The cutting edge - Viewpoint - jail CEO and accountant criminals - Column

Electronic News, July 22, 2002 by Bernard Levine

Should crooked CEOs, their accountant-enablers and other high-powered criminals go to jail? Of course they should. Sending a few of these executive scoundrels to the slammer in handcuffs will probably do more to restore integrity to the executive suite and boardroom than a dozen more speeches by President Bush -or Federal Reserve Chairman Alan Greenspan. And with much of the public demanding jail time for corporate offenders, you can bet it will happen.

Jail is for punishment and deterrence. If proven guilty, these rascals from the electronics industry and other business sectors certainly deserve the punishment. The corporate crime wave has ruined companies and people's lives. Many innocent victims have lost fortunes, including shareholders whose stock has plummeted and employees who are out of pensions or jobs. The actions of these elite thieves weakened investor confidence in the entire economy and cast a cloud over everyone, including the vast majority of honest business people.

The perpetrators of these crimes are no better than common thieves who hold up a liquor or convenience store. All belong in jail.

And locking up the corporate bums will act as a deterrent to others who might be tempted to cook the books or carry out other illegal schemes. Watching some ex-CEOs marched off to the penitentiary in disgrace will make many others think twice before taking the risk themselves. It won't prevent all future abuses, but it will prevent some.

It reminds me of the debate over capital punishment. Proponents of the death penalty for murderers say capital punishment may not prevent all future murders, but it will prevent some. I'm not naive enough to think that putting a few chief executives behind bars will end greed and stupidity and prevent all future WorldComs and Enrons, but some might be prevented. Shady businessmen inclined to push the envelope may push a little less if they feared winding up making license plates.

With the outraged public anxious to see some misbehaving head honchos severely punished, the politicians will make it happen. Soon some of those high-level crooks will take that long, demeaning, awful walk from the corner office to the corner cell, with everyone watching. Maybe it will be shown live on CNBC. I can't wait. It's time to lock the louses up.