Morally Bankrupt economists on their way to becoming financially so...

[JKSCHW at aol.com]

I drafted an opinion in a civil case involving a guy who was convicted of defrauding a bond issuer of $130 million. A federal judge in Florida gave him 740 years in the slam, plus three years supervised release, plus 75 hours of community service. There is no parole in the federal system. So, in principle, these Harvard guys could face real trouble id the US atty gets interested. --jks

U.S. Seeks Millions in Suit Against Advisers to Russia
By CAREY GOLDBERG
BOSTON, Sept. 26 — Federal prosecutors today filed a civil suit contending
that two Harvard University advisers who helped mold Russia's economic
reforms in the mid-1990's misused their government-financed positions in
pursuit of personal gain for themselves and their wives.

The two advisers, Andrei Shleifer, a prize-winning economics star and
tenured Harvard professor, and Jonathan Hay, a former Harvard legal expert,
deny any wrongdoing. Harvard University, too, rejects the accusation that it
failed in its obligation to supervise the advisers.

Today the univerity's general counsel called the request for damages — up to
$120 million from Harvard and the defendants — far out of proportion to any
harm possibly done.