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U.S.
Attorney General Eric Holder delivers a national security speech
regarding the
Obama administration's ongoing counter terrorism efforts
during his visit to
the Northwestern University School of Law in Chicago,
March 5, 2012. (Credit:
Reuters/Jeff Haynes)
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(Reuters) - The Justice Department plans to take action in the coming months against individuals involved in corporate fraud, Attorney General Eric Holder said on Tuesday, adding that fines against companies are not enough of a deterrent.
"We're
gonna make some news with regard to holding individuals responsible for things
we tend to think of as corporate crimes," Holder said at a meeting of
state attorneys general in Washington.
The
comments came in response to a question from Virginia Attorney General Ken
Cuccinelli about individual prosecutions in Medicare fraud cases, but Holder
said the remarks applied "more generally" to corporate fraud.
In the
corporate fraud area, the Justice Department has received especially sharp
criticism for not bringing more cases against entities and individuals who
played a role in the 2007-2009 financial crisis.
Federal
judges in recent months have also criticized other enforcement agencies for
bringing cases against corporations while limiting any action against
individual employees who may have been responsible for the conduct.
In the most
notable example, U.S. District Judge Jed Rakoff in November threw out
Citigroup's proposed $285 million settlement with the U.S. Securities and
Exchange Commission over the sale of toxic mortgage debt, and called the fine
"pocket change" for the company.
Holder
echoed that sentiment on Tuesday and said: "Especially when you look at
the securities field, there have been far too many repeat offenders."
"It
can't simply be that you make billions of dollars and then you pay hundreds of
millions of dollars in penalties. That's not a disincentive," he said.
The remarks
come as a new federal-state working group gets under way to investigate the
pooling and sale of home loans that contributed to the financial crisis.
The group,
which President Barack Obama announced during his State of the Union address in
January, has held meetings and is moving forward with its investigations,
Holder said.
The
department has sent 16 civil subpoenas in its investigation, Holder said, five
more than had been revealed during a January press conference.
Reuters
reported last week those subpoenas appeared to overlap with previous
investigations undertaken by the SEC, suggesting that the Justice Department
was treading on cases the SEC has struggled to bring for years.
A Justice
Department spokeswoman said last week the working group is "marshaling
parallel efforts" and "pooling resources" to investigate those
responsible for misconduct.
(Reporting
By Aruna Viswanatha; Editing by Tim Dobbyn)
Dozens charged in massive U.S. auto insurance fraud scheme
116 Resignations from World Banks 3/2/12
116 Resignations from World Banks 3/2/12
“… All your life you have waited for the good
news, and that day has finally come. Very soon you will witness large-scale
mass arrests all ov...er the world of many men and women who you have come to
know as our world's political and financial leaders. These arrests will reach
high into the U.S. Government and include many members of the financial and
banking worlds. Many of these names you will immediately recognize, though some
you may not immediately recognize, but all have actively taken part in serious
crimes against the people, leaving our nations bankrupt why they looted our
hard earned money. …”
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