NEW YORK, Aug. 18 – LAWFUEL – The Law News Network — The following press release is being issued by Steven F. Molo, Counsel for Kenneth Jaeggi.
The Government was dealt a significant blow in its efforts to aggressively
prosecute white-collar criminal cases when the United States Court of Appeals
for the 2nd Circuit today ruled that it may not use the Civil Asset Forfeiture
Reform Act of 2000 to restrain the assets of defendants before they are
convicted. The ruling came in the case of United States v. Kenneth Jaeggi,
Case No. 04-04543. Mr. Jaeggi, 58, is the former CFO of Symbol Technologies,
a Holtsville, New York, manufacturer of bar code scanners and other retail and
inventory management technology.
Mr. Jaeggi and seven other former executives of Symbol have been charged
with fraudulently manipulating the company’s financial statements in an effort
to manage earnings. Mr. Jaeggi denies the allegations, has pled not guilty,
and is scheduled to go to trial in November. The decision lifts a pre-trial
restraint on more than $15 million of Mr. Jaeggi’s assets.
“The Supreme Court has called pre-trial asset restraints a
‘nuclear weapon’ in the Government’s arsenal and this decision
appears to diffuse that bomb,” said Steven Molo of Shearman &
Sterling, who represents Mr. Jaeggi along with his partner Tai
Park. “This decision goes a long way toward leveling the playing
field for individual defendants, particularly where a lengthy
trial requiring the use of substantial resources may be
contemplated. More importantly, it is wholly consistent with the
fundamental notion of ‘innocent until proven guilty,’ central to
our system of justice,” Molo said.
“We look forward to the trial in November,” Molo said.