This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case is being investigated by special agents of the Federal Bureau of Investigation. The SEC has conducted a separate investigation of possible civil violations of the U.S. securities laws, and in December 2010 reached a non-prosecution agreement with Carter’s and filed a civil enforcement action against ELLES alleging securities fraud, insider trading, and other securities violations. That case remains pending.
