Spitzer Retreats From Another Fund Prosecution (His Fraud Finally Catching Up)

WSJ ^

[indianrightwinger]

Spitzer Retreats From Another Fund Prosecution Criminal Charges Are Dropped Against an Ex-CIBC Executive, A Month After Sihpol's Case Died By TOM LAURICELLA and PAUL DAVIES Staff Reporters of THE WALL STREET JOURNAL November 22, 2005; Page C1

New York State Attorney General Eliot Spitzer dropped another set of criminal charges stemming from the mutual-fund trading scandal, making a retreat in a case that helped build his reputation for fighting financial fraud.

Officials in Mr. Spitzer's office defended his two-year-old probe of improper trading in mutual funds, noting that it had triggered sweeping overhauls in the industry and that a dozen companies had reached settlements totaling $3.1 billion in fines, restitution and fee cuts. They also pointed out that nine of the 11 people facing criminal charges related to the improper trading had pleaded guilty and that grand juries continue to investigate mutual-fund trading. [Eliot Spitzer]

But Mr. Spitzer's decision to drop the fraud and larceny charges his office brought last year against Paul Flynn, a former executive at Canadian Imperial Bank of Commerce who had been accused of aiding improper mutual-fund trading by hedge funds, raised anew questions about whether criminal penalties were warranted in the fund scandal.

Critics complain that Mr. Spitzer, who has made a name for himself while largely avoiding the courtroom, uses tough, headline-grabbing tactics such as threatening jail time to pressure businesses and individuals to settle cases.

In recommending that the charges against Mr. Flynn be dropped, Mr. Spitzer himself raised the appropriateness of criminal charges and prison at this time. He noted that two executives of Security Trust Co., who played a more direct role than Mr. Flynn in helping hedge funds trade after 4 p.m. Eastern time, had pleaded guilty recently and received only probation as sentences.

[indianrightwinger]

Of all the DemocRATs in powerful positions, Spitzer is one of the worst SCUMs. He used his office for pure political gain with ZERO regard for the law and prosecutorial ethics.

Glad to see it catching up.

[Harrius Magnus]

He makes vomit look appetizing and I would rather have Serpent-Head as a son-in-law.