Bribery, compromised officials leave indicted financial-crime suspects free from prosecution under Holder’s DOJ

Attorney General Eric Holder pauses during a news conference at the Justice Department in Washington, Friday, Jan. 27, 2012. (AP Photo/Cliff Owen)

Cold case file

As it stands, TheDC’s source explained during an interview, no suspects under sealed indictment have been arrested, but the DOJ is planning to execute arrest warrants at some point in the future. The sticking point, according to the well-placed source, is that the Department of Justice — particularly Attorney General Eric Holder — does not want to admit public officials accepted bribes.

Raynor said that while the DOJ has failed to act on its sealed indictments, his client — Jeffrey Prosser — is still being treated unfairly “as a result of criminal activity that they did in the bankruptcy case and [those under indictment] are still benefiting from.”

“And it’s still ongoing even though they know they’re sitting on sealed indictments.”

Raynor was quick to reiterate that CFC solicits and receives funds from the federal government, adding a new criminal dimension to every financial filing it uses to secure public money.

“Every financial statement they file, every dime they go to get from federal government money, it’s another crime,” Raynor said. “And you have the people who are sitting on sealed indictments who know this is going on. And they’re allowing the criminal activity to continue.”

Bribed officials, he insists, remain on the taxpayers’ payroll at the Justice Department without any accountability.

Reached for comment, Pelletier refused to back up the allegations. “I’m not in a position to comment on the existence or non-existence of a federal investigation,” Pelletier said when TheDC presented him with the facts of the case. “But, what I’ve just heard sounds kooky and implausible.”

Gov. de Jongh’s spokesperson directly attacked the revelations. “What your sources have told you about Governor John P. de Jongh, Jr. (D-VI) is completely false,” de Jongh communication director Jean Greaux told TheDC.

Greaux also made a threat seemingly aimed at scaring TheDC away from running this story.

“Given that your information is false and that you cannot confirm these rumors, you will be going down a slippery slope if you print this story,” Greaux wrote. “If you do print inaccurate information about the governor, we will seek a correction and possible legal action.”

When provided with an outline of this report, Justice Department spokeswoman Tracy Schmaler refused to comment.

Spokespersons for CFC, RTFC, Deloitte, Vinson & Elkins, Alvarez & Marsal, Sharpe and Frazer did not return requests for comment.

During his State of the Union Address on Jan. 24, President Obama directed Attorney General Holder to create a special unit inside the DOJ to address a broad category of financial crimes that includes large-scale institutional fraud.

“We’ll also establish a Financial Crimes Unit of highly trained investigators to crack down on large-scale fraud and protect people’s investments,” Obama said. “Some financial firms violate major anti-fraud laws because there’s no real penalty for being a repeat offender. That’s bad for consumers, and it’s bad for the vast majority of bankers and financial service professionals who do the right thing.”

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