[Congressional Record Volume 148, Number 105 (Monday, July 29, 2002)]
[Extensions of Remarks]
[Page E1451]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       CONFERENCE REPORT ON H.R. 3763, SARBANES-OXLEY ACT OF 2002

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                               speech of

                          HON. JOHN E. SUNUNU

                            of new hampshire

                    in the house of representatives

                        Thursday, July 25, 2002

  Mr. SUNUNU. Mr. Speaker, no one in the corporate world should ever 
believe that their position puts them above the law or outside the 
bounds of ethical responsibility. Those who do should be held 
accountable, those who break the law should go to Jail.
  Today, the House will vote for the third time this year to hold 
corporate America to the highest of standards. Our action today will 
inform executives that their actions will be scrutinized, with the 
threat of real penalties for violations of their legal responsibilities 
to shareholders and the public.
  The citizens of my state, and indeed all Americans, have watched the 
stock market tumble as accounting scandals have shaken investor 
confidence. Investors have watched as the values of their portfolios 
have fallen. They want--and deserve--tough action against fraud and 
malfeasance. In short, they want Wall Street to abide by the common 
sense principles that guide Main Street, and the public deserves 
nothing less.
  This conference report, which I am proud to support, includes key 
provisions from our House-passed legislation that will improve 
disclosure, impose tougher penalties, and better protect investors in 
such cases of fraud.
  By establishing for the first time a requirement for real-time 
corporate disclosure, the bill will better protect investors. Companies 
will now have to disclose any information that would materially affect 
the company's financial health. That is the kind of information that 
can never be--and should never be--withheld from the public. Accurate 
and clear financial disclosure will enable better investment decisions 
to be made based on a company's true financial performance.
  Second, by strengthening the penalties for corporate fraud, the bill 
will act as a better deterrent to those seeking to stretch or, test the 
boundaries of the law. This conference report provides double the jail 
time that was included in the Senate bill--up to 20 years--for 
corporate criminals who defraud the public, destroy documents or 
obstruct justice.
  Finally, the investor restitution provision in this bill will enable 
investors who lose money in the markets as a result of corporate 
malfeasance to reclaim the gains of corporate criminals. Under the FAIR 
provision, a fund will be established to collect civil penalties and 
other funds from executives who violate the laws and defraud investors.
  Mr. Speaker, I want to commend the conferees for working quickly to 
develop a bill that can win bipartisan support. I am confident that 
passsage of this conference report will send a clear message to the 
corporate world that Congress and the American people expect them to 
play by the rules or face the consequences.

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