Corporate Prosecution: Double Standard or Government Weakness

In an interesting article in The New York Times, dated today, writer Jesse Eisinger discusses the Justice Department’s recent efforts to prosecute wrongdoing by large banks.  Specifically, Credit Suisse and BNP Paribas have been charged criminally with violations of federal criminal statutes.  While no large American banks or bankers have been charged since the financial […]

Is High-Frequency Trading a Crime?

Last Friday, U.S. Attorney General Eric Holder appeared before a congressional hearing and told the congressional representatives that the Justice Department was looking into the practice of high-frequency trading to determine whether the practice violates insider trading laws.  This is an issue that the Securities and Exchange Commission and the Federal Bureau of Investigation are […]

Inspector General’s Report Faults DOJ’s Efforts against Mortgage Fraud

If you believe that the U.S. Department of Justice has been lax in its efforts to bring to justice those responsible for the rampant mortgage fraud that greatly contributed to the 2008 financial crisis, you are in good company. The Inspector General for DOJ has issued a report critiquing the Department’s efforts to investigate and […]

DOJ Investigates Banks Providing Access to Unscrupulous Lenders

The Department of Justice is targeting banks that provide access to customers’ accounts to payday lenders and other online merchants. The DOJ investigation, termed “Operation Choke Point” is targeting banks that have failed to adequately perform their roles as gatekeepers to the banking system. The Bank Secrecy Act requires banks to maintain internal controls against […]

Internal Tension in SEC Surrounding Mortgage Investigations

Today, in The New York Times,there is an interesting article describing the internal tensions and conflicts in the Securities and Exchange Commission as it investigated possible wrongdoing by Wall Street power brokers and made decisions about bring cases in connection with the mortgage crisis. While the SEC has brought some significant cases, it has passed […]

DOJ and JP Morgan Chase Agree to $13 Billion Settlement over Mortgage Practices

The United States Department of Justice and JP Morgan Chase have agreed to a settlement of several investigations of the bank resulting from risky mortgage practices. The settlement results in fines, penalties, and monetary amounts totaling $13 billion. This is the largest settlement that a single company has ever paid to the U.S. government. The […]

DOJ Seeks Funding to Expand Strike Forces

Officials from the U.S. Department of Justice are asking Congress to significantly enhance funding for health care investigation and prosecution in the fiscal 2011 budget. Acting Deputy Attorney General Gary Grindler and acting Deputy Assistant Attorney General for the Criminal Division Greg Andres appeared before a House Appropriations subcommittee. The officials are seeking an increase […]

Government to Use Full Arsenal to Combat White Collar Crime

Traditional investigation of white collar offenses has involved reactive strategies focusing on document review and witness interviews. Increasingly the Department of Justice is using more proactive investigative strategies. For instance, the Galleon hedge fund insider trading prosecution is using extensive wire tap evidence. Additionally, the Department has recently brought a prosecution against 22 individuals for […]

DOJ Charges West Palm Beach Man with Telephone “Cramming”

A federal grand jury in Florida has voted an indictment against Willoughby Farr of West Palm Beach charging him in a telephone cramming scheme. “Cramming” occurs when a telephone customer is billed for services that he did not order or use. According to Department of Justice officials, it is a type of consumer fraud that […]

Daimler Reportedly Agrees to Global Settlement with U.S. over FCPA Violations

BusinessWeek magazine is reporting that Daimler AG has reached a global settlement with the U.S. over allegations that the company, during its incarnation as DaimlerChrysler, violated provisions of the Foreign Corrupt Practices Act (“FCPA”). The reported settlement will involve the payment of $200 million in civil penalties and criminal pleas by two Daimler subsidiaries. The […]