Runaway Train
Though it doesn't appear to be much of a surprise for legal and financial pundits who've been following Arthur Andersen's appeal of its obstruction conviction before the Supreme Court, the Supreme Court's decision to overturn Andersen's conviction is definitely a big surprise to a casual observer like myself, and it again begs the question of governmental accountability.
The conviction and subsequent collapse of Arthur Andersen may have been painful to watch, especially as approximately 28,000 people lost their jobs, but the pain was tempered with the knowledge that Arthur Andersen was guilty of corruption and obstruction, and just like with the Martha Stewart case, it was a firm reminder to the public that, no matter how valuable a company may be, or how many people it employs, if it lies to the government (as with Martha Stewart as the head of Martha Stewart Omnimedia) or attempts to obstruct an investigation (as with Arthur Andersen), then there's a high price to be paid. But now the Supreme Court has overturned the conviction, stating emphatically and without dissent that the Department of Justice's prosecution of Arthur Andersen was overly broad and fatally flawed -- so 28,000 people lost their jobs, a huge accounting firm collapsed, and the Department of Justice gets to say, "Oopsie, my bad," while potentially not even bothering to retry the case ("The ruling puts the case back in lower federal courts, but whether Andersen would be granted a new trial is unclear").
This goes back to a question raised in an earlier post regarding the U.S. Patent Office: Shouldn't a governmental office be held accountable for the damages incurred through improper prosecutions (Department of Justice) or dereliction of duty (Patent Office)?
Arthur Andersen's U.S. operations are ruined. There's simply no bringing it back. The only employees they have left are the ones in charge of closing everything down, and while I'm not someone who believes that the overturned conviction means that Arthur Andersen was above reproach (they were, after all, the accounting and tax firm for Enron, WorldCom and Qwest, all of which are, or have been, under investigation for possible fiscal improprieties and shady accounting procedures), but if the Department of Justice improperly employs the legal system to destroy a company which it claims was engaged in improper accounting and administrative procedures, shouldn't the Department of Justice be held accountable? Just as 28,000 people lost their jobs at Arthur Andersen, it doesn't seem too much to ask that the legal team involved in improperly gaining the now overturned obstruction conviction against Arthur Anderson pay some type of price, as well (beyond a probable "Crap, we lost that one, didn't we? Oh well -- bartender! Another round!").
We have a disturbing lack of accountability within our governmental system, and it's fueling shoddy prosecutions, haphazard investigations and a distressing absence of any sense of personal responsibility. When the IRS instigates an audit, and it turns out that the citizen or company audited is entirely free of wrong-doing, the IRS doesn't reimburse the citizen or company for the expenses incurred while defending themselves from the IRS; when the U.S. Patent Office grants a patent that turns out later to be completely invalid, the Patent Office doesn't reimburse citizens or companies for the expenses incurred while defending themselves against lawsuits directly resulting from the granting of the invalid patent; and when the Supreme Court unanimously overturns a conviction gained by the Department of Justice on the grounds that the conviction was gained only through flawed and improper instructions and definitions offered to a jury, the Department of Justice is under no obligation to make restitutions for the destruction to livelihood and reputation brought about by their faulty methods and defective readings of the law. And under all three examples cited above, my bet is that you wouldn't even find so much as a departmental reprimand.
Our governmental offices, which are designed to regulate, officiate and guide, are more like runaway trains, hurtling towards the unknown with a bunch of squabbling senators, careerist civil servants and super-heated lobbyists wrestling bitterly for the controls. The general rule of life, and what is widely accepted as the foundation of wisdom, is that all our actions have consequences for either good or bad, and that the ability to learn from the sometimes devastating consequences brought about by our mistakes leads a person to maturity. So when civil servants, politicians and DOJ prosecutors suffer no repercussions from their negligence, or consequences from their mistakes, wisdom and maturity are unlikely to follow. This, I believe, is a problem worse than any Enron, Arthur Andersen or Worldcom.
"The moral of the story - the government gave a corporate death sentence here, and when you are dead there isn't much that can be done even when it is later proved that (the government was) wrong. The truly unfortunate part here is that (28,000) innocent employees suffered."
























































