How Obama’s DOJ Sold Out American Citizens In the Robo-Signing Criminal Plea

Yesterday afternoon there was a critical guilty plea entered in the ongoing robo-signing mess that lies beneath the festering mortgage crisis.

The former executive of a company that provided documentation used by banks in the foreclosure process pleaded guilty to participating in a six-year mortgage-forgery scheme.

The deal announced Tuesday by the Department of Justice represents one of the only successful criminal prosecutions resulting from the “robo-signing” scandal that surfaced two years ago.

Lorraine Brown, 56 years old, of Alpharetta, Ga., who is a former executive of Lender Processing Services Inc., LPS of Jacksonville, Fla., pleaded guilty to a scheme to prepare and file more than one million fraudulently signed and notarized mortgage-related documents.

A criminal guilty plea to straight on systemic fraud like this (here are the pleas documents) ought to have far ranging consequences for home and mortgage holders, not to mention local county recorders, whose quiet title and fee income, respectively, were damaged by the fraud, or at least so you would think.

A long time attorney involved in the field of mortgage fraud, Cynthia Kouril, writing at Firedoglake, laid out well the paths to recourse plaintiffs damaged by this fraud should have:

At the end, I said that this could be a game changer. In the comments, folks thought that was a reference to the fact that for once we have a Read more

Is Chinese Elite Looting More Newsworthy than Middle Eastern–or US–Looting?

NYT has a really good article today on how the family of Chinese Prime Minister Wen Jiabao has gotten enormously wealthy while he’s been in power. The Chinese government has already started censoring the story itself and discussions of it.

And while I applaud NYT’s coverage of the corruption of the Chinese elite, I was left wondering whether NYT would print the equivalent story on Middle Eastern dictators or–even more unlikely–American elites.

While there has been some coverage of how Hosni Mubarak, Moammar Qaddafi, Ali Abdullah Saleh, or Zine El Abindine Ben Ali looted their countries of billions now that they’ve fallen, one of the only times we’ve heard about Saudi looting came after Riggs Bank got busted.

And while we’ve had reports on Countrywide’s VIP program and the general process by which members of Congress get enormously wealthy on our dime as well as stories focused on those (like Maxine Waters), we rarely see maps like the one NYT drew of the business connections involved.

Partly, I wonder whether the US is just better at hiding these connections. Some of this kind of work would stumble on America’s shell corporations, for example.

In the case of Mr. Wen’s mother, The Times calculated her stake in Ping An — valued at $120 million in 2007 — by examining public records and government-issued identity cards, and by following the ownership trail to three Chinese investment entities. The name recorded on his mother’s shares was Taihong, a holding company registered in Tianjin, the prime minister’s hometown.

The apparent efforts to conceal the wealth reflect the highly charged politics surrounding the country’s ruling elite, many of whom are also enormously wealthy but reluctant to draw attention to their riches. When Bloomberg News reported in June that the extended family of Vice President Xi Jinping, set to become China’s next president, had amassed hundreds of millions of dollars in assets, the Chinese government blocked access inside the country to the Bloomberg Web site.

“In the senior leadership, there’s no family that doesn’t have these problems,” said a former government colleague of Wen Jiabao who has known him for more than 20 years and who spoke on the condition of anonymity. “His enemies are intentionally trying to smear him by letting this leak out.”

And partly it may be lack of self-awareness. NYT complains, for example, that Chinese disclosure laws don’t apply to extended relatives.

In the winter of 2007, just before he began his second term as prime minister, Wen Jiabao called for new measures to fight corruption, particularly among high-ranking officials.

“Leaders at all levels of government should take the lead in the antigraft drive,” he told a gathering of high-level party members in Beijing. “They should strictly ensure that their family members, friends and close subordinates do not abuse government influence.”

The speech was consistent with the prime minister’s earlier drive to toughen disclosure rules for public servants, and to require senior officials to reveal their family assets.

