INTRODUCTION
1. Chris Smith, “Mr. Comey Goes to Washington,” New York, October 20, 2003, http://nymag.com/nymetro/news/politics/n_9353.
2. Jean Eaglesham and Anupreeta Das, “Wall Street Crime: 7 Years, 156 Cases and Few Convictions,” Wall Street Journal online, last modified May 27, 2016, www.wsj.com/articles/wall-street-crime-7-years-156-cases-and-few-convictions-1464217378.
3. United States Attorneys’ Annual Statistical Report (Washington, DC: US Department of Justice), www.justice.gov/usao/resources/annual-statistical-reports.
4. Brandon L. Garrett, Too Big to Jail: How Prosecutors Compromise with Corporations (Cambridge, MA: Belknap Press, 2014).
5. Brandon L. Garrett and Jon Ashley, Federal Organizational Prosecution Agreements, University of Virginia School of Law, http://lib.law.virginia.edu/Garrett/prosecution_agreements/home.suphp.
6. Justice Department Data Reveal 29 Percent Drop in Criminal Prosecutions of Corporations (Syracuse, NY: Transactional Records Access Clearinghouse [TRAC], Syracuse University, October 13, 2015), http://trac.syr.edu/tracreports/crim/406.
7. Ryan Knutson, “Blast at BP Texas Refinery in ’05 Foreshadowed Gulf Disaster,” ProPublica, last modified July 27, 2010, www.propublica.org/article/blast-at-bp-texas-refinery-in-05-foreshadowed-gulf-disaster.
8. Federal White Collar Crime Prosecutions at 20-Year Low (Syracuse, NY: Transactional Records Access Clearinghouse [TRAC], Syracuse University, July 29, 2015), http://trac.syr.edu/tracreports/crim/398. See also White Collar Crime Prosecutions for 2016 (Syracuse, NY: Transactional Records Access Clearinghouse [TRAC], Syracuse University, September 1, 2016), http://tracfed.syr.edu/results/9x7057c8a7ee9c.html.
CHAPTER ONE: “THERE IS NO CHRISTMAS”
1. Bethany McLean and Peter Elkind, The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron (New York: Portfolio, 2013), 219.
2. Pamela H. Bucy et al., “Why Do They Do It? The Motives, Mores, and Character of White Collar Criminals,” St. John’s Law Review 82, no. 2, art. 1 (2012): http://scholarship.law.stjohns.edu/lawreview/vol82/iss2/1.
3. McLean and Elkind, Smartest Guys in the Room, xx, 239.
4. Kurt Eichenwald, Conspiracy of Fools: A True Story (New York: Broadway Books, 2005), 180.
5. “Where Are the Faces of the Enron Trial?,” Fuel Fix, November 28, 2011, http://fuelfix.com/blog/2011/11/28/the-defendants-of-the-enron-era-and-their-cases.
6. District attorneys are local-level, elected prosecutors who prosecute state crimes and have no connection with the Justice Department, which prosecutes federal crimes. Under longtime district attorney Robert Morgenthau, the Manhattan DA’s office had a successful track record of taking on corporate crime.
7. Dan Morse, Chad Terhune, and Ann Carrns, “HealthSouth’s Scrushy Is Acquitted,” Wall Street Journal online, last modified June 29, 2005, ww.wsj.com/articles/SB111702610398942860.
8. Jonathan Stempel, Reuters, “Former HealthSouth CEO Scrushy’s Bribery Conviction Upheld,” July 15, 2013, www.reuters.com/article/us-healthsouth-scrushy-conviction-idUSBRE96E0TQ20130715.
9. Eichenwald, Conspiracy of Fools, 642.
10. Samuel W. Buell, Capital Offenses: Business Crime and Punishment in America’s Corporate Age (New York: W. W. Norton, 2016), 185.
11. Samuel W. Buell, interview with the author, April 17, 2015 and August 24, 2014.
12. Edward Iwata, “Enron Task Force Faces Big Pressure to Deliver,” USA Today website, last modified August 21, 2002, http://usatoday30.usatoday.com/money/industries/energy/2002-08-21-enron-task-force_x.htm.
13. Jeffrey Toobin, “End Run at Enron,” Annals of Law, New Yorker, October 27, 2003, 48–49.
14. Jonathan Weil, “The Other Shoe Has Yet to Drop in Enron Case,” Wall Street Journal online, last modified August 5, 2002, www.wsj.com/articles/SB1028495391564229080.
15. “Transcript of News Conference with Deputy Attorney General Larry Thompson Wednesday, October 2, 2002,” US Department of Justice, www.justice.gov/archive/dag/speeches/2002/100202dagnewsconferencefastow.htm.
16. Terry Maxon, “Ex-Enron Executive, Wife Plead Guilty,” Sun Sentinel (South Florida), January 15, 2004, http://articles.sun-sentinel.com/2004-01-15/news/0401150112_1_lea-fastow-andrew-fastow-mr-skilling.
17. “News Conference on Indictment,” C-Span video, 32:27, July 8, 2004, www.c-span.org/video/?182612-1/news-conference-indictment.
18. Mary Flood, “Experts See Lessons from Broadband Jurors,” Houston Chronicle, July 22, 2005, http://www.chron.com/business/enron/article/Experts-see-lessons-from-broadband-jurors-1948046.php.
19. McLean and Elkind, Smartest Guys in the Room, 412.
20. Alexei Barrionuevo and Kurt Eichenwald, “In Enron Trial, a Calculated Risk,” New York Times, April 4, 2006, http://query.nytimes.com/gst/fullpage.html?res=9C03E0D71330F937A35757C0A9609C8B63&pagewanted=all.
21. Peter Elkind and Bethany McLean, “Enron Trial: Devils in the Details,” Fortune website, last modified March 15, 2006, http://archive.fortune.com/magazines/fortune/fortune_archive/2006/03/20/8371741/index.htm.
22. Ibid.
23. Barrionuevo and Eichenwald, “Enron Trial, Calculated Risk.”
24. John R. Emshwiller and Gary McWilliams, “Testimony Links Skilling, Lay to Alleged Effort to Hide Losses,” Wall Street Journal online, last modified March 1, 2006, www.wsj.com/articles/SB114114167255385382.
25. McLean and Elkind, Smartest Guys in the Room, 419.
26. Ibid., 415.
27. Ibid., 420.
28. Ibid., 421.
CHAPTER TWO: “THAT DOG DON’T HUNT”
1. Eichenwald, Conspiracy of Fools, 642–46.
2. Jennifer L. O’Shea, “Ten Things You Didn’t Know About Michael Chertoff,” U.S. News & World Report online, last modified August 27, 2007, www.usnews.com/news/articles/2007/08/27/ten-things-you-didnt-know-about-michael-chertoff.
3. Flynn McRoberts et al., “Repeat Offender Gets Stiff Justice,” Chicago Tribune, September 4, 2002, www.chicagotribune.com/news/chi-0209040368sep04-story.html.
4. Greg Farrell, “Roll of Dice Pays Off for Justice,” USA Today online, last modified June 16, 2002, http://usatoday30.usatoday.com/money/energy/enron/2002-06-17-chertoff.htm.
5. Barbara Ley Toffler with Jennifer Reingold, Final Accounting: Ambition, Greed, and the Fall of Arthur Andersen (New York: Currency, 2004), 20.
