Federal prosecutors are pursuing criminal cases against executives from the Royal Bank of Scotland Group and JPMorgan Chase & Co for allegedly selling flawed mortgage securities, the Wall Street Journal has reported. It was also reported that people familiar with the probes said officials were trying to determine whether the bankers ignored warnings from associates that they were packing too many weak mortgages into investment offerings and whether they can prove that constituted fraud.
This action by the Department of Justice is expected to be one of several in the next year and is in line with DOJ’s new policy of encouraging more charges against individuals.
There has been longstanding criticism that the DOJ has left executives alone despite clear wrongdoing. No more. In a memo released in September the department’s new policy of requiring companies to turning over information about the wrongful actions of individuals in a company even at the highest levels.
Now ProPublica reporter Jesse Eisinger is writing a book about the failure of the Justice Department to criminally prosecute major corporate crime cases called The Chickenshit Club. The term itself comes from the name for prosecutors at DOJ who had never lost a case.
For more, stay tuned here and also see: http://www.corporatecrimereporter.com/news/200/jesse-eisinger-on-corporate-crime-and-the-chickenshit-club/
Jeff Newman represents whistleblowers