Whether Mr. Wen has made such disclosures for his own family is unclear, since the Communist Party does not release such information. Even so, many of the holdings found by The Times would not need to be disclosed under the rules since they are not held in the name of the prime minister’s immediate family — his wife, son and daughter.

Eighty percent of the $2.7 billion in assets identified in The Times’s investigation and verified by the outside auditors were held by, among others, the prime minister’s mother, his younger brother, two brothers-in-law, a sister-in-law, daughter-in-law and the parents of his son’s wife, none of whom is subject to party disclosure rules.

But when Congress finally passed a bill cracking down on insider trading this year, it didn’t even cover the spouses of members of Congress and we’re exempting some Executive Branch members on national security grounds.

Maybe I’m being churlish. But I really wonder if such a superb article would come out to expose graft of our allies that got deposited into American banks. And I wish we saw more of this kind of reporting about our own corrupt elite.

In somewhat related news, Silvio Berlusconi got sentenced to four years for tax fraud today (though appeals will probably save him from jail time). And we still haven’t seen Mitt Romney’s tax returns.

Eric Holder Rewards the Teams that Gave Torturers and Mortgage Fraudsters Immunity

As TPM’s Ryan Reilly noted yesterday, among the awards Attorney General Eric Holder gave out at yesterday’s Attorney General’s Award Ceremony was a Distinguished Service Award to John Durham’s investigative team that chose not to prosecute Jose Rodriguez or the torturers who killed their victims.

The 13th Distinguished Service Award is presented to team members for their involvement in two sensitive investigations ordered by two different Attorneys General. In January 2007, Attorney General Michael Mukasey asked Assistant U.S. Attorney John Durham to lead a team that would investigate the destruction of interrogation videotapes by the CIA. Assistant U.S. Attorney Durham assembled the team and began the investigation. Then, in August 2009, Attorney General Holder expanded Assistant U.S. Attorney Durham’s mandate to include a preliminary review of the treatment of detainees held at overseas locations. This second request resulted in the review of 101 detainee matters that led to two full criminal investigations. In order to conduct the investigations, the team had to review significant amounts of information, much of which was classified, and conduct many interviews in the United States and at overseas locations.

The timing on this award–coming even as DOJ aggressively prosecutes John Kiriakou for talking about this torture–is particularly cynical.

Holder also presented a Distinguished Service Award to the team that crafted a $25 billion settlement effectively immunizing the banksters for engaging in systemic mortgage fraud.

The third Distinguished Service Award is presented to the individuals involved in procuring a $25 billion mortgage servicing settlement between the United States, 49 state attorneys general and the five largest mortgage servicers, representing the largest federal-state settlement in history.   The settlement includes comprehensive new mortgage loan servicing standards, $5 billion to state and federal treasuries and borrowers who lost their homes to foreclosure, $20 billion in consumer relief and a $1 billion resolution of False Claims Act recoveries by the Eastern District of New York.

As DDay has documented relentlessly, the settlement is little more than kabuki, with most of the “consumer relief” consisting of actions the banks were already taking.

To get an idea of how outrageous it is to give an award to the torture non-prosecution team and the kabuki settlement team, compare what those teams did with the rest of the Distinguished Service recipients.

