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Failing to Prosecute Financial Fraud – On Either Side of the Atlantic – Is Extending Our Economic Crisis

Posted By admin On January 13, 2011 @ 5:29 am In Prison Planet | Comments Disabled

Washington’s Blog [1]
Jan 11, 2011

As numerous experts have pointed out for years, failing to prosecute financial fraud is extending our economic crisis [2].

This continues to be a key, ongoing story.

For example, the Telegraph reports [3] today:

The EU’s financial watchdog has systemically “sabotaged” investigations and caved into intimidation from countries including France and Italy to cover up fraud, according to a senior official.

And Bloomberg noted [4] on Monday:

The U.S. Securities and Exchange Commission’s internal watchdog is reviewing an allegation that Robert Khuzami, the agency’s top enforcement official, gave preferential treatment to Citigroup Inc. executives in the agency’s $75 million settlement with the firm in July.

Inspector General H. David Kotz opened the probe after a request from U.S. Senator Charles Grassley, an Iowa Republican, who forwarded an unsigned letter making the allegation. Khuzami told his staff to soften claims against two executives after conferring with a lawyer representing the bank, according to the letter….

According to the letter, the SEC’s staff was prepared to file fraud claims against both individuals. Khuzami ordered his staff to drop the claims after holding a “secret conversation, without telling the staff, with a prominent defense lawyer who is a good friend” of his and “who was counsel for the company, not the individuals affected,” according to a copy of the letter reviewed by Bloomberg News.

I will keep hammering on this until people get it: The economy will not recover unless fraud is prosecuted.

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URL to article: http://www.prisonplanet.com/failing-to-prosecute-financial-fraud-on-either-side-of-the-atlantic-is-extending-our-economic-crisis.html

URLs in this post:

[1] Washington’s Blog: http://www.washingtonsblog.com/2011/01/failing-to-prosecute-financial-fraud-on.html

[2] failing to prosecute financial fraud is extending our economic crisis: http://www.washingtonsblog.com/2010/12/letting-fraud-continue-will-not-restart.html

[3] reports: http://www.telegraph.co.uk/news/worldnews/europe/eu/8252958/EU-financial-watchdog-systemically-sabotaged-fraud-investigations.html

[4] noted: http://www.bloomberg.com/news/2011-01-11/sec-watchdog-probes-enforcement-chief-over-citigroup-settlement.html

[5] Stock up with Fresh Food that lasts with eFoodsDirect: http://www.efoodsdirect.com/

[6] Failing to Prosecute Wall Street Fraud Is Extending Our Economic Problems: http://www.prisonplanet.com/failing-to-prosecute-wall-street-fraud-is-extending-our-economic-problems.html

[7] William Black Slams Financial Commission For Failing to Use the “F” Word (Fraud) … “Elites Can Now Commit White Collar Crime with Near Impunity”: http://www.prisonplanet.com/william-black-slams-financial-commission-for-failing-to-use-the-f-word-fraud-elites-can-now-commit-white-collar-crime-with-near-impunity.html

[8] Failure to Prosecute Fraud Causes Economic Downturns: http://www.prisonplanet.com/the-government-has-it-bass-ackwards-failing-to-prosecute-criminal-fraud-by-the-big-banks-is-killing-%e2%80%93-not-saving-%e2%80%93-the-economy.html

[9] There’s No Recovery Because the Government Made it Official Policy Not to Prosecute Fraud: http://www.prisonplanet.com/theres-no-recovery-because-the-government-made-it-official-policy-not-to-prosecute-fraud.html

[10] Fraud Caused the 1930s Depression and the Current Financial Crisis: http://www.prisonplanet.com/fraud-caused-the-1930s-depression-and-the-current-financial-crisis.html

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