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URL:  http://boards.fool.com/executives-prefer-to-plead-incompetence-they-did-30646525.aspx

Subject:  Re: Why executives aren't prosecuted... Date:  4/21/2013  9:37 PM
Author:  putnid Number:  421149 of 458944

Executives prefer to plead incompetence (they did not know) rather than admit criminal activity. - pauleckler

BINGO!

You hit the nail right on the head. Examine any number of statutes and regulations governing business practices and, more often than not, you will find the phrase that "knowing and willful" misconduct is subject to criminal prosecution.

Proving "knowing and willful" misconduct is damn hard...practically impossible. That's why the phrase is so popular with all pro-business types, be they legislators or lobbyists for business interests.

When push comes to shove, the CEO's who are paid so handsomely for their "acumen", "brilliance", "sheer mastery of business", "the Masters of capital allocation", simply plead IGNORANCE. They'll state they never knew what was going on at levels "beneath them". Fingers will be pointed at underlings. Fingers will be pointed in many directions, but never at the CEO or the Board of Directors.

We can change all that, of course. We can write laws that hold CEO's and BOD's directly responsible (personally liable criminally and civilly) for harm done as a consequence of the actions of the corporation.

We can change all that, of course. But we won't.

We live in a plutocracy.
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