CORPORATE CRIME REPORTER
FBI Opening Three to Six New $100 Million Corporate Fraud Cases Every Month
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Corporate Crime Reporter 9(1), February 23, 2005
Maybe Sarbanes/Oxley isn’t haven’t very much of an impact.
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.
The
major priorities list was headed by counterterrorism
and counterintelligence.
Mueller also made the following points:
* Since the initiation of the FBI Corporate Fraud Task Force in December 2001,
there have been 480 indictments and 305 convictions of corporate executives
and their associates.
* The FBI's efforts have also resulted in over $2 billion in restitutions, recoveries
and fines, in addition to over $30 million in seizures and forfeitures.
* In the Enron, HealthSouth, Cendant Corporation, Credit Suisse First Boston,
Computer Associates International, Worldcom, Imclone, Royal Ahold, Perigrine
Systems, and America On Line cases the FBI obtained 119 indictments/informations
and 79 convictions.
* The former Chief Executive Officer (CEO) of Worldcom is on trial in New York
and the former CEO of HealthSouth is on trial in Alabama. Several additional
high profile trials are anticipated in the near future, to include the trial
of Enron's former CEOs and Chief Accounting Officer anticipated to be scheduled
for August or September 2005.
* During FY 2004, the FBI had 2,468 pending health care fraud investigations,
obtained 693 indictments and informations, 564 convictions or pre trial diversions,
$1.05 billion in restitution, $543 million in fines, $28.8 million in seizures,
$19.05 million in forfeitures and disrupted 186 and dismantled 105 criminal
organizations.
“Corporate fraud can cost Americans their jobs and rob them of hard-earned
savings,” Mueller said. “It shakes the public's confidence in corporate
America to its foundation.”
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