“The Justice Department plans to try and force four major banks to plead guilty to criminal antitrust charges for alleged collusion by traders in foreign-currency markets, people familiar with the discussions said.” [WSJ]
And yes, that is gum with an “m” not gun with an “n.” [CNN]
In New York that’s getting to be a regular pattern in the settlement of charges against financial firms; although Eliot Spitzer, known for creative methods of corporate decapitation, may have departed office, Spitzerism lives on. I explain in a new Cato post on the state’s Ocwen Financial pact.
Related: Tactics the federal government used to seize control of insurer American International Group (AIG) away from Hank Greenberg, now made public despite years spent resisting disclosure [Gretchen Morgenson, New York Times]
I’ve got a new post up at Cato at Liberty about the Second Circuit’s sharply worded dismissal of two insider trading convictions, which alas came too late to avoid massive damage to the enterprises and people concerned. Quoting NYT “DealBook”:
The dismissal of the case also raises questions about the November 2010 raids of Level Global and Diamondback Capital Management by the Federal Bureau of Investigation. Soon after the raid on Level Global, the hedge fund, which was started by Mr. Chiasson and David Ganek, shut down, in part because of requests by investors to redeem their money after the raid. Mr. Ganek was never charged with any wrongdoing by federal authorities.
Diamondback, where Mr. Newman was a portfolio manager, continued to operate for another two years, but it decided to close its doors in December 2012 after receiving a wave of investor redemptions.
Mr. Ganek chided the government in a statement on Wednesday. “For the dozens of my high-integrity colleagues at Level Global who lost their jobs and their reputations because the F.B.I. improperly raided our firm in this now-discredited fishing expedition, today’s legal vindication is a reminder how prosecutorial recklessness has real impact on real people,” he said.
Raids, as opposed to subpoenas and other dull ways of obtaining information sought in an investigation, are irresistible to the press — and they greatly reinforce the public impression that there must have been serious wrongdoing at a target enterprise. That in turn can spell doom especially for financial undertakings, whose business will often be built on client and public trust. And if the case subsequently fails to stick by the evidence or the law, well, it’s on to the next prosecution, right?
The coroner’s inquest, familiar to readers of Agatha Christie, might be worth importing to the U.S. to look into police-caused deaths [Josh Voorhees, Slate, on ideas of Paul MacMahon]
Related: “The Grand Jury System Is Broken” [John Steele Gordon, Commentary, written post-Ferguson, pre-Garner]; New York Times “Room for Debate“; New York Attorney General Eric Schneiderman asks for authority to take over prosecutorial authority in police shootings [WGRZ (auto-plays), New York Observer, Paul Cassell]; Harvey Silverglate via Todd Zywicki (don’t gut grand jury protections). And from Michael Bell, “What I Did After Police Killed My Son,” Politico: “In 129 years since police and fire commissions were created in the state of Wisconsin, we could not find a single ruling by a police department, an inquest or a police commission that a shooting was unjustified. …As a military pilot, I knew that if law professionals investigated police-related deaths like, say, the way that the National Transportation Safety Board investigated aviation mishaps, police-related deaths would be at an all time low.” (& Wisconsin aftermath)
- If you like civil forfeiture, you’ll love AG nominee Loretta Lynch [Rare Liberty]
- NYT “Room for Debate” tackles deferred prosecution agreements with contributions by James Copland, Lawrence Cunningham, others;
- Book by Ross Cheit seeks to rehabilitate mass-child-abuse prosecutions of 1990s, Cathy Young not convinced [Reason] “When miscarriages of justice occur, prosecutors must answer for actions” [Boston Globe on Bernard Baran case, earlier here and here]
- As Sierra Pacific case implodes, federal judge raises prospect that U.S. DoJ may have defrauded judges [Paul Mirengoff, earlier]
- Video of panel on shaken baby syndrome doubts, relating to new film “The Syndrome” [Univ. of Missouri, K.C. School of Law, related earlier]
- Ambiguous statutes in a regulated environment: time for a limit on the criminalization of business? [Matt Kaiser, Above the Law]
- Las Vegas: federal judge calls “super seal” clandestine-forfeiture effort by U.S. prosecutors “constitutionally abhorrent” [Balko]
PBS NewsHour “read and analyzed more than 500 pages of witness testimony and compared each statement to those given by [officer Darren] Wilson,” pulling together the results in this chart, which illuminates points where the witness testimony tended to help Wilson’s defense and where it did not; perhaps most surprising is how many questions he was apparently not asked. Prosecutor Robert McCullough managed the grand jury proceedings almost in the manner of a defense lawyer for the man facing charges, a strategy extremely unlikely to be repeated in the great majority of grand jury proceedings where the accused is not a police officer [Jacob Sullum] And Conor Friedersdorf notes that if you were looking for poster cases of wrongful use of lethal force for which police were not held accountable — even when there was video or other strong documentary evidence — many other cases would stand higher on the list than that of Michael Brown.