  1. The team that successfully prosecuted United States v. AU Optronics et al.,an international cartel that fixed the price of liquid crystal display (LCD) panels sold in the United States and around the world
  2. The team that implemented national standards aimed at eliminating sexual abuse in our nation’s confinement facilities
  3. The kabuki mortgage settlement team
  4. The team that investigated and dismantled the Coreflood Botnet, also known as Operation Adeona [this was a controversial expansion of Federal power to combat hacking, though since the team worked with a court order, better at least than what the government did to WikiLeaks]
  5. The team that investigated and convicted 37 members of the La Mara Salvatrucha (MS-13) gang in the San Francisco area
  6. The Tribal Trust Negotiation Team, which negotiated settlements with more than 40 Tribes in complex and long-running Tribal Trust cases [I’m not sure, but I believe this is the Cobell settlement, which is in many ways another kabuki settlement, but at least the tribes finally get some compensation]
  7. The Raj Rajaratnam investigation and prosecution team
  8. “The team whose extraordinary service led to the prosecution of Ahmed Warsame” [I quoted this because Warsame has not been convicted yet; the second-to-last item in his docket was a sealed January 5, 2012 document following a continuance, suggesting he may be cooperating in some way; this award should be considered recognition for the further twisting of our legal system to allow for novel war on terror uses]
  9. The Rod Blagojevich investigation and prosecution team
  10. INTERPOL Senior Inspector Joseph J. DeLuca for his outstanding leadership and law enforcement coordination in the apprehension and extradition of international fugitives
  11. Assistant Inspector General Thomas F. McLaughlin for 22 years of service in OIG and certain initiatives he conducted while there, including prosecuting department employees
  12. The CrimeSolutions.gov Development Team for its leadership in creating and launching the premier online resource for information about evidence-based programs and practices in criminal justice, juvenile justice and crime victim services
  13. The torture non-prosecution team
  14. The Congressman William Jefferson investigation and prosecution team

Five of these are for successful prosecutions–AU Optronics, MS-13 gang members, Raj Rajaratnam, Rod Blagojevich, William Jefferson. Another two–the Coreflood Botnet and Warsame actions–neutralized a threat, albeit through novel and controversial means. And then there are the teams that worked to make the criminal justice system more humane.

But rather than holding criminals accountable–punishing those that degraded our nation and created new reasons for people to join terrorists, punishing those who crashed our economy and stole the wealth of millions of families–the Durham and Mortgage Settlement teams made us less safe. They immunized crime, rather than punishing it.

“No one is above the law,” Eric Holder has said on other occasions. Not surprisingly, he didn’t say that yesterday, because it’s clear that some people–the torturers and the banksters–are indeed above the law.

Breaking: Panetta Equating Crude Iranian Cyberattacks with Pearl Harbor, Iran Infiltrated Aramco

Today, the NYT–serving its role as spokesperson for the Cold War against Iran–confirms what blabby Joe Lieberman told CSPAN last month: the government suspects Iran was behind a series of crude cyberattacks on US banks.

Or to put it differently, Leon Panetta wants us to be more afraid of crude DNS attacks on US online banking sites than he wants us to be of the orders of magnitude greater damage the banks cause all by themselves. Because … Iran!

More interesting is the widely reported speculation we think Iran was behind the more serious attack on Aramco.

The attack under closest scrutiny hit Saudi Aramco, the world’s largest oil company, in August. Saudi Arabia is Iran’s main rival in the region and is among the Arab states that have argued privately for the toughest actions against Iran. Aramco, the Saudi state oil company, has been bolstering supplies to customers who can no longer obtain oil from Iran because of Western sanctions.

The virus that hit Aramco is called Shamoon and spread through computers linked over a network to erase files on about 30,000 computers by overwriting them. Mr. Panetta, while not directly attributing the strike to Iran in his speech, called it “probably the most destructive attack that the private sector has seen to date.”

Until the attack on Aramco, most of the cybersabotage coming out of Iran appeared to be what the industry calls “denial of service” attacks, relatively crude efforts to send a nearly endless stream of computer-generated requests aimed at overwhelming networks. But as one consultant to the United States government on the attacks put it several days ago: “What the Iranians want to do now is make it clear they can disrupt our economy, just as we are disrupting theirs. And they are quite serious about it.”

That’s interesting not because the attack did real damage–it didn’t, because it hit the business, not the production, computers.

Saudi Aramco has said that only office PCs running Microsoft Windows were damaged. Its oil exploration, production, export, sales and database systems all remained intact as they ran on isolated and heavily protected systems.

“All our core operations continued smoothly,” CEO Khalid Al-Falih told Saudi government and business officials at a security workshop on Wednesday.

“Not a single drop of oil was lost. No critical service or business transaction was directly impacted by the virus.”

It’s interesting because the malware was introduced into the Aramco network by an insider.

