Justice Department Testing Little-Used Law in Financial Crisis Cases

By Aruna Viswanatha | April 13, 2012

April 13, 2012 at 1:18 pm

Nan says:

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Someone needs to start protecting us little guys!

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April 13, 2012 at 1:32 pm

Gary Barnum says:

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In November, Manhattan federal prosecutors sued Allied Home “Mortgage seeking penalties under FIRREA for hundreds of false statements allegedly submitted by Allied to HUD.

“In a motion to dismiss the lawsuit filed last month, Allied said the government had sued the company under provisions of the law that apply only to individuals.”

I thought the U.S. Supreme Court recently decided that corporations ARE individuals.

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April 13, 2012 at 2:30 pm

Agent says:

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What about the criminals in Congress who were intimately involved with Freddie & Fannie such as Barney Frank, Chris Dodd among others. We shouldn’t forget Maxine Waters who has yet to face the ehics committee for her wrongdoings? Citigroup, Goldman Sachs and others received a lot of bailout money when they got in trouble. What is this? We rewarded bad behavior at the governmental and business level.

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April 16, 2012 at 12:50 pm

Controller says:

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Sounds great but when penalties and fines are assessed, where does that money go? To the little guy who suffered the fraud? Of course not, but where?

Sure, you may stop the big guys if the fines are high enough. How high is that?

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April 17, 2012 at 9:48 am

Agent says:

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When you have the fox guarding the hen house, do you think anything will change? We have such a corrupt government from top to bottom, the players in the financial world and government keep on doing their thing. Where are the criminal penalties for malfeasance? Have any of these guys gone to prison? The big banks are bigger than ever after getting bailed out after the sub prime mortgage mess. Crony Capitalism is rampant and they are all about keeping this corrupt system going.

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