three NatWest bankers with wire fraud in the first of many Enron cases seeking their extradition To outside observers it seemed tangential But Hanusik understood he was essentially publishing a banner headline in a newspaper meant for one man His message came through The young Kopper read where Hanusiks investigation was leading Just three weeks later Kopper came in Hanusik had scored the first Enron cooperator Kopper would help the Enron Task Force start building its case against Fastow But there was another important signal from the case a message sent by the indictment of Arthur Andersen as well prosecutors werent going just after Enron executives They were going after the bankers and accountants who enabled Enron These prosecutors understood the ecosystem of corporate fraud On August Kopper entered into a plea deal for up to fifteen years He was later sentenced to three years and a month The deal created a way to get to Fastow the most obvious target for initial investigation Fastow had been a wunderkind rising to become Enrons CFO in his thirties He was the mastermind behind the most troubling aspects of the Enron frauds its off balance sheet vehicles In October the task force indicted Fastow He pleaded not guilty Larry Thompson the deputy attorney general and Robert Mueller the FBI director held a press conference to celebrate the accomplishment Thompson laid out his approach in clear and simple terms not heard often in the constipated confines of an official Washington media gathering Our strategy is really straightforward We aim to put the bad guys in prison and take away their money he said Skilling and Lay were blaming Fastow for the corporations fraud and collapse like parents who leave the keys to the liuor cabinet when they go away for a weekend and then blame the teenagers for getting drunk The task force scoffed But the executives position helped them They knew Fastows cooperation would be necessary to get Skilling and Lay Over the course of the next several months after they indicted him Fastow stayed as mute as a mob soldier despite all the damning evidence the task force had assembled on him The government needed to bringpressure Weissmann with Caldwells nod metaphorically put a drill to his knees On May the task force indicted Fastows wife Lea charging her with filing a false income tax return Both Fastows faced the prospect of being in prison and away from their young children Lea came from a prominent Houston family She had lost her reputation and standing Now she stood to lose her liberty Fastow wasnt so insensate that he didnt care about his wife He came in His lawyer John Keker was a profane and argumentative legend who ran his own boutiue practice Keker sometimes screamed and swore at the prosecutors True to her style Caldwell remained calm and let him run on like a three year old until he tired himself out Keker proclaimed he never allowed any of his clients to cooperate Of course if it served their interest he would For Fastow it did On January than two years after Enron declared bankruptcy prosecutors struck an uncommon deal Both Fastows pleaded guilty Andrew pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to commit wire and securities fraud He pledged to forfeit tens of millions of dollars and to no longer seek the millions in compensation he claimed Enron owed him Vitally Fastow stated that other top executives shared his culpability I and other members of Enrons senior management fraudulently manipulated Enrons publicly reported financial results Our purpose was to mislead investors and others about the true financial position of Enron and conseuently to inflate artificially the price of Enrons stock and maintain fraudulently Enrons credit rating Fastow agreed to a ten year sentence The agreement stipulated he would not reuest a reduced sentence even if he were particularly cooperative with prosecutors To impugn the prosecutions witnesses defense attorneys highlight the leniency deals witnesses have received to persuade the jury they are likely self serving liars Caldwell Weissmann and Buells agreement with Fastow blunted the defenses ability to argue that Fastow was lying about Skilling and Lay in order to get offeasily Eventually the judge would sentence him to only six years in prison THE GLISAN GAMBIT Kathy Ruemmler the young up and coming star joined the task force after Fastows indictment but before his plea deal Getting the CFO was great but they needed muchevidence to bring Skilling and Lay to justice She and Buell flipped Delainey in September When he stopped lying and came around they worked his information for a month before he pleaded guilty She and Buell reached a traditional cooperating witness arrangement with him He did so in exchange for a deal to keep the charges minimal Ruemmler could worry that the defense would attack the deal later For now she and Buell had to drain Delainey of everything he knew which was plenty about Skilling The key for the Enron prosecutorsfor prosecutors of any white collar crimewas to keep the pressure on Nobody knew who the Feds were interviewing Nobody knew who was talking and who wasnt The day Delainey pleaded Skilling transferred million to OMelveny Myers his defense