Monday, August 4, 2008
Crush the Ants, Let the Elephants Dance
"The Justice Department has resumed audits of individuals' bankruptcy filings to detect fraud. ... Suspension of the audits drew criticism from the program's supporters, who argued that the audits are necessary to ensure that the bankruptcy system functions without abuse. The Financial Services Roundtable [FSR]--an industry group that represents companies that provide banking, insurance and investment products and services--cited a report released by the U.S. trustees office earlier this year that found misstatements in 30% of individuals' bankruptcy cases audited in the 2007 fiscal year", Kristina Doss at the WSJ, 22 July 2008.
I believe this a poor use of Justice Department (DOJ) resources. However, if the DOJ's real job is to secure good private-sector employment opportunities for AUSAs, it's a fine use of resources as it benefits Wall Street. How? Using DOJ resources on insigificant bankruptcies limits the DOJ's ability to pursue fraud cases against major Wall Street firms. The FSR snaps its fingers and the DOJ responds. How much money is involved in all these questionable bankruptcies? Enough to pay say Lloyd Blankfein for a year? To the best of my knowledge, the DOJ has not intervened in the Asarco bankruptcy. Why not? There's only $8.9 billion of assets which I believe were diverted from Asarco to Grupo Mexico (GMSA). Isn't that enough to interest Johnny Sutton (JS)? There's even caselaw on point. I realize Switzer is Second, not Fifth Circuit authority. So? I think it's good law. Nah, JS was too busy prosecuting the "Border Patrol Two" (BPT). Wait a minute. Didn't the Mexican government scream it wanted the BPT prosecuted? Isn't GMSA a Mexican company? Didn't the Bush administration recently side with Jose Medellin against Texas, in Medellin v. Texas, 552 US ____, (2008)? What country is Bush president of anyway?