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Civil Procedure Keyed to Friedenthal
Securities and Exchange Commission v. Koenig
Citation:557 F.3d 736
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Koenig was the chief financial officer of Waste Management, Inc. Koenig devised certain accounting strategies to improve financial appearances when Waste Management’s business growth slowed in the early to mid-1990s. A jury found that these accounting strategies were fraudulent. The district judge imposed a civil penalty on Koenig of over $2 million and ordered him to disgorge certain bonuses he had received, plus interest, also totaling approximately $2 million. During the trial, the district judge allowed jurors to submit questions to him. Some of the questions were asked, some were reformulated and asked, and others were not asked because they were either not appropriate or redundant in the judge’s opinion. Koenig argued that it was reversible error to allow the jurors to submit questions to the judge.
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