White Collar Roundup - October 2014

Roadmap for the Future of Prosecuting Financial Fraud

In a speech at New York University School of Law, outgoing U.S. Attorney General Eric Holder outlined his agency's broad-based attack on financial fraud. After noting the recent successes against institutions and individuals, he stressed "the inherent value of bringing enforcement actions against individuals, as opposed to simply the companies that employ them." First, such prosecutions enhance accountability; second, they promote fairness; and third, they create powerful deterrence to future wrongdoing. He also outlined changes in the law to enable the Department of Justice to infiltrate ongoing fraudulent schemes instead of simply prosecuting them after the fact. First, he suggested lawmakers find ways to ensure that individuals at companies could not disclaim responsibility by "blur[ring] lines of authority." Second, he suggested lawmakers and prosecutors "think[] creatively" about incentives for