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Abramoff, Jack, 152
ACA Financial Guaranty Corp., 246, 251, 254, 256, 262, 265–66, 294
Adelphia, xvi, 7–8, 106, 193, 321
advice-of-counsel defense, 123, 235
African Americans, 176, 188, 318
mass incarceration problem and, 329–30
collateral calls and, 272–74, 276–77, 280, 288
credit default swaps and, 270, 273–76
DPA and, 280–81
finances of, 121, 149–50, 159, 161–62, 269–78, 280, 289–90, 292
financial crisis and, 161, 203, 269, 292–93
financial deregulation and, 120–21
investigations of, 113, 147–51, 154, 269–70, 278–81, 285, 287–92, 327
negative basis adjustment and, 275–77, 280, 289
strategy in case against, 155–56
subprime mortgage securities and, 162–63, 269, 271, 277
transaction between Gen Re and, 147, 149–50, 160–62, 306
trials of executives of, 158–62
AIG Financial Products (AIG FP), 120–24, 269–80
collateral calls and, 270, 273–74
credit default swaps and, 270, 275
losses of, 161–62, 269–78, 289–90, 292
PNC and, 111, 113, 120–21, 124, 147, 151, 163
subprime mortgage securities and, 162–63, 269, 271
American Bar Association (ABA), 106, 108, 191, 310, 322
American Pastoral (Roth), 249
Andersen, Arthur Edward, 35
Andres, Greg, 178–81, 287, 326
AIG and, 289–92
Antar, Eddie and Sam, 33–34
antitrust issues, 9, 91, 187, 190–91
Arkin, Stanley, 145
Arthur Andersen, 31–58, 63, 179–81, 193, 197, 281–82, 321
collapse of, 47, 49, 53–56, 58, 139
collateral consequences and, 52, 54–57, 131, 135
Colonial Realty scandal and, 37–38, 45
comparisons between KPMG and, 133–35
consent decree entered into by, 37, 69
consulting business of, 35–36
conviction of, 31, 47, 49–52, 54–55, 58
document destruction and, 32, 34–35, 37, 40–42, 44, 50, 53–56, 130
Enron and, 32–33, 35, 37–41, 43–44, 46–50, 52, 54, 56
Enron Task Force case against, 14–15, 32, 35, 46–48, 52, 55–56
grand jury hearing on, 47, 52–53
indictment, prosecution, and trial of, 47–49, 51–52, 54–56, 58, 101, 104, 106, 123–24, 127, 133, 180
investigations of, 32–34, 38, 42–46, 53, 127
media and, 32, 41–44, 47, 50, 52–53
settlement negotiations and, 46–48, 53, 56, 284
Waste Management scandal and, 35, 37–39
Ashcroft, John, 7, 110, 135, 156
Ashland Oil, 72
Athan, Tom:
AIG collateral calls and, 274, 276, 280, 288
AIG investigations and, 279–80, 288–91
subprime mortgage securities and, 269, 271
Atkinson, Michael:
Pelletier’s relationship with, 111–12, 120
Atlanta Journal-Constitution, 72–73
attorney-client privilege, 188
AIG and, 287–88
corporate prosecutorial policies and, 100–101, 104, 106, 108, 110, 139–40, 142–44, 322
and SEC-Bank of America agreement, 219, 221–22
attorney payments, 161
corporate prosecutorial policies and, 130, 132–34, 136–37, 140–42, 139–43
Kaplan and, 137–43
KPMG and, 127, 130, 132–34, 136–38, 141
Austern, H. Thomas, 188–89
Bair, Sheila, 328
Bakker, Jim, 148
Bank of America, 187, 288, 293, 329
attorney-client privilege and, 219, 221–22
and bonuses paid to Merrill’s employees, 216–20, 222
Merrill’s losses and, 204, 222–24
Merrill taken over by, 165, 203–4, 215–17, 221–23, 225
settlement of, 203–4, 217–26, 295–96, 299, 301, 318
Bank of Credit and Commerce International, 128
banks, bankers, xv–xvii, 19, 31, 34, 65, 69–70, 78, 90, 94, 119, 148, 182, 190, 273, 307, 315, 318, 324–26, 352n
bailouts of, xiii, xvi–xvii, 168, 185, 204, 217, 279, 328
bonuses paid to employees of, 185, 204, 216–22, 225
financial crisis and, xiii, xvi–xvii, 41–42, 57–58, 165, 171–72, 174–75, 181, 185, 203–4, 217, 227, 231–33, 236, 259, 264, 293, 301, 310
financial deregulation and, 120, 123
and history of crackdown on corporate white-collar crime, 60–61
Madoff and, 234–36
Trump and, xvi–xvii
Barofsky, Neil, xiii
Barstow, David, 315
Bartiromo, Maria, 240
Bastrop Federal Correctional Institution, 18
Bear Stearns, 165, 181, 197, 232, 240, 281
Belnick, Mark, 137
Bennett, Robert, 10, 128–35, 284
Berardino, Joseph, 33, 41–42, 44–45, 52
Berger, Sandy, 170
Berkowitz, Sean:
Enron and, 19–22, 24–30, 32, 80
and trial of Skilling and Lay, 25–30
Berkshire Hathaway, 147–48, 160
Berlin, Irving, 302–3
Bernanke, Ben, xvii, 165, 283–84
Bharara, Preetinder Singh, xiii, 166, 175, 228–31, 233, 235, 307–8
background of, 228–29
insider trading and, 229–31, 237, 308, 329
Biern, Herbert, 123–24
internal investigation business of, 193, 196, 320–21
recruiting policies of, 198–99
relations between DOJ and, xix, 192–94
Big Short, The (Lewis), 245, 263
Black, Conrad, 183
Black, Leon, 84
Blankenship, Don, 316–17
