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The Reading List This issue’s reading list for corporate executives is all about spicy topics � greed and money-grubbing, dishonesty and mistrust, and illicit trade. Those are heady topics surely more compelling than the latest tome on picking stocks. In one book, a journalist complains about the legal profession’s devotion to money, and in another book a law professor writes about the lack of honesty in business culture and how to improve that problem. In a third book, an editor writes about the impact of illicit trade on the international economy. “The Money Lawyers: The No-Holds-Barred World of Today’s Richest and Most Powerful Lawyers” by Joseph C. Goulden Truman Talley Books/2006/428 pages In 1972, author Joseph C. Goulden published a book about powerful Washington, D.C., lawyers called “The Superlawyers.” Revisiting the legal profession in his latest book, Goulden suggests that many lawyers today are more concerned with money than with justice. In particular, Goulden finds fault with class-action litigation, which should be an area of great interest to corporate executives who don’t want their companies to become defendants in mass-tort class actions or shareholder securities class actions. Goulden tells some of his story through Texas lawyers, including Houston plaintiffs lawyer John O’Quinn, who won some of the biggest verdicts in silicon breast implant litigation, and Dallas’ Kip Petroff, who won the first plaintiffs’ verdict in a suit filed over the diet drug combination known as fen-phen. Goulden has some suggestions for improving the justice system � including federal tort reform. But Goulden also wants reform of state and local bar associations and wants law schools to graduate students who see the law as a “noble” profession instead of a means to make money by suing others. “Trust and Honesty: America’s Business Culture at a Crossroad” by Tamar Frankel Oxford University Press/2006/256 pages Americans have become accustomed to mistrust and dishonesty in the corporate world, according to author Tamar Frankel, a professor at Boston University Law School. Think about the Enron Corp. debacle and other corporate scandals and their related criminal trials. But Frankel writes that while an abuse of trust has spread throughout the country, that situation need not continue. To solve the problem, Frankel writes, Americans must change the country’s business culture by making corporate executives aware of the problem, by encouraging executives to set an example by acting with integrity and by encouraging Americans to expect ethical behavior in the business world. “Just aim at honesty and trust,” Frankel writes. The book makes some good points that are worthy of consideration by corporate executives. “Illicit: How Smugglers, Traffickers and Copycats Are Hijacking the Global Economy” by Moises Naim Doubleday/2005/352 pages Moises Naim, editor of Foreign Policy magazine, says globalization of the world’s economy has an underbelly � a recent increase in illicit activities such as drug smuggling, arms smuggling and human trafficking. But there’s also software, music and drug counterfeiting, organ trafficking, and stolen artwork, and all may be areas that impact Texas businesses. The illicit trade, Naim suggests, has evolved and taken advantage of technology to the degree that it’s difficult for governments to rein it in. It’s a challenge for governments and for legitimate businesses, he says, and both are losing money because of it. Naim’s book lays out a new way of looking at the world economy, and he provides useful information and a new perspective for corporate executives, particularly those working at companies with international operations. “Law Without Justice: Why Criminal Law Doesn’t Give People What They Deserve” by Paul H. Robinson and Michael T. Cahill Oxford University Press/2006/368 pages The authors, both law professors, write that criminal law “deliberately sacrifices” justice and that sometimes the results of a criminal prosecution � of a corporation or an individual � deviate from what the defendant deserves. Paul H. Robinson, a professor at the University of Pennsylvania, and Michael T. Cahill, an assistant professor at Brooklyn Law School, cite several reasons why justice is imperfect, such as “gamesmanship on the part of attorneys involved in criminal trials, unreliability of some forms of evidence such as eyewitness accounts, and a system that often sacrifices justice to promote other interests. The authors make some unusual suggestions for reform of the system, such as shifting the burden of proof to the defense from the prosecution, expanding the number of verdict options beyond guilty and not guilty, and allowing more alternatives to prison as punishment. At a time when an increasing number of corporate executives or their companies face criminal prosecution, this book is an intriguing read about the shortcomings of our nation’s criminal justice system. � Brenda Sapino Jeffreys Tracking White-Collar Crime White-collar crime is believed to account for $300 billion in losses to the American economy, according to a report by the Federal Bureau of