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Ashcroft Demands Jail for Low-Level White Collar Offenders

We think this news, which came out just before Christmas got buried. We wrote about it on December 26, having found out about it on one of our legal discussion list-servs, when lawyers started hearing from their clients they had received a notice they were going to be moved from a halfway house to prison. Since the Washington Post has revived it with this informative article in today's paper, we are reprinting our prior post:
The business section of today's New York Times has an article on Ashcroft's directive to the Bureau of Prisons that white collar offenders with short sentences must serve their time in federal prison, not half-way houses. For the past decade, the BOP has been allowing such offenders to go directly to a halfway house.

"In a memorandum last week to Kathleen Hawk Sawyer, the director of the Bureau of Prisons, Mr. Ashcroft said that the practice violated federal sentencing laws that require imprisonment and that it offered favorable treatment to white-collar criminals. The directive from the attorney general was first reported by Newsweek."

Because of Ashcroft's new policy, about 125 white collar offenders now in halfway houses will return to federal prisons.

The New York Times article also addresses in detail the proposed sentencing guideline changes for white collar offenders under the newly enacted Sarbanes-Oxley Act --changes with which the Justice Department is not happy.

When a law is enacted that increases penalties, the U.S. Sentencing Commission is directed to draw up new sentencing guidelines. They send them out for public comment. Then they vote on them. After that, unless Congress affirmatively takes action, the new guidelines automatically become law.

The Commission promulgated new guidelines on the Sarbanes-Oxley Act and sent them out for comment. In two weeks, the Commission will vote on them. The Justice Department strongly objects to the proposed guidelines because they are not tough enough for low level fraud offenders. The two agencies have been feuding for months over this issue.

"Justice Department officials said in recent interviews that they plan to broaden their corporate investigations to focus more intensely on the professional "gatekeepers" - lawyers, accountants and others - who may have facilitated frauds."

Maybe now that Aschroft's actions are going to affect some prospersous people, some of whom undoubtedly must have "connections", we'll hear louder protests of Ashcroft and his brand of non-compassionate conservatism.

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