6. Reed Abelson and Jonathan D. Glater, “Enron’s Collapse: The Auditors—Who’s Keeping the Accountants Accountable?,” New York Times, January 15, 2002, www.nytimes.com/2002/01/15/business/enron-s-collapse-the-auditors-who-s-keeping-the-accountants-accountable.html?pagewanted=all.
7. Susan Scholz, Financial Restatement: Trends in the United States, 2003–2012 (Washington, DC: Center for Audit Quality, July 24, 2014), www.thecaq.org/docs/reports-and-publications/financial-restatement-trends-in-the-united-states-2003-2012.pdf.
8. Robert Kowalski, “Levitt Assails Accounting Industry for Fund Cuts for Oversight Board,” TheStreet, May 10, 2000, www.thestreet.com/story/937042/1/levitt-assails-accounting-industry-for-fund-cuts-for-oversight-board.html.
9. Toffler with Reingold, Final Accounting, 157.
10. US Securities and Exchange Commission, “Waste Management Founder, Five Others Sued for Massive Fraud,” news release, March 26, 2002, www.sec.gov/news/headlines/wastemgmt6.htm.
11. US Securities and Exchange Commission, “Arthur Andersen LLP: Litigation Release No. 17039,” news release, June 19, 2001, www.sec.gov/litigation/litreleases/lr17039.htm.
12. Flynn McRoberts et al., “Civil War Splits Andersen,” Chicago Tribune, September 2, 2002, http://articles.chicagotribune.com/2002-09-02/news/0209020071_1_andersen-partners-andersen-clients-tiger/7.
13. Toffler with Reingold, Final Accounting, 148.
14. Kathleen F. Brickey, “Andersen’s Fall from Grace,” Washington University Law Review 81, no. 4 (2003): 926.
15. Toffler with Reingold, Final Accounting, 152.
16. Emily Cartwright, “Taken on Faith,” 60 Minutes, July 30, 2002, www.cbsnews.com/news/taken-on-faith.
17. Wrong Numbers: The Accounting Problems At WorldCom—Hearing Before the Committee on Financial Services, US House of Representatives, 107th Congress, Second Session, July 8, 2002, serial no. 107-74 (Washington, DC: US Government Printing Office, 2002), www.gpo.gov/fdsys/pkg/chrg-107hhrg83079/html/chrg-107hhrg83079.htm.
18. McLean and Elkind, Smartest Guys in the Room, 161.
19. Ibid., 147.
20. Ibid., 207–8.
21. Ibid., 146.
22. Flynn McRoberts et al., “Ties to Enron Blinded Andersen,” Chicago Tribune, September 3, 2002, www.chicagotribune.com/news/chi-0209030210sep03-story.html.
23. Garrett, Too Big to Jail, 25.
24. Joe Berardino, “Enron: A Wake-up Call,” Commentary, Wall Street Journal online, last modified December 4, 2001, www.wsj.com/articles/SB1007430606576970600.
25. Dan Morgan and Peter Behr, “Enron Chief Quits as Hearings Open,” Washington Post, January 24, 2002, www.washingtonpost.com/archive/politics/2002/01/24/enron-chief-quits-as-hearings-open/488a9983-7b0a-490e-9e15-0509d8ab14be.
26. Eichenwald, Conspiracy of Fools, 642.
27. Mitchell Pacelle, Ken Brown, and Michael Schroeder, “Andersen Tries Deloitte, Others for a Sale, but So Far, No Deal,” Wall Street Journal online, last modified March 11, 2002, www.wsj.com/articles/SB1015799139268944800.
28. Carolyn Lochhead and Zachary Coile, “The Enron Collapse: House Panel Slams Firm for Shredding Enron Papers—Andersen Officials Told They Could Be Charged,” San Francisco Chronicle, January 25, 2002, www.sfgate.com/news/article/THE-ENRON-COLLAPSE-House-panel-slams-firm-for-2880281.php.
29. Flynn McRoberts et al., “Repeat Offender Gets Stiff Justice,” Chicago Tribune, September 4, 2002, www.chicagotribune.com/news/chi-0209040368sep04-story.html.
30. Jonathan Weil and Alexei Barrionuevo, “Arthur Andersen Is Convicted on Obstruction-of-Justice Count,” Wall Street Journal online, last modified June 16, 2002, www.wsj.com/articles/SB1023469305374958120.
31. The business wing of the Democratic Party, led by Bill Clinton’s Treasury secretary Robert Rubin, certainly supported that financial deregulatory push. Under the influence of the Rubin caucus, the Democrats helped finally raze Glass-Steagall, the Depression-era law separating commercial and investment banking. Clinton signed the Commodity Futures Modernization Act on his way out the door in late 2000, a law that prevented oversight of the emerging derivatives markets.
32. “Text: Bush on Corporate Reform, Terrorism Funds,” On Politics, Washington Post, July 8, 2002, www.washingtonpost.com/wp-srv/onpolitics/transcripts/bushtext_070802.html.
33. Joel Roberts, Associated Press, “Senate Adopts Corporate Fraud Measure,” CBS News online, July 10, 2002, www.cbsnews.com/news/senate-adopts-corporate-fraud-measure.
34. Brickey, “Andersen’s Fall,” 959.
35. Ibid., 941–42.
36. Gabriel Markoff, “Arthur Andersen and the Myth of the Corporate Death Penalty: Corporate Criminal Convictions in the Twenty-First Century,” University of Pennsylvania Journal of Business Law 13, no. 3 (2013): 797–842, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2132242.
37. Toffler with Reingold, Final Accounting, 224.
38. “Interview with Mary Jo White, Partner, Debevoise & Plimpton LLP, New York, New York,” Corporate Crime Reporter 48, no. 11: (December 12, 2005), www.corporatecrimereporter.com/maryjowhiteinterview010806.htm.
39. US Department of Justice, “Assistant Attorney General Lanny A. Breuer Speaks at the New York City Bar Association,” news release, September 13, 2012, www.justice.gov/opa/speech/assistant-attorney-general-lanny-breuer-speaks-new-york-city-bar-association.
CHAPTER THREE: THE SILVER AGE
1. Lawrence M. Friedman, Crime and Punishment in American History, 3rd ed. (New York: Basic Books, 1993), 290.
2. Joel Seligman, The Transformation of Wall Street: A History of the Securities and Exchange Commission and Modern Corporate Finance, 3rd ed. (New York: Aspen, 2003), 5.
3. Friedman, Crime and Punishment.
4. Seligman, Transformation of Wall Street, 71.
5. Ibid., 77.
6. The 2008 financial crisis recapitulated these arguments. Defenders pointed out that risky and opaque mortgage securities and derivatives were legal. They were, but it doesn’t follow that common behaviors in the creation and sale of those instruments were always legal.
7. Victor Navasky, “A Famous Prosecutor Talks About Crime,” New York Times, February 15, 1970.
8. David M. Dorsen, Henry Friendly, Greatest Judge of His Era (Cambridge, MA: Belknap Press, 2012), 237.
9. “The United States Attorneys for the Southern District of New York,” compiled by the Committee for the Bicentennial Celebration (1789–1989) of the United States Attorney’s Office (Southern District of New York), 316, August 2014.
10. Theodore A. Levine and Edward D. Herlihy, “The Father of Enforcement,” Securities Regulation Law Journal 43, no. 1 (March 2015): 7–27.
