Obama creates task force to fight financial fraud

[HopeOverFear]

Nov. 17 (Bloomberg) -- The Obama administration announced a government-wide task force to combat financial fraud after the U.S. recession led to an increase in economic crimes.

President Barack Obama today signed an executive order creating the task force that seeks more cooperation among federal government agencies, and state and local officials, to investigate and prosecute cases.

The initiative, detailed at a Justice Department news conference in Washington, replaces a corporate fraud task force created under then-President George W. Bush in 2002. The U.S. economic decline sparked an increase in mortgage fraud, white- collar crime and health-care fraud, according to the Justice Department’s inspector general.

The aim of the new task force is “to prevent another meltdown from happening,” Attorney General Eric Holder said. “We will be relentless in our investigation of corporate and financial wrongdoing.”

The task force will pursue crimes including mortgage fraud, securities fraud and fraud involving funds from the government’s economic stimulus program, according to Holder.

Led by the Justice Department, the task force will include representatives from the Securities and Exchange Commission, the Treasury Department and the Department of Housing and Urban Development and other agencies.

[Sinti]

1. They're going to need one heck of a team

if they want to do the right thing. Fraud is the basic business model for banksters, lenders, insurers and brokers.

[Cha]

2. And, where is he

signing this EO? I thought he was still in China?

[HopeOverFear]

4. I guess he signed it on AF1

[Cha]

5. Wow..I figured it was

something like that.

[vaberella]

6. Our President doesn't rest for anything.

Imagine what he does a Camp David-----during his golfing sessions he's probably on top of everything those REpubs and conservadems post on twitter. Hah!

[HopeOverFear]

11. OH you know it...the night the healthcare bill passed in the house

he was probably pacing back and forth at Camp David on the phone with one of his staff

[vaberella]

14. Totally with C-Span on mute captioned. n/t

[tazkcmo]

3. Wow

I wonder if he's already looking for his new Treasury Secretary?

[jeanpalmer]

7. All they have to do

is go to Wall Street and tell them all to come out with their hands up. They're all fraudsters and usurers. Like shooting ducks in a pond. Give them the same rights as Khalid Sheik Muhammed.

[earth mom]

8. Obama might want to start with Geithner and several members of his administration. nt

[sandnsea]

9. Statements from Geithner and Holder

At the core of the Task Force's mission will be our enforcement efforts, which will focus on the types of financial crime that affect us most significantly in this time of economic recovery
These crimes include:

mortgage fraud from the simplest of “flip” schemes to
systematic lending fraud in the nationwide housing market;

securities fraud including traditional insider
trading, Ponzi schemes, and misrepresentations to investors;

Recovery Act and rescue fraud we will ensure that the
taxpayers investment in America's economic recovery is not siphoned away by
a dishonest few; and,

discrimination this Task Force will work to ensure that the financial markets work for all Americans, and that no one is unfairly targeted based on impermissible characteristics.
Our Task Force will take full advantage of the new legislative authorities

More:
http://obama-mamas.com/blog/?p=694

[jeanpalmer]

10. Hopefully they do all that

They're are so many targets of opportunity there, it boggles the mind. They will need a million employees if they really want to pursue all the criminals. Could require a jobs summit all by itself. Most of Wall St is a scam. If they do their job, by the time they're done Wall St will be a shell of its former self and most of the executives will be in jail. Do you think they'll actually get the job done?

I didn't see any mention of the credit card usurers who are charging 30% interest. That should be at the top of the list. Start with JP Morgan Chase.

"Due to the challenging business and economic climate, we are making rate changes to your card agreement. We are increasing your variable APR for regular and external purchases. Your regular and external purchase ANNUAL PERECENTAGE RATE will equal the U.S. prime rate plus 21.99%. AS of November 1, 2009, this APR is 25.24%."

Line them up against the wall.

I'm expecting big things from this task force. I hope it's not just an Obama pr effort.

[sandnsea]

12. There's already been some progress

and Geithner did include the credit card teaser rates to lure people in and then jack up rates as part of the task force's agenda.

They're had a good start, sad we haven't heard more about these cases because it's needed to restore confidence and act as a warning.

"In just the last ten months, we have secured the convictions of Bernard Madoff and several of his associates, and working alongside the SEC, have indicted several officers of Stanford Financial Group for their involvement in another massive Ponzi scheme.

Last month, we arrested individuals on charges stemming from what has been described as the largest hedge fund insider trading case in history. We also recently secured a 20-year sentence for the president and owner of Gen-See Capital Corp., who perpetrated a $31
million Ponzi scheme between 2002 and 2009 involving more than 500 victims, as well as 30-year and 25-year sentences for two executives of National Century Financial Enterprises following their convictions on conspiracy, fraud, and money-laundering charges.

We also have devoted substantial attention to preventing and prosecuting
mortgage fraud. The FBI is currently investigating more than 2,800
mortgage fraud cases, up almost 400 percent from five years ago. The
Bureau has more than doubled the number of agents investigating mortgage scams, and has created a National Mortgage Fraud Team at headquarters here in Washington. And last summer, we launched a coordinated state/federal mortgage fraud initiative with state attorneys general from around the country. This initiative will result in enhanced information-sharing, improved criminal and civil enforcement efforts, and a more effective approach to fighting discrimination in the housing and lending markets."

[jeanpalmer]

13. Good. They're facing a mammoth task

There was so much fraud that even with a good effort they'll probably only scratch the surface. Most of the ARM's were frauds on the face of it. The lenders knew people would not be able to pay once the rates adjusted. I'd like to see them go after the higher ups who reaped most of the benefits while directing what they knew were scams.

Also, the ratings agencies. Another fertile spot for investigation. Most of those people should end up in jail.

Also the pension fund managers who allowed themselves to be wined and dined by Wall St into obviously unsuitable investments.

We need a jobs program to build prisons for all the assholes.

[HopeOverFear]

15. thanks sandnsea