Operation Broken Trust Exposes $10.5 Billion In Fraudulence Strategies

A federal investigation called Operation Broken Trust probed an epidemic of investment fraudulence within the wake of the financial crisis. Monday the Justice Department announced outcomes of the investigation. Operation Broken Trust has charged more than 500 individuals with both criminal and civil violations. A lot more than a hundred thousand investors were defrauded about $10.5 billion in the frauds detected by Operation Broken Trust.
A countrywide sweep of fraudulence with Operation Broken Trust
Obama administration's Financial Fraudulence Enforcement Task Force was who organized the Operation Broken Trust. Monday, Attorney General Eric Holder spoke at a news conference. He said that there will be a three and a half month investigation that will defend the general public against investment fraudulence schemes. Holder said 343 people face criminal charges and another 189 are getting slapped with civil suits. There has been prison sentences assigned already. Eighty seven individuals have received them. Several defendants were sentenced to more than 20 years. One was sentenced to 85 years in prison.
Residents tricked into fraud
Ponzi schemes foreign currency fraudulence, investment scams and market-manipulation were all part of the 120,000 cases of fraud the Operation Broken Trust investigated. There were specific people targeted. These consist of the disabled, elderly, immigrants, churches and communities. The Justice Department explained that neighbors would set each other up. This was especially true of church members. It was a "blessing from God" to have such good foreign exchange rates, according to one man. In TX, this was how he ripped individuals off. There was a Ponzi scheme that involved one police officer stealing from other cops too. Other victims included a blind man and a bereaved family.
Learning from Operations Broken Trust
It was not just one company that wanted the Operation Broken Trust to occur. 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 Securities and Exchange Commission said that while Wall Street banks have gotten the biggest fraudulence headlines, hundreds of other scams devastate working families and retirees. Holder said that Operation Broken Trust teaches that "Cheating investors out of their earnings and savings is no longer a safe business plan." The public is supposed 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

By: Anne Thomas1

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