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Tuesday, June 07, 2005

Its Got to Have Teeth

I can't imagine sitting in the Scrushy jury room. For the upteenth day, I'm sure that the endless debate must prattle on about "did he do this?' and "can you imagine that he would do that?"

What does someone have to do to get convicted of a white collar crime? If leading a gang of criminals (which is all that he uknowningly did, according to his attorneys) isn't just cause, what is?

The part that gets under my skin is that, unlike a petty thief without means to feed his habit, Scrushy did more than steal - he broke his commitment to shareholders. It's not just that what he did was criminal, but that he did it with full knowledge that people that placed their trust in his professional judgement were the ones that would ultimately get screwed. How is it that we can give the junky 18 months for a stolen car, but Scrushy still jets around buildig good will by glad-handing minsters across the south while a jury tries to figure out if he really is responsible for any of the 30+ charges brought against him?

One thing is certain - anything short of some hard time will do much to dull the teeth of this SOX legistlation, something the average company has spent $5 million dollars trying to comply with. No consequences sure seems like a limited downside when compared with a multi-million dollar implementation bill, with on-going costs that have yet to be reduced by more than 50% of the implementation price tag.

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