11. Seligman, Transformation of Wall Street, 449.
12. Ernst & Ernst v. Hochfelder, 425 U.S. 185 (1976), 2016, accessed September 8, 2016, https://supreme.justia.com/cases/federal/us/425/185.
13. Levine and Herlihy, “Father of Enforcement.”
14. Nathaniel C. Nash, “Washington at Work: For Judge in Keating Case, Being on the Bench Is Not Sitting on the Sidelines,” New York Times, January 11, 1990, www.nytimes.com/1990/01/11/us/washington-work-for-judge-keating-case-being-bench-not-sitting-sidelines.html?pagewanted=all.
15. Kenneth B. Noble, “The Dispute over the S.E.C,” New York Times, April 21, 1982, www.nytimes.com/1982/04/21/business/the-dispute-over-the-sechtml?pagewanted=all.
16. Stanley Sporkin, interview with the author, April 1, 2015.
17. Jason E. Seigel, “Admit It! Corporate Admissions of Wrongdoing in SEC Settlements: Evaluating Collateral Estoppel Effects,” Georgetown Law Journal 103 (2015): 433, http://georgetownlawjournal.org/files/2015/01/AdmitIt.pdf, Vol. 103:433.
18. Stephen Labaton, “Judge Rejects Keating Suit; Sees ‘Looting’ of Lincoln,” New York Times August 24, 1990, www.nytimes.com/1990/08/24/business/judge-rejects-keating-suit-sees-looting-of-lincoln.html.
19. Robert S. Pasley, Anatomy of a Banking Scandal: The Keystone Bank Failure—Harbinger of the 2008 Financial Crisis (New Brunswick, NJ: Transaction, 2016).
20. Seligman, Transformation of Wall Street, 540.
21. Peter Clark, interview with the author, November 10, 2015.
22. Mike Koehler, “The Story of the Foreign Corrupt Practices Act,” Ohio State Law Journal 73, no. 5 (December 7, 2012): http://ssrn.com/abstract=2185406.
23. A. Timothy Martin, “The Development of International Bribery Law,” Natural Resources & Environment 14, no. 2 (Fall 1999): 97, www.rmmlf.org/Istanbul/5-Development-of-International-Bribery-Law-Paper.pdf.
24. Stanley Sporkin, interview.
25. Seligman, Transformation of Wall Street, 540.
26. Ibid.
27. David S. Hilzenrath, “Judge Jed Rakoff on Free Love, the Death Penalty, Defending Crooks and Wall Street Justice,” Washington Post, January 20, 2012, www.washingtonpost.com/business/economy/judge-rakoff-on-free-love-the-death-penalty-defending-crooks-and-wall-street-justice/2012/01/05/gIQAIGKrDQ_story.html.
28. Robert C. Koch, “Attorney’s Liability: The Securities Bar and the Impact of National Student Marketing,” William & Mary Law Review 14, no. 4 (1973): 883–98, http://scholarship.law.wm.edu/cgi/viewcontent.cgi?article=2641&context=wmlr.
29. Stephen Labaton, “Cortes Randell: Student Market Hoax,” Archives of Business: A Rogues Galley, New York Times, December 7, 1986, www.nytimes.com/1986/12/07/business/archives-of-business-a-rogues-gallery-cortes-randell-student-market-hoax.html.
30. Skip McGuire, interview with the author, October 15, 2015.
31. Koch, “Attorney’s Liability.”
32. Margaret P. Spencer and Ronald R. Sims, eds., Corporate Misconduct: The Legal, Societal, and Management Issues (Westport, CT: Quorum Books, 1995).
33. Louie Estrada, “Anthony M. Natelli Dies,” Washington Post, March 28, 2004, www.washingtonpost.com/archive/local/2004/03/28/anthony-m-natelli-dies/23ff418e-6819-4685-8955-879e4f1c3d64.
34. L. Ray Patterson, “The Limits of the Lawyer’s Discretion and the Law of Legal Ethics: National Student Marketing Revisited,” Duke Law Journal 6 (1979): 1251–74, http://scholarship.law.duke.edu/cgi/viewcontent.cgi?article=2725&context=dlj.
CHAPTER FOUR: “UNITEDLY YOURS”
1. Rich Cohen, The Fish That Ate the Whale: The Life and Times of America’s Banana King (New York: Picador USA, 2013).
2. Marcelo Bucheli, Bananas and Business: The United Fruit Company in Colombia, 1899–2000 (New York: New York University Press, 2005), 71.
3. David J. Krajicek, “Going Bananas: Pan Am Building Suicide in Chiquita Scandal,” New York Daily News, May 22, 2011, www.nydailynews.com/news/crime/bananas-pan-building-suicide-chiquita-scandal-article-1.143195.
4. Cohen, Fish That Ate the Whale.
5. Peter T. Kilborn, “Suicide of Big Executive: Stress of Corporate Life,” New York Times, February 14, 1975, www.nytimes.com/1975/02/14/archives/suicide-of-big-executive-stress-of-corporate-life-suicide-of-a-top.html?_r=0.
6. Danforth Newcomb, Digests of Cases and Review Releases Relating to Bribes to Foreign Officials Under the Foreign Corrupt Practices Act of 1977 (As of January 31, 2002) (New York: Shearman & Sterling, 2002), 76, www.justice.gov/sites/default/files/criminal-fraud/legacy/2012/12/03/response2-appx-a.pdf.
7. Walter LaFeber, Inevitable Revolutions: The United States in Central America, 2nd ed. (New York: W. W. Norton, 1993), 208.
8. Robert D. Hershey Jr., “United Brands Bribe Called ‘Aberration’: Inquiry Finds the Agreement Not to Be Part of a Pattern,” New York Times, December 11, 1976, www.nytimes.com/1976/12/11/archives/united-brands-bribe-called-aberration-inquiry-finds-the-agreement.html?_r=0.
9. Newcomb, Digests of Cases and Review Releases Relating to Bribes to Foreign Officials, 76.
10. New York Central R. Co. v. United States, 212 U.S. 481 (1909), https://supreme.justia.com/cases/federal/us/212/481/case.html.
11. Garrett, Too Big to Jail, 34.
12. Ibid., 35.
13. Arnold H. Lubasch, “Guilty Plea in Foreign Bribe Case: United Brands Fined $15,000 in Plot Involving Honduran,” New York Times, July 20, 1978, timesmachine.nytimes.com/timesmachine/1978/07/20/110896364.html?pageNumber=72.
14. Jeff Gerth, “S.E.C.’S Future Focus in Doubt,” New York Times, January 29, 1981, www.nytimes.com/1981/01/29/business/sec-s-future-focus-in-doubt.html.
15. Noble, “Dispute Over the S.E.C.”
16. Karen De Witt, “Stanley Sporkin Is on the Case,” Washington Post, May 28, 1977, www.washingtonpost.com/archive/lifestyle/1977/05/28/stanley-sporkin-is-on-the-case/35db79b1-06e1-473d-a880-d1697067f50e.
17. Levine and Herlihy, “Father of Enforcement.”
18. David Einstein, “The Judge Who Rejected Microsoft: Stanley Sporkin Is Known as Aggressive, Unpredictable,” San Francisco Chronicle, February 16, 1995, www.sfgate.com/business/article/The-Judge-Who-Rejected-Microsoft-Stanley-3044564.php.
19. Dan Carmichael, United Press International, “Judge Criticizes Justice Department,” March 12, 1991, www.upi.com/Archives/1991/03/12/Judge-criticizes-Justice-Department/1467668754000.
