Federal Prosecutors

Today, Cato is publishing an article about some disturbing trends that have emerged in federal criminal law. Washington, D.C. attorney Richard Janis explains that business executives saw what happened to Arthur Andersen when that firm tried to defend itself by going to trial. To avoid the potential catastrophe of a full-blown trial and a criminal conviction, firms will now do almost anything to placate federal prosecutors and avoid an indictment, including waiving the attorney-client privilege and firing employees at the direction of the government — even if the firm concludes that such employees were just following directions and are otherwise innocent of any wrongdoing.

Janis observes that federal prosecutors have so much leverage over business firms these days that the very nature of our adversary system of justice is in jeopardy. Companies must too often cough up millions of dollars for “settlements” that are wildly out of proportion to any perceived wrongdoing.

Janis’s paper is short but potent. To check it out, go here.