In analysing albeit from Nader's perspective, the SEC settlement with Putnam Investments, a larger question raises it head: Should any governmental agency have the right to settle, or should they, as a mandate of their role as repping the people, always, as a standard-setter, prosecute malfeasance to the fullest extent? My concern is that there has never been any "referendum" or discussion with the people, or even with Congress on a regular basis, as to what the people might like to see with regard to the level of prosecution of criminal malfeasance. Your thoughts?
Congratulations, you've just adopted a Bush Administration Policy!!!!!!!!!!!!! I know it's hard to believe. It might mess with your mind some. But it's true. The Justice Department recently placed stricter limits on the ability of U.S. prosecutors to accept plea bargains in criminal matters. So perhaps they are right there with you after all, huh? Of course prosecutors should be entitled to settle cases. It's not even worthy of debate.
Well, maybe I'm arguing examination of the criteria used to go "settlement," and transparency thereof, I guess. I don't know. I have no idea where I stand on this one, and am throwing it out there for your thoughts...
Prosecutorial discretion is a pretty important principle of our system. If an action is brought on behalf of "the people" then whomever that representative is has the right to decide what to settle with. It makes both moral and practical sense. "Prosecute everything" may sound good to some, but it would actually be a bit frightening. Prosecutors in criminal or even civil proceedings need to decide what cases to take, and what they want to demand from them. I believe that SEC settlements also do not preclude a private right of action for securities fraud. So individuals who have a private right to be vindicated should not be harmed by the public prosecutor's decision to settle a matter.
The SEC cannot bring criminal charges - it can only bring civil cases. And they don't even like doing that. > I believe that SEC settlements also do not > preclude a private right of action for securities > fraud. In theory, yes. However, private cases like this are almost always thrown out of court. The best chance is for states to bring criminal charges, and some states are tougher than others.