Now Is the Perfect Time for Financial Fraud

As far back as 1955, economist John Kenneth Galbraith coined the term “bezzle”—“hidden embezzlement”: during periods of market euphoria, fraud accumulates but only becomes apparent after a crisis.

Today, the opposite is happening in the U.S. Despite record-high stock market valuations, investigations into economic crimes are on the decline.

▫️Just over 4,000 criminal cases involving “white-collar” crimes are expected this year—nearly half as many as 20 years ago.

▫️The average investigation into financial fraud takes 452 days and requires the work of dozens of specialists.

▫️After 9/11 law enforcement resources were redirected toward terrorism, immigration, and drug-related crime.

▫️The SEC has also significantly reduced its oversight of auditors and the number of cases against accountants.

A University of Toronto study shows that only about one-third of corporate fraud cases are detected.

The actual damage caused by these cases is estimated at approximately $1.1 trillion per year—about 1.6% of the market value of U.S. companies.

Even if authorities later step up their fight against financial crimes, many of the perpetrators will already be beyond the reach of the law: the statute of limitations for most such crimes in the U.S. is five years.

#USA #Economy #Corporations #FindTruth

@uinhurricane✅