firm Good thought Ruemmler He understands exactly how much danger hes in The final one of the big three Enron treasurer Ben Glisan cooperated in a different fashion reluctantly On September Glisan pleaded guilty He went straight to prison for his five year sentence the first former Enron executive to be locked up Glisan wouldnt cooperate He wanted no agreement Instead he said he would do his time He made a decision that his children were young and if he had to be sent away he wanted to serve now rather than after a protracted legal battle Glisans position at Enron was so important he could be a font of damning evidenceif he wanted to be So prosecutor Andrew Weissmann gambled Just a few months into his sentence Weissmann brought Glisan from prison to put him in front of the grand jury Ruemmler marveled All the young team members did It was ballsy because Weissmann had no indication that Glisan would be helpful The move carried a huge risk Glisan might offer testimony exonerating Skilling or Lay And it would all be on the record for the grand jury A Houston Chronicle reporter guarded the grand jury every day Prosecutors didnt want Glisans presence before the grand jury to leak US marshals snuck him in through a back door in his green jumpsuit Weissmann immunized him from further prosecution but that was the extent of the deal He would have to serve his prison time no matter what he said Then the task force deputy director started in with his uestions right in front of the grand jury Would Glisan understand all he had to do was tell the truth He did He was candid Weissmann put him on the stand for days Glisan was fantastic Each evening after the sessions the team went out to dinner Ruemmler couldnt believe what Glisan was saying in court He understood every deal He could place Skilling and Lay in the room during crucial conversations Shit I have to go talk to this guy she said Weismann beamed Glisan would later be a star witness in both the Ken Lay trial and Ruemmlers other trial against Merrill Lynch executives who had allegedly helped Enron disguise a loan as revenue known as the Nigerian barge trial The deal had taken place off the coast of the African country Glisan would be immunized at both The Nigerian barge trial was delayed till the fall of Ruemmler and an FBI agent rented a cheap Buick to go see Glisan in prison Kathy had never seen a car with chillers on the seat to keep the driver cool in the Texas summer Bastrop Federal Correctional Institution a low security prison sits a couple hours from Houston When she approached the gray sprawling compound surrounded by barbed wire and huge floodlights Ruemmler thought Every prosecutor should spend a lot of time in prisons They should know where they were sending people and how serious it was to strip them of their liberty Prisoners dont want to be snitches Ruemmlers meeting with Glisan had to be secretive The prison concocted a cover story to get the former Enron executive out of his cell and sneak him into the wardens office Dressed in his olive drab prison garb he was nervous But the former company treasurer soon relaxed and became introspective though never bitter He wasnt overly helpful or ingratiating nor too eager or vindictive Ruemmler and Buell came to respect him impressed by his recall and command of detail Glisan was a patient teacher He had kept careful notebooks of all of his meetings and deals Ruemmler went through every entry with him It was trial gold He corroborated everything Glisan would go over a certain Enron off balance sheet vehicle It was maddeningly complicated Finally Ruemmler would exclaim I get it The next morning shed wake up and realize she no longer understood it any Shed need another session She knew shed never have to go into this level of detail at trial but the defense team had their knives at the ready for evisceration if her jury friendly version was so dumbed down that it was even slightly wrong Glisan had damning information on Skilling Butimportant he had damning information about Lay He made the Enron Task Force feel confident enough to bring a case against Enrons founder On July the Enron Task Force indicted Lay charging him with eleven counts including securities fraud and making false statements He pleaded not guilty calling a press conference to proclaim his innocence and portray himself as a victim of the fraud Andrew Fastow had betrayed his trust and betrayed it very very badly he said There is no CEO that Im aware of who could possibly know about every decision lower level employees make They rely on the advice of lawyers bankers and accountants Now there may be some superman somewhere that thinks they know everything going on in their company in every department in every level in every country and every employee But I think that would be very unrealistic Top corporate executives would continue to make versions of this argument for the next decade especially in the wake of the financial crisis Ignorance eualed innocence Lays defense might have worked if prosecutors had charged him with masterminding Enrons accounting frauds But they were too smart and built a different case THE DARK PERIOD By the second half of the young prosecutors of the Enron Task