In These New Times

February 12, 2009 (LPAC)–The FBI is targetting 38 major firms for fraud “directly related to the current economic crisis,” according to a top FBI official, and ultimately the number could rise into the hundreds. “These are companies, businesses that everybody knows about,” said John Pistole, the FBI’s Deputy Director.

He described the investigations as “large, complex,” and similar to the Enron investigation. On other occasions, federal officials have fingered Lehman Brothers, American International Group, Countrywide Financial, and Fannie Mae and Freddie Mac as under criminal investigation.

Several criminal cases are underway against firms involved in the $700 billion Troubled Asset Relief Program (TARP), testified the Special Inspector General for the TARP program, Neil Barofsky, who added that he is working closely with other agencies, the New York State Attorney General, Andrew Cuomo.

Senate Judiciary Committee Chairman Patrick Leahy, who chaired yesterday’s hearing on corporate fraud, told the witnesses that “I want to see people prosecuted,” adding, “I want to see people who have committed such fraud and the havoc it’s caused to this country — frankly, I want to see them go to jail.”