20. Dan Freedman, “Sporkin Built Reputation by Battling Big Business,” San Francisco Chronicle, February 16, 1995, www.sfgate.com/business/article/Sporkin-built-reputation-by-battling-big-business-3151584.php.
CHAPTER FIVE: THE BACKLASH
1. United States Sentencing Commission, Guidelines Manual (Washington, DC: US Government Printing Office, 1991), www.ussc.gov/sites/default/files/pdf/guidelines-manual/1991/manual-pdf/1991_Guidelines_Manual_Full.pdf.
2. Scot J. Paltrow, “Prudential Firm Agrees to Strict Fraud Settlement,” Los Angeles Times, October 28, 1994, http://articles.latimes.com/1994-10-28/news/mn-55889_1_prudential-securities.
3. Garrett, Too Big to Jail.
4. Paltrow, “Prudential Firm Agrees to Strict Fraud Settlement.”
5. Dave Michaels, “Obama’s SEC Pick Wary of Zealous Wall Street Prosecutions,” Bloomberg, February 27, 2013, www.bloomberg.com/news/articles/2013-02-27/obama-s-sec-pick-wary-of-zealous-wall-street-prosecutions.
6. Andrew Longstreth, “A Memo Too Far,” American Lawyer, January 2007, 13–15, www.americanlawyer-digital.com/americanlawyer-ipauth/tal200701ip?pg=12#pg12.
7. Timothy Harper, “Pepsi One—Larry Thompson Stands Behind an Iconic Brand,” Super Lawyers, Corporate Counsel Edition, December 2008, www.superlawyers.com/new-york-metro/article/pepsi-one/944b6a83-f5a9-44da-b346-6bec2db0f317.html.
8. CNBC News, “Deputy Attorney General Larry Thompson Discusses the Fight Against Corporate Crime,” June 23, 2003.
9. Julie R. O’Sullivan, “Does DOJ’s Privilege Waiver Policy Threaten the Rationales Underlying the Attorney-Client Privilege and Work Product Doctrine? A Preliminary ‘No,’ ” American Criminal Law Review 45 (2008):1237–96.
10. Richard A. Epstein, “The Deferred Prosecution Racket”, Wall Street Journal online, last modified November 28, 2006, www.wsj.com/articles/SB116468395737834160.
11. “An Informed and Forceful Critique of NPAs and DPAs by . . . Guess Who?,” FCPA Professor, April 25, 2013, www.fcpaprofessor.com/an-informed-and-forceful-critique-of-npas-and-dpas-by-guess-who.
12. The letter, dated September 5, 2006, was included in the “Statement of the American Bar Association to the Committee on Judiciary of the United States Senate Concerning Its Hearing on ‘Examining Approaches to Corporate Fraud Prosecutions and the Attorney-Client Privilege Under the McNulty Memorandum,’ September 18, 2007,” 31.
13. Carol Morello and Carol D. Leonnig, “Chris Christie’s Long Record of Pushing Boundaries, Sparking Controversy,” Washington Post, February 10, 2014, www.washingtonpost.com/local/chris-christies-long-record-of-pushing-boundaries-sparking-controversy/2014/02/10/50111ed4-8db1-11e3-98ab-fe5228217bd1_story.html?utm_term=.7208b6b20637.
14. US Department of Justice, “U.S. Deputy Attorney General Paul J. McNulty Revises Charging Guidelines for Prosecuting Corporate Fraud,” news release, December 12, 2006, www.justice.gov/archive/opa/pr/2006/December/06_odag_828.html.
CHAPTER SIX: PAUL PELLETIER’S WHITE WHALE
1. Jeff Leen, “Mel Kessler: The Miami Drug Lawyer,” Miami Herald, September 2, 1990.
2. Roddy Boyd, Fatal Risk: A Cautionary Tale of AIG’s Corporate Suicide. (Hoboken, NJ: John Wiley & Sons, 2011), 130–31.
3. “The PNC Financial Services Group, Inc.: Admin. Proc. Rel. No. 33-8112 /July 18, 2002,” www.sec.gov/litigation/admin/33-8112.htm.
4. United States of America v. AIG-FP Pagic Equity Holding Corp., 15 U.S.C. §§ 78j and 78ff(a); 17 C.F.R. § 240.10b-5; and 18 U.S.C. § 2, Deferred Prosecution Agreement, November 30, 2004, 18.
5. Peter Lattman, “The U.S.’s Fly on the Wall at AIG,” Wall Street Journal online, last modified March 27, 2009, www.wsj.com/articles/SB123812186477454361.
CHAPTER SEVEN: KPMG DESTROYS CAREERS
1. United States v. Jeffrey Stein et al., Kaplan Opinion (S.D. N.Y, 2006), 2.
2. IRS, “KPMG to Pay $456 Million for Criminal Violations,” news release, August 29, 2005, last modified July 16, 2014, www.irs.gov/uac/KPMG-to-Pay-$456-Million-for-Criminal-Violations.
3. U.S. Tax Shelter Industry: The Role of Accountants, Lawyers, and Financial Professionals, Hearings Before the Permanent Subcommittee on Investigations of the Committee on Governmental Affairs, US Senate, 108th Congress, first session, November 18 and 20, 2003, www.gpo.gov/fdsys/pkg/CHRG-108shrg91043/html/CHRG-108shrg91043.htm.
4. Charles D. Weisselberg and Su Li, “Big Law’s Sixth Amendment: The Rise of Corporate White-Collar Practices in Large U.S. Law Firms,” Arizona Law Review 53 (2011): 1274, http://scholarship.law.berkeley.edu/facpubs/1164.
5. David W. Chen, “Pirro Sentenced to 29 Months in U.S. Prison,” New York Times, November 2, 2000, www.nytimes.com/2000/11/02/nyregion/pirro-sentenced-to-29-months-in-us-prison.html?_r=0.
6. Winnie Hu, “Husband Is Convicted, but Jeanine Pirro Is Topic,” New York Times, June 23, 2000, www.nytimes.com/2000/06/23/nyregion/husband-is-convicted-but-jeanine-pirro-is-topic.html.
7. Larry D. Thompson, “Memorandum: Principles of Federal Prosecution of Business Organizations,” US Department of Justice, Office of the Deputy Attorney General, January 20, 2003, www.americanbar.org/content/dam/aba/migrated/poladv/priorities/privilegewaiver/2003jan20_privwaiv_dojthomp.authcheckdam.pdf.
8. Carrie Johnson, “9 Charged over Tax Shelters in KPMG Case,” Washington Post, August 30, 2005, www.washingtonpost.com/wp-dyn/content/article/2005/08/29/AR2005082900822.html.
9. Stein et al., 24.
10. Lynnley Browning, “Documents Show KPMG Secretly Met Prosecutors,” New York Times, February 9, 2015, www.nytimes.com/2007/07/06/business/06kpmg.html.
11. US Department of Justice, “KPMG to Pay $456 Million for Criminal Violations in Relation to Largest-Ever Tax Shelter Fraud Case,” news release, August 29, 2005, www.justice.gov/archive/opa/pr/2005/August/05_ag_433.html.
12. Jonathan D. Glater, “8 Former Partners of KPMG Are Indicted,” New York Times, August 30, 2005, www.nytimes.com/2005/08/30/business/8-former-partners-of-kpmg-are-indicted.html?_r=0.