Blankfein, Lloyd, 264
Block, Fred, 308
BP Deepwater Horizon disaster, xix, 316, 325–26
Brady material, 157
Brandeis, Louis, 61
Brandon, Joseph, 160–61
Breeden, Richard, 220
Breuer, Lanny Arthur, 57, 168–71, 173–85, 196, 238, 255, 264, 313, 327
background of, 166, 168–70, 177
demeanor of, 168, 170–71, 281–82
DOJ appointment of, 166, 168, 170–71, 176, 179
DOJ departure of, 325–26
DOJ overhaul efforts of, 176–79, 325
financial crisis and, 173–75, 194, 326
HSBC and, 283–84
media and, 177, 190, 311, 324–25
Nigerian barge case and, 182–83
Ogden’s relationship with, 173–74
Pelletier’s relationship with, 278, 281, 286–88
return to C&B of, 189–90, 318, 322
Stanford and, 286–87
Brickey, Kathleen, 51
Bristol-Myers Squibb, 109
Broadcom Corp., 144
Buell, Samuel:
on corporate self-policing, 193–94
Delainey interviews and, 3–6
Enron and, 1–8, 12–13, 16–19, 193
Buffett, Warren, 36, 147–49, 160
Bulger, Whitey, 12
Burger, Warren, 305
Burling, Edward, Jr., 188
Burling, Edward, Sr., 186, 188
Burson, Charles, 169–70
Bush, George W., xii, 34, 110, 217, 229, 245, 255, 280, 323
Andersen and, 50–52
financial crisis and, 172–73, 203
and scandals and incompetence of DOJ, 156–57, 164–66, 170, 174
Caldwell, Leslie:
and case against Fastow, 15–16
Enron and, 3, 11–12, 15–16, 19, 32, 319
Callan, Erin, 240–41
Capital Offenses (Buell), 193–94
Caplin & Drysdale, Chartered v. United States, 141
Cassano, Joseph:
AIG FP and, 122–24, 270–80, 288–90, 292
authoritarianism of, 271, 278, 280
collateral calls and, 272, 274, 277, 280
Chamber of Commerce, US, 106, 108, 139, 306–7
Charter Communications, 254–55
Chase National Bank, 60
Chertoff, Michael, 9, 150, 176, 190
Andersen and, 32–35, 45–48, 52–54, 57, 123
Enron and, 9–11, 32, 35, 46, 48
PNC and, 123–24
Chickenshit Club, xxi, 136, 262
Comey’s use of the term, xiv–xv, 125, 152, 217, 326
Christie, Chris, 109–10
Citigroup (Citi), 89, 187, 293, 300
Class V Funding III and, 294
Lehman and, 241–42
SEC’s agreement with, 294–306, 308, 323
Citizens United v. Federal Elections Commission, 305
Clark, Peter, 66
Clayton, Walter J. “Jay,” 325
Cleary Gottlieb Steen & Hamilton, 207, 219, 221, 242
Clemens, Roger, 170
Clifford, Clark, 128
Clinton, Bill, 36, 43, 96, 128, 136, 166–70, 180, 209, 339n–40n
Clinton, Hillary, 248
email scandal of, 326–27
presidential campaign of, xvi–xvii, 326–27
Cohen, H. Rodgin, 284
Cohen, Manuel, 90
Cohn, Roy, 62–63
collateral consequences, 96, 159, 180, 197, 214
Andersen and, 52, 54–57, 131, 135
corporate prosecution policies and, 94, 100
HSBC and, 283–85
PNC and, 123–24
collateralized debt obligations (CDOs), 230, 293
Citi and, 294–95
Goldman and, 245, 251, 256, 258, 260, 264, 266–67, 270, 272
Colonial Realty Co., 37–38, 45
Comcast Corp. et al. v. Behrend et al., 305
Comey, James, 281
on Chickenshit Club, xiv–xv, 125, 152, 217, 326
Clinton email scandal and, 326–27
on how prosecutors should approach their jobs, xiv–xv, xvii–xviii
KPMG and, 134–36
leadership qualities of, xii–xv
Southern District appointment of, xii–xiii
speeches of, xiii–xv, xvii, xxi, 125, 152, 217, 326
Commodity Futures Modernization Act, 339n–40n
Congress, US, ix, xv, xviii, 58, 79, 89, 93–94, 107, 118, 170, 184–85, 210, 267, 324, 327
Andersen and, 32, 38, 42–44, 50–51, 55
corporate prosecutorial policies and, 94, 110, 140, 321
financial crisis and, 165, 167, 175, 265, 292
and history of crackdown on corporate white-collar crime, 60–61
see also House of Representatives, US; Senate, US
Constitution, US, xviii, 50, 60, 157, 301
attorney payments and, 141–42
death penalty and, 141, 210, 212–13
Sixth Amendment to, 136, 138, 141–42
“Corporate Criminal Liability” (White), 107
Corporate Fraud Task Force, 11, 172–73
corporate white-collar crime:
avoiding prosecution of, 94–96
conviction rates in, xviii
and cooperation-for-leniency bargains, 14–17, 95, 100, 104, 132–34, 193
crackdowns on, 59–63, 65, 77, 167
dance and, 199–200
defense firms building practices in, 190–91
failed investigations on, 315–17
invention of, 59
and investigating corporations vs. top executives, 197–201
lack of prosecutions of, xvi–xx
lack of resources to prosecute, xviii, 21, 156–57, 183–84
mandatory sentencing guidelines and, 79, 143
prosecutorial policies for, 93–94, 96–97, 99–101, 104–10, 127, 130, 132–34, 136–45, 319–22, 325
prosecutorial timidity and, 57–58, 181–84
scheme liability allegations in, 248, 251, 254–55
securities manipulation in, xv–xvi, 34, 59–61, 67, 167
self-examination tool and, 72
