Burns: Seize property from corrupt executives

HELENA - Saying corrupt business executives must be brought to justice, U.S. Sen. Conrad Burns, R-Mont., has proposed applying the same property forfeiture laws for convicted "corporate kingpins" as convicted "drug kingpins" face.

Burns proposed allowing the federal government to confiscate property, luxury items and other financial assets of managers of publicly traded companies convicted of corporate crimes.

Burns, a member of the Senate Commerce Committee, is sending a letter to Attorney General John Ashcroft today to seek his assessment whether this would be legal.

"Witnessing the damage done to our institutions, investor confidence and of course to everyday Americans by these corporate scandals, I believe the time has come to take aim at the untouchability of wayward executives," Burns wrote Ashcroft. "Those who would imperil the life savings of their employees and send shockwaves through the American economy should not be allowed to maintain a lifestyle that was bought by wealth achieved through deceptive accounting practices. America must never reward deceit."

Burns noted that property forfeiture has long been an effective law enforcement tool against narcotics and controlled substances. The government has gained hundreds of millions of dollars in revenue through the resale of seized assets from drug dealers, he wrote.

"That is why I propose applying these same forfeiture statutes to corporate fraud cases involving publicly traded companies like Enron and WorldCom," Burns said in his letter. "Let us erase the boundary between a 'drug kingpin' and a 'corporate kingpin.'

"Those who deal deceit at the expense of others should see their lavish and luxurious assets confiscated,, and this includes the second homes, expensive yachts, jet skis or enormous amount of cash tucked away in offshore accounts."

Burns asked Ashcroft for a Justice Department legal analysis on whether the proposal would be legal and for his view on this proposal.

"These 'corporate kingpins' must be brought to justice and properly punished for their crimes," Burns said.