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March 28, 2007

"A License to Commit Fraud"

Over at tompaine.com, excutive editor Isaiah Poole has a nice column -- A License To Commit Fraud -- critiquing a recent Fifth Circuit decision that immunized some of Enron's investment banks from liability to investors. Poole quotes a partial dissent from Judge James L. Dennis that the ruling: "immunizes a broad array of undeniably fraudulent conduct from civil liability ... effectively giving secondary actors license to scheme with impunity, as long as they keep quiet." Poole makes similar points to plaintiff's attorney Al Meyerhoff, who says: "Participation in fraud has thus been elevated by the Fifth Circuit to simply another line of business."

Posted by Ed Mierzwinski at March 28, 2007 12:14 PM


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