Given the lack of investor confidence, are stiff criminal penalties important?
We do have to show that white-collar crime is every bit as offensive as blue-collar crime. There is a great deal of cynicism, and a lot of it is justified. People think that folks can rob the public and get away with it. We have to show that that is not the case. Basically, it’s adopting a philosophy that says: We catch you, and we won’t tolerate it. The SEC doesn’t by itself have criminal authority, but we can hit people where it will really hurt. We can strip them of their salaries, bonuses, stock options, and we can apply for an order preventing them from ever serving on the board of a public company. The key, if you are an investor, is how quickly does the SEC act and is it capable of getting money back. While I am incredibly proud of the way our enforcement staff goes after this, we are not recovering nearly enough money. We have to show the American public that people who try to do that won’t get away with it. We can’t just say it; this isn’t sound-bite time. Q: Last week, the SE