One or more insiders with high-level access are suspected of assisting the hackers who damaged some 30,000 computers at Saudi Arabia’s national oil company last month, sources familiar with the company’s investigation say.

[snip]

The hackers’ apparent access to a mole, willing to take personal risk to help, is an extraordinary development in a country where open dissent is banned.

“It was someone who had inside knowledge and inside privileges within the company,” said a source familiar with the ongoing forensic examination.

Once you translate the NYT’s spin, here’s what we’re left with:

  • We’re supposed to treat cyberattacks by Iran as an existential threat, even though they expose Iran’s relative impotence in the cyber sphere.
  • We’re supposed to get panicked about computers here at home because Iran succeeded in human espionage with Aramco.

And while Panetta cries wolf over and over, the banksters and the oil companies continue to real damage he ignores.

Big Bird Says Neither Obama Nor Mitt Know Who Our Bankster Enemies Are

[youtube]bZxs09eV-Vc[/youtube]

This ad is justifiably getting a lot of attention. It’s well made, dramatic. And somewhat damning to Mitt Romney.

Seriously though. How does this help Obama?

Bernie Madoff. Ken Lay. Dennis Kozlowski. Criminals. Gluttons of greed.

These are not the people who destroyed our economy.

Lloyd Blankfein is. Obama’s DOJ chose not to prosecute him even after he lied to Congress.

Angelo Mozilo is. Obama’s SEC gave him a wristslap and DOJ did nothing.

DOJ isn’t even joining in the what’s-old-is-new suit against JP Morgan and Bear Stearns, five years later, and Eric Schneiderman isn’t charging any human beings there.

This ad shows well that Mitt doesn’t understand which villans threaten our country.

But it also shows that Obama has the very same willful misunderstanding.

Update: DDay makes the same point.

Why Is Jose Rodriguez Hanging Out John Brennan NOW?

I’m no fan of either Jose Rodriguez or John Brennan. So I take no pleasure that the former is blaming the latter for a big intelligence scam carried out against the CIA back in the day.

As head of the multi-agency Terrorist Threat Integration Center in 2003 and 2004, Brennan disseminated to the Bush White House a stream of CIA intelligence from a bogus source, former CIA officials say. Ridiculed by some with the CIA, the bogus intelligence nevertheless led to disruption in the U.S. and abroad, including an orange terror alert and the cancellation of dozens of international flights.

[snip]

At the CIA, the information was controversial from the beginning, and many agency officials said at the time that it should not have been distributed. Jose Rodriguez, who was directing the CIA’s Counterterrorism Center, said the CTC viewed the intelligence as “crazy.”

“We were very skeptical,” Rodriguez recalled.

[snip]

“It was briefed by John. He was the guy who was bringing it there,” said Rodriguez, who added that he believes Brennan was trying to build up his own profile. “My own view is he saw this, he took this, as a way to have relevance, to take something important to the White House.”

But I am interested in why Rodriguez is doing this now–particularly since, as Defense News points out, he chose not to do so in his own book.

I can think of three possible reasons this is coming out now–they’re all wildarsed guesses. It’s possible that Brennan’s star is fading, so he’s vulnerable now in a way he wasn’t before.

It’s possible that some story behind the underlying scam this guy–Dennis Montgomery–carried out against the government is about to unfold. Read more

Behind the Humble Blue Pickup Scott Brown Has Been Working for Banks with Ties to Home-Stealing Forgers

[youtube]nnZw6sm_yAY[/youtube]

Remember when Scott Brown used his old GMC pickup to promise he’d change business as usual in Washington?

In a bid to force Elizabeth Warren to reveal her clients going back decades, Brown made this admission.

“I am also a real estate attorney with a very small general practice. I don’t have any corporate clients, where I get paid tens of thousands of dollars.”

Mostly, he said, his local legal work involved property closings and real estate transactions. He said he has worked for Wrentham Cooperative Bank, Hyde Park Cooperative Bank and Middlesex Savings Bank.

