“I simply do not know where the money is, or why the accounts have not been reconciled to date,” Corzine’s prepared testimony read. “I do not know which accounts are unreconciled or whether the unreconciled accounts were or were not subject to the segregation rules.”
Sarbanes-Oxley requires him as the CEO of a company to (1) guarantee that effective risk controls and rules are in place and (2) monitor their compliance. It renders failure to do so — that is, the old-fashioned “I didn’t know” defense that was routinely used after 2000-era failures in the Internet space — a felony.
Now of course Mr. Corzine is entitled to the presumption of innocence and he is entitled to a trial before being pronounced guilty, but the law on this point is clear: Executives, the CEO and CFO in particular, are required under Sarbanes-Oxley to factually know about matters such as this and they are required to attest to that knowledge — and the presence of appropriate and sufficient risk controls under penalty of felony indictment.
It appears that Mr. Corzine has admitted in front of a Congressional Committee that he does not know, and therefore this appears to be a prima-facie admission that he is in direct violation of this law.
If this is not dealt with on an expeditious fashion and the law is not enforced you have just seen proof on national television that there is no longer a rule of law in this nation of any substance.
You must, therefore, presume that there is no longer any Constitutional protection afforded to you and you thus have no rights and no recourse to the law of any sort. Your “rights” have just been downgraded to only that which you are willing and able to personally enforce at any instant in time.
This in turn means that it is impossible for you to engage in any sort of commercial transaction where performance cannot be verified before you hand over payment in full, because you have no means of compelling the other party to perform and no recourse of any sort to the law, nor do you have any expectation that someone who violates the law, irrespective of who it is, will be held to account.
This sucks, to be blunt, but it is the world we live in as of today and if you have any hint of intelligence it is the operative assumption you must make here, now, today and forward until there is evidence otherwise.