On Mon, 19 Apr 2010 13:04:35 -0700, Gunner Asch
wrote:
snip
Fraud is always criminal
snip
Actually no. There is "civil fraud," which may also be "criminal
fraud." It depends on the scale, i.e. number of people and the
amount of money involved, intent, planning and a number of other
factors.
see
http://www.answerbag.com/q_view/307056
http://en.wikipedia.org/wiki/Fraud
While "civil fraud" is easier to prove, i.e. the standard is
"preponderance of the evidence," criminal cases require "proof
beyond a reasonable doubt" It appears from the media reports that
Goldman-Sachs with their Abacus scam crossed well over into
"criminal fraud" territory.
It is clear that number of conspirators were involved, large
amounts of planning/coordination were required, considerable
"front money" was provided, and while a question for the courts
to decide, it appears that the CDO investor losses were planned
from the start to benefit the co-conspirator hedge fund manager,
who stood no real chance of any loss.
As is frequently the case, this also meets the requirements for
"criminal conspiracy."
http://criminal.findlaw.com/crimes/a-z/conspiracy.html
http://en.wikipedia.org/wiki/Conspiracy_%28crime%29
Indeed, if two prior felony counts can be sustained in court, the
Goldman-Sachs corporation and the individuals involved may well
qualify for a RICO prosecution with disgorgement of any profits
that resulted. FWIW -- there are also "civil RICO" actions.
http://www.lectlaw.com/files/lit08.htm
http://www.justice.gov/usao/eousa/fo...e9/110mcrm.htm
http://www.monteleonelaw.com/CivilRI...rint020104.pdf
What is becoming increasingly evident is that the SEC, other
regulatory agencies [state and federal] and "law enforcement"
[state and federal] had [and has] more than ample justification
to investigate and prosecute. The introduction of yet more
regulations and statutes, that won't be enforced, will accomplish
nothing.
Unka George (George McDuffee)
...............................
The past is a foreign country;
they do things differently there.
L. P. Hartley (1895-1972), British author.
The Go-Between, Prologue (1953).