Bear Stearns indictments: Why Americans should not believe prosecutors

In a word, America’s prosecutors are liars or ignoramuses. Sometimes, they are both. In America’s battles against real crime, the prosecution may be our own worst enemy.

Examples besides Texas CPS? Try this. A June 26, 2008 NPR report highlights how, in drafting the recent indictment of Bear Stearns fund managers Ralph Cioffi and Matthew Tannin, U.S. Attorney Benton J. Campbell (apparently) omitted significant exculpatory evidence in e-mails on which his indictment of the defendants is based. Campbell, in drafting this indictment, did roughly the same thing that earned Bernie Ebbers 25 years in prison. Yet the jury foreman dutifully undersigned “A True Bill.” Bill Clinton, maybe.

Here are key excerpts from NPR:

Prosecutors used a trail of e-mails to accuse Cioffi and Tannin of conspiracy, wire and mail fraud. They said Cioffi and Tannin wrote a raft of e-mails to each other worrying about the possible collapse of the subprime mortgage market while assuring investors all was well. . .

Half a dozen hedge fund managers contacted by NPR said the e-mails excerpted in the indictment were far from unusual. Internal e-mails are often emotional. One day a hedge fund manager might think he is doomed — in one e-mail Tannin said that if the figures on subprime mortgages were accurate the funds were “toast,” — only to be buoyed by some unexpected opportunity the next day. It is possible that Cioffi and Tannin actually thought they could ride out the crisis, they said.

People close to the case tell NPR that when the full e-mails come out, they will present a very different picture than the one currently painted in the indictment. They say the e-mails are taken out of context and excerpted in such a way as to put both men in the worst possible light. . .

“If the government is cherry-picking selected e-mail, that’s a powerful argument for the defense,” said defense attorney Simon. “If they can say, ‘What about these e-mails, how come they aren’t in the indictment?’ That could be a very different situation.”

Former prosecutor Michael Bachner is now a white-collar defense attorney. He says that from what he has gleaned in talking to Cioffi’s and Tannin’s lawyers, there is much in the e-mails that could exonerate the two men.

“Conversations I have had with defense counsel leads me to believe the case is not nearly as strong as the government would lead everyone to believe,” he said. . . .

I think so. Full story at NPR.