Bush Signs Legislation to Curb Business Fraud

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Jul 31, 2002
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President Bush signed legislation aimed at curtailing fraud and corruption in corporate America to help restore the public’s confidence in the economy, reports The Wall Street Journal.

The legislation, among other things, will bring the accounting industry under
federal supervision and stiffen penalties for corporate executives who misrepresent
company finances. “Every corporate official who has chosen to commit a crime
can expect to face the consequences,” Mr. Bush says. “No more easy money for
corporate criminals, just hard time.”

Chief executives of publicly traded companies must certify the accuracy of
financial statements going back to last year by August 14, using new SEC rules.
A violation of these SEC rules will fall under the new law.

Moderator Comment: Will the bill signed into law by President Bush curtail fraud and corporate corruption as intended?

We’d like to think so but probably not. If criminals
(AKA business executives) actually believed that they would be caught then they
probably wouldn’t be committing crimes in the first place. [George
Anderson – Moderator
]

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