Corporate Fraud Cases Often Spare Individuals

The New York times has; (hat tip to taxpayers against fraud, www.taf.org)

Corporate Fraud Cases Often Spare Individuals

By MICHAEL S. SCHMIDT and EDWARD WYATT

Published: August 7, 2012 

WASHINGTON — Pharmaceutical companies, military contractors, banks and other corporations are on track to pay as much as $8 billion this year to resolve charges of defrauding the government, analysts say — a record sum and more than twice the amount assessed last year by the Justice Department.

The surge in penalties is because of a number of factors, including the resolution of longstanding actions against drug makers and military contractors, as well as lawsuits brought against mortgage lenders after the financial crisis. But it also reflects a renewed emphasis on corporate fraud, as the Justice Department devotes more resources to the issue and demands higher penalties from companies. ......

[Ed, monetary penalties rather than tossing Corporate Executives into prison happens WHY?]

..... Lawyers say the Government is more likely to go after companies because of their deep pockets. Civil cases against businesses can often produce substantial financial awards without the risk inherent in a trial. Civil charges also have a lower burden of proof than criminal charges and can reap triple damages. By one estimate, the government recoups $15 for every $1 spent on a civil case against a company.

But a top government enforcement official gave another reason, saying it was often too difficult and expensive to find evidence that clearly linked individual actions to corporate wrongdoing. Senior executives in particular are often insulated from day-to-day decisions, the official said, and have learned to steer clear of e-mails or other evidence that might prove that they knew the company was breaking the law. The official spoke on the condition of anonymity because more companies and executives were expected to be taken to court. ..... "

[Ed, "Let's all WRITE This next quote from Mr. West on a Post It Note and stick it up right next to our computer so we Won't forget it.]

" ..... The Justice Department said its prosecutors assessed how strong the evidence was and the likelihood of a successful trial in deciding whether to charge individuals. Even if a company has settled a case, it said, an investigation of individual conduct can continue and might eventually result in charges.

“To the extent you do not see many individuals being held accountable, that’s not because of a lack of will on the part of the Department of Justice,” said Mr. West, the acting associate attorney general. “There is a lot of behavior that makes us angry but which is not necessarily illegal. If the evidence is there, we won’t hesitate to bring those cases. ..... ”

[Ed, Johnson and Johnson has been 'Finalizing' a Fed DOJ buyout on their Risperdal problems. A few months ago J&J was adamant that DOJ was not getting their hands on New J&J CEO Alex Gorsky to depose him regarding what he knew and had a hand in regarding Omnicare kickbacks and more.

DOJ Wants Incoming J&J CEO Gorsky  Re: Omnicare Kickback Allegations

The buyout price being bruited about is $2.2 Billion.

J&J Risperdal Agrees To Pay Obama DOJ's Parking Ticket.

Let's see if Gorsky's deposition gets swept off the table when the buyout does get 'Finalized'.

“There is a lot of behavior that makes us angry but which is not necessarily illegal. If the evidence is there, we won’t hesitate to bring those cases. ..... ”

 not necessarily illegal,

18C95 Sec 1958: Murder For Hire

If the evidence is there, ..... 

'Mental Health' In San Francisco: Link Fest

Did somebody get President Clinton to redefine the word "Evidence"?

“To the extent you do not see many individuals being held accountable, that’s not because of a lack of will on the part of the Department of Justice,”

http://www.universityofcalifornia.edu/regents/regbios/welcome.html

“In the past, one of the biggest impediments to fighting waste, fraud and abuse in Medicare and Medicaid is when politicians intervene on the behalf of constituents, who are abusive service providers and equipment suppliers.”

Senator Tom Coburn