I was a title agent for first American and Fidelity National Title and I represented a couple of small mortgage companies that are probably out of business now,” Mr. Brown said. [my emphasis]

As Adam Levitin and DDay translate, by working for Fidelity National, Brown worked for the parent company of one of the most corrupt players among the rogues gallery of mortgage fraudsters.

Fidelity National is the former parent company of LPS, one of the worst offenders in the foreclosure fraud industry. Fidelity National split with LPS very quickly once their worst abuses came to light.

As I’m sure you can gather from my reports here, LPS was a middleman in this game, providing faulty documents – often off a prescribed menu, where you pay $100 for a mortgage assignment, or $150 for a full loan file – through its subsidiary DocX. This company facilitated forgeries and mass false documents, which we know through Lynn Szymoniak’s work. The Linda Green phenomenon came right out of LPS and DocX. This is where robo-signing lived.

And while we don’t know what Brown did–or still does!–for Fidelity National, it does place him in the front seat of the housing bubble.

It’s not clear exactly what Brown was doing for these clients–title work sounds innocent and boring enough, and Brown certainly isn’t responsible for all of his clients’ misdeeds.  But at the very least, Brown’s association raises a host of questions. Who were those “mortgage companies” that he worked for?  It’s nice that Brown named a bunch of local banks, but I wonder what lies under the “mortgage company” label?  What did Scott Brown understand about the mortgage market he was facilitating? Did he recognize that there was a bubble?  (He was a town property assessor at one point, so one would think he’d notice this sort of thing.) If not, what does that say?  And if so, what does thatsay? How many predatory loans did Scott Brown facilitate?  How many of the loans where he handled the closing resulted in foreclosure?  What would he say to those families that lost their homes to predatory loans?

Since Brown first raised these nice homely local banks with ties to document forgers in a bid to force Warren to explain more about how she helped people get asbestos settlements and other things, I’m sure he’ll have no problem answering Levitin’s questions about precisely what he did and knew about the mortgage industry. Ha! And, as DDay notes, he should also answer for the conflicts of interest that led him to hold up some financial reform.

He held out in the [financial reform] bill, getting a bank fee removed that would have paid for much of the regulatory measures, and weakening the Volcker rule to allow more proprietary trading among big financial institutions. So Brown was a cog in the great finance wheel when doing these closings and “title work,” and also when a US Senator trying to enable as much profit-earning risk in the big financial institutions as possible. A useful cog.

Before Scott Brown digs up work Warren did years ago, he probably ought to elaborate on this nice homey mortgage work, and let us know whether he was ignorant to the corruption around him, or just facilitating it. After all, he’s the guy insisting on transparency .

Rebecca Solnit’s Mirror

I’ve been laughing my ass off at the number of lefties who have linked to–or republished–this Rebecca Solnit piece scolding her “dismal allies” for being such grumps.

It’s not so much I mind someone trying to persuade progressives of the importance of voting for Obama in November. Solnit acknowledges that Obama has done some horrible things and recognizes the dilemma that might present. And as a swing state resident, I’m used to blue state residents imploring me about the importance of my vote. I’ve always weighed the responsibility of living in a more closely contested state seriously and in 2004 worked many many hours to elect a John Kerry I believed was a problematic choice. Solnit appears not to realize it (allowing one of her interlocutors from NV to equate voicing this dilemma with actual voter suppression, which is after all, a real thing that involves affirmative attempts to make it hard for people of color to vote), but we lefties in swing states actually do think about this stuff and weigh it seriously. It is fair to try to persuade us that voting for Obama is a better choice than not voting or voting third party.

It’s just that I’m stunned that anyone–particularly people who work with words–could imagine Solnit’s piece effectively accomplishes her goal.

This is a piece the 7th word of which is “briefly” that doesn’t wind down for another 2,765 words. It’s the 6th paragraph before Solnit gets around to providing an example of her complaint, and before you get there, you have to wade through vacuous language like, “There are bad things and they are bad. There are good things and they are good, even though the bad things are bad“–italics original.