- “As Ferguson waits, some lessons from the Rodney King riots” [Radley Balko] “ACLU wins federal court orders on right to video police in Ferguson, elsewhere” [St. Louis Post-Dispatch]
- “What charges could the Michael Brown grand jury consider, if they choose to indict?” [Paul Cassell, Volokh; related on Missouri jury instructions regarding deadly force by police, Robert VerBruggen/Real Clear Policy]
- Quick links: things this site has published on Ferguson, on police militarization, on police issues generally;
- Interview with University of Illinois lawprof Andrew Leipold on grand jury process [U of I] A reminder about the surprisingly high error rates of eyewitness testimony [Balko]
- “Judges propose wide reform of St. Louis County’s municipal courts” [StL; related, holiday warrant forgiveness] Municipal court fines and fees: “Why we need to fix St. Louis County” [Radley Balko, related (Better Together report), earlier here, here from Balko, etc.]
- “The hurdles for indicting or convicting a uniformed officer are high, for many reasons.” Survey of police deadly force issue [L.A. Times] Police forces have strayed far from the “Peel Principles” for which London police were so admired [Tuccille, Reason]
- Not much. “Whatever Happened To The White House Police Militarization Review?” [Evan McMorris-Santoro, BuzzFeed]
The American Bar Association’s Standing Committee on Ethics and Professional Responsibility moves against a dubious practice. “The demand letters are effective at scaring consumers because they are sent on prosecutor letterhead and contain threats of criminal prosecution — threats that no other debt collector could make.” However, they mobilize the prosecutor’s apparent public authority on behalf of legal threats which typically the prosecutor has not reviewed individually exercising professional judgment, and they can deceive debtors about the legal status of their claimed obligation. [Deepak Gupta, Consumer Law & Policy; earlier]
- New Cato paper finds little evidence that pot legalization in Colorado has much affected rates of use, traffic safety, violent crime, ER visits, health, education outcomes [Jeffrey Miron working paper via Jacob Sullum]
- Ferguson narrative changes as new evidence supports officer’s story on Michael Brown confrontation [Washington Post, Marc Ambinder/The Week, New Republic]
- Why Obama was smart to choose Loretta Lynch as AG rather than knocking Republicans’ cap off with a pick like Thomas Perez [Cato; Todd Gaziano on confirmation questions]
- Plea bargaining system: “Why Innocent People Plead Guilty” [Judge Jed Rakoff, New York Review of Books]
- “There’s not much to do about catcalling, unless you’re willing to see a lot more minority men hassled by the police” [Kay Hymowitz, Time] Peer pressure seems to be a factor in restraining it [Andrew Sullivan] The “practice of catcalling is most taboo among members of the upper classes.” [Conor Friedersdorf, The Atlantic, earlier]
- San Diego says it retains discretion over when to release cop camera footage [Radley Balko] How body cameras can vindicate cops [same]
- Elderly Wisconsin man “was never considered dangerous, [but] was known to be argumentative,” so send in the armored vehicle [Kevin Underhill, Lowering the Bar, related] “The [SWAT-raided] Tibetan monks were here on a peace mission, for Christ’s sake. Well, not for Christ’s sake, but you know what I mean.” [same] Sen. Coburn quotes Madison: standing military force with overgrown executive will not long be safe companion to liberty [WSJ]