SEC Settles with Citigroup – Public Loses?

In today’s New York Times there is an article by Gretchen Morgenson discussing the failure of the Securities and Exchange Commission to bring charges against persons responsible for financial institution misconduct.  The issue is viewed in the context of a recent settlement. Earlier this month, the Securities and Exchange Commission announced an administrative settlement with […]

Justice Department, Department of Justice, civil settlement, toxic mortgages, Bank of America, BofA, Merrill Lynch, Countrywide Financial

News outlets are reporting that the U.S. Department of Justice and Bank of America are near agreement on a record civil settlement for actions arising out of the toxic mortgages, which significantly contributed to the financial crisis in the last decade.  Reports indicate that BofA will pay between $16 and $17 billion to settle investigations […]

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 […]

Justice Department Moving Cautiously to Charge Large Banks Criminally

Recent reports state that the U.S. Department of Justice is primed to charge two of the world’s largest banks with violations of U.S. criminal law.  News sources have reported that Credit Suisse and BNP Paribas are targets of Justice Department criminal investigations.  Please see the article in The New York Times about the investigations into […]

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 […]

UBS and Justice Department Reach Deferred Prosecution Agreement in Massive Tax Fraud

UBS, the world’s largest private bank has reached a deferred prosecution agreement with the U.S. Department of Justice. The agreement requires UBS to pay $780 million to settle charges that it helped wealthy Americans evade payment of taxes. The agreement pierces Swiss secrecy laws as it requires the bank to turn over the the U.S. […]

Scrushy Asks Court to Dismiss Bribery Conviction

Ex HealthSouth Corp. CEO Richard Scrushy and former Alabama governor Donald Siegelman have asked the U.S. Court of Appeals for the Eleventh Circuit to overturn their bribery convictions. Scrushy was convicted for providing the former Alabama governor a $500,000 campaign contribution in return for a seat on a state hospital regulatory board. Siegelman was convicted […]

FBI Moving to Address Financial Fraud Cases

In the aftermath of the September 11 attacks, the Federal Bureau of Investigation increased the resources and number of agents dedicated to national security concerns. Much of this increase occurred at the expense of agents and resources dedicated to the investigation of white collar crime. This has left the FBI ill equipped to meet the […]