13. “The KPMG Fiasco,” Review & Outlook, Wall Street Journal online, last modified July 10, 2007.
14. Paul Davies, “Bench on Fire: KPMG Judge Grills Prosecutors,” Wall Street Journal online, last modified August 5, 2006.
15. Weisselberg and Li, “Big Law’s Sixth Amendment,” 1278.
16. Amir Efrati, “Appeals Court Upholds Ruling to Dismiss KPMG Tax Case,” Wall Street Journal online, last modified August 28, 2008, www.wsj.com/articles/SB121994701590180363.
17. Weisselberg and Li, “Big Law’s Sixth Amendment,” 1280.
18. The Thompson Memorandum’s Effect on the Right to Counsel in Corporate Investigations, Hearing Before the Senate Judiciary Committee, September 12, 2006, www.americanbar.org/content/dam/aba/migrated/poladv/letters/attyclient/060912testimony_hrgsjud.authcheckdam.pdf.
19. Robert J. Anello, “Preserving the Corporate Attorney-Client Privilege: Here and Abroad,” Penn State International Law Review 27, no. 2 (February 2, 2009): 291–314, www.maglaw.com/publications/articles/00259/_res/id=Attachments/index=0/Preserving%20the%20Corporate%20Attorney-Client%20Privilege%20Here%20and%20Abroad.pdf.
20. United States v. Monsanto, 491 U.S. 600 (1989), https://supreme.justia.com/cases/federal/us/491/600/case.html.
21. Caplin & Drysdale, Chartered, Petitioner v. United States, 491 U.S. 617 (March 21, 1989), www.law.cornell.edu/supremecourt/text/491/617.
22. Weisselberg and Li, “Big Law’s Sixth Amendment,” 1273.
23. Adam Liptak, “Justices Limit Use of Corruption Law,” New York Times, June 24, 2010, www.nytimes.com/2010/06/25/us/25scotus.html?_r=0.
24. Longstreth, “Memo Too Far.”
25. Paul Davies and Chad Bray, “KPMG Trial, Pared in Scope, Nears After Stormy Prologue,” Wall Street Journal online, last modified October 12, 2007.
26. “Corrections & Amplifications,” Wall Street Journal online, last modified November 27, 2007.
27. Charles Levinson, “Veteran Federal Prosecutor Moves to Law Firm Brown Rudnick,” Law Blog, Wall Street Journal online, last modified April 28, 2014, http://blogs.wsj.com/law/2014/04/28/veteran-federal-prosecutor-moves-to-law-firm-brown-rudnick.
CHAPTER EIGHT: THE HUNT FOR AIG
1. “A Chronology of the United States Postal Inspection Service,” U.S. Postal Inspection Service, https://postalinspectors.uspis.gov/aboutus/History.aspx.
2. Boyd, Fatal Risk.
3. Timothy L. O’Brien, “Guilty Plea Is Expected in A.I.G.-Related Case,” New York Times, June 10, 2005, www.nytimes.com/2005/06/10/business/guilty-plea-is-expected-in-aigrelated-case.html.
4. US Department of Justice, Office of the Inspector General, “Top Management and Performance Challenges in the Department of Justice—2007,” last modified October 2016, https://oig.justice.gov/challenges/2007.htm.
5. The External Effects of the Federal Bureau of Investigation’s Reprioritization Efforts (Washington, DC: US Department of Justice, Office of the Inspector General, September 2005), https://oig.justice.gov/reports/FBI/a0537/final.pdf.
CHAPTER NINE: NO TRUTH AND NO RECONCILIATION
1. Marilyn Geewax, “It’s Geithner vs. Warren in Battle of the Bailout,” NPR online, last modified May 25, 2014, www.npr.org/2014/05/25/315276441/its-geithner-vs-warren-in-battle-of-the-bailout.
2. K. Sabeel Rahman, “The Way Forward for Progressives,” New Republic online, last modified November 2, 2016, https://newrepublic.com/article/138325/way-forward-progressives.
3. Glenn Thrush, “The Survivor: How Eric Holder Outlasted His (Many) Critics,” Politico, July/August 2014, http://www.politico.com/magazine/story/2014/06/the-survivor-108018?paginate=false.
4. Carrie Johnson, “Deputy Attorney General David Ogden to Leave Justice Department,” Washington Post, December 4, 2009, www.washingtonpost.com/wp-dyn/content/article/2009/12/03/AR2009120301727.html.
5. Jesse Eisinger, “The Rise of Corporate Impunity,” ProPublica, last modified April 30, 2014, www.propublica.org/article/the-rise-of-corporate-impunity.
6. Ibid.
7. Asked about the exchange, Grindler says the phrase doesn’t sound like something that would come from him.
8. John R. Emshwiller, “U.S. Won’t Seek Retrial of Former Merrill Lynch Official in Enron Case,” Wall Street Journal online, last modified September 16, 2010, www.wsj.com/articles/SB100014240527487037435045754945519-74075066.
9. John C. Roper, “4 Ex-Merrill Lynch Execs’ Convictions Overturned,” Houston Chronicle online, last modified August 6, 2006, www.chron.com/business/enron/article/4-ex-Merrill-Lynch-execs-convictions-overturned-1484942.php.
10. Roger Parloff, “Redefining Fraud: Judicial Opining,” Fortune online, last modified August 22, 2006, http://archive.fortune.com/magazines/fortune/fortune_archive/2006/09/04/8384701/index.htm.
11. Liptak, Adam. “Justices Limit Use of Corruption Law,” New York Times, September 16, 2014, www.nytimes.com/2010/06/25/us/25scotus.html?_r=0.
12. Jeff Connaughton, The Payoff: Why Wall Street Always Wins (Westport, CT: Prospecta Press, 2012).
13. Statement of Lanny A. Breuer, Assistant Attorney General, Criminal Division, United States Department of Justice, Before the United States Senate Committee on the Judiciary Hearing Entitled “Honest Services Fraud” (September 28, 2010), http://legaltimes.typepad.com/files/breuer-testimony-on-honest-services-fraud-final-9.23.10.pdf.
CHAPTER TEN: THE LAW IN THE CITY OF RESULTS
1. Mark J. Green, The Other Government: The Unseen Power of Washington Lawyers (New York: W. W. Norton, 1978), 31.
2. Peter J. Boyer, “Why Can’t Obama Bring Wall Street to Justice?,” Newsweek online, last modified May 6, 2012, www.newsweek.com/why-cant-obama-bring-wall-street-justice-65009.
3. Green, The Other Government, 13.
4. Ibid., 15.
5. Ibid., 6.
6. Most of the data come from American Lawyer magazine’s annual rankings. See also David Segal, “A May-December Marriage of Law Firms: Venerable Covington & Burling, Thinking Young, Announces Merger,” Washington Post, September 21, 1999.
7. Ben Protess, “Once More Through the Revolving Door for Justice’s Breuer,” DealBook, New York Times online, last modified March 28, 2013, https://dealbook.nytimes.com/2013/03/28/once-more-through-the-revolving-door-for-justices-breuer.
8. Boyer, “Why Can’t Obama Bring Wall Street to Justice?”
9. Protess, “Once More Through the Revolving Door.”
10. Peter Lattman, “For White-Collar Defense Bar, It’s Happening in Vegas,” DealBook, New York Times online, March 7, 2013, http://dealbook.nytimes.com/2013/03/07/for-white-collar-defense-bar-its-happening-in-vegas.
