So, it's no wonder that Schneiderman and the Justice Department can team up to deliver a gift to their benefactors by extorting an admission of liability from J.P. Morgan for the acts of Bear Sterns without having to prove wrongdoing. This is a colossal conflict-of-interest and breach of fiduciary duty. By holding out for an admission of liability as a condition of settlement, when a defendant is willing to settle, prosecutors abuse their power.
They should either prosecute to a judgment to vindicate a public interest, or settle to conserve public resources. Under no circumstances should they expend public resources to pay back the plaintiffs' bar. Yet, as is so common in Washington and Albany, these political prosecutors are not subject to the same standards they impose on others via the Martin Act, and although they should be disbarred for this, state bar ethics rules are no match for them, either.
— The Washington Examiner