198:
Scrushy was found not guilty of all charges on June 28, 2005. But the idiot defense was not believed to have been the reason he was acquitted; instead, the prosecution apparently lacked enough courtroom-admissible evidence to make its case against him. He was later convicted by a
Federal court on 30
104:
to provide him warning of any possible abuse. In his closing statements, Rigas's lawyer asked "Does have a right to believe that things would be done properly, that adequate and appropriate disclosures were made, that the lawyers and the accountants and the personal accountants would make sure of
75:
No major instances of the idiot defense being successful in criminal proceedings have been reported in
American jurisprudence to date. Instead, all such uses are widely believed to have resulted in the defendants employing idiot defenses being found guilty on at least some, if not all, counts.
169:, and other subordinates without Ebbers's knowledge. During his criminal trial, Ebbers testified, "I was shocked. I couldn't believe it, I never thought anything like that would have gone on. I put those people in place. I trusted them. I had no idea they would do anything like this."
131:. During his trial, Forbes testified to working on "the strategy vision part, talking to key clients ...." He also claimed he was "much more valuable to shareholders doing that than being in day-to-day operations." Forbes's attorney,
40:
by virtue of having been ignorant of facts of which the defendant would normally be expected to be aware. Other terms used for this tactic include "dumb CEO defense", "dummy defense", "ostrich defense",
230:
interview before his trial, Lay said, "I don't think I'm a fool. But I think I sure was fooled." He added, "But I can't take responsibility for the criminal conduct of someone inside the company."
72:
accounting practices they claimed that they would have needed. However, in many cases the defendants' subordinates testified that the defendants ordered them to falsify the accounts.
64:
defendants claiming that all wrongdoing was performed by others, without the defendant's knowledge or consent. Attorneys for these defendants claimed that their skill was in
138:
The jury in the case against Forbes returned on
January 4, 2005. While they did convict another defendant, they failed to reach a verdict on the charges against Forbes.
208:
417:
452:
93:
430:
195:, asked during the trial, "That's what y'all did and how you planned it, so (Scrushy) wouldn't know what the whole picture was?"
336:
321:
127:, was charged with 16 counts in relation to inflated earnings statements from CUC before it merged with HFC Inc. to form
96:, was charged with conspiracy, bank fraud, and securities fraud. Rigas's defense asserted that he expected the Adelphia
447:
172:
The prosecutor referred to this as the "aw shucks defense." Ebbers was convicted of all charges on March 15, 2005.
132:
252:
use, and claim that he was unaware of any steroids at the time, have also been described as an idiot defense.
142:
271:
220:
on charges of securities fraud, wire fraud, and making false and misleading statements in relation to the
377:
409:
390:
65:
61:
188:
180:
97:
50:
49:
defense". The first known instance of the idiot defense was by John Henry
Stafford, a lawyer in
367:
166:
124:
46:
350:
249:
234:
266:
307:
261:
292:
441:
154:
116:
141:
Forbes was found guilty of conspiracy to commit securities fraud and two counts of
53:
who was also known as Yankee John. He used it in the defense of Marlin Heady, a
245:
192:
184:
101:
226:
135:, summarized: "The defense of Walter Forbes is that he didn't know about it."
89:
54:
37:
26:
60:
The term was popularized as a result of a number of high-profile corporate
322:"'I was shocked,' Ebbers says of being told about WorldCom irregularities"
217:
158:
33:
213:
161:
CEO, claimed that $ 11 billion in fraud was committed by the company's
128:
42:
221:
69:
30:
371:
68:
and deal-making, and that they lacked the training to recognize
397:
Southern
Division, Case No. CR-03-BE-0530-S. (29 October 2003)
394:
384:
162:
120:
372:
United States
District Court Southern District of New York
395:
United States
District Court Northern District of Alabama
293:"'Dumb CEO Defense' Spares Cendant Chairman From Prison"
187:, became the first CEO to be charged with violating the
387:
Houston
Division, Cr. No. H-04-25 (S-2). (7 July 2004)
385:
United States
District Court Southern District of Texas
391:United States of America vs. Richard M. Scrushy
378:United States of America vs. Kenneth L. Lay,
368:United States of America vs. Bernard J Ebbers
57:. The charges were all, allegedly, dropped.
8:
337:"Scrushy Defense: Fraud Hidden From Ex-CEO"
431:"'Embattled CEOs wise up to dummy defense"
351:"Enron's Lay says he was duped, not dumb"
209:Trial of Kenneth Lay and Jeffrey Skilling
306:Christoffersen, John (31 October 2006).
