Chamber Pot

7 January 2005



US Chamber of Commerce Head Slams New York AG Eliot Spitzer

Crusading prosecutors are a dangerous bunch. By virtue of the power of their office, they have the ability to make life miserable for anyone who comes into their cross-hairs. When drug lords, Mafiosi and that ilk are brought into court, there is no doubt as to their value. When businessmen find themselves in the dock, the law shouldn’t apply. At least, that’s what U.S. Chamber of Commerce president and chief executive Thomas Donohue seemed to tell the press earlier this week when he tore into New York Attorney-General Eliot Spitzer.

Mr. Donohue claimed that Mr. Spitzer’s prosecution of insurance and mutual fund mischief was “the most egregious and unacceptable form of intimidation that we have seen in this country in modern times. And it's going on in the application of a well-intended piece of legislation." Mr. Donohue also said, Mr. Spitzer "seem[s] bent on criminalizing honest mistakes and legitimate accounting differences." He further said, “"The companies and individuals who have been targeted - or who could be targeted in the future - cannot speak out against these abuses. We can and we will," referring to the US Chamber of Commerce.

Darren Dopp, from Mr. Spitzer’s office, answered, "This chamber should be proponents of high standards. Instead, they are attacking the one person who has done the most to level the playing field for business. Fighting fraud is good for the markets. They should support it."

One is sympathetic to Mr. Donohue’s point of view to the degree that the requirements of the law have increased. It is costly for firms to meet the standards of transparency of legislation like Sarbanes-Oxley. And the businessmen and women of America can’t go about making profits and fill out these silly forms at the same time.

The day after Mr. Donohue made his complaint public, Robert Stearns, Senior Vice President at insurance broker March & McLennan, pleaded guilty to scheming to defraud in the first degree. It’s a Class E felony that carries a prison sentence of 16 months to 4 years. Mr. Stearns admitted that he told insurance companies to submit non-competitive bids for insurance, which he would then pass along to clients who thought these reflected prevailing insurance rates. Marsh could then decide who got the business, maximizing the broker’s fees. Mr. Donohue’s serving of crow may be a generous portion.

© Copyright 2005 by The Kensington Review, J. Myhre, Editor. No part of this publication may be reproduced without written consent.

Home

Google
WWW Kensington Review







Amazon Honor System Click Here to Pay Learn More