This section contains the nature of the case and procedural background.

Koenig (D) was Waste Management, Inc.’s, Chief Financial Officer. When explosive growth declined, D devised several accounting strategies that a jury found to be fraudulent. The district judge imposed a civil penalty of $2.1 million and ordered D to disgorge the bonuses he received in 1992, 1994, and 1995 ($831,500 plus more than $1.2 million in prejudgment interest). D appealed on grounds that the jury was permitted to pose questions through the judge to trial witnesses.

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