Force faced tough times Leslie Caldwell had left the team in the spring Sam Buell left as well He had never moved from Boston getting on a plane every week for two years His second child was born while he was working the case He regretted barely seeing her Disarray started to cost the team Sean Berkowitz a prosecutor on the team and Ruemmler were exhausted Sometimes they doubted they would ever be able to bring the big cases There were no smoking guns Would juries buy their theory They both entertained leaving the task force Then in mid Weissmann beat them to it announcing his resignation Berkowitz was appointed director He asked Ruemmler to be his deputy The two were stuck in the task force and stuck with a mess For all of his brilliance and gutsiness Weissmann had been no manager Roles werent defined The task force had no focus as it was trying to prepare for the big trials of Skilling and Lay The prosecution teams werent even set Berkowitz had joined in December shortly after Ruemmler came on board Thirty six at the time he had been going through a bad patch A graduate of Harvard Law School he had spent the last five years working in the Chicago US Attorneys Office most recently for US Attorney Patrick Fitzgerald But he was getting divorced from his wife a prosecutor in the same office Desperate to get out he went to Fitzgerald to see if there was anywhere he could go Fitzgerald recommended him for the Enron team Berkowitz had little familiarity with Enron or the investigation but he had some corporate prosecution experience He took it Weissmann had resigned during the trial of executives from Enrons broadband unit It wasnt going well Enron had created a division to market broadband Internet service It was unsuccessful in reality but profitable on paper because Enron booked revenue and earnings right when it signed a deal long before the actual money came through Early on the task force had devoted significant resources and people to probing the broadband unit That expenditure of money and time looked good on July when Ken Rice the CEO of the unit pleaded guilty to one count of securities fraud The next month the chief operating officer of the unit pleaded guilty The task force had also charged five executives of its broadband unit for overstating the strength of the divisions business On April the trial of the five executives began It dragged on for months Members of the prosecution teamwhich didnt include Berkowitz or Ruemmlerclashed They got bogged down in debates about the viability of the technology In July the jury acuitted the executives on some counts and got hung on the rest The judge declared a mistrial Now director Berkowitz normally calm and congenial felt spooked Cases that had looked like fortresses began to appear vulnerable The sprawling defense teams kept filing motion after motion loosing their catapults He and Ruemmler realized they didnt have enough people and help The resource deprivation was inexplicable How could the department have set up this team with such public celebration but not given them the tools to win The FBI had an ancient document management system Task force prosecutors had to call up the FBI ask it to search a term and wait Three days later theyd get the documentsusually Enron was both the first massive electronic discovery investigation and the last of the old style with paper discovery manual searches and files in cabinets After one such failed search Ruemmler reamed out the FBI agents and then came into Berkowitzs office and slumped in a chair Whats the matter Why cant they handle it Berko All Berkowitz could think was When is this going to end They needed to alert the higher ups Berkowitz and Ruemmler went over to Main Justice to meet with John Richter the acting head of the criminal division They sat in a windowless conference room Sean and Kathy beseeched him We are going to lose this case and lose it spectacularly Ruemmler warned Okay okay I hear you Richter said What do you need Everything Berkowitz said They rattled off their reuests document support graphics support trial support They needed a jury consultant They neededbodies to deal with all the defense motions The defense would motion to change the venue citing experts and polling data Were they supposed to stand up there with nothing in response and say Thats wrong Trust us Judge Berkowitz and Ruemmler also analyzed what had gone wrong with the broadband trial A defense attorney summed it up Never prosecute a complex overreaching count case in midsummer in Houston Texas against a passel of good lawyers From now on the task force would keep it simple Prove everything and drop anything you cant Try to prevent the defense from getting down into the detailed muck that puts jurors to sleep They were such common obvious mistakes but so easy to make Prosecutors did it all the time Berkowitz focused the task force The priority was the big trials Weissmann had wanted to do everything to take every case to bask in the publicity Now they just needed to focus on bringing Skilling and Lay to justice THE CASE AGAINST SKILLING The government had less evidence against Lay than Skilling and had brought lesser charges Ruemmler and her team headed up the cases ag.

