The federal govt launched a countrywide investment fraudulence investigation in the aftermath of the financial meltdown called Operation Broken Trust. The Justice Department announced Monday that Operation Broken Trust has brought criminal and civil charges against a lot more than five-hundred individuals. Operation Broken Trust cases involved thousands of victims who were scammed to the tune of $10.5 billion. Resource for this article – Operation Broken Trust nails 500 con artists for investment fraud by Money Blog Newz.
Operation Broken Trust is a fraud throughout the nation
Obama administration's Financial Fraud Enforcement Task Force was who organized the Operation Broken Trust. The first nationwide operation to combat investment strategies the general public has to deal with could be dealt with in a three-and-a-half-month investigation based on Attorney General Eric Holder who spoke at a news conference Monday. There are 189 individuals getting civil suits while 343 individuals face criminal charges. Eighty-seven people have already received prison sentences. A few defendants got long sentences. They were 20 years. One was sentenced to 85 years in prison.
Susceptible residents get cheated
Ponzi schemes foreign currency fraud, investment scams and market-manipulation were all part of the 120,000 cases of fraudulence the Operation Broken Trust investigated. Holder said the fraudsters targeted communities, churches, immigrants, the elderly and the disabled. The Justice Department explained that neighbors would set each other up. This was especially true of church members. Then there was the TX man who said the foreign exchange trades he had were a "blessing from God" that he was using. One cop stole from fellow police officers. This was a Ponzi scheme being done. Victims included a bereaved family. Even a blind man was victimized.
Instruction from Operation Broken Trust
The Securities and Exchange Commission, the Commodity Futures Trading Commission, the U.S. USPS and the Justice Department all joined to make the Operation Broken Trust. The Securities and Exchange Commission had Robert Khuzami explain that retired and families have been hurt a lot more than just Wall street banks. There have been hundreds of other scams. The lesson to be learned from Operation Broken Trust, Holder said, was that “Cheating investors out of their earnings and savings is no longer a safe business plan.” The public is designed to protect themselves, be alert for problems and also alert authorities if anything seems odd.
Citations
Wall Street Journal
online.wsj.com/article/SB10001424052748704156304576003392063619546.html?mod=googlenews_wsj
Los Angeles Times
latimesblogs.latimes.com/money_co/2010/12/investment-fraud-financial-crimes-operation-broken-trust-justice-department-fbi-.html
Washington Post
washingtonpost.com/wp-dyn/content/article/2010/12/06/AR2010120603152.html?hpid=topnews
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