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January 25, 2008
Legal Outsourcing -- Several Ethical Dilemmas
Where is the American Bar Association to nip legal outsourcing to India, such as this, in the bud? As of May, 2007, an ABA spokesman told LAW.com that no statement would be issued on the topic. [See that article's penultimate paragraph.]
Certainly, the ethics opinions issued by the Bars of several major markets are an indication that this is a hot-potato topic which the ABA may not wish to touch. Those Bar Committees have ruled that outsourcing legal work to attorneys unlicensed in any American state does not constitute the unauthorized practice of law. The New York City Bar's Ethics Opinion is a shambles -- a discussion led by its favorable conclusion.
Is "strict lawyer oversight" and "client agreement after disclosure" enough to dispel the ethical problems?
Because the Indian legal education system is different and the duty of confidentiality to clients is narrower than in the United States, it is dangerous to assume an Indian lawyer's understanding of applicable professional standards is the same as his or her American counterpart's, according to the Professional Lawyer (PDF), an ABA Center for Professional Responsibility publication.
Aside from the ethical problems to the client, what about the lowest paid lawyer laborer, upon whose dues the ABA also feeds? Mr. Neukom is quick to support lawyers in Pakistan. Where is his rally for the lowest wage lawyer-laborer in the American market?
This is not simply a business issue. Why is it that Americans apparently have no desire to support their own? Who are the partners willing to forego some of their earnings so that more of their own people can be profitably employed? Are there any?
ABA's tacit agreement by silence to legal outsourcing is an ethical dilemma in itself.
UPDATE (February 8, 2008): HSBC to outsource its "UK volume legal work" to Malaysia.
Posted by Richard at 1:08 PM | Comments (0)January 23, 2008
Legal Outsourcing to India and Its
More on the nascent outsourcing of legal work to India. One shudders to see it, if only for reasons of professional ethics.
Gregg Kirchhoefer, an outsourcing lawyer with Kirkland & Ellis who spoke at last week's LPO summit, said there were still no industry standards for how a mishap or mistake would be handled.
"With U.S. lawyers, you always have the rules of ethics," he said. "Going to a service provider offshore, you have to replace that gap-filler with contract."
Good luck monitoring outsourced labor -- it is difficult enough when your people sit in an office down the hall.
But beyond the ethical problem lies greater danger to the welfare of the working American. When manufacturing left the United States, the battle cry was "Retrain for Services!" This left the man who works with his hands in the proverbial lurch.
And now, as service jobs begin their trek to balmier climes -- radiologists in India, customer service reps in the Philippines -- what will we have left here for the man of average drive, intelligence and skill to do?
Cheap goods at the local megafranchise. Adults earning just above the minimum wage for mindless work with ever lessening opportunities to advance. Serfs captive to bureaucratic business units -- are you not frightened by what this portends for the future?
Posted by Richard at 12:07 PM | Comments (0)January 14, 2008
Job Posting
The Eurasia Group is looking for a China Analyst to be based in New York or DC. More on this page.
Posted by Richard at 11:52 AM | Comments (0)January 9, 2008
Illegal Securities Activities Targeted in New Year's Regulatory Action
Investors should note the following article, detailing "illegal securities activities," this past week made the target of apparently concerted regulatory enforcement. Specifically, activities include the issuance of stock as well as the offering of brokerage and investment research services without prior government approval, 90% of which are allegedly carried on with criminal intent to deceive. While the article quotes the authorities calling it a widespread problem, only 1,400 such cases were reported nationally in 2007. However, what interested me most was this:
突出问题是罪与非罪的判断，非法证券活动往往涉嫌擅自发行股票罪、非法吸收公众存款罪、集资诈骗罪等，但这些罪名如何区别、定性；非法经营罪与擅自发行罪在审理过程中是否应互为前提；非法证券活动受害人能否通过民事诉讼进行救济等等都不明确，阻碍了打击非法证券活动的效率。 [Editor's paraphrase: The problem that stands out is the delineation of what is legal and what is illegal...as well as how to distinguish between violations of the criminal law...whether a victim can proceed in a civil suit based on illegal securities activities, etc....all obstacles to effective securities law enforcement.]
Hence, perhaps, the issuance of this order 《关于整治非法证券活动有关问题的通知》(证监发［2008］1号, which may be found in its entirety here.
