Most people are unfamiliar with the Market Integrity and Major Frauds (MIMF) Unit in the U.S. Department of Justice (DOJ) until they find themselves or their company under investigation by that particular government actor. Yet, by exploring the kinds of cases this unit investigates and prosecutes, you can get an idea of the priority that the DOJ places on honest and transparent filings and transactions and the consequences for those found to have run afoul of the law in specific ways.
The MIMF Unit is part of the fraud section of the DOJ’s Criminal Division, along with the Health Care Fraud Unit and the Foreign Corrupt Practices Act Unit. It works closely with other parts of the government, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to uncover both national and international fraud.
Types of fraud offenses prosecuted by the MIMF Unit
The unit has prosecuted a number of corporate officers of major corporations as well as smaller entities for financial and corporate fraud offenses including:
- Accounting fraud
- Securities and commodities fraud
- Procurement and other government fraud
- Bank fraud
- Mortgage fraud
- Consumer and investor fraud
- Cryptocurrency fraud
- Healthcare fraud
The specific illegal activities that they investigate and prosecute can include:
- Misleading investors
- Receiving or paying kickbacks
- Insider trading
- Price manipulation (including fuel prices)
- Generating false statements
Many of its cases involve the commodity and cryptocurrency markets. Prosecutors and investigators in the unit use algorithms and data analysis to find suspicious patterns that indicate price or market manipulation.
The consequences of a conviction or settlement can be extremely serious
Consequences of a guilty verdict or a settlement can include millions of dollars in fines and forfeitures, as well as potentially prison time. Many of the MIMF Unit’s cases have involved financial institutions of some kind, including banks, investment and commodities companies.
If you are under investigation, or even suspect that you might be, it’s critical to avoid dealing with federal officials on your own. When federal prosecutors bring a case, it’s because they generally have irrefutable – often documentary – evidence. That’s why they rarely lose. Even if you’re being asked questions about someone else, you don’t want to answer these inquiries without protecting your rights.
