Reason.com - Free Minds and Free Markets
Reason logo Reason logo
  • Latest
  • Magazine
    • Current Issue
    • Archives
    • Subscribe
    • Crossword
  • Video
  • Podcasts
    • All Shows
    • The Reason Roundtable
    • The Reason Interview With Nick Gillespie
    • The Soho Forum Debates
    • Just Asking Questions
    • The Best of Reason Magazine
    • Why We Can't Have Nice Things
  • Volokh
  • Newsletters
  • Donate
    • Donate Online
    • Donate Crypto
    • Ways To Give To Reason Foundation
    • Torchbearer Society
    • Planned Giving
  • Subscribe
    • Reason Plus Subscription
    • Print Subscription
    • Gift Subscriptions
    • Subscriber Support

Login Form

Create new account
Forgot password

Politics

Federal Prosecutors Break Rules, Wreck Lives, and Get Promoted

Washington's overlords protect their own.

John Stossel | 10.22.2014 12:00 PM

Share on FacebookShare on XShare on RedditShare by emailPrint friendly versionCopy page URL
Media Contact & Reprint Requests
Large image on homepages | From the cover of 'Licensed To Lie' by Sidney Powell
(From the cover of 'Licensed To Lie' by Sidney Powell)

A group of Washington overlords—federal prosecutors—sometimes break rules and wreck people's lives. President Obama may soon appoint one of them to be America's next Attorney General.

The prosecutorial bullying is detailed in a new book by Sidney Powell, Licensed to Lie. She reports that the Department of Justice's (DOJ) narcissistic and dishonest prosecutors destroy people by doing things like deliberately withholding evidence.

Remember the Arthur Andersen accounting firm? It was killed off by ambitious prosecutors who claimed the company helped Enron commit accounting fraud and then shredded the evidence.

But instead of charging people who allegedly ordered evidence destroyed, the DOJ indicted the entire company. That destroyed the accounting firm. Publicly traded companies cannot do business with companies under criminal investigation, so Andersen lost most of its clients.

The prosecutor's purpose, says Powell, was to chill resistance from other companies that might dare fight the Feds. The message: cooperate, or we will destroy you! These pressure tactics were appropriate, said one prosecutor, because shredding documents "attacks the justice system itself by impeding investigators and regulators from getting at the truth."

But who actually hid the truth? The prosecutors, writes Powell. In fact, Andersen had saved most of its documents and gave them to the government. The prosecutors simply lied to the court about it.

Eventually, the U.S. Supreme Court overturned Arthur Andersen's conviction. But by then, 80,000 employees had lost their jobs—80,000 people who'd done nothing wrong.

You'd think that this would teach federal prosecutors to obey the law. Paul Kamenar of the Washington Legal Foundation said, "this decision will send a strong message to the Justice Department to stop this kind of abusive prosecutorial misconduct."

So were the prosecutors fired or jailed? No. Many were promoted. Washington's overlords protect their own.

Licensed To Lie/Facebook

Next, some of the same prosecutors accused four Merrill Lynch executives of falsifying Enron's books. The government lawyers told the media that Enron "conspired with Wall Street bankers to carry out a sham transaction." The Merrill Lynch executives charged with fraud got three- to four-year jail sentences.

But Powell writes that the government "failed to allege anything that actually constituted a crime by the Merrill Lynch executives. Instead it cobbled together parts of different statutes to make up some kind of new crime that didn't even make sense."

Sure enough, an appeals court tossed most of the verdict, and the Merrill executives were released. But that was after they had spent a year in jail.

Did the prosecutors hang their heads in shame? No. Far from it. Some of them then went after Republican Sen. Ted Stevens of Alaska. Stevens, the prosecutors claimed, took $250,000 in gifts from rich donors and never reported that.

But later it was revealed that the prosecutors withheld evidence that showed Stevens had not taken anything like $250,000. A judge threw out that conviction, too. But by then, Sen. Stevens had lost his Senate seat. His replacement, a Democrat, became the deciding vote for Obamacare.

So was the lead prosecutor, Matthew Friedrich, finally punished? Again, no. He took a higher-paying job at a private law firm. Leslie Caldwell, who helped destroy Arthur Anderson, got promoted to assistant attorney general at the Justice Department. Andrew Weissmann, who helped prosecute the Andersen and the Merrill Lynch employees, was made deputy director of the FBI.

Finally, prosecutor Kathryn Ruemmler, who helped manipulate the system to unfairly jail four Merrill Lynch employees, was promoted to deputy attorney general, then promoted again to White House counsel. Now Bloomberg reports that she's President Obama's first choice to replace Eric Holder!

If you find these charges as hard to believe as I did, you can read Powell's supporting documents at LicensedtoLie.com. We invited prosecutors Ruemmler, Friedrich, Caldwell and Weissmann to reply to the charges laid out in Powell's book and on my TV show, but they didn't respond.

Federal prosecutors always have a big advantage over anyone they attack. The U.S. government has endless time and money. Only multi-millionaires can afford to fight back. Most people accused, even those who are innocent, just settle with the prosecutors and get punished. Prosecutors abuse this awesome power and get promoted for it.

Start your day with Reason. Get a daily brief of the most important stories and trends every weekday morning when you subscribe to Reason Roundup.

This field is for validation purposes and should be left unchanged.

NEXT: Michael Sam Cut from Cowboys, But He's Proven the Culture Shift Toward Gay Acceptance Anyway

John Stossel is the host and creator of Stossel TV.

PoliticsDepartment of JusticeCivil LibertiesCorruptionObama AdministrationFederal governmentPolice
Share on FacebookShare on XShare on RedditShare by emailPrint friendly versionCopy page URL
Media Contact & Reprint Requests

Show Comments (27)

Latest

The App Store Freedom Act Compromises User Privacy To Punish Big Tech

Jack Nicastro | 5.8.2025 4:57 PM

Is Shiloh Hendrix Really the End of Cancel Culture?

Robby Soave | 5.8.2025 4:10 PM

Good Riddance to Ed Martin, Trump's Failed Pick for U.S. Attorney for D.C.

C.J. Ciaramella | 5.8.2025 3:55 PM

Trump's Tariffs Are Already Raising Car Prices and Hurting Automakers

Joe Lancaster | 5.8.2025 2:35 PM

Trump's Antitrust Enforcer Says 'Big Is Bad'

Jack Nicastro | 5.8.2025 2:19 PM

Recommended

  • About
  • Browse Topics
  • Events
  • Staff
  • Jobs
  • Donate
  • Advertise
  • Subscribe
  • Contact
  • Media
  • Shop
  • Amazon
Reason Facebook@reason on XReason InstagramReason TikTokReason YoutubeApple PodcastsReason on FlipboardReason RSS

© 2024 Reason Foundation | Accessibility | Privacy Policy | Terms Of Use

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

r

Do you care about free minds and free markets? Sign up to get the biggest stories from Reason in your inbox every afternoon.

This field is for validation purposes and should be left unchanged.

This modal will close in 10

Reason Plus

Special Offer!

  • Full digital edition access
  • No ads
  • Commenting privileges

Just $25 per year

Join Today!