By the time readers have gotten to the moral of Solnit’s story,

Every minute of every hour of every day you are making the world, just as you are making yourself, and you might as well do it with generosity and kindness and style.

She has called or implied her audience is “dismal,” “rancid,” “Eeyore,” “snarky,” “poison[ing],” “sour” “complainers,” “kvetchers,” “caustic,” “pile of bile,” She accuses her audience of “bitch[ing],” “pound[ing] down,” “habitual[ly] tearing down,” engaging in “recreational bitterness.” She disdainfully labels the “lesser of two evils” metaphor a cliché, but then informs her readers that, “when you’re a hammer everything looks like a nail”–and that’s just one of her many clichés. And all that’s before she accuses her audience of asking that “Che Guevara give them a spa pedicure.” She calls other people snarky?

Given the way she attacks her audience, I find it hard to believe that Solnit didn’t see the irony when she suggests we “thrive in this imperfect moment [] through élan, esprit de corps, fierce hope, and generous hearts.”

And then there are Solnit’s details. She repeatedly implies that she “already know[s] most of the dimples on the imperial derriere.” But that’s not always clear. Three times she suggests Obama’s re-election is about access to health care; just once does she get it right that it’s about access to insurance. And here’s the complaint–the one that first shows up in the 6th paragraph–that appears to have set her off:

Recently, I mentioned that California’s current attorney general, Kamala Harris, is anti-death penalty and also acting in good ways to defend people against foreclosure. A snarky Berkeley professor’s immediate response began, “Excuse me, she’s anti-death penalty, but let the record show that her office condoned the illegal purchase of lethal injection drugs.”

Apparently, we are not allowed to celebrate the fact that the attorney general for 12% of all Americans is pretty cool in a few key ways or figure out where that could take us. My respondent was attempting to crush my ebullience and wither the discussion, and what purpose exactly does that serve?

Not only does Solnit seem to misunderstand what has happened on the foreclosure front, but she also projects motives onto a guy who appears to have insisted on measuring Harris by her deeds, not her words. Was he really “attempting to crush Solnit’s ebullience”? Does she have evidence to that fact? Can she–someone who writes for a living and in this piece demands that people “describe [this political system] and its complexities and contradictions accurately”–really not imagine that this guy was simply providing precisely that complexity?

Along with her ironic call for generosity and kindness, Solnit also suggests people consider how they’re engaging in this movement.

ask yourself just what you’re contributing, what kind of story you’re telling, and what kind you want to be telling.

Solnit might ask herself these same questions. Indeed, she might take a lesson from Obama, a master story-teller. Rather than attacking the students and Latinos and struggling workers whose enthusiasm had waned–a strategy Solnit apparently shares with Mitt Romney–Obama has told stories about kids getting insurance coverage and students getting Pell grants and factory workers working longer hours again. Given the increased enthusiasm among his base, those stories appear to have worked like a charm.

But rather than tell those kind of stories, Solnit has opted for precisely the kind of attack she criticizes.

OCC Circles Back to JP Morgan’s Money Laundering

When I first read that the government was going to investigate JP Morgan Chase ∂for money laundering, I thought this was another case where the government continued to give wrist slaps–in the form of softball fines–to banks for behavior that never really changed. And to some degree that will be the case. After all, little more than a year ago Treasury’s Office of Foreign Assets Control accused Jamie Dimon’s company of a whole slew of things, including sending Iran a ton (literally) of gold bullion. And in spite of the fact OFAC said JPMC substantially cooperated with their investigation so they could give it a softball fine, the settlement actually made it clear they had done anything but. (Though the softball fine may have also had something to do with what I suspect was cooperation on setting up the Scary Iran Plot.)

So here we are again, investigating JPMC for money laundering. Again.

But I wonder whether this doesn’t reflect an effort on the part of the Office of Comptroller and Currency, which the NYT says is leading the probe, to improve on its past willful neglect in this area.

Regulators, led by the Office of the Comptroller of the Currency, are close to taking action against JPMorgan Chase for insufficient safeguards, the officials said. The agency is also scrutinizing several other Wall Street giants, including Bank of America.

