The Operation Broken Trust , the largest sweeping investment fraud by the United States Federal government, took place between 16 August and 1 December 2010. The aim of the operation was to "eradicate and expose" investment fraud at US and to educate the public. It was announced that the operation involved 343 criminal cases with losses of $ 8.3 billion and 189 civil cases with damages of $ 2.1 billion; more than 120,000 affected.
Video Operation Broken Trust
Fraud Finance Enforcement Task Force
The inter-agency task force was set up by President Barack Obama in November 2009 to replace George W. Bush's Fraud Task Force. On December 6, 2010, press conference, participating institutions represented by Attorney General Eric Holder for the US Department of Justice, Executive Director of the Federal Bureau of Investigation (FBI), Assistant Director Shawn Henry, Director of the Securities and Exchange Commission of the United States (SEC) Enforcement Robert Khuzami, US Post Inspection Chief (USPIS) Chief Inspector Guy Cottrell, Deputy Chief Rick Raven of Internal Revenue Service Criminal Investigation (IRS-CI), and Enforcement Director Vince McGonagle of the Commodity Futures Trading Commission (CFTC). Other participating agencies including the U.S. Secret Service and the National Prosecutor Association.
Maps Operation Broken Trust
Scope of investigation
On December 6, 2010, the Task Force announced to the public that they had reviewed fraud targeting individual investors, not a complex corporate fraud issue. In each case, individual investors entrusting their money to individuals who represent "investment opportunities" promise superior returns. These investments are either fictitious or different from those claimed, and often involve the Ponzi scheme. Affinity fraud is directed at the savings of those who believe but are often uninformed. Fraud includes fraud in commodities, real estate, foreign exchange, business opportunities, and market manipulation (such as pumps and disposal). Khuzami explained that "fraud by well-known companies or high-profile executives made the biggest headlines, but other deceptions both destroyed hardworking and retired families," and stressed that law enforcement would "pursue fraud in any form."
The Operation Broken Trust includes cases that have been investigated during the Bush administration or before the formation of task forces, and many are well on the way to completion before the sweep begins. Also, mixing criminal cases and civil cases result in overlapping and double counting in the number of defendants, victims, and losses.
Reaction
Reactions to Holder's announcement of the Operation Broken Trust are framed by a lack of government efforts to prosecute individuals responsible for the 2008 financial crisis, especially since there were no people in Lehman, Merrill Lynch, Citigroup and Goldman. Sachs (other than Fabrice Tourre) has been charged criminally. So criticized for allocating resources into the wrong arena, described as "spectacle", and going for "small fish". It was argued that rather than focusing on small operators, the government should sue individuals for their roles in the 2008 financial crisis even if the guilty verdict is not guaranteed; litigation will allow for transparency, serve as a deterrent, and provide lessons on how to prevent large-scale fraud in the future.
Results
At the time of the announcement on December 6, 2012, eighty-seven defendants have received prison sentences which in some cases exceed 20 years. The special prosecution includes Palm Polo Holdings Ltd, which was found not guilty after being charged with violating the Clean Water Act. An ex-army captain was found guilty of Honest Service scam for taking bribes in Iraq.
References
External links
- StopFraud.gov, US Government resources
- Judge Edmund F. Brennan: Photos and Biography
- [1] US lawyer Benjamin B. Wagner and F.B.I. Field Office for Sacramento announces the arrest of local community members in relation to Damaged Trust Trust Operations, Sacramento B Metro News Articles from December 2010
Source of the article : Wikipedia
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