Barofsky Says Criminal Charges Possible in Alleged AIG Coverup

Discussion in 'Wall St. News' started by ASusilovic, Apr 28, 2010.

  1. Beginning in 2004, Barofsky worked on "Tango Chaser," an investigation into the Revolutionary Armed Forces of Colombia, or FARC, a rebel army that funds its operations partly through narcotics trafficking. The still-ongoing probe has resulted in the indictments of 50 traffickers.

    In 2005, Barofsky learned he had been the target of a kidnapping plot during one of his visits to Colombia. A female informant who was planning to set him up relented and later told him of the plan. Barofsky keeps a FARC bayonet on his office windowsill as a memento of the case.


    TARP Police

    Barofsky says the question of whether the New York Fed engaged in a coverup will result in some sort of action.

    "We're either going to have criminal or civil charges against individuals or we're going to have a report," Barofsky says. "This is too important for us not to share our findings."

    He won't say whether the investigation is targeting Geithner personally.

    In a statement, the New York Fed said: "Allegations that the New York Fed engaged in a coverup of its intervention in AIG are not true. The New York Fed has fully cooperated with the Special Inspector General."

    Barofsky's to-do list grows. SIGTARP now has 120 employees, has initiated 20 audits and was involved with 84 investigations as of March 31. In January, it opened a New York office, with San Francisco and Los Angeles branches scheduled for later this year.

    As long as the Treasury Department continues throwing money at the financial crisis, Barofsky's TARP police will be watching.