The Whistleblowers United 60-Day Plan:
1. Restore the mandatory criminal referral process and Criminal Referral Coordinators at every financial regulatory agency
2. Require that all new hires agree to conditions that will end the “revolving door” – with no provision for waivers.
3. The FBI and the Department of Justice (DOJ) will publicly terminate their “partnership” with the Mortgage Bankers Association – the industry trade association which has a clear conflict of interest and harms prioritization by pushing solely for the prosecution of what should be far lower priority cases of crimes v. banks and never for the prosecution of what should be the highest priority cases of frauds led by banks’ senior officers
4. Ban DOJ from making deferred prosecution agreements with elite white-collar criminals
5. Reassign 500 FBI agents to the white-collar crime section
6. Request authority from Congress to hire 3,000 FBI agents, 250 DOJ attorneys, 250 SEC investigators and enforcers. This is the only portion of our plan requiring legislation.
7. Stop prosecuting the mortgage fraud “mice” and use all DOJ and FBI resources against the fraud “lions”
8. Rescind the FBI’s false claim on its web site that asserts:
“Ethnic groups involved in mortgage loan origination fraud include North Korean, Russian, Bulgarian, Romanian, Lithuanian, Mexican, Polish, Middle Eastern, Chinese, and those from the former Republic of Yugoslavian States.”
This false ethnic claim, again, leads the FBI to prioritize the fraud “mice” rather than the “lions.”
9. Prioritize FBI and DOJ resources by creating a “Top 100” list of the worst financial fraud schemes
10. Revamp the federal treatment of whistleblowers and False Claim Act complainants to encourage their efforts and use them to hold financial elites personally accountable
11. Make public a list of exemplary financial whistleblowers and set forth in writing what they have done for the Nation. (The President should, of course, do this for whistleblowers in each field, not just finance.)
12. The President should hold a public event at which he or she presents appropriate awards in person to these exemplary whistleblowers. We are not talking about financial awards and we are willing to be excluded from consideration for these Presidential awards lest we be charged with self-aggrandizement.
13. Review the backlog of whistleblower and False Claims Act complaints with fresh eyes committed to finding any useful source of information to assist in deciding whether to bring enforcement, civil, or criminal actions against elite financial frauds.
14. Make public the Clayton reports on secondary market sales. These reports document pervasive secondary mortgage market fraud.
15. Federal banking regulators will:
A. Impose individual minimum capital requirements (IMCR) for all systemically dangerous institutions (SDIs) commensurate with the risk they pose because of their size
B. Impose IMCRs for all SDIs commensurate with the risk they pose because of their non-commercial bank activities
C. Impose IMCRs for all banks commensurate with the risk posed by their executive compensation systems
D. Impose IMCRs for all banks commensurate with the risk posed by their hiring, retention, and compensation systems for purportedly independent professionals such as outside auditors, appraisers, and credit rating agencies
E. Announce that it is the policy of the United States never to engage in a regulatory “race to the bottom” with any other government
16. Direct each major federally regulated bank to conduct and publicly report a “Krystofiak” study on samples of “liar’s” loans that they continue to hold. Krystofiak studies quantify the extent of loan origination and secondary market fraud by lenders.
17. Appoint new, vigorous heads of each federal financial regulatory agency
18. Promptly train federal banking and securities regulators, the FBI, and DOJ on sophisticated fraud schemes, particularly fraud via accounting
19. End the use of deliberately unenforceable financial regulatory “guidelines”