[Congressional Record (Bound Edition), Volume 148 (2002), Part 10]
[Extensions of Remarks]
[Pages 13855-13856]
[From the U.S. Government Publishing Office, www.gpo.gov]




            CORPORATE FRAUD AND THE ECONOMY, ``LET'S ROLL!''

                                 ______
                                 

                         HON. JOHN CONYERS, JR.

                              of michigan

                    in the house of representatives

                         Monday, July 22, 2002

  Mr. CONYERS. Mr. Speaker, let's roll!
  Earlier today this distinguished body of lawmakers passed H.R. 3917, 
a measure which acknowledged the bravery of the passengers of Flight 
93. As you know, on September 11, 2001, Flight 93 was captured by 
terrorists who intended to use that aircraft as a weapon of mass 
destruction. They failed because the American people resisted and said, 
``Let's roll!'' The terrorists that took over Flight 93 were selfish 
individuals acting without morality, accountability, or shame. Their 
actions attempted to rob Americans of their security and cast a dark 
cloud over the future. When faced with that crisis, the passengers of 
Flight 93 declared, ``Let's Roll!''
  Well Mr. Speaker, we are once again faced with the actions of selfish 
individuals that are acting without morality, accountability, or shame. 
These individuals have managed to rob the American people of their 
financial security, thereby casting a dark cloud over the future. This 
time corporate greed, as opposed to an aircraft, is the weapon of mass 
destruction. We cannot stand by idly while the U.S. economy is robbed 
for personal gain, American lives are destroyed, investor confidence 
plummets, and a dark cloud is placed over the retirement plans of 
millions. Mr. Speaker, let's roll!
  Among other things, corporate executives have overstated the profits 
of their companies by billions of dollars. This fraud has caused stock 
prices to plummet and wiped out the savings of hardworking Americans 
that invested in these companies as they prepared for retirement.
  Why would a company find it so easy to overstate their profits? How 
is it possible to tell such a monumental lie and get away with it? If 
the average citizen were to overstate their income, the Internal 
Revenue Service would come after them looking for its share; many 
Americans have discovered that the IRS can be a relentless creditor. 
That fact alone is enough to keep the average American honest. However, 
our biggest corporations and corporate executives are not concerned. 
They have been allowed to self-regulate, thereby evading tax laws and 
creating a work ethic that is devoid of ethics and thrives on greed.
  Big businesses have not been concerned with their overstatement of 
profits because they were not making the requisite tax payments and did 
not believe they would be caught. Consequently, they felt free to lie 
and evade tax laws without shame or remorse. These companies are 
apparently indifferent to the public needs that tax revenue is needed 
to support. They do not seem to care if the elderly are not able to 
receive prescription drugs and good health care; they do not seem to 
care if roads and sidewalks are poorly maintained; they do not seem to 
care if highways and bridges are overcrowded; and they do not seem to 
care if public schools are understaffed and inadequately supplied. One 
reason they probably do not seem to care is because they have the tacit 
assistance of key leadership in the Republican party as they short 
change the national purse and rob the American public.
  For example, last year the President urged, and Republicans passed, a 
so-called tax cut that in reality gave each American a three hundred-
dollar advance that had to be repaid on April 15th, but created even 
more opportunities for corporations to reduce their tax bill thereby 
pocketing billions of dollars that could have helped to keep the U.S. 
economy thriving. It is the big corporations that received real 
reductions. For those that assert that the American people saved a few 
dollars, you need only check the balance of pension plans nationwide to 
realize that the public was indeed taxed in a very big way!
  Conversely, when faced with the possibility of paying taxes big 
corporations have been able to merely shift company assets to offshore 
tax havens where U.S. tax laws do not apply. Democrats in the House 
have proposed legislation that would put an end to such corporate 
abuses but the Republican leadership refused to take up these issues. 
Consequently, Americans get ripped off three times. They are robbed of 
their pension and

[[Page 13856]]

retirement funds, and the US economy is robbed of corporate tax revenue 
and the shortfall is made-up by robbing social security funds.
  Well the stuff is hitting the fan. Now that the extent of corporate 
fraud is coming to light, now that Americans have seen their 401K plans 
disappear, now that the ``Kenny Boys'' of corporate America have been 
able to cast a cloud over the future of millions of hard-working 
Americans, the public is once again ready to resist and declare, 
``Let's roll'' . . . Republicans, however, are urging baby steps.
  The Senate passed a strong bill, S. 2673 ``The Public Company 
Accounting Reform and Investor Protection Act'' (the Sarbanes Bill) by 
a unanimous vote of 97-0. This bill is a bill for those that are tired 
of being robbed by corporate America and are ready to roll. Among other 
things, by defining new corporate crimes, creating independent 
oversight, protecting whistle blowers, banning insider loans, extending 
the statute of limitations, and holding CEO's personally accountable, 
the Sarbanes bill sends a clear message to big business that further 
abuses will not be tolerated. Democrats in the House, including myself 
have been pushing for similar reforms, but the Republican leadership in 
the House is afraid to roll.
  It's true that Republicans in the House have requested longer 
criminal penalties, but those penalties apply to a shorter range of 
crimes. They have not embraced new laws against destroying documents or 
tampering with evidence; they have not embraced new laws which would 
extend the statute of limitations for bringing cases of corporate 
fraud; they have not embraced measures that would end conflicts of 
interest and require greater accountability; they have not embraced 
measures that would protect whistle blowers and give honest Americans a 
chance to come forward without fear of retaliation. All they have done 
is request more years for a narrow range of crimes and they do this 
with the knowledge that the Attorney General has not bought any 
criminal charges, against any CEO involved in any of the numerous fraud 
cases that have surfaced. Millions have suffered because of corporate 
fraud and the Attorney General is merely watching from the sidelines.
  Mr. Speaker I urge this Congress to raise the bar on corporate 
accountability, and deal a strong blow against corporate fraud. This is 
a real crisis, we cannot afford to merely give a superficial finger wag 
as the ``Kenny Boys'' of corporate America ride off into the sunset 
with rich indifference. Millions of Americans are struggling to replace 
their future after being robbed by corporate greed. If my Republican 
colleagues in the House really want to restore investor confidence and 
protect the financial security of the American people, the solution is 
clear, we can not take baby steps . . . Let's roll!

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