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FT.com / Companies / Banks - Prosecutor launches new front in the war on Wall Street fraud
A top federal prosecutor in New York will on Thursday declare another front in the war on Wall Street fraud, focusing new resources on civil litigation to complement existing criminal actions.

The move by Preet Bharara, US attorney for the southern district of New York, comes amid criticism of the relatively small number of criminal prosecutions brought after the financial crisis. The district has mounted high-profile prosecutions after previous crises.

"Not every case is a criminal case," Mr Bharara told the Financial Times. "It's important for us that we deploy all the tools we have, even in cases where a criminal prosecution is not appropriate."

Mr Bharara will announce the appointment of Heidi Wendel, a former New York state deputy attorney-general, to head a six-strong unit focused on taking civil enforcement action against fraud. Her remit covers "every single type of fraud", including complex financial misconduct, mortgage deals, abuse of the government's troubled asset relief programme and healthcare scams, Mr Bharara said.



"Ce qui vient au monde pour ne rien troubler ne mérite ni égards ni patience." René Char
by Melanchthon on Wed Sep 8th, 2010 at 06:06:45 PM EST
[ Parent ]
"a six-strong unit"!!

One would hope that a few zeros are missing from that astounding number  --   alas.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Sep 8th, 2010 at 08:07:56 PM EST
[ Parent ]
Well if the six are all AUSAs backed up by sixty or so competent fraud investigators, it could make a sizable dent in someones greedy little pocketbook given time. Such tasks forces can make a difference when properly focused and motivated.

I can swear there ain't no heaven but I pray there ain't no hell. _ Blood Sweat & Tears
by Gringo (stargazing camel at aoldotcom) on Wed Sep 8th, 2010 at 09:43:30 PM EST
[ Parent ]
Better than nothing, for sure. But what about even replacing the ~600 white collar fraud investigators at the FBI that W transferred to Islamic Terrorist Watch.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Thu Sep 9th, 2010 at 09:50:34 AM EST
[ Parent ]

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