四部门扎篱合围非法证券活动
21世纪经济报道 2008-01-08 11:38:42
本报记者 于海涛 北京报道
非法证券活动将在今后一段时间内受到更加严厉和更有效率的“联合围剿”。
1月6日，最高人民法院、最高人民检察院、公安部、中国证监会四部门联合公布了《关于整治非法证券活动有关问题的通知》(证监发［2008］1号，以下简称“1号文”)，标志着又一打击违法、惩治犯罪的强有力武器的“亮剑”。
据悉，一段时间以来，非法证券活动出现了新动向，即通过网络非法发行股票和从事非法证券活动的案件时常出现。这类案件蔓延速度快、危害面广，已经引起了监管部门的高度重视。
此次四部门联合发文，将加强监管部门与公安、司法机关协作配合，在法规体系、工作机制上扎紧“篱笆”，更及时、高效地打击资本市场各类新型违法犯罪活动。
非法证券五大特点
“非法证券活动主要有两大类：一是非法发行股票；二是非法经营证券业务，主要是针对场外市场。”中国证监会有关人士表示。
非法发行股票包括未经证券监管部门核准而擅自公开和变相公开发行股票两种行为。而未经证监会批准，任何机构和个人从事股票承销、经纪(代理买卖)、证券投资咨询，均为非法经营证券业务。
据悉，与“带头大哥777”在证券市场上收费荐股方式的案件不同，此处所称“非法经营证券业务”主要有三类。一是以“证券投资咨询公司”、“产权经纪公司”等为名，未经批准非法买卖、代理买卖未上市公司证券；二是所谓外国资本公司或集团公司驻中国办事处，以给境内企业提供境外上市服务为名，未经批准从事未上市公司证券买卖；三是一些地方的“产权交易所”、“产权托管中心”等违规从事证券业务。
尤其值得注意的是，一些非法发行股票的公司，让当地产权交易机构给投资者出具股权托管文件或所谓的股权证，迷惑投资者。实际上，这些股权托管文件或股权证并不能证明其活动的合法性。
在上述人士看来，非法证券活动是一种典型的涉众型的违法犯罪活动，严重干扰正常的经济金融秩序。
从近期办理的一些案件看，非法证券活动具有五大特征。
一是按照最高人民检察院、公安部《关于经济犯罪案件追诉标准的规定》(公发［2001］11号)，绝大多数非法证券活动都涉嫌犯罪。据不完全统计，非法证券活动中90％以上都涉嫌犯罪，而从目前各地查处情况看，最终被追究刑事责任的，只占很小一部分。
二是花样不断翻新，隐蔽性强，欺骗性大，仿效性高。“有的通过亲戚朋友或熟人兜售股票，带有传销性质；有的采取股份置换方式；有的采用信托、集资等方式。”上述证监会人士说。与此同时，非法证券活动出现了新动向，即利用网络平台非法发行股票和从事非法证券活动。
三是案件涉及地域广，涉案金额大，涉及人员多，同时资产易被转移，证据易被销毁，人员易潜逃，案件办理难度大。从已立案调查的案件看，范围小的涉及几个省市，多的涉及二三十个省市；涉案金额大多在千万元以上，有的达到数亿元；牵涉到投资者少则上百人，多则数千人。这些非法证券活动一般都是有预谋、精心策划的，有的还有很高的反侦察手段，当公安机关收集到一定证据，决定实施抓捕时，经常是人去楼空，证据被销毁，赃款不知去向。“其中一些中介机构从事非法证券经营活动还带有明显传销性质，采取类似'洗脑'方式进行宣传，逐渐形成一张巨大的销售网络，且内部组织严密，对外界调查持高度警惕。”上述人士说。
四是不少案件涉及到境外资本市场，办理该类案件政策性强，专业水平要求高。现阶段主要是一些非上市公司编造虚假信息，以即将到国内或者国外上市、业绩优秀、已由政府批准、已经递交上市申请材料等名义为诱饵，以获得高额回报为幌子，以兜售所谓的“原始股”为形式，采取非法手段诱骗群众购买股票。
五是投资者多为离退休人员、下岗职工等困难群众，承受能力差，极易引发群体事件。
扎篱“合围”
“只有从重从快地审理一批大要案，才能震慑住犯罪分子，遏制住非法证券活动的蔓延势头。”上述证监会人士说。
目前，各部委正在扎紧篱笆，对非法证券活动实现联合围剿。
据悉，政策法律不明晰、适用标准不一致是导致此前大部分非法证券案件不能被追究刑事责任的主要原因之一。
突出问题是罪与非罪的判断，非法证券活动往往涉嫌擅自发行股票罪、非法吸收公众存款罪、集资诈骗罪等，但这些罪名如何区别、定性；非法经营罪与擅自发行罪在审理过程中是否应互为前提；非法证券活动受害人能否通过民事诉讼进行救济等等都不明确，阻碍了打击非法证券活动的效率。
“1号文”的发布，对上述问题均做了详细的政策法律界定，还明确了新老《证券法》的衔接问题和非法证券活动受害人的救济途径问题。从而与其它法规一起构筑起了打击非法证券的法治体系，从法规层面扎紧了第一道篱笆。
此外，“1号文”首次以四部门联合发文的形式，明确有关法律适用问题，尝试各部委协作配合，使得联合执法机制和快速反应机制更加顺畅地进行，也为今后相关部门及时、高效地打击资本市场各类新型违法犯罪活动，提供了新模式。
此前，中央成立了由证监会牵头，公安部、工商总局、人民银行、银监会并邀请最高法院、最高检院等有关单位参加的整治非法证券活动协调小组，全面负责打击非法证券活动的组织协调、政策解释、性质认定等工作。
而地方的非法证券活动查处和善后处理工作按属地原则由各省、自治区、直辖市及计划单列市人民政府负责，形成了联合打击的合力，为有力推进打击非法证券活动工作提供了制度保障。
在工作机制层面，协调小组办公室建立了协调小组定期工作会议制度、信息月报制度、工作简报制度、信息共享制度、大案要案的督办制度等。
数据显示，过去一年，证监系统全年共收到涉及非法证券活动的各类来信、来访1400余件，并将其中366件涉嫌犯罪线索移送公安机关；一批大案要案进入司法程序，证监会协助公安部督办的8起重点案件均已侦查终结，并移送检察机关审查起诉，其中4起已经法院一审判决。目前，8起案件共抓获犯罪嫌疑人48 人，取缔非法中介机构19家。
实际上，涉嫌犯罪的非法证券类案件从调查取证到审理终结，主要涉及证监、公安、检察、法院四个部门。此前有部分地区的一些案件久拖不决，有的甚至出现'踢皮球'现象，分工协作不甚顺畅，案件办理周期过长。
“1号文”对相关部门的工作分工及协调配合做了总体部署。
首先确定了证监系统的“督促、协调、指导”等核心功能，除对非法证券类案件及时出具性质认定意见外，还要创新办案模式，在当地政府的领导下，密切与其他行政执法机关的联合执法，提高快速反应能力。
