FBI OPENING THREE TO SIX NEW $100 MILLION

CORPORATE FRAUD CASES EVERY MONTH

WASHINGTON, D.C. FEBRUARY 23, 2005

Maybe Sarbanes/Oxley doesn’t worry some corporations and companies.

In testimony delivered before the Senate Intelligence Committee last week, Robert S. Mueller III, the director of the Federal Bureau of Investigation (FBI), said that the FBI is pursuing 334 corporate fraud cases throughout the United States, a more than 100 percent increase over last year.

Eighteen of those cases involved losses to the public which exceed $1 billion, Mueller said.
“Unfortunately, the volume of cases has yet to reach a plateau, and the FBI continues to open three to six new cases each month – each case averaging a loss exceeding $100 million,” Mueller said.

Mueller placed corporate and securities fraud down his list of major priorities – coming in tenth on a list of fifteen priorities.

U.S. watchdog organization Household – HSBC Watch has yet to determine how William Aldinger and HSBC North America will account for questionable transactions and monies received from practices which attracted the attention of the courts. “Household neither admitted nor denied the accusations, but settled for a monetary amount, thus presumably allowing them to take the profits without penalty in some cases” said Household – HSBC Watch.

Sarbanes says enlightened business leaders understand they’ve taken a hard hit from various scandals and have to raise standards and restore public confidence. “But there are elements of that community who refuse to recognize that. I think they’re making a great mistake,” he said. The fact that the FBI is opening new cases each month indicates Sarbanes is right.

Popularity: 6% [?]

No related posts.