[Read] ➵ The Chickenshit Club: Why the Justice Department Fails to Prosecute Executives By Jesse Eisinger – Elle-kennedy.co The Chickenshit Club Chapter One THERE IS NO CHRISTMAS ON A GRIM DAY IN september with hurricane Isabel brewing off the East Coast federal prosecutor Kathy Ruemmler prepared for the governments third[Read] ➵ The Chickenshit Club: Why the Justice Department Fails to Prosecute Executives By Jesse Eisinger – Elle-kennedy.co The Chickenshit Club Chapter One THERE IS NO CHRISTMAS ON A GRIM DAY IN september with hurricane Isabel brewing off the East Coast federal prosecutor Kathy Ruemmler prepared for the governments third The Chickenshit Club Chapter One Club: Why PDF/EPUB ê THERE IS NO CHRISTMAS ON A GRIM DAY IN september with hurricane Isabel brewing off the East Coast federal prosecutor Kathy Ruemmler prepared for the governments third interview with an Enron witness The investigation into the top officers at the collapsed energy giant was stalled Ruemmler knew the prosecutors had to flip someone She had just joined as the youngest member of the Enron Task Force the special SWAT team the Justice Department had assembled to dig into what had been one of The Chickenshit PDF \ the richest and most admired companies in the world Now it had been revealed to be one of the biggest frauds in American business history At a passing glance the thirty two year old assistant US attorney looked fresh faced and friendly with her shoulder length blond hair and clothing that was a step up from the typical government servants But she had a steeliness that she could wield at will Her warm blue eyes hardened when she was deposing a witness Her teammate in those days was Sam Chickenshit Club: Why MOBI î Buell Before joining the task force Buell thirty nine had prosecuted Boston mob cases He was tall and clean cut His short reddish Chickenshit Club: Why the Justice MOBI :î hair framed a wide gentle face that sat above broad shoulders Buell the son of schoolteachers had grown up in Milton Massachusetts outside of Boston Self deprecating and easygoing he looked like a favorite high school math teacher Witnesses liked him in spite of themselves Buell and the task force had been laboring over the case for months now They were going after Jeff Skilling and Chickenshit Club: Why the Justice MOBI :î Ken Lay Enrons top officers Ruemmler and Buell spent most of their time shuttling from DC to Houston where the two of them would drive from their dingy government rate hotel rooms to an abandoned space at the top of Houstons run down federal courthouse a s era suat white cube in the middle of downtown Houston They passed through building security unencumbered Here it was already and they still didnt even have BlackBerrys Upstairs their clunky computers balanced on cardboard boxes atop chipped metal desks The whole place was so run down that it was fodder for jokes A defense attorney bringing a tony client for an interview once cracked It looks like an OSHA violation in here During the first winter most of them had come down with miserable respiratory infections Were the offices infecting them Or was it just the pressure of their task They had no document management system and no way even to email the FBI agents assigned to the investigation who were just a few blocks away With this pathetic setup they were taking on an infernally complex company in the most important corporate fraud case in memory against a legion of defense lawyers from the best firms in the world The country had invaded Ira six months earlier Madonna kissed Britney Spears and Christina Aguilera on the MTV Video Music Awards show The American tennis star Andy Roddick won what would be the only major tournament of his career the US Open championship But Ruemmler barely noted outside events significant or trivial She had no time for anything but the case During these eighteen hour days when she could only sneak in a frozen pizza and a shower Ruemmler would sometimes marvel that she had ended up here She had grown up in Richland Washington a rural corner of the Northwest where both of her parents worked at the giant Hanford nuclear facility on the Columbia River her father as a computer engineer and her mother in a toxicology lab Unlike most of her Justice Department colleagues Ruemmler hadnt gone to an elite eastern college Shed been thrilled to get into the local University of Washington and before she left to attend Georgetown University Law Center she had been out of the Northwest only three times Yet Ruemmler had landed a plum job assistant US attorney a federal prosecutor in the DC office Shed been handling violent crime and narcotics cases when Leslie Caldwell head of the Enron Task Force reached out Ruemmler hadnt had much experience prosecuting financial fraud Shed been reading the papers and coming across the same phrase if normal financial fraud was algebra the articles intoned Enron was advanced calculus She felt intimidated But Caldwell assured her the Enron Task Force would be only a six month detail Twice the Enron prosecutors had brought in one of their most promising witnesses Dave Delainey the head of Enrons energy trading division Hed stuck with his story brushing aside uestions from the prosecutors and the FBI agent assigned to this part of the investigation They werent giving up though and that morning they felt certain they had discovered a dangling thread that might help them unravel his story As Ruemmler and Buell went through the many emails Delainey had sent to his head trader they found a huge gain the company had made trading in Californias energy markets in the late s Enron didnt want to tell shareholders it was a volatile