A federal investigation called Operation Broken Trust probed an epidemic of investment fraud in the wake of the financial crisis. More than five-hundred people have been arrested in Operation Broken Trust stings, the Justice Department said Monday. Operation Broken Trust nailed schemers who stole up to $10.5 billion from thousands of ordinary residents.
Operation Broken Trust: countrywide fraudulence sweep
Obama's administration was behind the Operation Broken Trust. The Financial Fraudulence Enforcement Task Force did it. Monday, Attorney General Eric Holder spoke at a news conference. He said that there could be a three and a half month investigation that will defend the general public against investment fraudulence schemes. Criminal charges are being given to 343 people. Civil suits are filed for another 189 people. Eighty-seven people have already received prison sentences. A few defendants got long sentences. They were 20 years. Eighty five years was given to one person. That was the longest.
Citizens tricked into fraud
The investigation by Operation Broken Trust involved 120,000 cases. Market-manipulation, investment scams, foreign currency fraudulence and Ponzi schemes were all investigated by them. Holder said the criminals targeted communities, churches, immigrants, the elderly and the disabled. According to the Justice Department, several victims were set up by neighbors or fellow church members. A man in Texas ripped off others in his church by telling them his lucrative foreign exchange trades were a “blessing from God.”. There was a Ponzi scheme that involved one police officer stealing from other cops too. Victims included a bereaved family. Even a blind man was victimized.
Operation Broken Trust instruction learned
It wasn't just one business that wanted the Operation Broken Trust to take place. The Exchange Commission, the Justice Department, the Commodity Futures trading Commission and the United States of America Postal service all wanted it. Robert Khuzami of the SEC said that while Wall Street banks have gotten the biggest fraud headlines, hundreds of other scams devastate working families and retirees. There’s a lesson that Holder claims could be learned by Operation Broken Trust. He said that “Cheating investors out of their earnings and savings is no longer a safe business plan.” He also warned the public to be alert for scams, take measures to protect themselves and report to authorities when they think something fishy is going on.
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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