324:. The Clarion-Ledger. 28 February 2005.
308:"Jury Finds Ex-Cendant Chairman Guilty"
283:
237:were convicted on many of the charges.
145:at a third trial on October 31, 2006.
108:Rigas was convicted on July 8, 2004.
7:
353:. Houston Chronicle. 14 March 2005.
14:
429:Harrigan, Susan (16 March 2005).
374:, Indictment S3 02 Cr. 1144 (BSJ)
16:Satirical term for legal strategy
408:Syre, Steven (18 January 2005).
291:O'Brien, Tim (19 January 2005).
1:
335:Reeves, Jay (9 March 2005).
191:. Scrushy's defense lawyer,
183:, founder and former CEO of
469:
453:Informal legal terminology
206:
155:Bernard J. "Bernie" Ebbers
295:. New Jersey Law Journal.
36:where a defendant claims
248:' admission of possible
100:, lawyers, and external
143:making false statements
272:Ignorance is no excuse
410:"The 'idiot' defense"
199:additional charges.
133:Brendan Sullivan Jr.
418:"The Idiot Defense"
412:. The Boston Globe.
339:. Associated Press.
310:. Associated Press.
189:Sarbanes-Oxley Act
181:Richard M. Scrushy
176:Richard M. Scrushy
62:accounting scandal
51:Jackson, Tennessee
448:Criminal defenses
422:Los Angeles Times
167:Scott D. Sullivan
149:Bernard J. Ebbers
125:CUC International
92:, the founder of
460:
434:
425:
413:
355:
354:
347:
341:
340:
332:
326:
325:
318:
312:
311:
303:
297:
296:
288:
235:Jeffrey Skilling
112:Walter A. Forbes
47:Sergeant Schultz
468:
467:
463:
462:
461:
459:
458:
457:
438:
437:
428:
424:. 6 March 2005.
416:
407:
404:
364:
362:Court documents
359:
358:
349:
348:
344:
334:
333:
329:
320:
319:
315:
305:
304:
300:
290:
289:
285:
280:
267:Twinkie defense
258:
243:
224:collapse. In a
211:
205:
178:
151:
114:
87:
82:
45:defense", and "
17:
12:
11:
5:
466:
464:
456:
455:
450:
440:
439:
436:
435:
426:
414:
403:
400:
399:
398:
388:
375:
363:
360:
357:
356:
342:
327:
313:
298:
282:
281:
279:
276:
275:
274:
269:
264:
262:Shaggy defense
257:
254:
242:
239:
214:Kenneth L. Lay
207:Main article:
204:
203:Kenneth L. Lay
201:
177:
174:
153:In this case,
150:
147:
113:
110:
86:
83:
81:
78:
15:
13:
10:
9:
6:
4:
3:
2:
465:
454:
451:
449:
446:
445:
443:
432:
427:
423:
419:
415:
411:
406:
405:
401:
396:
392:
389:
386:
382:
381:
376:
373:
369:
366:
365:
361:
352:
346:
343:
338:
331:
328:
323:
317:
314:
309:
302:
299:
294:
287:
284:
277:
273:
270:
268:
265:
263:
260:
259:
255:
253:
251:
247:
240:
238:
236:
231:
229:
228:
223:
219:
215:
210:
202:
200:
196:
194:
190:
186:
182:
175:
173:
170:
168:
164:
160:
156:
148:
146:
144:
139:
136:
134:
130:
126:
122:
118:
117:Walter Forbes
111:
109:
106:
103:
99:
95:
91:
90:John J. Rigas
85:John J. Rigas
84:
79:
77:
73:
71:
67:
63:
58:
56:
52:
48:
44:
39:
35:
32:
28:
24:
23:idiot defense
19:
421:
379:
345:
330:
316:
301:
286:
244:
232:
225:
212:
197:
179:
171:
152:
140:
137:
115:
107:
88:
74:
59:
22:
20:
18:
246:Barry Bonds
193:Jim Parkman
185:HealthSouth
102:accountants
29:term for a
442:Categories
433:. Newsday.
402:Editorials
278:References
241:Other uses
227:60 Minutes
70:fraudulent
55:moonshiner
157:, former
119:, former
66:valuation
38:innocence
27:satirical
256:See also
233:Lay and
218:indicted
159:WorldCom
94:Adelphia
80:Examples
34:strategy
250:steroid
129:Cendant
105:that?"
43:Ken Lay
25:" is a
380:et al.
222:Enron
98:board
31:legal
21:"The
216:was
163:CFO
123:of
121:CEO
444::
420:.
393:,
383:,
370:,
165:,
41:"
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.