trading shop Instead the company line for Wall Street had been that Enron was a stable fast growing operation CEO Jeff Skilling had downplayed Enrons trading once saying on CNBC that it was just a small portion of its business Enron was just a logistics business hed say meaning that Enron helped speculators but wasnt one itself A big trading gain such as the one Ruemmler and Buell discovered hinted at the reality Speculation dominated the companys culture and contributed an outsized portion of its profits Once after a trader had lost close to a half billion in one day Skilling came down to the trading floor and exhorted the traders to man up Get back out there and maketrades Win it back Instead of having Enron disclose those trading profits Delainey and his executives hid them They stashed the millions of dollars of earnings and created a cover story it was setting aside those profits for a possible legal settlement Ruemmler and Buell had figured out that this reserve this cookie jar was a lie Poring over the companys intentionally complicated and messy financial statements onetime theyd noticed that a year after creating the reserve Enron had lost millions in another division and dipped into that moneyreserved for legal coststo cover the losses and make it look like it had made money that uarter That accounting hocus pocus was illegal and Delainey and his top trader had emailed about it But theyd used a lot of trader jargon and the emails were vague enough that a jury would need them decoded The prosecutors understood how the scam had been pulled off but believed they couldnt prove it yet Delainey could explain that little scam but thats not why they needed to flip him Complex white collar investigations reuired finding rabbis to guide you through the transactions Even the smartest outsiders couldnt rely on the documents They were conducting an old fashioned investigation They needed someone on the inside If they could flip Delainey they could take the prosecution all the way to the top They could begin to build a case that Jeff Skilling had lied to investors and the public ALL BULLSHIT That led them in the middle of the hurricane to haul Dave Delainey and his expensive lawyers into a windowless conference room in the Bond Building in Washington DC for a third time Buell and Ruemmler and their expert FBI agent had new verve they took command of the interview from the start Buell had a hunch Delainey wanted to cooperate Getting him over to their side however reuired breaking down his instinct to deny and minimize his culpability Delainey had long been an Enron true believer A clean cut Canadian hed been awed by the testosterone flooded Enron trading culture Hard charging sure but they werentcouldnt becriminals Few corporate white collar fraudstersnot egregious Ponzi schemers or boiler room operators but perpetrators at large respectable companiesstart out thinking they will commit a crime As one academic study Why Do They Do It The Motives Mores and Character of White Collar Criminals put it most white collar criminals are individuals who find themselves involved in schemes that are initially small in scale but over which they uickly lose control They tell themselves Ill just do it this uarter so we dont miss the number and then Ill stop it and undo what Ive done They dont think of themselves as crooks Its just a short term fix Then they use the device again and again until they have no choice but to keep up the charade They start rationalizing what theyre doing It may be aggressive but its not wrong Its not theft The bad guys arent lying just to prosecutors They are lying to their shareholders their colleagues and their families And they are lying to themselves The prosecutors job is to crack through that self justification and self delusion Thats what Ruemmler and Buell were going to do that morning in that room with Delainey The two stuck with their plan to stay calm to both be the good cops and keep asking uestions about the emails They would reason with him confronting him with the evidence though selectively to test his credibility Their advantage was that Delainey didnt know exactly which documents interested the prosecutors as well as who else from Enron was talking and what they were saying As Ruemmler and Buell ground him down on the emails his story began to collapse A couple hours into the conversation it happened Delainey glanced over and signaled a silent plea for help to his lawyers John Dowd of Akin Gump and a promising young associate named Savannah Guthrie who would later coanchor the Today show Dowd was a legend one of the premier defense lawyers in the country Big and aggressive hed vow to fight the government from every rampart in Washington He had some uirks Using just two fingers hed bang out his emails in twenty eight point purple Comic Sans font Who He hed email bellow to his associates He toned it down for Buell who saw a familiar character in Dowd a brash and street smart working class Bostonian They would chat about the Red Sox Dowd was no intellectual but he was savvy and knew how to help his clients Buell and Ruemmler made it clear where the email evidence was taking Dowds client The attorney understood it perfectly Dowd asked if he and Guthrie could confer with their client and then left the room They were gone for about fifteen minutes When they came back in Ruemmler noticed that Delaineys demeanor had changed He now slumped in his chair A moment passed in silence He then spokemumbled really It was all bullshit As Kathy Ruemmler snuck a uick a look at her partner she saw the smallest of smiles on his face GEORGE BUSH AND KENNY BOY When Enron filed for bankruptcy in