Bernie Ebbers Conviction

I believe that the jury verdict convicting Bernie Ebbers on all counts was absolutely correct. I sat through much of the court proceedings and saw the testimony of Scott Sullivan and Bernie Ebbers. The jury believes Scott Sullivan and did not believe Bernie Ebbers. Ebbers defense that he did not know what was going on in his own company - even though he had a billion dollars worth of WorldCom stock and built the company - simply did not fly with the common sense of the jurors. There was ample evidence particularly a voice mail left by Scott Sullivan for Bernie Ebbers where Sullivan talked about "accounting flub" and "junk" on the balance sheets.

The Ebbers verdict sends a message to corporate America and Wall Street that stock fraud and lying to investors is a criminal offense which will be severely punished. Ken Lay, Jeff Skilling and other CEO's who think they can take the "I don't know" defense are sorely mistaken. I believe that those executives will also be convicted.

Martha Stewart – Appeal

Jake Zamansky will be interviewed on CNN’s America Morning show at 7 am Thursday March 17, 2005 regarding Martha Stewart’s answers on appeal.

A three member panel of the United States Court of Appeal Second Circuit will hear the appeal for Martha’s conviction on making false statements to US Government officials and obstruction of justice. The basis of the appeal is that Larry Stewart, the ink expert, allegedly lied on the witness stand and that one of the jurors allegedly lied about his background.

Zamansky believes that none of the appeal issues go to the heart of the case and that the Appeals Court will confirm the jury verdict. Essentially “no harm no foul.”

Defense lawyers often come up with technical legal arguments but it is a very high bar for overturning a jury verdict which has not been met here.

I thought you would find of interest my recent article "A "Reasoned" Arbitration Decision? Be Careful What You Wish For" Published in the Wall Street Lawyer’s February 2005 issue.