Consumer outrage about “bailout madness” and the proliferation of Ponzi schemes and investment fraud is fueling a push for greater oversight and regulation. The government is talking tough, saying that there will be more prosecutions for financial fraud forthcoming..
That sounds good, doesn’t it? Of course we’re all in favor for more aggressively pursuing those who swindle others out of their savings or cheat the system. But while more prosecutions make good headlines, how realistic is this goal?
Currently, the rate of investigation and prosecution is very low. There simply aren’t enough resources to investigate all allegations of fraud. Even cases with all the proof ready for prosecutors often don’t make it into court for a variety of reasons.
Read moreAre We Really Getting Tough on Financial Fraud?