To: Paul Chiu who wrote (3296 ) 3/6/2009 1:41:16 PM From: Lizzie Tudor 1 Recommendation Read Replies (2) | Respond to "tax cheats" is another one, the tax code just like gaap accounting rules is written to be deliberately vague, it must be to support every business model in the world. Therefore you really can't grandstand and prosecute every grey area like this SEC has done. Truth be told, I'll bet if you really look at the accounting rules very pragmatically, even Enron was not actual fraud (the company itself). There were some things that happened with Enron like the Nigerian barge situation (where Merrill "bought" the nigerian barge from Enron so that they could make the quarter) that were actual fraud, but much of it was not. It was just a corporate failure. Same with Nacchio of Qwest, the guy said things looked ok in forward looking statements when he obviously didn't know what was really going on (nobody did), then things went from bad to worse and the SEC decides to prosecute him criminally. Using this standard you would need to lock up EVERY taxpayer who files on a schedule A or C, just for trying to find loopholes.
