Paul Kedrosky: Lerach the Lorax: I Meant No Harm

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June 2, 2008

Lerach the Lorax: I Meant No Harm

Judging by a self-penned essay in Portfolio, corporate ambulance-chaser Bill Lerach meant no harm. Here he is in one of the loopier passages explaining why he plead guilty:

So why did I plead guilty? If you haven’t been a defendant in a federal criminal prosecution, let me tell you, it is not a fair fight. Prosecutors have virtually unlimited discretion to determine which charges to pursue. They structure indictments with multiple counts and money-laundering claims to threaten a defendant with huge financial penalties and the possibility of a long prison sentence. This creates draconian pressure to plead guilty.

The prosecutors hold all the cards. The judge holds the gavel, and from the defendant’s perspective, it might as well be a bazooka. The judge is free to ignore sentencing guidelines and impose an even harsher sentence. And because prosecutors and the judges both work for the government, there is a disturbing synergy in the entire process. Like a nonconformist during China’s Cultural Revolution, a defendant in a federal criminal case is forced to bow and humbly express guilt, regret, a nd contrition. You speak only to affirm your guilt and sorrow. If I hadn’t pleaded guilty, the judge could have sentenced me to seven years instead of the 24 months I now face.

I don’t cite these facts to dispute that prosecutors proved I committed a crime.