U.S. v. Stein, et al.
Advancement of Attorneys’ Fees and the Right to Counsel
NCLC filed three times in this case: twice at the district court and once at the Second Circuit. In this case, the government implicitly required KPMG to forgo its customary practice of advancing attorneys fees to executives in order to demonstrate that it was not “circling the wagons”.
In its submissions before the district court, NCLC argued that the government policies outlined in the Thompson Memorandum violate key criminal justice principles, including the right to counsel of choice, and threaten both the integrity of the employment relationship and efficient corporate operations.
In its filing before the Second Circuit, NCLC explained that the Thompson Memorandum’s sweeping derogation of advancement of counsel fees was entirely unwarranted and deeply detrimental to a widespread and beneficial business practice.
The Second Circuit ruled that the federal government deprived the defendants their right to counsel by pressuring KPMG to forgo its customary practice of advancing attorneys fees to executives under investigation.
Amicus brief filed with district court 5/3/06. Supplemental brief filed 5/22/06. Decided by district court 6/26/06. Amicus brief filed with Second Circuit 1/22/08. Decided 8/28/08.