self-justification and self-delusion in, 5
shift away from investigation of, 156–57
silver ages of, 62–63
corporations:
friendliness of judiciary to, xviii, 305–8
investigations of top executives vs., 197–201
power of, xx–xxi
self-policing of, 193–94, 196–97
whistle-blowers at, 40, 239, 327–28
Countrywide Financial Corporation, 165, 172, 278, 293, 319, 329
“Court of Appeals, The” (Rakoff), 302–3
Covington, J. Harry, 186
Covington, Joseph, 195–96
Covington & Burling (C&B), 166, 168–70, 177–78, 186–90, 193, 195, 264, 282, 318, 322, 326
media and, 187–90
Cox, Archibald, 72
Crazy Eddie, 33–34
credit default swaps, 230, 270, 273–76
Cuomo, Andrew, 169, 221–25, 279
and Bank of America, 216–17, 221–24
D’Amato, Alfonse, 90
Danforth, John, 46
Darrow, Clarence, 229
Daschle, Tom, 13
Davis, Lanny, 170
Davis Polk & Wardwell, 190, 207, 323, 326
Andersen and, 33–34, 42–45, 47–49, 53, 63, 284
McInerney’s background at, 178, 180
death penalty, 141
media and, 212–13
Rakoff and, 203, 210, 212–14, 226, 301
Debevoise & Plimpton, 107, 128, 146, 190, 207, 224, 288
deferred prosecution agreements (DPAs), xviii–xx, 93, 197–98, 216, 236, 316–17
Andersen and, 46–48
HSBC and, 284–85
KPMG and, 135–36
UBS and, 282–83
Delainey, Dave, 3–6, 13–14, 16–17, 27–28, 31
Democrats, Democratic Party, 51, 58, 70, 91, 164, 173, 184–86, 307, 339n
corporate prosecutorial policies and, 108, 140
financial crisis and, xvi, 167
and history of crackdown on corporate white-collar crime, 60, 62
Sporkin and, 67–68
Deresiewicz, William, 200
Dodd-Frank Wall Street Reform and Consumer Protection Act, xvii, 58, 167–68, 325
dot-com boom and meltdown, 36, 41
Dowd, John, 5–6
Drexel Burnham Lambert, 34, 122, 207
Dugan, John, 190
Duncan, David:
Andersen and, 39–40, 44, 48–49, 53, 56
Dunlap, Al “Chainsaw,” 38
Eastern District of New Jersey, US Attorney’s Office in, 172, 237–38, 240
Eastern District of New York, US Attorney’s Office in, 11–12, 103, 172, 178, 181, 232, 237
Ebbers, Bernie, 105
Egol, Jonathan:
Goldman and, 250, 252–53, 257–63
proposed charging of, 257–63
Enron, xvi, 1–33, 51, 87, 106, 144, 193, 197, 214, 290, 321
Andersen and, 32–33, 35, 37–41, 43–44, 46–50, 52, 54, 56
broadband unit of, 20–22
collapse of, 1, 6–7, 15, 22, 27, 37, 41–42
document destruction and, 32, 37, 40–41, 44–45
energy trading of, 3–5, 27–28, 39
finances of, 3–4, 6, 14–16, 18, 20, 22–23, 25–30, 37, 39, 49–50
and governmental jurisdictional problems and issues, 9–10
investigations of, 1–5, 7, 11, 14–15, 127, 171
media and, 3, 6, 13–15, 17, 19, 28–30, 39, 41–43, 52
Nigerian barge case and, 18, 182–83, 255
off-balance-sheet deals of, 13–14, 26
see also Lay, Ken; Skilling, Jeffrey
Andersen and, 14–15, 32, 35, 46–48, 52, 55–56
and case against Fastow, 14–16
and case against Skilling and Lay, 19, 22
in disarray, 19–22
Enron’s broadband unit and, 20–21
Glisan’s grand jury testimony and, 17–18
members of, 1–3, 7–8, 11–13, 16–20, 46–47, 147, 290, 319
and trial of Skilling and Lay, 25–30
Ernst & Ernst v. Hochfelder, 67
Ernst & Young (E&Y), 120–23, 243
Excellent Sheep (Deresiewicz), 200
Exxon, ExxonMobil, xix, 90, 187
Exxon Valdez, 90
Fagell, Steven, 177–78
Fastow, Andrew, 19
cooperation of, 14–16
Enron and, 7, 13–16, 26, 30–31
indictment of, 15–16
and trial of Skilling and Lay, 26, 30
Fastow, Lea, 15–16
Favretto, Richard, 45–46
Federal Bureau of Investigation (FBI), xii, 98, 148, 153, 181, 230, 232, 237, 285, 315, 327
Enron and, 2–5, 9, 12, 15, 18, 21, 24, 28, 101
Pelletier and, 312–13
PNC and, 111–13
in shift away from white-collar crime, 156–57
terrorism and, xviii, 156, 214
Federal Deposit Insurance Corporation (FDIC), 60, 328
“Federal Mail Fraud Statute (Part 1), The” (Rakoff), 75–76
Federal Reserve (Fed), xvii, 44–45, 120, 165, 181, 217, 224, 283–84, 352n
PNC and, 123–24
Federal Trade Commission, 61, 186, 308
Financial Crisis Inquiry Commission (FCIC), 291–92
financial crisis of 2008, xvi–xvii, 19, 42, 50, 94, 193–95, 230–33, 259–60, 282, 296, 315, 321, 326, 340n
and AIG, 161, 203, 269, 292–93
and Bank of America, 203–4, 216–17, 293
and banks, see under banks, bankers
and Congress, 165, 167, 175, 264, 292
and DOJ, see under Justice Department, US
fines and settlements resulting from, 317–18
and foreign bribery cases, 194–95
and Goldman, 245–47, 259, 265, 320
and Holder, 172–76
insider trading cases vs. cases on, 230–31
investigations and prosecutions on, 171–76, 181, 291–92
public opinion on, 185, 221, 293
and Rakoff, 203, 209, 226–27, 300–301, 310
and Safwat, 292–93
