Paying the Price for Heightened Ethics Scrutiny: Legal Defense Funds and Other Ways That Government Officials Pay Their Lawyers

Abstract

This article takes a comprehensive look at a problem of growing significance for government officials: how to pay the legalfees they incur when they or their colleagues are investigated for wrongdoing. Since Watergate, an increasing number of government officials have had to hire attorneys when called before grand juries and legislative committees or subjected to internal administrative investigations. Their legalfees often outstrip their government salaries or even their net worth. This article examines three existing mechanisms for government reimbursement of legal fees-Justice Department regulations, the Independent Counsel statute, and private legislation-and identifies the shortcomings of each. It then explores the legal status of legal defense funds, which top officials have used to raise millions of dollars to pay their legal fees. Finally, the article identifies several reforms that would treat government officials much more fairly and protect against corrupting influences.