US
Fraud Probers, Defenders in Demand
Mar 12 2009
While major law firms are awash in layoffs, lawyers who either probe and prosecute or defend against financial fraud charges are gearing up for a boom.
Home loan scams have already spurred dozens of indictments all over the U.S. Now, some public officials apparently hope to raise the ante by pursuing the bogeymen du jour: "executives" and "Wall Street."
Most targets thus far have been loan processors, mortgage brokers and bank officers indicated by numerous state authorities. The Brooklyn, N.Y. district attorney last week launched a 12-member real estate fraud unit. Maryland assembled an inter-agency mortgage fraud task force last month.
'Open Season' on Bank Executives?
As the New York Times notes, the Obama administration requested a 13 percent budget raise for the SEC and money to hire more FBI agents to investigate mortgage fraud and white-collar crime. Former Justice Department lawyers indicate that federal subpoenas could proliferate after the department fills some important staff vacancies, and/or after markets become less chaotic.
The Times says little about who in the industry's mid- to upper ranks might be targeted - or more important, why. A close reading suggests future moves to prosecute bank executives, traders or fund managers will rely on the quasi-legal "theory," popular among middle-school dropouts and people who comment online beneath Wall Street Journal articles, that whenever money is "lost," it must have "gone somewhere" – most likely into some boss' pocket.
To be sure, the government would face an uphill battle proving that the financial sector's collapsed investments and bombed-out balance sheets stemmed from malfeasance rather than miscalculation. "We punish people for intentional misconduct, we don't punish them for stupidity or innocent mistakes," reminds former federal prosecutor Michael F. Buchanan, now a partner at Jenner & Block. "If you're a prosecutor, you want evidence that shows real dishonesty."
Jon, Some of your readers are surely in this predicament besides me. I am a private equity investment analyst for 3 yrs working for global firm. I am still with them. Prior to this, I worked in M&A deal origination in London, dual passports. My education was pre law in contracts, an mba not law degree. In 2008 I filed a lawsuit for fraud, negligence, and deceptive trade against GMAC Rescap. I have committed almost full time to winning. I help my sole practitioner lawyer put docs together, discovery, analyses, develop trial strategy, including all trial & deposition questions. I also interview witnesses, researched theories, trace wire funds to prove fraud. I write for pleadings and motions. I am very familiar real estate mortgage laws, contracts both state and federal. The result of my involvment is that we have recently won all our motions. Now have a motion for judgement on file. we will win; Judgement amount is substantial, more than 3 times the original contract amount. Is their role for me consulting or perm besides a paralegal that would pay the kind of 6 figure income I am accustomed to? Not all of us are lawyers, that doesn’t make us any less useful given current climate.
amelia colvin 13 Mar 2009
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