Just how far can a company go in cozying up to the Justice Department in order to avoid an indictment that can turn into a death-sentence?
Three years ago, the Justice Department issued the Thompson Memo, stating that one of the nine factors prosecutors will look at in deciding whether or not to indict is whether the target firm has stopped paying the legal fees to employees caught up in investigation. The memo has come under attack from judges and lawmakers who feel it could be an infringement on employees' right to indemnification, and essentially their right to counsel.
Earlier this year, in a case involving allegedly fraudulent tax shelter sales by KPMG, the judge in essence declared the effects of the memo unconstitutional–although that also is open to debate.
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