Investigation. Those crimes cover a wide range of offenses, from antitrust violations to the solicitation of kickbacks. Here are some Web-based sources that shed some light on the problem, along with some commentary. Cornell Law School www.law.cornell.edu/wex/index.php/White-collar_crime The law school maintains Wex, a collaboratively built, freely available legal dictionary and encyclopedia. The section on white-collar crime contains an overview, links to related federal statutes and judicial decisions, and links to Internet sources and news stories on such cases as WorldCom, Enron, Cendant, Rite Aid and Tyco International Ltd. White Collar Crime Prof Blog lawprofessors.typepad.com/whitecollarcrime_blog/ This frequently updated blog � edited by two law professors � is a good place to go to keep up on the latest cases involving white-collar crime. A recent visit turned up discussions such as “The Collateral Consequences of the Abramoff Plea,” “Former Wal-Mart Executive Likely to Plead Guilty to Fraud and Tax Charges” and “Cert Granted to Consider Whether Denial of Counsel of Choice Requires Automatic Reversal.” Federal Bureau of Investigation www.fbi.gov/whitecollarcrime.htm The FBI’s site provides details about the bureau’s major projects, including white-collar crime, corporate fraud, securities scams and more. The FBI strategic plan, published on the Web site, indicates the bureau will be stressing investigations involving alleged fraud in the areas of health care, financial institutions, money laundering, insurance, telemarketing and investment. National Association of Criminal Defense Lawyers www.nacdl.org/public.nsf/whitecollar/WhiteCollar_index This site offers action alerts, news stories and � for NACDL members only � a white-collar crime brief bank. The Heritage Foundation www.heritage.org/Research/LegalIssues/lm14.cfm “The origin of the “white-collar crime’ concept derives from a socialist, anti-business viewpoint that defines the term by the class of those it stigmatizes” and initiated a political movement in the justice system, writes John S. Baker Jr., a law professor at Louisiana State University. “This meddling in the law perverts the justice system into a mere tool for achieving narrow political ends,” he continues. National White Collar Crime Center www.nw3c.org This site is maintained by a federally funded, nonprofit corporation whose membership primarily comprises law enforcement agencies, state regulatory bodies with criminal investigative authority, and state and local prosecutors’ offices. “While NW3C has no investigative authority itself, its job is to help law enforcement agencies better understand and utilize tools to combat economic and high-tech crime,” the site says. Texas Lawyer www.texaslawyer.com On its Web site, Texas Lawyer, an Executive Legal Adviser affiliate, has compiled a roundup of stories it has published on the Enron investigation and prosecution, including coverage of the December 2005 guilty plea of ex-Enron top accountant Rick Causey. Corporate Concerns Corporate executives who hire outside counsel are most concerned about corporate governance, corporate compliance and controlling litigation costs, according to a survey conducted for Kirkpatrick & Lockhart Nicholson Graham, which has an office in Dallas. During the summer of 2005, 97 Fortune 1,000 corporate executives, ranging from chief executive officers to in-house lawyers at the vice presidential level, participated in the firm’s third Top of Mind survey, which explores the issues that most concern corporate decision-makers. While about half of the corporate executives, who were interviewed anonymously by a research company, say their biggest challenge with outside counsel is the need to control spending, 77 percent of the c-level executives say they receive “high value” from their outside counsel. That’s the most interesting finding in the survey in the view of Clara Boza, the firm’s chief marketing officer. The corporate executives say cost-effectiveness, quality of work and responsiveness are the key elements of value. Sixty-six percent of the corporate executives say more of their legal work is being handled in-house, compared to 2002. At the same time, they say the biggest operational issue in legal departments is securing adequate resources and support staff. With the greater reliance on in-house lawyers for legal work, the corporations are also reducing the number of outside firms they retain, the corporate executives report. According to the survey, 43 percent of the companies surveyed in 2005 have consolidated their legal work among fewer firms, resulting in a 38 percent average reduction in the number of outside firms used. Meanwhile, 88 percent of the corporate executives identify effective communication as the primary attribute they look for in selecting outside counsel. Kirkpatrick & Lockhart, which has 1,000 lawyers firmwide, conducted earlier Top of Mind surveys in 2002 and 2003. Boza says the firm sponsors the survey to help its lawyers better understand the legal market and their clients. Details of the survey are available on the firm’s Web site at www.klng.com .

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