Bailout Corruption: Feds Open 20 Criminal Probes Into Fraud, Insider Trading

Los Angeles Times:

Reporting from Washington and Los Angeles -- In the first major disclosure of corruption in the $750-billion financial bailout program, federal investigators said Monday they have opened 20 criminal probes into possible securities fraud, tax violations, insider trading and other crimes.

The cases represent only the first wave of investigations, and the total fraud could ultimately reach into the tens of billions of dollars, according to Neil Barofsky, the special inspector general overseeing the bailout program.

Read the whole story: Los Angeles Times

Comments

[sueinmn]

bilking the government with phony mortgage modifications.

I wondered how long before we would hear that one!

[davidwayneosedach]

How many hundreds of billions have gone to fraud?

[markytex]

hell yeah! if i was rollin' in the cash money i'd be suing the government too!

[Nicole Sutherland]

let it go down, i'm tired of this. it is apparent that nobody is learning a lesson. this country needs a depression. i know that i too will suffer, though i have done nothing wrong, but i think that is the only way to shake these criminals out of the trees. global devastation doesn't seem to phase them.

they are greedy and looking for opportunity at any expense. let's have a depression and get it over with.

[DrRoberts99]

It's about time. Hopefully the masses will be provided a scorecard since from all of the befuddled posts on HP the level of ignorance and misunderstanding is obviously very high. Not everybody in the financial services industry is a crook although you certainly would not be able to discern that from the vitriol of the masses. It has been rather Limbaughesque observing the electorate bank-bashing since easing the credit crunch is priority number one.

[TXfemmom]

This should come as no surprise to anyone. These financial people are the kings of manipulators. Paulson was the had fraudster.

Personally, I think the derivatives insurance was insider trading at its' best. All those banks and institutions knew those things were going to fail and took out the policies with AIG so they could get the money at the front and on the back end, and that is why the government should claw back everything that AIG paid to them. They should be viewed as policies taken out on insider information and even have criminal charges against those who took out the insurance policies and for the people at AIG who issued them.

[sonofsamphm1c]

Many of them did not know they were going to fail. The decision makers believed that they had mastered risk, and that the system was essentially immune to failure. People make a big mistake when they say these guys got rich off of this. A large number of them have lost huge fortunes. To do something that colossally stupid, you have to have deluded yourself into wonderland.

[knosiswar]

These will be for SHOW only. How do we expect a Private Business, The FEDERAL RESERVE, to investigate and prosecute business partners.

Who the Heck is investigating the FED, the answer, NOBODY.

[jmpfjoy]

MSNBC Breaking-

CFO of Freddie Mac found dead of suicide in his home.....

[PhilipTaylor]

SOLUTION: Turn Off the Money Faucet to Wall Street and turn On the Faucet to Main Street!

[bascombe]

another yawner

[nogimmicks]

The right hand moves 3 trillions straight into bankers' pockets. The left hand opens 21 tiny investigations with the 3rd tier execs concerning the sums under 1% of the bailout.

[rhubardpi]

I wrote to Obama, Geithner, & IRS boss Shulman on 1-28-09 re the IRS defrauding the American public. I included as proof copies of internally IRS documents (actual delinquent taxpayer case reviews). These are docments it is illegal for me to have. Anyway I have had no response from anyone. I retired after 28 years with the IRS Collection Division. Good night and good luck.

[schatsie]

They got Keating of S&L on RACKETEERING...No intent to defraud, no easy outs, just gambling with the Organizations Assets and Getting GREEDY with the take.....

[steelmill]

What happened to those who put so much faith in balance sheets,isn't that what we heard so much about.

[schatsie]

Faith in Balance Sheets, that is strange...

[steelmill]

Ya I know,but some people believed everything these balance sheets said,I didn't,still don't.

[steelmill]

Faith in Balance Sheets,figure of speech,figure it out.

[TJCole]

Our banks are insolvent and dragging our society down, because we have Banksters not bankers in charge...!