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February 18, 2007
Government Will Not Appeal Brown Case
According to CCN Money, the government has decided not to appeal the decision in U.S. v. Brown. This Enron-related case involved executives at Merrill Lynch. The Fifth Circuit Court of Appeals reversal of the conspiracy and wire fraud counts against the defendants was based on the use of the "honest services theory." (see here).
Although the government does not maintain a conviction here, it does leave for future use, the honest-services theory of prosecution. Honest services cases have been a source of concern since the adoption of the statute, 18 U.S.C. Sec. 1346. In the Rybicki case, the dissenters called for Congress to "repair this statute."
(esp)
February 18, 2007 in Enron | Permalink
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