December the implosion devastated a major US city Houston both economically and psychologically Fortune magazine had named Enron Americas most innovative company six years straight for having changed the way that gas and electricity moved around the country The magazine CEO had named Enrons board one of the top five in America Former secretaries of state Henry Kissinger and James Baker had lobbied for the company Nelson Mandela had come to Houston to receive the Enron Prize for Distinguished Public Service The Enron scandal reached all the way to the president and vice president of the United States George W Bush and Dick Cheney had run in the same business and social circles as the Enron executives Bushs family had made its money in Texas energy Cheney only a few years earlier had been the CEO of the energy services giant the Halliburton Company then based in Dallas Ken Lay Enrons founder was a longtime Bush family friend and major Republican donor Bush as is his way with intimates had given Lay a nickname Kenny Boy Lay had once hosted a fund raiser for Senator John Ashcroft a Republican from Missouri who was expected to make a bid for the presidency Now Ashcroft was Bushs attorney general the top law enforcement officer in the United States The country fell into recession in late It was reeling from the bursting of the biggest stock market bubble the world had seen which had inflated through most of the s before collapsing mercilessly in March Over the next few years new companies reported accounting problems with alarming regularity Tyco Adelphia HealthSouth WorldCom But Enrons collapse was the most spectacular The pandemic of corporate greed and criminality felt so conseuential that it wasnt outlandish to think that Enrons failure might be the seminal financial event of a generation Enrons significance would recede however and the lessons it holds for white collar enforcement would be forgotten Despite Enrons political might the US government aggressively investigated the fraud at the energy trading company and prosecuted dozens of individuals including the top officers of the company Lay Skilling and Andrew Fastow the chief financial officer were all found guilty Skilling and Fastow went to prison Lay would have gone too but he died of a massive heart attack in just three months before his sentencing In all the government charged thirty two people associated with the Enron frauds including Wall Street bankers whod facilitated the deceptions The government did indeed take down rogue executives not that long ago Many people look at the crimes at Enron WorldCom Adelphia Tyco and the generation of post stock market bubble bursting prosecutions and think the crimes were so egregious that the prosecutions must have been easy But thats only with the benefit of hindsight What Kathy Ruemmler Sam Buell and the rest of the Enron Task Force did was not simple and never inevitable If the task force hadnt had resources time intelligence and patience Lay and Skilling may not have been prosecuted at all or could have easily been acuitted The prosecutorial team went up against the best defense lawyers in the country The public brayed for faster action The team had its share of stumbles blowing some of its trials Lay didnt use email Skilling rarely did So the government lacked direct incriminatory evidence of their guilt But in the big cases the task force prevailed These were not accidents The Enron prosecution team made smart strategic decisions secured necessary resources learned from their mistakes used aggressive tactics and ran the major trials well Despite this success the Justice Department took the wrong lesson from Enron Over the next decade the task forces legacy at least for the subseuent leaders of the Justice Department layin its mistakes than its successes Courts reversed the government in key cases The defense bar and Justice Department officials came to view the Enron prosecutors as reckless and abusive rather than sufficiently aggressive to meet the prosecutorial challenge Today its an open uestion whether the Justice Department would be capable of taking on Enron the same way the task force did ASSEMBLING THE TEAM In the early years of the George W Bush administration its Department of Justice compiled a sterling record of corporate prosecutions Larry Thompson Bushs first deputy attorney general understood that the DOJ had to respond assertively to the unfolding crisis Thompson joined the administration in just as the corporate accounting scandals were breaking Stock markets were collapsing The public was furious By the end of its run the early Bush era Department of Justice had prosecuted almost every major accounting fraud from the early s Not just Enron but also WorldCom Adelphia Global Crossing and west Communications among them At the state level the Manhattan district attorney prevailed in cases against the top corporate officers of Tyco Prosecutors took losses too They werent taking on the easiest cases and juicing their stats with easy victories One of theunfathomable losses was the acuittal of Richard Scrushy the head of hospital and rehab clinic operator HealthSouth Prosecutors charged him with thirty six counts including securities fraud and conspiracy in connection with a billion accounting fraud They flipped multiple former employees against Scrushy including the HealthSouth CFO but a hometown jury found him not guilty A year later in a separate case a federal jury found Scrushy guilty of bribery Thompson understood the risks and tolerated losses In his view they were the price of ambition A fair and lifetime law and order man Thompson conferred with Michael Chertoff the head of the criminal