Quote of the Day - Admissions in Settlements

"Trials are primarily about the truth. Consent decrees are primarily about pragmatism."

— Second Circuit Court of Appeals in [Link removed] SEC v. Citigroup Global Markets, Inc., Nos. 11-5227-cv, 11-5375-cv and 11-5242-cv (2nd Cir., June 4, 2014).

These words from an important court decision yesterday will most likely be quoted in all sorts of contexts, including with respect to ethics settlements, the consent decrees of government ethics.

It's important to recognize why what may be appropriate when a government agency sues a private company is not appropriate when a citizen oversight body handles an administrative action brought against a public servant.

One, it is important that the truth about what a public servant has done is made public. It is important because transparency is an important value in government, and it is important because the community deserves to have closure on matters involving those who manage their community.

Two, public servants are not the same as private companies. Public servants have a special, fiduciary duty to their community which they violate when they violate an ethics provision. This duty includes a requirement to admit to any misconduct they have engaged in, whether or not a complaint against them goes to a hearing. When it comes to using public office for private gain, public servants do not have the luxury of pragmatism.

Robert Wechsler
Director of Research-Retired, City Ethics

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