Record Penalties For Fraud

Record Penalties For FraudThe New York Times did a lengthy story about fraud cases and their penalties. According to the story, pharmaceutical companies, military contractors, banks, and other corporations are on track to pay as much as $8 billion this year to resolve charges for defrauding the government. It is around twice as much as the Justice Department’s assessment for last year.

The surge in penalties is caused by a number of factors, including old lawsuits against mortgage lenders from after the financial crisis and resolving longstanding actions against military contractors and drug makers. Another reason for the surge is the Justice Department’s emphasis on corporate fraud. They are devoting more resources to fraud cases and demanding higher penalties.

The increasing settlements are for civil charges of fraud against the government and criminal charges for the same conduct. For health care companies, charges are often related to recovery of money for states for Medicare fraud.

Senator Jack Reed said at a hearing: “A lot of people on the street, they’re wondering how a company can commit serious violations of securities laws and yet no individuals seem to be involved and no individual responsibility was assessed.”

Even though President Obama has called for holding more individuals responsible, out of the $8.6 billion collected over the last three years, relatively few prosecutions of individuals are related to the biggest settlements. The $8.6 billion collected by the Justice Department is more than in any similar period in history. The New York Times story lists some of the biggest settlements.

Whether an individual or a representative of a company, if you are facing charges or are in business-related legal trouble, it is crucial to get qualified legal aid on your side. Do not hesitate to get the help you need. Contact our business lawyers in Naperville, Illinois today.