division at Main Justice as the Washington headuarters of the Department of Justice is known They both emphasized the public need for real time prosecution for white collar cases They believed the public deserved action and defendants deserved speedy resolutions But the strategy was also practical White collar cases could languish for years a poor way of conducting any investigation The evidence trail grows cold memories fade and defense lawyers have time to formulate their clients stories and tactics Prosecutors needed to maintain momentum Thompson and Chertoff understood that with the Enron debacle the public would be bothered with slow justice That there might be no justiceno prosecutions at allnever even occurred to anyone In early Thompson and Chertoff feared that the Enron case was already a mess Several US Attorneys Offices had separate pieces of the investigation Main Justice oversees the other offices but does not direct each about its investigations The criminal division in Washington also conducts its own investigations into securities fraud antitrust violations public corruption and civil rights Prosecutors coordinate probes but do not conduct them Every investigation has agents usually from the FBI Often other government regulators including the SEC have only civil enforcement powers For criminal matters they work with the Justice Department Since the Southern District of New York took on most of the corporate and securities fraud matters it had the closest relationship with the SEC In early the Southern District vied to take all the Enron cases for itself but Thompson and Chertoff wouldnt allow that The Southern District in a piue removed itself entirely With the Southern District out of Enron nobody seemed to know who was in charge of what The governments document reuests deluged the company Robert Bennett the Washington power lawyer then with Skadden Arps Slate Meagher Flom which represented Enron called up Larry Thompsons office and told them he wanted to cooperate but didnt know with whom he should deal Main Justice realized that the Houston office of the Justice Department had too many professional and personal conflicts of interest and had to recuse itself from prosecuting the company Thompson FBI Director Robert Mueller and Chertoff mulled the problem Should they assign a special prosecutor to head up all the cases Do nothing and let the US Attorneys Offices work the cases on their own Chertoff had been a US attorney in New Jersey and had worked under Rudolph Giuliani when Giuliani was the US attorney in Manhattan Chertoff likened US attorneys to ship captains they mapped their own courses Chertoff knew that US attorneys felt free to heed or ignore distress flags from shore Hed done it himself They were not autonomous but they took direction from Main Justice reluctantly Top Justice Department officials in Washington were political appointees The responsible ones took care in offering direction in order to not be seen as meddling politically in investigations Chertoff argued to Thompson that these cases were too important for Main Justice to leave them up to individual US attorneys When he was the US attorney in Atlanta Thompson had overseen a drug task force with another US attorney the future Alabama Republican senator Jeff Sessions who would become the US attorney general in He believed task forces worked though not by magic They shared information and investigative techniues A task force focused prosecutors and gave them clear priorities After that it was pick and shovel work on the case flipping low level soldiers to get to the capos All the officials in the conversation understood that a task force with prosecutorial powers had some inherent weaknesses It faces enormous pressure to emerge with some kind of charge leading to abuses Similar problems plague independent prosecutors The public has made up its mind Prosecutors need courage not to bring cases as the spotlight shines Thecases a task force can bring the better Its difficult to wind up the operation Worse a task force has few checks and balances A US Attorneys Office has institutional knowledge and a decision making structure a task force operates in a vacuum But Thompson thought he might ward off those bad outcomes with his gentle persistence The top officials created the Presidents Corporate Fraud Task Force to supervise the efforts of the various offices around the country They identified approximately ten big cases for it to oversee Thompson made weekly calls to the heads of the offices to make sure prosecutors were working them and to make it clear that he cared Thompson had a soft and inviting disposition He didnt direct anything He just let them know he wanted to hear the status His bedside manner was deceptive He would stay on their asses as one Department of Justice official put it Main Justice also created the elite operation to go after Enron specifically In early Chertoff got to work on forming the Enron SWAT team Mueller recommended the stoic Leslie Caldwell to head the team He had worked with her in the San Francisco US Attorneys Office where she led the securities fraud unit Caldwell then in her early forties maintained a soothing calm She carried an air of someone whod.

The Chickenshit Club: Why the Justice Department Fails to

The Chickenshit Club: Why the Justice Department Fails to Is a well known author Club: Why PDF/EPUB ê some of his books are a fascination for readers like in the The Chickenshit Club Why the Justice Department Fails to Prosecute Executives book this is one of the most wanted Jesse Eisinger author readers around the world.

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