The comptroller’s office could issue a cease-and-desist order to JPMorgan in coming months, an action that would force the bank to plug any gaps in oversight, according to several people knowledgeable about the matter. But the agency, which oversees the nation’s biggest banks, has not yet completed its case. JPMorgan is in the spotlight partly because federal authorities accused the bank last year of transferring money in violation of United States sanctions against Cuba and Iran.

Since OFAC let JPMC off with a wrist slap last year, the OCC has gotten a new confirmed head, Thomas Curry, from FDIC, and gotten rid of a corrupt Chief Counsel, Julie Williams. OCC also got hammered in Carl Levin’s report on HSBC’s money laundering.

To carry out [its oversight] mission, in the words of the OCC, it conducts “regular examinations to ensure that institutions under our supervision operate safely and soundly and in compliance with laws and regulations,” including AML laws. However, the HSBC case history, like the Riggs Bank case history examined by this Subcommittee eight years ago, provides evidence that the current OCC examination system has tolerated severe AML deficiencies for years and given banks great leeway to address targeted AML problems without ensuring the effectiveness of their AML program as a whole. As a result, the current OCC examination process has allowed AML issues to accumulate into a massive problem before an OCC enforcement action is taken.

Read more

Lanny Breuer Admits That Economists Have Convinced Him Not to Indict Corporations

I’ve become increasingly convinced that DOJ’s head of Criminal Division, Lanny Breuer is the rotting cancer at the heart of a thoroughly discredited DOJ. Which is why I’m not surprised to see this speech he gave at the NYC Bar Association selling the “benefits” of Deferred Prosecution Agreements.  (h/t Main Justice) He spends a lot of his speech claiming DPAs result in accountability.

And, over the last decade, DPAs have become a mainstay of white collar criminal law enforcement.

The result has been, unequivocally, far greater accountability for corporate wrongdoing – and a sea change in corporate compliance efforts. Companies now know that avoiding the disaster scenario of an indictment does not mean an escape from accountability. They know that they will be answerable even for conduct that in years past would have resulted in a declination. Companies also realize that if they want to avoid pleading guilty, or to convince us to forego bringing a case altogether, they must prove to us that they are serious about compliance. Our prosecutors are sophisticated. They know the difference between a real compliance program and a make-believe one. They know the difference between actual cooperation with a government investigation and make-believe cooperation. And they know the difference between a rogue employee and a rotten corporation.

[snip]

One of the reasons why deferred prosecution agreements are such a powerful tool is that, in many ways, a DPA has the same punitive, deterrent, and rehabilitative effect as a guilty plea:  when a company enters into a DPA with the government, or an NPA for that matter, it almost always must acknowledge wrongdoing, agree to cooperate with the government’s investigation, pay a fine, agree to improve its compliance program, and agree to face prosecution if it fails to satisfy the terms of the agreement.  All of these components of DPAs are critical for accountability.

But the real tell is when he confesses that he “sometimes–though … not always” let corporations off because a CEO or an economist scared him with threats of global markets failing if he held a corporation accountable by indicting it.

To be clear, the decision of whether to indict a corporation, defer prosecution, or decline altogether is not one that I, or anyone in the Criminal Division, take lightly.  We are frequently on the receiving end of presentations from defense counsel, CEOs, and economists who argue that the collateral consequences of an indictment would be devastating for their client.  In my conference room, over the years, I have heard sober predictions that a company or bank might fail if we indict, that innocent employees could lose their jobs, that entire industries may be affected, and even that global markets will feel the effectsSometimes – though, let me stress, not always – these presentations are compelling. [my emphasis]

None of this is surprising, of course. It has long been clear that Breuer’s Criminal Division often bows to the scare tactics of Breuer’s once and future client base. (In his speech, he boasts about how well DPAs and NPAs have worked with Morgan Stanley and Barclays, respectively.)

It’s just so embarrassing that he went out in public and made this pathetic attempt to claim it all amounts to accountability.