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Re: Stock Lobster post# 321729

Tuesday, 06/01/2010 8:18:47 AM

Tuesday, June 01, 2010 8:18:47 AM

Post# of 648882
>>Federal prosecutors weigh a criminal probe of BP

The focus is on whether the oil company skirted safety regulations and misled the U.S. government about its ability to respond to a blowout.

May 28, 2010|By Richard A. Serrano, Tribune Washington Bureau
Carolyn Cole / Los Angeles Times

Reporting from Washington — — A team of top federal prosecutors and investigators has taken the first steps toward a formal criminal investigation into oil giant BP's actions before and after the drilling rig disaster off Louisiana.

The investigators, who have been quietly gathering evidence in Louisiana over the last three weeks, are focusing on whether BP skirted federal safety regulations and misled the U.S. government by saying it could quickly clean up an environmental accident.

The team has met with U.S. attorneys and state officials in the Gulf Coast region and has sent letters to executives of BP and Transocean Ltd., the drilling rig owner, warning them against destroying documents or other internal records.

Underscoring the gravity of the inquiry, the team is headed by Assistant Atty. Gen. Ignacia Moreno of the environment and natural resources division and Assistant Atty. Gen. Tony West, who heads the Justice Department's civil division.

The move by federal prosecutors represents an escalation in the government's involvement in the oil spill — from coordinating the environmental cleanup to searching for possible criminal violations.

The Justice Department's inquiry is a standard preliminary step taken to determine whether a formal investigation is warranted. But even in this early stage, it has the earmarks of one of the largest investigative undertakings of the Obama administration.

In one sign of its potential scope, the Obama administration has asked for $10 million to be set aside to pay for the investigation. President Obama, in a letter May 12 to House Speaker Nancy Pelosi (D- San Francisco), said the funding was needed "to hold BP, and other responsible parties in this spill, accountable for the crisis."

Oil company officials said they were conducting an internal review and had been sharing information with the government. The companies also have pledged to help clean up the oil spreading along the gulf and pay for damages.

"I understand people want a simple answer about why this happened and who is to blame," said BP Chief Executive Tony Hayward.

Assistant Atty. Gen. Ronald Welch said federal investigators were pushing ahead with their inquiries.

http://articles.latimes.com/2010/may/28/nation/la-na-oil-spill-investigation-20100529

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