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Corporate Criminals Cheat Because They Don't Fear Jail Time. That Must Change. Now.


Business  (tags: Donald Blankenship, Environment, Eric Holder, financial crash, Fraud, General Motors, Labor, Loretta Lynch, Massey, Mortgage Crisis, Regulation, Toyota, Volkswagen, West Virginia, White Collar Crime )

Judy
- 778 days ago - dailykos.com
No more slaps on the wrist. No more getting off with a fine, which is typically levied against the corporation rather than the individual criminal. We need to put the fear of prison time into every suit who is even thinking about cheating.



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Comments

Patrick Donovan (345)
Sunday October 4, 2015, 5:17 pm
If they can't do the time; they shouldn't do the crime. Jail them.
 

Freya H (361)
Sunday October 4, 2015, 5:19 pm
This can - and will - change if WE THE PEOPLE really want it! Lean on our politicians, sign those petitions, raise hell, get organized, do what it takes.
 

Sue H (7)
Sunday October 4, 2015, 5:58 pm
The Greedocracy at work.:(
 

Past Member (0)
Monday October 5, 2015, 5:29 am
No more dirty money
 

JL A (282)
Monday October 5, 2015, 7:58 am
So true --granted it can be difficult to follow the decision trails inside companies (remember Enron?) but it is possible and worth it. Thanks Judy
 

Roger G (154)
Monday October 5, 2015, 11:57 am
noted, thanks
 

jan b (5)
Monday October 5, 2015, 1:15 pm
There is a difference between “illegal” and “irresponsible " and I think that's been the problem with jail time.
TWO Wall Streeters went to jail. 1.Michael J. McGrath Jr., former president of U.S. Mortgage Corp., got 14 years in prison for orchestrating a conspiracy that defrauded credit unions and Fannie Mae of $136 million. 2. Lee B. Farkas, former chairman of Taylor, Bean & Whitaker Mortgage Corp., got 30 years in prison and was ordered to forfeit $38.5 million, for his role in a $3 billion scheme to rip off banks through the sale of fake mortgage assets

Short of that, , if the crisis were really about people buying McMansions that they couldn't afford, “we could have solved it much more cheaply in a couple of days in late 2008, by simply providing borrowers with additional capital to reduce their loan principals. It would have cost about 3 percent of what the entire bailout wound up costing, with comparatively similar risk.”

So who are we going to send to jail ? Greenspan ? All the realtors who lied, all the banks who gave out loans i.e. No bank was ever “forced” – or coerced or incentivized by the government in any way – to make a bad loan., the dealers in dirivitives ?

CNNMoney -
 

Alvin King (2)
Monday October 5, 2015, 1:47 pm
Thanks for posting
 

Nelson Baker (0)
Monday October 5, 2015, 2:39 pm
Noted.It seems the rich have a "Get Out Of Jail Free Pass".
 

Birgit W (160)
Monday October 5, 2015, 3:09 pm
Thanks for sharing.
 

Janet B (0)
Monday October 5, 2015, 3:12 pm
Thanks
 

Lois Jordan (63)
Monday October 5, 2015, 3:16 pm
Noted. Thanks for posting, Judy.
My sentiments exactly! I guess we'll see if Blankenship actually does jail time. While Occupy did a good job of pointing out inequality, things still haven't really changed much. It is going to take a huge force of Americans voting and then making sure who they voted for stands up for them and against the criminals. I feel like I've been on a merry-go-round, and I'm long past dizzy.
 

Past Member (0)
Monday October 5, 2015, 4:10 pm
That's right---and of course, it is not right. Thanks Judy. Noted with disdain.
 

Judy C (97)
Monday October 5, 2015, 4:16 pm
Jan, there is abundant evidence that crime was rampant in the mortgage meltdown you discuss. what about mortgage fraud, for example? Here's an interesting piece of a 2009 article to illustrate my point:

The FBI was aware for years of "pervasive and growing" fraud in the mortgage industry that eventually contributed to America's financial meltdown, but did not take definitive action to stop it.

