More McHenry County Blog

Here are the Tribune quotes:

In the crackdown on corporate fraud, claiming innocence by virtue of ignorance has a checkered history. Also known as the ‘dummy’ or ‘ostrich’ defense, it has led to the convictions of such high-profile corporate criminals as Adelphia's John Rigas and WorldCom's Bernard Ebber.

It worked, however, for HealthSouth's Richard Scrushy…

…Walter Forbes (whose jury is deliberating)…contends he knew nothing of the accounting fraud committed during his long tenure at the top of the public company now known as Cendant Corp…

…the key issue seems obvious: How could a seasoned executive paid lavishly over a long period know nothing about such an audacious rip-off?…

Michael Clark, a former federal prosecutor who has become a defense attorney, agrees.

"It's a very difficult sell to say a person making that much money, who has been in a leadership role that long, could be that oblivious," said Clark... "This is a high-risk defense…"

“Saying, `It was obvious,' and `He had to know' isn't going to do it. You want Fastow to say Lay knew of this stuff and authorized it. You want a direct, dirty conversation," Jones said….

…David Ruder, Northwestern University law school professor and a former Securities and Exchange Commission chairman (explained,)... ‘The burden is on the government in these cases to show knowledge…’

Clark said directions given at the end of the trial could be critical, especially if U.S. District Judge Sim Lake provides an "ostrich instruction," telling jurors to convict if the defendants attempted to avoid knowing the obvious.”

I have put, “You want a direct, dirty conversation,” in bold face, because it seems to me that has not yet appeared in the U.S. Attorney’s case against Ryan in Chicago.

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