Is Sarbanes Oxley dead?
We have just witnessed the biggest heist in the history of the world, involving trillions of dollars, perhaps plunging our economic world into a long and painful depression. However, despite all of the fraud committed by CEOs in the financial industry, not one has been indicted and sentenced to prison even though the Sarbanes Oxley Act provides for imprisonment of up to five years for CEOs having done such.
Is there a problem with the Sarbanes Oxley Act? Or is the problem much deeper and widespread. Recently Steve Kroft interviewed Larry Brewer, the head of the Criminal Division of the United States Justice Department, about Sarbanes Oxley. Larry Brewer characterized Sarbanes Oxley as just one tool that the Division has in its arsenal of weapons to fight fraud. But in spite of this Act, the number of financial fraud investigations has decreased by 57% since 1999, even though thousands of financial service employees may have been involved in the biggest heist in our world's history.
For more on this subject, please see the article, Is Sarbanes Oxley dead? Why are financial fraud investigations down 57% after the biggest financial fraud in our country's history?