Why Corporate Crooks Are Tough to Nail

The day of reckoning finally seems to be at hand. Emboldened by the criminal conviction of Arthur Andersen LLP for obstruction of justice on June 15, government lawyers are steaming ahead with the Enron Corp. investigation--and are probing malfeasance at an ever expanding list of companies that now includes Tyco International (TYC ), Adelphia Communications (ADELA ), Computer Associates (CA ), Qwest Communications (Q ), and Global Crossing.

As more scandals come to light, the White House is growing increasingly enthusiastic about throwing corporate crooks in jail. Although the Bush Administration is skeptical of new business regulation, it has no qualms about vigorously enforcing existing rules--and is, in fact, on a campaign to convince the public that energetic prosecution is a better way of coping with America's white-collar crime wave than cumbersome legislation. "Cops who maybe were asleep at the switch when a lot of the abuses were taking place are now aggressively patrolling," says Chief White House Economic Adviser Lawrence B. Lindsey. "Boards of directors and management are now on notice that this is a new day."