More criminal indictments dismissed these days

Indictments always generate news. Targets turn themselves in. Sometimes they endure the perp walk. All of this is designed to weaken the accused. It often works.

No doubt some of these people are justly accused. But, as Bloomberg Markets notes, we're seeing something unusual going on: from 2006 to 2008, U.S. prosecutors dismissed charges against 42 such defendants for which the most serious charge was securities fraud (fraud news). That's more than twice the 20 dismissals in the prior three years. The U.S. Attorney in Manhattan has dropped at least five indictments.

The human toll of this legal roller coaster is staggering. Even when the charges are dropped, the damage to careers, health and reputation can't easily been undone. Bloomberg takes a look at David Pinkerton, a former AIG executive arrested and charged with bribery. Slowly, friends stopped calling. The support evaporated. His lawyers pissed him off. His health deteriorated; he even fainted on one occasion, something he thought was the onset of a stroke. But in the end he persevered and founded his own private equity firm.

It seems that prosecutors are being circumspect when it comes to charges against Wall Street executives. While some would like to see indictments, it pays to be circumspect. 

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