AG Holder expected to announce financial fraud crackdown at Forum Club speechby George Bennett | January 8th, 2010
Toward that end, U.S. Attorney General Eric Holder’s lunchtime speech today to the Forum Club of the Palm Beaches is expected to lay out an administration initiative to “prevent, prosecute, and punish financial fraud.”
After the massive Ponzi schemes of South Floridians Bernie Madoff and Scott Rothstein, West Palm Beach is a natural backdrop for Holder’s announcement.
From Politico.com, here are some advance excerpts of Holder’s speech:
In times of recession, when every dollar counts and each dollar is counted, financial wrongdoing comes to light. Unbalanced books are revealed. Pyramid schemes collapse. We need a bold strategy equal to the challenge – a comprehensive, coordinated plan of action that strikes at the core of financial fraud schemes wherever they may be found.
This is precisely what our new, national effort will accomplish. The Department of Justice, working in concert with the White House and a network of government agencies, will use every tool at our disposal – including new resources, advanced technologies and communications capabilities, and the very best talent we have – to prevent, prosecute, and punish financial fraud.
The cornerstone of this work is a new, interagency Financial Fraud Enforcement Task Force. This Task Force was established by Executive Order of the President. It was launched in December and is led by the Department of Justice. At the core of the Task Force’s mission is a more robust and strategic law enforcement effort. Through this effort, critical information will be shared in real time across the federal government – and with our state and local law enforcement partners – so that we can stop fraud schemes in their tracks.
We will focus on four key types of financial crime: Mortgage fraud — from the simplest of ‘flip’ schemes to systematic lending fraud in our nationwide housing market; Securities fraud – from traditional insider trading, to Ponzi schemes, to accounting fraud, to misrepresentations to investors; Recovery Act and rescue fraud – including the theft of federal stimulus funds and the illegal use of taxpayer dollars intended to shore up our financial institutions; and Financial discrimination – including predatory lending practices in minority communities and the sale of financial products that exploit the elderly and disadvantaged.