President Obama creates new task force to crack down on financial fraud

President Barack Obama is creating an interagency task force
to more seriously target financial fraud, Cabinet officials announced Tuesday.

Obama, traveling in China, signed an executive order that
creates an interagency Financial Fraud Enforcement Task Force, combining the
efforts of the Justice Department, the Department of Housing and Urban Development
(HUD), the Securities and Exchange Commission (SEC) and the Treasury Department,
among others.

{mosads}Attorney General Eric Holder and other Cabinet officials
said the new task force would “investigate and prosecute significant financial
crimes, ensure just and effective punishment for those who perpetrate financial
crimes, address discrimination in the lending and financial markets and recover
proceeds for victims.”

Holder said the goal of the task force will be to prevent
financial abuses like those that caused the global economic crisis of last
year.

“This task force’s mission is not just to hold accountable
those who helped bring about the last financial meltdown, but to prevent
another meltdown from happening,” Holder said.  “We will be relentless in
our investigation of corporate and financial wrongdoing, and will not hesitate
to bring charges, where appropriate, for criminal misconduct on the part of
businesses and business executives.”

The new task force replaces the Corporate Fraud Task Force,
which was created in 2002 during former President George W. Bush’s
administration.

Treasury Secretary Timothy Geithner said the establishment
of the new task force is proof that the administration “is going to act
aggressively and proactively in a coordinated effort to combat financial
fraud.”

“It’s not enough to prosecute fraud only after it’s become widespread,”
Geithner said. “We can’t wait for problems to peak before we respond.”

At least 25 federal government agencies and offices will
take part in the task force, and the Justice Department said that the attorney
general will also invite representatives from the National Association of
Attorneys General, the National District Attorneys Association and other state,
local, tribal and territorial representatives to be a part of the enforcement
committee.