11. Weisselberg and Li, Big Law’s Sixth Amendment, 1265.
12. Ben W. Heineman Jr., William F. Lee, and David B. Wilkins, Lawyers as Professionals and as Citizens: Key Roles and Responsibilities in the 21st Century (Cambridge, MA: Center on the 13. Legal Profession at Harvard Law School, November 20, 2014), 5, https://clp.law.harvard.edu/assets/Professionalism-Project-Essay_11.20.14.pdf.
13. Susan Pulliam and Robert Frank, “Inside Adelphia: A Long Battle over Disclosing Stock Options,” Wall Street Journal online, last modified January 26, 2004.
14. Pete Yost, Associated Press, “Freddie Mac Investigates Self over Lobby Campaign,” February 24, 2009.
15. Robert A. Guth, Ben Worthen, and Justin Scheck, “Accuser Said Hurd Leaked an H-P Deal,” Wall Street Journal online, last modified November 6, 2010.
16. Buell, Capital Offenses, 173.
17. WilmerHale, “Siemens Agrees to Record-Setting $800 Million in FCPA Penalties,” news release, December 22, 2008, www.wilmerhale.com/pages/publicationsandnewsdetail.aspx?NewsPubId=95919.
18. Dionne Searcey, “Breuer: Beware, Execs, the DOJ Will Take Your Fancy Cars,” Law Blog, Wall Street Journal online, last modified November 17, 2009, http://blogs.wsj.com/law/2009/11/17/breuer-beware-execs-the-doj-wants-your-fancy-cars.
19. Laurel Brubaker Calkins, “Ex-KBR CEO Stanley Gets 2½ Years in Prison for Foreign Bribes,” Bloomberg, last modified February 24, 2012, www.bloomberg.com/news/articles/2012-02-23/ex-kbr-ceo-albert-stanley-gets-30-month-prison-term-in-nigeria-bribe-case.
20. Richard L. Cassin, “Och-Ziff Takes Fourth Spot on Our New Top Ten List,” FCPA Blog, last modified October 4, 2016, www.fcpablog.com/blog/2016/10/4/och-ziff-takes-fourth-spot-on-our-new-top-ten-list.html.
21. “Lindsey Manufacturing Case Officially Over,” FCPA Professor (blog), May 25, 2012. http://fcpaprofessor.com/lindsey-manufacturing-case-officially-over.
22. Nathan Vardi, “The Bribery Racket,” Forbes online, last modified June 7, 2010, www.forbes.com/global/2010/0607/companies-payoffs-washington-extortion-mendelsohn-bribery-racket.html.
23. Nathan Koppel, “Top U.S. Bribery Prosecutor to Join Paul Weiss,” Wall Street Journal online, last modified April 14, 2010, www.wsj.com/articles/SB10001424052702303695604575182174285804354.
24. Buell, Capital Offenses, 187.
25. United States Attorneys’ Annual Statistical Report, Fiscal Year 2010 and Fiscal Year 2015. United States Attorneys’ Annual Statistics Report (Washington, DC: US Department of Justice), www.justice.gov/sites/default/files/usao/legacy/2011/09/01/10statrpt.pdf and www.justice.gov/usao/file/831856/download.
26. “Salary Table 2016—NY,” US Office of Personnel Management, www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2016/NY.pdf.
CHAPTER ELEVEN: JED RAKOFF’S RADICALIZATION
1. Shawn Tully, “The Golden Age for Financial Services Is Over,” Fortune online, last modified September 29, 2008, http://archive.fortune.com/2008/09/28/news/companies/tully_lewis.fortune/index.htm?postversion=2008092908.
2. US Securities and Exchange Commission, “SEC Charges Bank of America for Failing to Disclose Merrill Lynch Bonus Payments,” news release, August 3, 2009, www.sec.gov/news/press/2009/2009-177.htm.
3. James B. Stewart, Den of Thieves (New York: Simon & Schuster, 1999), 97.
4. Ibid., 440.
5. Hilzenrath, “Judge Jed Rakoff.”
6. Jerry Gray and Benjamin Weiser, “Judge Rules U.S. Death Penalty Violates the Constitution,” New York Times, July 1, 2002, www.nytimes.com/2002/07/01/nyregion/judge-rules-us-death-penalty-violates-the-constitution.html?_r=0.
7. Benjamin Weiser, “A Legal Quest Against the Death Penalty,” New York Times, January 2, 2005, www.nytimes.com/2005/01/02/nyregion/a-legal-quest-against-the-death-penalty.html.
8. Benjamin Weiser, “Manhattan Judge Finds Federal Death Law Unconstitutional,” New York Times, July 2, 2002, www.nytimes.com/2002/07/02/nyregion/manhattan-judge-finds-federal-death-law-unconstitutional.html.
9. John Lehmann, “Fed Judge KOs Death Penalty,” New York Post, July 2, 2002, nypost.com/2002/07/02/fed-judge-kos-death-penalty.
10. Weiser, “Legal Quest Against the Death Penalty.”
11. “U.S. Court of Appeals for the Second Circuit: United States v. Quinones,” Death Penalty Information Center, www.deathpenaltyinfo.org/us-court-appeals-second-circuit-united-states-v-quinones.
12. Donald C. Langevoort, “On Leaving Corporate Executives ‘Naked, Homeless and Without Wheels’: Corporate Fraud, Equitable Remedies, and the Debate over Entity Versus Individual Liability,” Wake Forest Law Review 42, no. 3 (2007): 627–66, http://scholarship.law.georgetown.edu/cgi/viewcontent.cgi?article=1453&context=facpub.
13. Roger Parloff, “The Demise of the-Lawyers-Did-It Defense,” Fortune online, last modified September 22, 2009, http://archive.fortune.com/2009/09/22/news/companies/sec_bofa_rakoff.fortune/index.htm.
14. Paul Davis, “B of A Move Shows Perils of Getting Many Opinions,” American Banker, October 13, 2009, www.americanbanker.com/news/b-of-a-move-shows-perils-of-getting-many-opinions.
15. US Securities and Exchange Commission, “Bank of America Corporation Agrees to Pay $150 Million to Settle SEC Charges,” news release, February 4, 2010, www.sec.gov/litigation/litreleases/2010/lr21407.htm.
16. Zachary A. Goldfarb and Tomoeh Murakami Tse, “N.Y. Attorney General Cuomo Charges Bank of America with Fraud,” Washington Post, February 5, 2010, www.washingtonpost.com/wp-dyn/content/article/2010/02/04/AR2010020402146.html.
17. Stephen Grocer, “Lewis Rebuffs Cuomo’s BofA Lawsuit: It Is ‘Badly Misguided,’ ” Deal Journal (blog), Wall Street Journal online, last modified February 4, 2010, http://blogs.wsj.com/deals/2010/02/04/lewis-rebuffs-cuomos-bofa-lawsuit-it-is-badly-misguided.
18. Bernstein Litowitz Berger & Grossman, “Pension Funds Recover $2.425 Billion for Shareholders in Bank of America Securities Class Action: A Historic and Outstanding Result for Investors,” news release, September 28, 2012, www.boasecuritieslitigation.com/pdflib/media_64.pdf.
