Ashcroft vows tough stand on combating corporate crime

From Terry Frieden
CNN

Attorney General Ashcroft, shown at a news conference earlier this week announcing charges against former Homestore.com executives.

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WASHINGTON (CNN) -- Attorney General John Ashcroft urged federal prosecutors Friday to continue the crackdown on corporate crime, saying the "tyranny of greed" threatens the nation's freedoms.

"With each act of justice, you send the unmistakable message that no board room is beyond the law, no executive is above the law," Ashcroft said at a meeting of hundreds of government prosecutors who deal with white collar crime.

"The malignancy of corporate corruption threatens more than the future of a few companies. It destroys workers' incomes, decimates families' savings, and casts a shadow on the health, integrity, and good name of American business itself," Ashcroft said.

In his strongly worded speech, the attorney general praised the government actions taken this year against Arthur Andersen, Enron, Rite Aid, Adelphia Communications, ImClone, Allfirst Bank and Homestore.com.

On Thursday, former WorldCom Inc. executive David Myers pleaded guilty to conspiracy and securities fraud, the first admission of guilt in the largest corporate accounting scandal in U.S. history. Myers, 44, agreed to cooperate with authorities against his former bosses and to plead guilty as early as next week to an additional charge.

"As their numbers have mounted, they have eroded confidence in the integrity of U.S. markets," Ashcroft said.

As in combating terrorism, Ashcroft asked prosecutors to tackle major problems before it is too late.

"Prosecutors, investigators and regulators do not have the luxury of time," he said. "We simply can't afford to wait to challenge corporate corruption until jobs are lost, retirement funds are depleted and confidence is destroyed."

Ashcroft did not discuss ongoing investigations, and gave no hint when new charges may be filed. But the attorney general appeared to place the perceived threat from the business world on a par with that of terrorists.

"Just over a year ago, Americans were called to defend our freedom from assault from abroad. Today we are called to preserve our freedom from corruption within."

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