and Southern District, 172, 175, 232–33, 236–37
financial deregulation, 50, 120–21, 123, 167, 187, 217, 339n
Financial Fraud Enforcement Task Force (FFETF), 175–76
Fiske, Robert, Jr., 91, 180, 190
Andersen and, 33–35, 44–47, 63, 134, 284
United Brands and, 86–88
Fitzgerald, Patrick, 20
Fleming, Peter, 80, 91, 128, 151, 190
Food and Drug Administration (FDA), 187
Forbes, 195–96
foreign bribery, 176, 182, 315
DOJ and, 194–96
Sporkin and, 71–73, 87, 90, 194, 325
Foreign Corrupt Practices Act (FCPA), 73, 89–90, 194–96, 315, 325
foreign exchange rate manipulation, 232, 309, 318
Forster, Andy:
AIG collateral calls and, 274, 276, 280, 288
AIG investigations and, 279–80, 287–88, 290
AIG losses and, 269–74, 277–78
Fraud Enforcement and Recovery Act, 184
Freddie Mac, 54, 165, 193, 203, 329
Fried, Frank, Harris, Shriver & Jacobson, 190–91
Friedman, Lawrence, 59
Friendly, Henry, 70
Friestad, Scott, 324
Frontline, 311
Garrett, Brandon, xix–xx
Geithner, Timothy, 165, 167–68, 284
General Motors (GM), 316
General Reinsurance Corporation (Gen Re):
investigations of, 147–51, 154
negotiations with, 160–61
overturning convictions of executives of, 161–62
plea agreements with executives of, 150–51
strategy in case against, 155–56
transaction between AIG and, 147, 149–50, 160–62, 306
trials of executives of, 158–60, 162
Giglio rule, 157
Ginsburg, Ruth Bader, 183
Giuliani, Rudolph, xii, 10, 34, 99, 307
Glass-Steagall Act, xvii, 339n
Glavin, Rita, 288–89
Glisan, Ben, Jr.:
grand jury testimony of, 17–18
Ruemmler’s meetings with, 18–19
and trial of Skilling and Lay, 29–30
Goldman Sachs, xvii, 165, 187, 279, 317, 325
Abacus 2007-ACI and, 245–47, 249–51, 254–56, 258–61, 263–66, 294–95, 299, 320
AIG and, 270, 272, 274, 276, 280
CDOs and, 245, 251, 256, 258, 260, 264, 266–67, 270, 272
charges against, 245, 247–48, 251–54, 256–63, 265, 295, 299
investigations of, 246–48, 250–52, 261, 266, 327
and mortgages and mortgage securities and, 245–47, 251, 256, 262, 266–67, 320
scheme liability allegations and, 248, 251, 254–55
SEC and, 245–48, 250–63, 265–66, 268, 294–95, 299, 320
settlements of, 265–67, 294–95, 299
Goldwater, Barry, 103
Gonzales, Alberto, 108–9, 156, 166, 229
Gordon, Robert, 191
Gould, Milton, 90
Grassley, Charles, 279
Great Depression, xvi–xvii, 60, 165, 339n
Greenberg, Maurice “Hank,” 121, 149, 160
Grindler, Gary, 178, 286–87, 326
Grundfest, Joseph, 68
Gulf Oil, 70–72
Guthrie, Savannah, 5
Habayeb, Elias, 271–72, 274, 276–78
Halliburton Company, 7, 89, 195
Hanusik, Tom:
AIG-Gen Re case and, 147–51
hedge funds, 39, 171, 181, 229–33, 255
Goldman and, 245–46, 248, 250–51, 253–54, 256–59, 265–66
insider trading and, 229–31, 308
Heritage Foundation, 324
Hewlett-Packard, 193
Holder, Eric, 58, 99, 157, 181–83, 238, 264, 280–84, 326
AIG investigations and, 280–81
background of, 166, 168, 173, 282–83
DOJ departure of, 318–19
financial crisis and, 172–76
HSBC and, 283–85
Ogden’s relationship with, 173, 175
honest services, 143–44, 182–83, 185
and charges against Lay and Skilling, 23, 87
Hoover, Herbert, 60
House of Representatives, US, 38, 42, 51, 185, 279, 308, 324
see also Congress, US
housing market, 162, 274, 276, 318
bubbles in, 217, 245, 263, 266, 294
see also mortgages, mortgage securities
Howard, Smith & Levin, 189
HSBC, 283–85
Hueston, John, 27–29
Hughes, Howard, 148
Hurd, Mark, 193
Industriekreditbank (IKB), 246–47, 250, 254, 259
insider trading, xv–xvi, 34, 105, 148, 174, 229–33, 247–49, 326
Bharara and, 229–31, 237, 308, 329
Rakoff and, 77, 89, 207–8, 329
Insull, Samuel, 60
interest rate manipulation, 180, 232, 318, 325–26
Internal Revenue Service (IRS), 127, 187, 282, 315
Irving, Clifford, 148
“Is Enron Overpriced?” (McLean), 39
“Is the Ethical Lawyer an Endangered Species?” (Rakoff), 310
Jacobs, Dennis, 161
Jencks material, 157
Jenner & Block, 237–40, 242–43, 319
and C&B, 188–89
Rakoff and, 205–6
joint defense agreements, 100–101, 104–5, 130, 143, 161, 234
Jonas, Bonnie, 238–40
JPMorgan Chase, xviii, 165, 181, 187, 242, 273, 317
Madoff and, 234–36
Justice Department, U.S. (DOJ), xi, xv–xx, 67, 73, 76–77, 86, 95, 101, 103–10, 114, 120, 146, 153, 161, 170–85, 187, 189–90, 199–201, 224, 232, 299, 301–2, 312–28, 336n
AIG and, 113, 124, 147–48, 150–51, 154–56, 158, 162, 269–70, 278–81, 288–92, 327
Andersen and, 31–34, 42, 44–49, 52–54, 56–58, 124, 135, 139, 281–82
Blankenship and, 316–17
Breuer’s appointment to, 166, 168, 170–71, 176, 179
Breuer’s departure from, 325–26
Breuer’s overhaul efforts at, 176–79, 325