19. Christie Smythe, Chris Dolmetsch, and Greg Farrell, “Lewis, BofA Reach $25 Million Pact with N.Y. Over Merrill,” Bloomberg, last modified March 27, 2014, www.bloomberg.com/news/articles/2014-03-26/bofa-lewis-reach-25-million-pact-with-n-y-over-merrill.
20. Hilzenrath, “Judge Jed Rakoff.”
CHAPTER TWELVE: “THE GOVERNMENT FAILED”
1. William D. Cohan, “Preet Bharara: The Enforcer of Wall Street,” Fortune online, August 15, 2011, http://fortune.com/2011/08/02/preet-bharara-the-enforcer-of-wall-street.
2. Preet Bharara (prepared remarks, New York Financial Writers Association, CUNY School of Journalism, New York, June 6, 2011), www.justice.gov/usao-sdny/speech/prepared-remarks-us-attorney-preet-bharara-new-york-financial-writers-association.
3. For this chapter, I relied on many hours of interviews with dozens of former Southern District employees, current and former prosecutors, and people familiar with the inner workings of the office.
4. “Commercial mortgage-backed securities,” investopedia.com.
5. “Residential mortgage-backed securities,” investopedia.com.
6. Sheelah Kolhatkar, “The End of Preet Bharara’s Perfect Record on Insider Trading,” Bloomberg, last modified July 8, 2014, www.bloomberg.com/news/articles/2014-07-08/rengan-rajaratnam-and-the-end-of-an-insider-trading-win-streak.
7. The late 1990s implosion of Long Term Capital Management, a fund with huge borrowings, is an obvious exception to that rule, since its collapse may have caused a systemic financial crisis had the New York Federal Reserve not forced Wall Street banks to bail out the fund.
8. George Packer, “A Dirty Business: New York City’s Top Prosecutor Takes On Wall Street Crime,” A Reporter at Large, New Yorker, June 27, 2011, www.newyorker.com/magazine/2011/06/27/a-dirty-business. See also Connaughton, The Payoff.
9. Connaughton, The Payoff.
10. Dan Fitzpatrick, “J.P. Morgan Settles Its Madoff Tab,” Wall Street Journal online, last modified January 7, 2014, www.wsj.com/articles/SB10001424052702304887104579306323011059460.
11. Benjamin Weiser and Ben White, “In Crisis, Prosecutors Put Aside Turf Wars,” New York Times, October 30, 2008, www.nytimes.com/2008/10/31/business/31street.html.
12. Interview with Maria Bartiromo, “Lehman CFO Erin Callan: Back from Ugly Monday,” BusinessWeek, March 20, 2008, https://www.bloomberg.com/news/articles/2008-03-19/lehman-cfo-erin-callan-back-from-ugly-monday.
13. In addition to speaking with multiple people familiar with Lehman’s inner workings, from regulators, former executives, prosecutors, defense attorneys, and investors, I relied on the Jenner & Block bankruptcy examination report, known as The Valukas Report, for many of the liquidity pool details. Lowitt declined to comment. Anton R. Valukas, Lehman Brothers Holdings Inc. et al., chap. 11 case no. 08-13555 (JMP) (U.S. Bankruptcy Court, S.D. N.Y., 2010), 1401–80, https://jenner.com/lehman/VOLUME%204.pdf.
CHAPTER THIRTEEN: A TOLLBOOTH ON THE BANKSTER TURNPIKE
1. This account was drawn from hundreds of internal SEC emails, investigative documents, and interviews with James Kidney and many others involved in the investigation, most of whom spoke on background.
2. Matt Taibbi, “The Great American Bubble Machine,” Rolling Stone, April 5, 2010, www.rollingstone.com/politics/news/the-great-american-bubble-machine-20100405#ixzz41g9UL5eF.
3. Louise Story and Gretchen Morgenson, “S.E.C. Accuses Goldman of Fraud in Housing Deal,” New York Times, April 16, 2010, www.nytimes.com/2010/04/17/business/17goldman.html?pagewanted=all&_r=1.
4. Mark DeCambre, “Goldman Fall Guy,” New York Post, April 17, 2010, nypost.com/2010/04/17/goldman-fall-guy.
5. Michael Lewis, “Bond Market Will Never Be the Same After Goldman,” Bloomberg, April 22, 2010, www.bloomberg.com/news/articles/2010-04-22/bond-market-will-never-be-same-after-goldman-commentary-by-michael-lewis.
6. US Securities and Exchange Commission, “Goldman Sachs to Pay Record $550 Million to Settle SEC Charges Related to Subprime Mortgage CDO,” news release, July 15, 2010, www.sec.gov/news/press/2010/2010-123.htm.
7. Justin Baer, Chad Bray, and Jean Eaglesham, “ ‘Fab’ Trader Liable in Fraud,” Wall Street Journal online, last modified August 2, 2013, www.wsj.com/articles/SB10001424127887323681904578641843284450004.
CHAPTER FOURTEEN: THE PROCESS IS POLLUTED
1. The beginning of this chapter reflects to a significant extent the case as the DOJ prosecution team saw it. The entirety of the chapter relied on hundreds of pages of emails, transcripts, and other documents I obtained, as well as interviews with current and former Justice Department prosecutors, former AIG executives, defense counsel, and other people familiar with AIG and the investigation. My efforts to reach Forster and Cassano were not successful, but I spoke with people close to them. Athan declined to comment.
2. William D. Cohan, “The Fall of AIG: The Untold Story,” Institutional Investor, April 7, 2010, www.institutionalinvestor.com/Article/2460649/The_Fall_of_AIG_The_Untold_Story.html#/.WKPHTlUrKUl.
3. “Form 8-K, American International Group, Inc.,” United States Securities and Exchange Commission, February 11, 2008, accessed October 26, 2016, www.sec.gov/Archives/edgar/data/5272/000095012308001369/y48487e8vk.htm.
4. Alistair Barr, “AIG Stock Tumbles on Heightened CDO Concerns,” MarketWatch, last modified February 11, 2008, www.marketwatch.com/story/aig-drops-12-as-auditor-spat-raises-cdo-concerns.
5. Leslie Scism, “Closing Arguments Loom in AIG Bailout Trial,” Law Blog (blog), Wall Street Journal online, last modified April 21, 2015, http://blogs.wsj.com/law/2015/04/21/closing-arguments-loom-in-aig-bailout-trial.
6. Brady Dennis, “AIG Discloses $75 Billion in Bailout Payments,” Washington Post, March 16, 2009, www.washingtonpost.com/wp-dyn/content/article/2009/03/15/AR2009031501909.html.
7. Sharona Coutts, “AIG’s Bonus Blow-up: The Essential Q&A,” ProPublica, last modified March 18, 2009, www.propublica.org/article/aigs-bonus-blow-up-the-essential-qa-0317.
8. Carl Hulse and David M. Herszenhorn,“House Approves 90% Tax on Bonuses After Bailouts,” New York Times online, last modified March 19, 2009, http://www.nytimes.com/2009/03/20/business/20bailout.html?ref=business.
9. David Goldman and Jennifer Liberto, “Tug of War over AIG Bonuses,” CNN online, last modified March 18, 2009, http://money.cnn.com/2009/03/18/news/companies/aig_hearing.
10. US Department of Justice, “UBS Enters into Deferred Prosecution Agreement,” news release, February 18, 2009, www.justice.gov/opa/pr/ubs-enters-deferred-prosecution-agreement.