"It is clear that we had good intelligence on the mortgage-fraud schemes, the corrupt attorneys, the corrupt appraisers, the insider schemes," said a recently retired, high FBI official. Another retired top FBI official confirmed that such intelligence went back to 2002.

The problem, according to the two FBI retirees and several other current and former bureau colleagues, is that the bureau was stretched so thin that no one noticed when those lenders began packaging bad mortgages into bad securities.

"We knew that the mortgage-brokerage industry was corrupt," the first of the retired FBI officials told the Seattle P-I. "Where we would have gotten a sense of what was really going on was the point where the mortgage was sold knowing that it was a piece of dung and it would be turned into a security. But the agents with the expertise had been diverted to counterterrorism."

The FBI not only lacked the resources, but also never got the tips it needed from the banking regulatory agencies. The Securities and Exchange Commission, the Office of Thrift Supervision and the Office of the Comptroller of the Currency also failed to detect the securities issue, said the first retired FBI official.

"These are very resource-intense cases that take a lot of work by very skilled people," said John Falvey Jr., a former federal prosecutor who currently does white-collar criminal defense work in Boston.

And Falvey said that financial executives who deliberately chose not to learn the facts about dicey mortgage-lending practices in their companies -- who chose to be "willfully blind" to such practices and the subsequent securitization of those mortgages -- could be vulnerable to prosecution for securities fraud.

Both retired FBI officials asserted that the Bush administration was thoroughly briefed on the mortgage fraud crisis and its potential to cascade out of control with devastating financial consequences, but made the decision not to give back to the FBI the agents it needed to address the problem. After the terrorist attacks of 2001, about 2,400 agents were reassigned to counterterrorism duties.

This mass reassignment was first chronicled by the Seattle P-I in the Terrorism Tradeoff, a series of investigative reports beginning in 2007 and stretching into 2008. That administration policy, the P-I reported, resulted in a dramatic plunge in FBI criminal investigations and referrals for prosecution. And recent data from Syracuse University researchers shows the problem has worsened.

FBI Assistant Director Ken Kaiser -- in a statement - took issue last week with any implication "that if the FBI had made more arrests for mortgage fraud, the crisis could have been averted. To even suggest that is a cry for a lesson in both civics and basic economics.

http://www.seattlepi.com/national/article/FBI-saw-mortgage-fraud-early-1298591.php
 

Roslyn M (46)
Tuesday October 6, 2015, 3:11 am
Noted - couldn't agree more.
 

Ben O (178)
Tuesday October 6, 2015, 7:28 am
Right on!
 

Ben O (178)
Tuesday October 6, 2015, 7:29 am
However, we can trust Volkswagen, can we not...?
(Attention! Sarcasm!)
 

Janet B (0)
Tuesday October 6, 2015, 12:21 pm
Thanks
 

Judy C (97)
Tuesday October 6, 2015, 12:33 pm
Yes Ben, once these guys get caught, they learn their lesson, admit they have been bad boys, and assure us it will never happen again.
 

Paul Christensen (1)
Tuesday October 6, 2015, 1:42 pm
There are mare than a few countries that not only jail corporate criminals they EXECUTE them.TPP deal has a couple of those countries signing on......can the laws/punishments of other countries be imported here now???? worth a thought people
 

Mitchell D (103)
Tuesday October 6, 2015, 3:32 pm
Screw the screwers!
 

Heidi Aubrey (4)
Tuesday October 6, 2015, 11:31 pm
Noted.
 

Dandelion G (367)
Wednesday October 7, 2015, 8:27 am
What do you expect from Jan she is a Hillary supporter. I'm surprised she isn't voting Republican....oh yes, she is with Hillary the Corporatist.

“I asked a man in prison once how he happened to be there and he said he had stolen a pair of shoes. I told him if he had stolen a railroad he would be a United States Senator.”
― Mary Harris Jones
 

M B (62)
Wednesday October 7, 2015, 4:49 pm
their excuses are..."but we provide jobs". Governments excuses are" we must assure " attractive tax modules"; otherwise they move abroard.. (!) We're the people ought to get hold of the "keys" to those back doors !
I noticed some changes arround here, it's terrifying. Our government is systematically bashing the unions, where do we go to ??
thx for posting
 
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