corporate prosecutorial policies and, 96–97, 99, 104–10, 127, 139–40, 144–45, 319–22, 325
DPAs and, xviii, 93, 96, 135–36, 197, 236
Enron and, 1–3, 8–12, 21, 23, 31, 106, 182–84, 255, 290
failed corporate investigations of, 315–17, 319
financial crisis and, xvi, 171–76, 181, 233, 282, 292–93, 315, 317–18, 320, 326
fines and settlements won by, 236, 317–18
foreign bribery cases and, 194–96
Goldman and, 264–65, 267, 320, 327
HSBC and, 283–85
and incentive structure of prosecutors, 189, 201, 305
KPMG and, 127–28, 130–31, 135–36, 139, 142, 281
Nigerian barge case and, 182–83
Obama’s appointees to, 57, 166, 170, 173, 189, 201, 286, 319
Pelletier and, 117, 269–70, 281, 286–91, 312–14, 328
prosecutorial timidity of, 57–58, 181–84
Rakoff and, 310–11
relations between Big Law and, xix, 192–94
resources lacked by, xviii, 183–84
scandals and incompetence of, 156–58, 164–66, 170, 174
Securities Enforcement Forum and, 323–24
and settlements without judicial reviews, 308–9
Stanford and, 286–88
Walmart and, 315–16
Kaplan, Lewis A.:
attorney payments issue and, 137–43
KPMG and, 126, 135–43, 145–46, 306, 328
prosecutorial misconduct criticisms of, 138–39, 145
and charges against Citi, 297–99
Rakoff’s relationship with, 303–4
regulators criticized by, 323–24
SEC-Citi agreement and, 295–99, 323
Securities Enforcement Forum and, 323–24
Keating, Charles, 70
Keker, John, 15–16
Kellogg, Brown & Root (KBR), 195
Kennedy, Anthony, 183
Kessler, “Dirty Mel,” 118
Khuzami, Robert, 299, 303, 323, 325
Goldman and, 258–59, 262–63, 265
Kidder, Peabody & Co., 207
Kidney, James, 244–54, 265–68, 296, 327–28
charges against Egol proposed by, 257–60, 262
and charging of Tourre, 252–53
Goldman and, 245–48, 250–54, 256–63, 265–66, 268
insider trading and, 247–48
litigation skill and style of, 244–45, 248, 250
Muoio’s conflicts with, 250, 256–60, 262
retirement speech of, 266–67
scheme liability allegations and, 248, 251, 254
Kopper, Michael, 14–15
KPMG, 55, 126–46, 161, 181, 197, 235, 248, 281, 306
attorney payments and, 127, 130, 132–34, 136–38, 141
comparisons between Andersen and, 133–35
Congress and, 127–28, 132, 139
corporate prosecutorial policies and, 127, 130, 137, 139–40
indictment of ex-executives of, 136, 139, 142
investigations of, 126–27, 131–33
Kaplan and, 126, 135–43, 145–46, 228
negotiations and agreement of, 130–36, 284
prosecutorial misconduct criticisms and, 138–40, 328
taxes and, 126–36, 138, 145–46
Kudlow & Cramer, 13
Lance, Bert, 73
Landis, James, 62
law, business of:
internal investigations in, 193, 196
secrecy in, 188–89
Lawsky, Ben, xiii, xv, 216–17, 222, 229, 328
Lay, Ken:
Bush’s relationship with, 7, 102
and case against Fastow, 15–16
case and charges against, 19, 22–23, 28–29, 87
Enron case and, 2, 7–8, 13, 16–19, 22–23, 25–30, 87, 102
finances of, 28–29
Glisan’s grand jury testimony and, 17–18
prosecution and trial of, 7–8, 18, 20, 25–30
Lay, Linda, 28–29
Leahy, Patrick, 140
legal advertising, 188
collapse of, 165, 172, 203, 237–38, 243
investigations of, 237–43
liquidity of, 240–43
Leonard, Charlie, 43–44, 52–53
Lerner, Jay, 174
Lewis, Ken:
and Bank of America, 204, 218, 222, 288
punishment of, 225–26
Lindsey Manufacturing Co., 195
lobbyists, lobbying, ix, xvii, 6, 42, 51–53, 61, 67, 152, 185, 187–88, 193, 307, 323
corporate backlash and, 106, 321
Long Term Capital Management, 352n
Lowitt, 241–43
Lybrand, Ross Bros. & Montgomery, 63
Lynch, Gary, 68
Lynch, Loretta, 319
McCauley, Daniel, 68
McGinn, Kevin, 274
McGuire, Harold “Skip,” Jr., 79–80
McInerney, Denis, 326
Andersen and, 34–35, 47–49, 179–80
background of, 178–80
McKessonHBOC, 38
McLean, Bethany, 39
McLucas, William, 323
McNulty, Paul, 110, 140, 150, 154
Madoff, Bernie, 233–36, 285, 287
mail fraud, 60, 75–76, 148, 157
Markoff, Gabriel, 54
Martens, Matthew, 297–99
Massey Energy Company, 316–17
mass incarcerations, 324, 329–30
Mattingly, Mack, 103
Mayopoulos, Timothy, 222–24
Meet the Press, 42
Mejia, Lou, 251, 253–54, 258–59
Mendelsohn, Mark, 196
mergers-and-acquisitions (M&As), 189, 191, 207
Bank of America’s takeover of, 165, 203–4, 215–17, 221–23, 225
bonuses paid to employees of, 204, 216–22, 225
Nigerian barge case and, 18, 182, 255
Miami, US Attorney’s Office in, 171, 178–79
Pelletier’s background in, 112–15, 118–20, 151–52
Microsoft, 91
Mikulski, Barbara, 184
Milken, Michael, xv, 34, 249, 260
Milton, Christian, 160
Mobil, 187
Monaco, Lisa, 183
money laundering, 12, 128, 283, 318
Monrad, Elizabeth, 150, 158, 160
