Justice Department Plans More Undercover Financial Fraud Probes


The Justice Department plans to run more undercover operations — typically aimed at mobsters, cartels, and terrorists — to target financial scammers, reports the Miami Herald. Assistant Attorney General Lanny Breuer told an American Bar Association white-collar crime conference yesterday that, “We will be more targeted, more creative, and more strategic in where and how we look for criminal conduct.”

Breuer cited the Galleon hedge fund case in New York, where federal prosecutors and FBI agents used court-authorized wiretaps and confidential sources to uncover an alleged insider-trading scheme that netted more than $20 million. Breuer also cited the January indictment of 22 executives and employees who work for suppliers to military and law-enforcement agencies on charges of conspiring to bribe a foreign official. The FBI sting operation led to their arrests on the eve of a trade show in Las Vegas. One man also was arrested in Miami. The defendants allegedly agreed to pay a 20 percent commission to a sales agent they believed represented the defense minister for an African country.

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