DOJ to pursue more corporate fraud cases

AG Holder says light fines lead to “too many repeat offenders”

Wall Street take note: Attorney General Eric Holder announced Tuesday that the U.S. Department of Justice (DOJ) will actively pursue more corporate fraud cases in the coming months.

Some have criticized the DOJ’s handling—or non-handling—of companies and individuals involved in the current economic crisis, many of whom have never been tried. Even when the government does pursue corporate fraud cases, companies often escape with relatively light financial penalties and without admitting responsibility. Last November, for instance, U.S. District Judge Jed Rakoff rejected a proposed $285 million settlement between the Securities and Exchange Commission (SEC) and Citigroup, calling the fine “pocket change.”

Alanna Byrne

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