The Justice Department has released a report on the President’s Corporate Fraud Task Force which was created by President Bush 5 years ago.
The report states that in the five years it has been operating, the Task Force has a very successful track record in investigating and combating corporate fraud.
They have achieved success in getting convictions in 1,236 cases of corporate fraud which resulted in penalties to 214 chief executive officers and presidents, 53 chief financial officers, 23 corporate counsels or attorneys; and 129 vice presidents.
They have also, through the Justice Department’s Asset Forfeiture and Money Laundering Section, been able to get over $1,000,000,000 from the convicted companies and distributed that amount to the victims.
There are some high profile cases that the task force has had success in prosecuting the corporations such as:
The task force brought charges against 27 former Enron executives and others for a total of 36. And out of those, 18 either pleaded guilty or were found guilty. Their former chief executive was sentenced to 292 months in prison. The task force was able to seize over $100,000,000 and worked with the SEC to get orders to recover $450,000,000
In a case against Enterasys Network Systems, Inc, 8 former offices of the corporation either pleaded guilty or were found guilty for their involvement in a scheme to artificially inflate the price for their stock, causing Enterasys to over state revenue by more that $11,000,000. Stockholders lost in the neighborhood of $1.3 billion. The Chief Financial Officer, Robert J. Gagalis got a sentence of 11 ½ years in prison.
The former CEO of Qwest Communications International is awaiting sentencing on his conviction of insider-trading. He sold over $100 million in Qwest stock while he had information that had not been made public about the financial state of the business, The CEO will be sentenced on July 27, 2007.
The task force attributes its success in great part to cooperation between federal agencies. They list these as examples of how the agencies cooperate with each other.
The agencies share information such as how to use the most effective law enforcement tools to combat corporate fraud,
The agencies share their resources and expertise and work together to get successful prosecution.
The report says that the task force is continuing to follow the course it has set for itself, while at the same time keeping an eye out for new forms of fraud that are sure to arise when the thieves realize they cannot get away with the old tricks any more.
The Department of Justice http://www.usdoj.gov/