It's just a protection racket, writ large, over at the Department of Justice...

Groklaw is reporting that KPMG, the accounting firm that used to handle SCO's finances, is facing possible charges relating to its accounting practices.  There's a brief explanation of deferred prosecution agreements that are apparantly common in the industry, but those agreements read to me more like a protection racket than anything else.  They usually follow threats to indict the company concerned, and involve extraordinary levels of oversight, large fines, and sweeping changes in business practices, in return for an agreement not to begin a criminal prosecution. 

Now, maybe the accounting practices really are shady.  But, since the charges never go to court, we'll never know for sure.  And just like a protection racket, the Justice Department won't break your kneecaps bring criminal charges if you pay up, let them read your books to make sure you're paying enough, and do what they told you to do anyway.  Your kneecaps are worth it, right?

UPDATE: Bainbridge also comments.

This entry was published Sat Sep 24 10:43:35 CDT 2005 by TriggerFinger and last updated 2005-09-24 10:43:35.0. [Tweet]

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