Morgan Stanley, 232, 273, 276, 293
Morgenthau, Robert, 80, 91, 169
and crackdown on corporate white-collar crime, 62–63, 65, 77
on women prosecutors, 97–98
Mortgage Fraud Strike Force, 174–75
mortgages, mortgage securities, 230, 283, 294, 318, 329, 340n
financial crisis and, 165, 171, 173–75, 232–33, 293
Goldman and, 245–47, 251, 256, 262, 266–67, 320
subprime, 162–63, 269, 271, 277
Moynihan, Brian, 222–23
Moynihan, Daniel Patrick, 208–9
Mudge Rose Guthrie & Alexander, 92, 206–7, 210
Mueller, Robert, 10–11, 15, 24, 101–2
Mukasey, Michael, xii, 166, 172
Munger, Charlie, 148
Muoio, Reid:
and charging of Egol, 260–62
and charging of Tourre, 252–53
financial crisis and, 259–60
Goldman and, 246–48, 250, 252–53, 256–62
Kidney’s conflicts with, 250, 256–60, 262
Napier, Richard, 158–59
narcotics, xix, 3, 13, 143, 156, 210, 215, 239, 281, 283
attorney payments and, 141–42
Breuer and, 176–77
Pelletier and, 118–19
Nasdaq, xvi–xvii, 7, 58, 105, 127, 193
National Advocacy Center, 281, 287
National Student Marketing Corporation, 77–82
National Westminster (NatWest), 14, 287
National White Collar Crime Institute, 191
Neiman, Shirah, 137, 144–45, 328
background of, 97–98
corporate prosecution policies and, 96–97, 99, 101, 104, 130, 138
KPMG and, 128–30, 132–35, 138, 145
prosecutorial misconduct criticisms of, 138, 145
Prudential and, 95–96
work ethic of, 98–99
New Republic, 61
New York Review of Books, 310, 329
New York Stock Exchange (NYSE), xv, 60, 175
New York Times, 84, 89, 98, 190, 213, 231, 237, 267, 300, 315, 325
Nigerian barge case, 18, 182–83, 255
Nixon, Richard, 67, 75, 92, 307
and crackdown on corporate white-collar crime, 62–63
no-admit, no-deny settlements, 69, 204, 256, 296–97, 308–9
nonprosecution agreements, xviii–xx, 48, 161, 280
“Numbers Game, The” (Levitt), 36
Obama, Barack, 124, 157, 164–68, 183–85, 193, 224, 226, 255, 282, 323
corporate backlash and, 321–22
corporate prosecutorial policies and, 319, 325
DOJ appointees of, 57, 166, 170, 173, 189, 201, 286, 319
financial crisis and, xvi, 58, 165–68, 172
foreign bribery cases and, 194–95
Stanford and, 286–87
Office of the Comptroller of the Currency (OCC), 120, 123, 217, 236
Ogden, David:
financial crisis and, 172–75
and investigations of corporations vs. top executives, 200–201
Ogrosky, Kirk, 119–20
Okula, Stanley, 128, 130, 132, 144–45, 328
Olson, Ron, 148
organized crime, xii, 2, 11–12, 34, 99, 142, 180, 215, 307
Osborne, George, 283–84
Other Government, The (Green), 188
Oxley, Michael, 51
Parker, Barrington, Jr., 329
Patricco, Ray, 150, 154–55, 158–60
Paul, Weiss, Rifkind, Wharton & Garrison, 137, 196, 323
and SEC-Bank of America agreement, 221–22, 225, 295–96, 299, 301
Paulson, John, 245–47, 250, 253–54, 257–59, 262
Paulson & Co., 245–46, 248, 250–51, 253–54, 256–57, 265–66
Pecora, Ferdinand, 60
Pellegrini, Paolo, 245, 248, 253, 257
Pelletier, Mike, 115–17
Pelletier, Paul, 111–24, 171, 174–75, 327–28
AIG and, 113, 147, 151, 154–56, 158–62, 269–70, 278, 280–81, 285, 287–92, 306
Atkinson’s relationship with, 111–12, 120
background of, 112–20, 151–52, 312–13
Breuer’s relationship with, 178, 281, 286–88
demeanor of, 112–13, 118–19, 123, 151–55, 178, 281–82, 314
going-away party of, 312–14
and incompetence at DOJ, 164–65
PNC and, 111–13, 120–24, 147, 151, 163
Stanford and, 285–87
People v. Henry Sweet, The, 229
Pfizer, xviii–xix
Pirro, Al and Jeanine, 129
Pitt, Harvey, 64
AIG FP and, 111, 113, 120–21, 124, 147, 151, 163
collateral consequences of moving against, 123–24
investigation of, 111–12, 120–23
off-balance-sheet deals of, 121, 163
Podesta, John, 173
Pollack, Irving M., 65, 71, 76, 248
Ponzi schemes, 5, 62, 174, 233–34, 285, 287
Porter, Cole, 209
Postal Inspection Service, 157, 313
AIG and, 148–49, 155, 278–79, 290
Powell, Lewis, 306–7
Powers, William, Jr., 14
PricewaterhouseCoopers (PwC), 162, 272–75, 277–78, 280, 289–90
“Proposed President’s Financial Fraud Enforcement Council” (Holder), 173–74
Prudential Securities, 95–96, 100
Public Oversight Board, 36
Quattrone, Frank, 306
Qwest Communications, xvi, 8, 37, 153
Rajaratnam, Raj, 231–32
Rakoff, Abraham, 205–6, 210–11
Rakoff, Jed, 73–82, 145, 202–15
background of, 74–75, 191, 205–6, 210
and Bank of America’s takeover of Merrill, 204, 215
and charges against Citi, 297–99
corporate white-collar crime and, 73, 75, 77–82, 86–89, 93, 207, 214–15, 217–21, 223–25, 295–304, 308–11, 323, 328–30
death penalty and, 203, 210, 212–14, 226, 301
demeanor of, 202, 209–11, 218, 329
