More Fraud Settlements for Companies, but Rarely Individuals

Source: The New York Times

Pharmaceutical companies, military contractors, banks and other corporations are on track to pay as much as $8 billion this year to resolve charges of defrauding the government, analysts say -a record sum and more than twice the amount assessed last year by the Justice Department.

The surge in penalties is because of a number of factors, including the resolution of longstanding actions against drug makers and military contractors, as well as lawsuits brought against mortgage lenders after the financial crisis. But it also reflects a renewed emphasis on corporate fraud, as the Justice Department devotes more resources to the issue and demands higher penalties from companies.

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But while the collections are a boon to the government and taxpayers, they are resurrecting questions about the relative lack of charges against executives at the companies that are getting the stiffest penalties.

Read more: http://mobile.nytimes.com/2012/08/08/business/more-fraud-settlements-for-companies-but-rarely-individuals.xml

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And you wonder how the former CEO of a corporation that committed Medicare fraud become governor of Florida.