In response to the accounting scandals that rocked America two decades ago, lawmakers passed the Sarbanes-Oxley Act (SOX). Their intent was clear: Protect the American public from companies that defraud investors out of billions of dollars through accounting misdeeds. Among the provisions of SOX was a requirement that executives attest to the veracity of firms’ financial disclosures. Knowingly or willfully misleading the public could land executives in prison for up to 20 years.
If the government had the ethical competence to similarly self-regulate, the US would be headed toward financial solvency. The Wall Street Journal recently mocked California’s government dysfunction, due in part to the $20 billion EDD fraud that occurred under the current administration. But Californians have the opportunity to put a check on government spending by electing Lanhee Chen to the independent role of state controller, essentially the watchdog for voters’ money.
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