Tuesday, December 6, 2005

Collateral Consequences of Indictment

Collateral Consequences in the white collar area often include the possible loss of license (e.g., doctors, lawyers, stockbrokers, etc), debarment from receiving government contracts (e.g. military contracts), or exclusion from receiving government payments (e.g. health care fraud).  Tom DeLay's case represents yet another collateral consequence (this one occurring pre-indictment) - - loss of his key position within the legislature. 

Sometimes the indictment is sufficient to suffer these consequences.  In the case of Richard Scrushy, a finding of not guilty did not restore his position with HealthSouth. Most recently, Scrushy announced that he will leave the HealthSouth board (see Wall St. Jrl here).  Clearly the ramifications of an indictment, even when not guilty, can be devastating to the individual charged. 

Likewise, a finding of not guilty is a statement that a person is not guilty of criminal conduct.  Civil ramifications and the civil standard are different, and individuals who may be found not guilty can often still be faced with civil penalties, civil lawsuits, etc.

(esp)

http://lawprofessors.typepad.com/whitecollarcrime_blog/2005/12/collateral_cons.html

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