doggerel verse of, 91–92, 209, 302–3
family of, 202–3, 205–6, 210–13, 226
financial crisis and, 203, 209, 226–27, 300–301, 310
insider trading and, 77, 89, 207–9, 329
judgeship of, 74, 76, 82, 202–4, 208–10, 212–15, 217–21, 223–27, 295–304, 308–11, 323, 328–29
law loved by, 73–74
on mail fraud, 75–76
mass incarceration problem and, 329–30
media and, 212–13, 226, 296, 300–301, 308, 310
move to private practice of, 92, 128, 190–91, 206–8, 210–12
National Student Marketing and, 77–82
as public intellectual, 310–11, 329–30
reversed on appeal, 213, 302, 304, 308, 328–29
SEC-Bank of American agreement and, 203–4, 217–21, 223–26, 295–96, 299, 301
SEC-Citi agreement and, 295–303, 308, 323
Siegel and, 207–8
Sporkin and, 73, 76–78, 89, 203
Rakoff, Todd, 206, 210–11, 226
Raman, K. Sabeel, 167–68
Randell, Cortes Wesley, 78–79
recessions, 7, 50, 165, 192, 300
Refco, 240
Regan, Donald, 68
Rendel, Midge, 205
Republicans, Republican Party, xvi–xvii, 7, 10, 51, 70, 152, 186, 324–25
corporate prosecutorial policies and, 108, 140
Sporkin and, 67–68
Rice, Ken, 20
Richter, John, 21
Roberts, John, 305
Roosevelt, Franklin Delano, xii, 60–61, 186
Royal Bank of Scotland (RBS), 180
Rubin, Robert, 339n
Ruemmler, Kathy:
background of, 2–3
Delainey interviews and, 3–6
Enron and, 1–8, 16–22, 24–30, 32, 80, 182–84, 255, 290
Glisan’s grand jury testimony and, 17–18
Glisan’s meetings with, 18–19
Nigerian barge case and, 18, 182–83, 255
and trial of Skilling and Lay, 25–30
Russert, Tim, 42
Safwat, Adam, 328
AIG and, 155–56, 158, 160–62, 278–81, 288–92, 306
financial crisis and, 292–93
St. Denis, Joseph, 271
Salomon Brothers, 94–95
Sarbanes-Oxley (Sarbox), 51, 55, 58
savings and loan scandals, xv, 70
Scalia, Antonin, 183
Schumer, Charles, 228–29
Scientific-Atlanta, Inc., 254–55
Scrushy, Richard, 9
Second Circuit Court of Appeals, US, 82, 224, 226, 232, 328–29
AIG-Gen Re case and, 161–62, 306
death penalty and, 212–13
as friendly to business, 306–8
SEC-Citi agreement and, 296, 301–2, 304, 306, 308
Securities Act, 60–61
Securities and Commodities Fraud Task Force, 62, 224, 232
Securities and Exchange Commission (SEC), 12, 36, 60–73, 75–78, 95, 106, 131, 184, 323–28
action memos of, 247–48
AIG-Gen Re case and, 147, 161–62
Andersen and, 35, 37–42, 45, 56
Bank of America’s agreement with, 203–4, 217–26, 295–96, 299, 301
and bonuses paid to Merrill’s employees, 217–18
and charges against Citi, 297–99
Citi’s agreement with, 294–306, 308, 323
financial crisis and, xvi, 171, 217, 259, 267, 296
foreign bribery and, 71–72
Goldman and, 245–48, 250–63, 265–66, 268, 294–95, 299, 320
insider trading and, 247–49
JPMorgan’s agreement with, 294–95
Kidney and, 244–54, 256–62, 266–68, 296, 328
Lehman and, 241–43
National Student Marketing and, 78, 80–81
Rakoff and, 76, 203–4, 217–21, 223–26, 296, 310
Reagan and, 89–90
Securities Enforcement Forum and, 323–24
and settlements without judicial reviews, 308–9
Sporkin and, 63–73, 75, 77–78, 89–91, 193–94, 203, 217, 220
stock-option backdating and, 143–44
Waste Management scandal and, 35, 37–39
Watergate and, 70–71
Securities Enforcement Forum, 323–24
Securities Exchange Act (1934), 61, 167, 257
Senate, US, xvi, 7, 10, 13, 46, 51, 60, 73, 103, 166, 184, 208, 228, 232–33, 308–9
Breuer’s testimony at, 176, 185
corporate prosecution policies and, 127, 140
Permanent Subcommittee on Investigations (PSI) of, 127, 263–66
see also Congress, US
Sentencing Commission, US, 94, 118
Serageldin, Kareem, 233
Sessions, Jefferson Beauregard “Jeff,” III, 10, 325
Seymour, Whitney North “Mike,” 98
Shad, John, 89–90
Sheldon, Sam, 281
Silverman, Leon, 191
Skadden, Arps, Slate, Meagher & Flom, 10, 128, 131–36, 138, 284
Skilling, Jeffrey, 105
and case against Fastow, 15–16
case and charges against, 19, 22–23, 25, 29, 87
Enron case and, 2–4, 7–8, 13, 16–19, 22–23, 25–30, 87, 143–44, 183
Enron’s energy trading and, 3–4, 27–28
Glisan’s grand jury testimony and, 17–18
honest services and, 143–44
prosecution and trial of, 7–8, 20, 25–30
Smith, C. Arnholt, 73
Societe Generale, 271, 273, 276, 279, 287
Southern District of New York, US Attorney’s Office in, xi–xv, 8–11, 33–34, 56, 73, 93–98, 114, 125–26, 128–29, 144–46, 157, 166, 169, 177, 179, 190, 201, 224, 228, 264, 295, 307, 336n
Comey’s appointment to, xii–xiii
Comey’s speech to prosecutors of, xiii–xv, xvii, xxi, 125, 152, 217, 326
and corporate prosecutorial policies, 96–97, 101, 104
and crackdown on corporate white-collar crime, 62–63, 65
and Enron, 9–10
