It is very likely that more corporate crime prosecutions are on the way. In a Corporate Crime Reporter survey of more than 200 of leaders of the American Bar Associations White Collar Crime Committee, the findings in that direction were almost unanimous. Clearly, the public is demanding accountability, which should result in increased enforcement. According to the survey findings, the emphasis will be in the financial services sector. In my opinion, corporate criminals should pay for their wrongdoing.
Associated Press and MSNBC reported last month that the FBI is conducting more than 500 investigations of corporate fraud, many linked to the financial meltdown. FBI Deputy Director John Pistole told the Senate Judiciary Committee on February 10th that investigators are tackling an even bigger mountain of mortgage fraud cases in which hundreds of millions of dollars may have been swindled from the system. According to Director Pistole, there are 530 active corporate fraud investigations. He said 38 involve some of the biggest names in corporate finance in cases directly related to the current economic crisis. Additionally, the FBI has more than 1,800 mortgage fraud investigations, more than double the number of such cases just two years ago.
Interestingly, Director Pistole says the bureau is focusing on industry professionals generating fraud schemes that could total as much as hundreds of millions of dollars. Lawyers, brokers or real estate professionals who are “systematically trying to defraud the system” are apparently being targeted. It appears that the FBI and the Justice Department are dead serious about these investigations. Anybody who violated the law should be investigated and prosecuted – making an example of professionals who were either directly involved in wrongdoing or aided and abetted wrongdoers has been suggested as a necessary thing to do. That would deter others from doing the same sort of thing in the future.
Source: Corporate Crime Reporter, Associated Press and MSNBC
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