Wednesday, April 30, 2014

Blind Justice? Judges Owned Stock in Firms But Ruled on Cases Anyway - NBC News.com

Blind Justice? Judges Owned Stock in Firms But Ruled on Cases Anyway - NBC News.com

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  1. BLIND JUSTICE ; .... The violations occurred even though clear rules regarding conflicts of interest exist. Federal judges may not sit on cases in which they have a financial interest, according to a federal law. A similar rule is also in place in the code of conduct established by the court system. Judges have been warned before about not participating in such cases. Following a Washington Post investigation in 2006, the courts even added a computerized screening process to help judges avoid such conflicts.

    Yet the problems continue.

    The Center’s findings point to a larger issue of accountability -- or lack thereof -- in the federal court system. Judges face no formal punishment for breaking these rules.

    Appellate judges can affect a company’s stock price -- or even an entire industry sector -- with their rulings. They are also far more likely to own stock than the average American, making it all the more important for them to avoid the perception that their holdings could influence their rulings.

    Some judges don’t own individual stocks at all, to avoid the risk of conflicting with their cases. Many judges are extremely careful in reviewing their holdings. Yet the Center’s findings show that some judges do not keep track of their own investments, even with the help of computerized databases. Sometimes they have failed to do so repeatedly, like Hill.

    “Come on guys, this is your obligation,” said Youngblood, the Gables’ attorney. “You tell us all the time about ignorance being no excuse.” ...../-

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