The Government Might Finally Get Tough on Wall Street Fraud

Reporter II September 14, 2015

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In this June 18, 2015, file photo, Attorney General Loretta Lynch speaks at a news conference at the Justice Department in Washington. Lynch announced that Dylann Roof, the man accused of slaying of nine black church members in Charleston last month was indicted July 22, on 33 federal counts, including hate crimes, firearms violations and obstructing the practice of religion, which could include the death penalty. (AP Photo/Pablo Martinez Monsivais, File)

Attorney General Loretta E. Lynch announces an indictment against nine FIFA officials and five corporate executives for racketeering, conspiracy and corruption at a news conference, Wednesday, May 27, 2015, in the Brooklyn borough of New York. Nine of the 14 that were indicted by the Justice Department are soccer officials, while four are sports marketing executives and another works in broadcasting. (AP Photo/Mark Lennihan) — Attorney General Loretta E. Lynch announces an indictment against nine FIFA officials and five corporate executives for racketeering, conspiracy and corruption at a news conference, Wednesday, May 27, 2015, in the Brooklyn borough of New York. (AP Photo/Mark Lennihan)

Bourree Lam, THE ATLANTIC

WASHINGTON (The Atlantic) — On Wednesday, the Justice Department issued a new policy regarding the prosecution of white-collar criminals. Amid post-recession complaints from the public that the Wall Street executives responsible for the crash escaped criminal charges and jail time—and that in these seven years Wall Street hasn’t cleaned up its act—the new policy prioritizes the prosecution of executives involved in fraud. In other words: More corporate wrongdoing cases will hold individuals accountable.

This move is being called Loretta Lynch’s first major policy announcement since she took office as U.S. Attorney General in April. The new policy was detailed in a memo sent to attorneys at the Justice Department and the FBI on Wednesday. Deputy Attorney General Sally Yates will be speaking more on the new policy during her speech at New York University’s School of Law today.

In the memo, Yates writes: “Fighting corporate fraud and other misconduct is a top priority of the Department of Justice. Our nation’s economy depends on effective enforcement of the civil and criminal laws that protect our financial system and, by extension, all our citizens.”