Legal Commentary

A tuna wins a small lottery prize

By Tom Kirkendall

As a result of the Buffet Rule, the federal government decided to land a bunch of tuna rather than the barracuda in regard to an AIG-General Re finite risk insurance transaction that was not clearly illegal, much less criminal.

Subsequently, after convicting the business executives (sort of like shooting tuna in a barrel these days), the federal prosecutors proposed that the tuna get effective life sentences. For what?

Thankfully, a federal judge in Connecticut showed unusual restraint on Tuesday in rejecting the government's brutal behavior. He handed the first of the tuna to face sentencing a two-year prison term.

Meanwhile, former Enron executive Jeff Skilling continues serving an effective life prison sentence in Colorado pending his appeal after being convicted (although not fairly) for pretty much the same thing as the tuna above.

So, during a financial downturn when we need to be promoting our best and brightest to be engaging in the business risks that generate jobs and wealth, our federal government continues promoting its corporate criminal lottery.

Why would the best and brightest risk that?  Do any investors really feel safer that Skilling is off the streets? And does anyone really think that keeping Skilling locked up for most of the rest of his life will deter the next Bernie Madoff?

A truly civil and wise society would find a better way.

Full post as published by Houston's Clear Thinkers on December 17, 2008 (boomark / email).