Editor's note: Your ProbateShark applauds the FEDs for acting on this apparent financial fraud. However, FEDs please keep in mind, the fraud being perpetrated by the "criminal financial enterprise" better known as the Probate Court of Cook County is on the very same senior citizens effected by the S&P fraud. Lucius Verenus, Schoolmaster, ProbateSharks.com
U.S. defends $5B fraud case against S&P
Justice Department says ratings agency went beyond mere 'puffery'
U.S. backs $5B fraud suit against S&P (Reuters / May 21, 2013)
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The U.S. Justice Department on Monday asked a federal judge to deny Standard & Poor's motion to dismiss a government lawsuit claiming the ratings agency inflated ratings on faulty products to drum up business.
The Justice Department argued in a court filing on Monday that far from being mere "puffery," S&P made those statements knowing they would be "relied on by investors."
In a $5 billion suit, the U.S. government has accused S&P, owned by McGraw Hill Financial Inc., of issuing inflated ratings on faulty products to drum up business before the 2008 financial crisis, despite assurances that its judgments were objective.
S&P last month asked a federal judge to dismiss the lawsuit, arguing the government's case was based on vague statements that could not prove fraud. It has accused the government of cherry-picking emails to misconstrue what its analysts did.
In its defense, S&P cited a federal court ruling, upheld by an appeals court, that described statements made about its independence as insufficient evidence for a fraud conviction.
S&P could not immediately be reached for comment by Reuters outside of regular U.S. business hours.
The Justice Department argued in a court filing on Monday that far from being mere "puffery," S&P made those statements knowing they would be "relied on by investors."
In a $5 billion suit, the U.S. government has accused S&P, owned by McGraw Hill Financial Inc., of issuing inflated ratings on faulty products to drum up business before the 2008 financial crisis, despite assurances that its judgments were objective.
S&P last month asked a federal judge to dismiss the lawsuit, arguing the government's case was based on vague statements that could not prove fraud. It has accused the government of cherry-picking emails to misconstrue what its analysts did.
In its defense, S&P cited a federal court ruling, upheld by an appeals court, that described statements made about its independence as insufficient evidence for a fraud conviction.
S&P could not immediately be reached for comment by Reuters outside of regular U.S. business hours.
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