For Immediate Release
Office of the Press Secretary
July 22, 2003
President's Corporate Fraud Task Force Compiles Strong Record
Fact Sheet: One-Year Anniversary of the President's Corporate Fraud Task Force
The President's Leadership in Restoring Confidence to the Marketplace
[I]t is time to reaffirm the basic principles and rules that make
capitalism work truthful books and honest people, and well-enforced
laws against fraud and corruption.
President George W. Bush, July 9, 2002
[B]y our concentrated efforts, the Department and our colleagues on
the Corporate Fraud Task Force are moving decisively to combat
corporate fraud and restore investor confidence in the marketplace.
Deputy Attorney General Larry Thompson, March 26, 2003
The Task Force's One-Year Anniversary. During its first year, the President's Corporate Fraud Task Force has compiled a strong record in combating corporate fraud and punishing corporate wrongdoers. Coordination by federal authorities has been significantly enhanced by drawing on the expertise of the Task Force's membership. And by aggressively investigating and prosecuting fraud, the Task Force has helped to restore investor confidence.
The President created the Corporate Fraud Task Force by Executive Order #13271 on July 9, 2002. It is chaired by Deputy Attorney General Larry Thompson and includes senior Department of Justice officials, the heads of the Departments of Treasury and Labor, and the heads of the Securities and Exchange Commission, Commodity Futures Trading Commission, Federal Energy Regulatory Commission, Federal Communications Commission and United States Postal Inspection Service. Last week, the Deputy Attorney General added the Department of Housing and Urban Development's Office of Federal Housing Enterprise Oversight (OFHEO) to the Task Force to strengthen the coordination of its investigations.
Through fair, swift and decisive actions, the Task Force is helping to remove suspicion, doubt and uncertainty that pervaded the marketplace one year ago. Investor confidence is returning and the public is recognizing that the vast majority of corporate leaders are honest and ethical stewards of their shareholders and employees. The Task Force's actions are successfully working to:
Prosecuting Corporate Fraud. The Task Force has assisted the investigation in virtually every corporate fraud case brought by federal prosecutors over the last year. For example, the FBI, Postal Inspection Service, and IRS have bolstered the effectiveness of the Justice Department's 450 prosecutors and 130 investigators, auditors, and paralegals who have worked on corporate fraud matters. With unparalleled coordination by Executive branch agencies, federal prosecutors, as of May 31, 2003:
Aggressively Pursuing Civil and Regulatory Enforcement. Civil and regulatory departments and agencies on the Task Force are stepping-up coordination to protect investors and consumers from corporate fraud.
Restoring Investor Confidence. The Task Force's swift, fair and decisive actions are helping to restore confidence to the marketplace. CEOs and other executives who fudged the numbers and deceived their investors and workers are being held accountable. The actions of the Task Force are helping to demonstrate something equally important to the American people: the vast majority of corporate leaders are honest and ethical who work hard to earn the trust of their shareholders and employees.