11. Carrick Mollenkamp, Reuters, “HSBC Became Bank to Drug Cartels, Pays Big for Lapses,” December 12, 2012, http://uk.reuters.com/article/uk-hsbc-probe-idUKBRE8BA05K20121212.
12. Christopher M. Matthews, “Justice Department Overruled Recommendation to Pursue Charges Against HSBC, Report Says,” Wall Street Journal online, last modified July 11, 2016, www.wsj.com/articles/justice-department-overruled-recommendation-to-pursue-charges-against-hsbc-report-says-1468229401.
13. Rupert Neate, “HSBC Escaped US Money-Laundering Charges After Osborne’s Intervention,” Guardian (US), website of the Guardian (UK), last modified July 11, 2016, www.theguardian.com/business/2016/jul/11/hsbc-us-money-laundering-george-osborne-report.
14. US Department of Justice, “HSBC Holdings Plc. and HSBC Bank USA N.A. Admit to Anti-Money Laundering and Sanctions Violations, Forfeit $1.256 Billion in Deferred Prosecution Agreement,” news release, December 11, 2012, www.justice.gov/opa/pr/hsbc-holdings-plc-and-hsbc-bank-usa-na-admit-anti-money-laundering-and-sanctions-violations.
15. Jessica Silver-Greenberg and Ben Protess, “HSBC Is Deemed Slow to Carry Out Changes,” DealBook, New York Times online, last modified April 1, 2015, www.nytimes.com/2015/04/02/business/dealbook/us-says-hsbc-needs-to-step-up-on-compliance.html.
16. Aruna Viswanatha and Ryan Tracy, “Financial-Crisis Panel Suggested Criminal Cases Against Stan O’Neal, Charles Prince, AIG Bosses,” Wall Street Journal online, last modified March 30, 2016, www.wsj.com/articles/financial-crisis-panel-suggested-criminal-cases-against-stan-oneal-charles-prince-aig-bosses-1459330202.
CHAPTER FIFTEEN: RAKOFF’S FALL AND RISE
1. US Securities and Exchange Commission, “Citigroup to Pay $285 Million to Settle SEC Charges for Misleading Investors About CDO Tied to Housing Market,” news release, October 19, 2011, www.sec.gov/news/press/2011/2011-214.htm.
2. Jessica Silver-Greenberg and Ben Protess, “Bank of America Settles Suit Over Merrill for $2.43 Billion,” DealBook, New York Times online, last modified September 28, 2012, http://dealbook.nytimes.com/2012/09/28/bank-of-america-to-pay-2-43-billion-to-settle-class-action-over-merrill-deal/?_r=0.
3. David S. Hilzenrath, “SEC Likely to Win Its Defense of ‘No-Admit’ Citigroup Settlement, Appellate Panel Says,” Washington Post, March 15, 2012, www.washingtonpost.com/business/economy/sec-likely-to-win-its-defense-of-no-admit-citigroup-settlement-appellate-panel-says/2012/01/30/gIQAnVcDES_story.html.
4. Hilzenrath, “Judge Jed Rakoff.”
5. Ben Protess, “Judge Rakoff Says 2011 S.E.C. Deal with Citigroup Can Close,” New York Times, August 5, 2014, http://dealbook.nytimes.com/2014/08/05/after-long-fight-judge-rakoff-reluctantly-approves-citigroup-deal/?_r=0.
6. Lee Epstein, William M. Landes, and Richard A. Posner, “How Business Fares in the Supreme Court,” Minnesota Law Review 97 (2013): 1431–72, www.minnesotalawreview.org/wp-content/uploads/2013/04/EpsteinLanderPosner_MLR.pdf.
7. Adam Liptak, “Pro-Business Decisions Are Defining This Supreme Court,” New York Times, August 9, 2014, www.nytimes.com/2013/05/05/business/pro-business-decisions-are-defining-this-supreme-court.html.
8. Ashby Jones, “Appeals Court Overturns Frank Quattrone Conviction,” Law Blog, Wall Street Journal online, last modified March 20, 2006, http://blogs.wsj.com/law/2006/03/20/appeals-court-overturns-frank-quattrone-conviction.
9. Michael J. Graetz and Linda Greenhouse, The Burger Court and the Rise of the Judicial Right (New York: Simon & Schuster, 2016), p. 237.
10. Seigel, “Admit It! Corporate Admissions of Wrongdoing in SEC Settlements.”
11. “Judge Approves ‘Chump Change’ Settlement with Two Former Bear Fund Managers,” Securities Law Prof Blog, June 22, 2012, http://lawprofessors.typepad.com/securities/2012/06/judge-approves-chump-change-settlement-with-two-former-bear-fund-managers.html.
CHAPTER SIXTEEN: “FIGHT FOR IT”
1. David Barstow, “At Wal-Mart in Mexico, a Bribe Inquiry Silenced,” New York Times, April 22, 2012, www.nytimes.com/2012/04/22/business/at-wal-mart-in-mexico-a-bribe-inquiry-silenced.html?pagewanted=all.
2. “Wal-Mart’s FCPA and Compliance Related Expenses Stand at $738 Million—Expected to Grow to Approximately $850 Million,” FCPA Professor (blog), February 23, 2016, http://fcpaprofessor.com/wal-mart-fcpa-and-compliance-related-expenses-stand-at-738-million-expected-to-grow-to-approximately-850-million.
3. Aruna Viswanatha and Devlin Barrett, “Wal-Mart Bribery Probe Finds Few Signs of Major Misconduct in Mexico,” Wall Street Journal online, last modified October 19, 2015, www.wsj.com/articles/wal-mart-bribery-probe-finds-little-misconduct-in-mexico-1445215737.
4. Aruna Viswanatha, “U.S. Bid to Prosecute BP Staff in Gulf Oil Spill Falls Flat,” Wall Street Journal online, last modified February 27, 2016, www.wsj.com/articles/u-s-bid-to-prosecute-bp-staff-in-gulf-oil-spill-falls-flat-1456532116.
5. Kris Maher, “Jury Convicts Former Massey CEO Don Blankenship of Conspiracy,” Wall Street Journal online, last modified December 3, 2015, www.wsj.com/articles/ex-massey-energy-ceo-don-blankenship-found-guilty-on-1-of-3-counts-1449164466.
6. “Overview,” Keefe, Bruyette & Woods, accessed October 17, 2016, http://www.kbw.com/research; Richard Bowen, “Goldman Sachs aka the Great Vampire Squid Rides Again!,” Richard Bowen, last modified January 28, 2016, www.richardmbowen.com/goldman-sachs-aka-the-great-vampire-squid-rides-again.
7. Stephen Grocer, “A List of the Biggest Bank Settlements,” Moneybeat (blog), Wall Street Journal online, last modified June 23, 2014, http://blogs.wsj.com/moneybeat/2014/06/23/a-list-of-the-biggest-bank-settlements.
8. Joel Schectman, “Compliance Counsel to Help DoJ Decide Whom to Prosecute,” Risk & Compliance Journal (blog), Wall Street Journal online, last modified July 30, 2015, http://blogs.wsj.com/riskandcompliance/2015/07/30/compliance-counsel-to-help-doj-decide-whom-to-prosecute.
9. Evan Weinberger, “Ex-Prosecutor Says Yates Memo Knocks Post-Crisis Cases,” Law360, last modified November 17, 2015, www.law360.com/articles/728462/ex-prosecutor-says-yates-memo-knocks-post-crisis-cases.
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