Federal judge Sandra Beckwith in Ohio stretched judicial latitude to the maximum in her 2011 sentencing of Michael E. Peppel, former board chair and CEO of technology firm MCSi. Peppel pleaded guilty to fraud, which resulted in estimated damages of $18 million. The federal sentencing guidelines called for eight to ten years of incarceration, but the judge handed down a sentence of seven days in jail and three years of supervised release. The judge had responded to Peppel’s 100 letters of support, strong role in the community, business expertise, five children, and other family needs. On appeal, however, the federal Sixth Circuit Court of Appeals ruled that Judge Beckwith had abused her discretion. The appeals court rejected the reasoning that Peppel’s professional skills and capacity to contribute to society justified a lighter sentence and remanded the case. Judge Beckwith then sentenced Peppel to two years in prison, three years of court supervision, and a $5 million fine. 

Question 

Critics of increased government activism regard the free market as the best protection against corporate misconduct. They see SOX, the sentencing guidelines, and aggressive prosecution as government-inflicted drags on the economy. Do you agree? Explain.