同时根据工作需要，可组织当地公、检、法等部门相关人员进行业务培训或案情会商等。
“1号文”还要求公检法部门加强沟通衔接，以提高办案效率，为打击非法证券的工作机制提供了强有力的法律武器。可以预见，近期将会有一批涉及非法证券活动的大案要案进入司法程序，一批犯罪分子将会受到应有的惩处。
此外，记者获悉，在善后处理方面，证监会联合高法、高检、公安部等单位，正积极探索研究在现有法律架构内的投资者民事诉讼保障机制。
·链接·
从事非法证券活动承担的法律责任
关于非法发行证券，根据《证券法》第一百八十八条规定，不法分子将受到警告、罚款等行政处罚；如数额巨大，构成《刑法》第一百七十九条规定的擅自发行股票罪，不法分子将处五年以下有期徒刑或者拘役。
以发行股票为幌子，而以非法占有为目的，涉嫌犯罪的，依照《刑法》第一百七十六条、一百九十二条，以非法吸收公众存款罪、集资诈骗罪追究刑事责任。如果数额特别巨大或者有其他特别严重情节的，不法分子将处十年以上有期徒刑或者无期徒刑，并处罚金或者没收财产。
关于非法经营证券业务，根据《证券法》第一百九十七条规定，不法分子将受到警告、罚款等行政处罚；如情节严重，构成《刑法》第二百二十五条规定的非法经营罪，情节严重的，处五年以下有期徒刑或者拘役，并处或者单处违法所得一倍以上五倍以下罚金；情节特别严重的，处五年以上有期徒刑，并处违法所得一倍以上五倍以下罚金或者没收财产。
以股票承销、经纪(代理买卖)、证券投资咨询为幌子，而以非法占有为目的，涉嫌犯罪的，依照《刑法》第一百七十六条、一百九十二条之规定，以非法吸收公众存款罪、集资诈骗罪追究刑事责任。如果数额特别巨大或者有其他特别严重情节的，不法分子将处十年以上有期徒刑或者无期徒刑，并处罚金或者没收财产。
January 4, 2008
Editor Profiled By World Journal （世界日報）
I am honored to have been profiled by World Journal （世界日報）, a newspaper with the largest circulation among Chinese readers in North America, in their Sunday magazine section article on the teaching of Chinese in the U.S （《美國現象》中文課走紅美國大學 written by Jeff Han 韓傑 ）.
The interest, I think, and the reason for my inclusion in the article was, perhaps, the everyday usage of Chinese by a caucasian based in the U.S. in his legal practice, but also the value of learning to speak the language over and above the merely practical aspects.
The article begins here, and you are welcome read the interview with me here. [In Chinese.}.
Posted by Richard at 11:16 AM | Comments (0)January 3, 2008
Not China, But a Marketing Technique Worth Reading About
Pay close attention to this marketing technique, used brilliantly and shamelessly by Rep. Patrick Kennedy, a Democrat from Rhode Island:
Ironically, Kennedy said that the day before Bhutto was killed, he found himself chatting with Pakistanis about the assassination of his uncle. The subject came up when the congressman handed out Kennedy half dollars, as he often does when he travels, to thank various officials for their "good will."
For those of you who have never seen it, the Kennedy half-dollar is an American coin currently in circulation, but which no one uses in daily commerce. Representative Kennedy's famous family, once considered a political dynasty, provides the brand. The coin sells Mr. Kennedy as a member of a tribe powerful enough to have had the profile of its representative leader imprinted upon the nation's legal tender.
I note also in passing that the distribution of 50 cents to a foreign government official does not likely rise to the level of a violation of the Federal Corrupt Practices Act.
Posted by Richard at 12:23 PM | Comments (0)