and financial crisis, 172, 175, 232–33, 236–37
and insider trading, 77, 229–33, 237, 326, 329
and KPMG, 126, 128, 131, 133–36, 138, 142, 145–46, 328
and Lehman, 237–40
and National Student Marketing, 77–82
Neiman’s application to, 97–98
and Prudential, 95–96
quality of prosecutors in, xi–xiv
and Rakoff, 75–77, 86–88, 91, 206–7, 214–15, 303
and Salomon, 94–95
and Sporkin, 77–78, 85, 184, 194
and United Brands, 85–88
Specter, Arlen, 140
Spitzer, Eliot, 147, 149–50, 217
Sporkin, Stanley, 75–78, 87–92, 184, 248
corporate white-collar crime and, 63–73, 76–78, 81–82, 85, 89–90, 106, 193–94
demeanor of, 64–67, 70, 81, 90–91, 323
foreign bribery and, 71–73, 87, 90, 194, 325
National Student Marketing and, 78, 81–82
SEC and, 63–73, 75, 77–78, 89–91, 193–94, 203, 217, 220
Watergate and, 70–72
Stanford Financial Group, 285–88
Stanley, Albert “Jack,” 195
Stein, Jeffrey, 132–34, 137, 139, 141, 306
Steinbrenner, George, 73
Stevens, Ted, 157–58, 171, 281, 291
Stewart, Martha, 105
stock market, 7–8, 57, 161, 283
and history of crackdown on corporate white-collar crime, 60–62
stock-option backdating, 143–44
Stoker, Brian, 299
Stone, Harlan Fiske, 225
Stoneridge Investment Partners, 254–55
Strauss, Audrey, 81–82
Suleiman, Dan, 264
Su Li, 141
Sullivan, Martin, 274–75, 277–78
Sullivan & Cromwell, 207, 284, 325
Sunbeam, 37–38
Supreme Court, US, xii, xviii, 33, 46, 61, 67, 86, 100, 141, 157, 188, 213–14, 225, 248, 297
Andersen and, 55–56
honest services and, 23, 143–44, 183, 185
liberal vs. conservative justices of, 305–6
Skilling case and, 143–44, 183
Stoneridge and, 254–55
Sutherland, Edwin, 59–60
Taibbi, Matt, 246
Tauzin, Billy, 42–44
taxes, 15, 60, 62, 89, 99, 117–18, 187, 279, 282, 318
Telecommunications Act, 187
Tendick, James, 148–49, 155, 279, 290
terrorists, terrorism, xii, 109, 283
on 9/11, xviii, 136–37, 156, 214
Texas City refinery disaster, xix
Thomas, James, 83–85
Thompson, Larry, 8–11, 101–10, 176, 281
Andersen and, 46–47, 101, 104, 134
background of, 10, 46, 102–3, 105, 166
backlash against, 105–9
Corporate Fraud Task Force and, 11, 172
corporate prosecutorial policies and, 104–9, 127, 130, 137, 139, 322
Thompson memo, 101, 104–10, 127, 130, 137, 139–40, 161, 219, 234, 282, 322
reversal of, 140, 143–44, 185, 197, 287, 321
Tonucci, Paolo, 241–42
Toobin, Jeffrey, 13
Tourre, Fabrice:
charging of, 251–53, 257, 260, 263, 295, 320
Goldman and, 248, 250–53, 257–58, 260, 262–63, 267, 320
infamous email of, 252–53
Treasury Department, US, 68, 165, 175, 187, 190, 203, 282–84, 339n
Tribe, Lawrence H., 213
Troubled Asset Relief Program (TARP), 173, 224
Trump, Donald, xvi–xvii, 325–26
Tyco International, xvi, 7–8, 137, 321
financial crisis and, 174–75
Uber, 326
United Brands, 83–89, 93–94, 151
United States v. Booker, 143
United States v. Monsanto, 141
United States v. Newman and Chiasson, 308
United States v. New York Central and Hudson River Railroad Company, 86, 100
United States v. Quinones, 212–14
United States v. Stein, 137, 141, 306
United Way of New York, 193
Velie, Frank, 80
Volcker, Paul, 44–45
Volkswagen, 320
Wachtell, Lipton, Rosen & Katz, 221, 235
Wall Street Journal, xvi, 41, 53, 107, 112, 136, 139, 143–45, 230, 316
Walmart, 315–16
Wal-Mart Stores, Inc. v. Dukes et al., 305
Ward, Robert, 208
Warren, Elizabeth, 309
Washington, D.C., xi, 78, 82, 151–52, 162, 164, 166, 179, 181, 232, 236, 252, 307, 313, 322–25
Andersen and, 33, 43, 48, 52, 133
Breuer’s DOJ appointment and, 170–71
and C&B, 187–88
corporate prosecutorial policies and, 97, 99, 108
Securities Enforcement Forum and, 323–24
Washington Mutual (WaMu), 165, 172, 293
Weddle, Justin, 125–33, 144–46
attorney payments and, 132–33, 136–38
background of, 128–29
KPMG and, 126–33, 135–39, 145–46, 328
prosecutorial misconduct criticisms of, 138–39, 328
Weinberger, Caspar, 128
Weinstein, Jack, 12
Weisselberg, Charles, 141–42
Weissmann, Andrew:
and case against Fastow, 15–16
Enron and, 12, 15–18, 20, 22, 319
Glisan’s grand jury testimony and, 17–18
Wellstone, Paul, 51
White, Mary Jo, 56, 93–97, 129, 190, 224, 309
AIG and, 288–89
corporate prosecutorial policies and, 96–97, 99–100, 107
leadership qualities of, xii–xiii
White Collar Crime (Sutherland), 59
“Why Do They Do It?” (Bucy et al.), 5
WilmerHale, 108, 166, 187, 249, 323
Wing, John “Rusty,” 75
move to private practice of, 91–92, 128, 190
United Brands and, 86–88
wire fraud, 14, 16, 23, 85, 87–88
Wolfson, Louis, 62
WorldCom, xvi, 7–8, 51, 105–6, 214, 321
Yates memo, 319–22