Since its creation by Executive Order in July 2002, the Corporate Fraud Task Force (CFTF) has spearheaded the Administration’s effort to prosecute corporate malfeasance, protect the jobs of hard-working Americans, and restore confidence to the marketplace. Through the coordinated efforts of several federal agencies, the CFTF is sending a clear message that criminal activities in the corporate world will be swiftly and decisively prosecuted. By acting to deter fraud, the Task Force is also helping to restore shareholder and employee trust and demonstrating to the American people that the vast majority of corporate leaders are still honest and hardworking. With today’s indictment of three former executives of Comverse Technology Inc., the Justice Department furthers its commitment to the American worker, investor, and honest taxpayers.
Since its inception, the Task Force has contributed to the following:
*Securing more than 1,000 corporate fraud convictions;
*Convicting more than 100 corporate CEOs and presidents with some type of corporate fraud crime in connection with more than 600 filed cases;
*Convicting more than 100 vice-presidents;
*Convicting more than 30 CFOs; and
*Charging more than 1,300 defendants.
Significant cases prosecuted criminally include, among others: Former Enron CEOs Jeffrey Skilling and Kenneth Lay, convicted on charges including conspiracy, securities fraud, wire fraud, and making false statements; Worldcom Chief Executive Officer Bernard Ebbers, convicted on fraud charges in the Southern District of New York; a deferred prosecution agreement with America Online in the Eastern District of Virginia; Adelphia Chief Executive Officer John Rigas, convicted on charges of securities fraud, bank fraud, and conspiracy in the Southern District of New York; a deferred prosecution agreement with Computer Associates, prosecuted in the Eastern District of New York. The work of the CFTF is ongoing. The Task Force will continue to seek to successfully:
*Restore confidence to the marketplace;
*Provide fair and accurate information to the investing public;
*Reward shareholder and employee trust; and
*Protect jobs and savings of hard-working Americans.
###
06-521