By Robert Schmidt, Bloomberg
U.S. businesses, with the help of civil libertarians, are on the verge of outmaneuvering federal prosecutors and persuading Congress to limit the government’s power to pursue corporate fraud.
Lawmakers are considering a measure that would, among other things, bar the government from demanding that companies reveal confidential talks with their lawyers in order to win leniency in plea deals. It would also prohibit federal agencies, including the Securities and Exchange Commission, from demanding that companies fire or cut off legal support for employees under investigation.
Such tools were crucial in helping prosecutors pry loose valuable information in hard-to-prove cases against WorldCom Inc. and Enron Corp. Curtailing them may mean fewer such investigations in the future, putting investors more at risk.
“Pre-Enron, U.S. attorneys never brought these cases, and after this bill is passed, they will quit bringing them again,” says Lynn Turner, a former SEC accounting chief. “This is a very clear message from Congress: Don’t touch white-collar criminals.”
(Original Article)