The Chances of Someone Convicted of Fraud Heading Back to Jail a Second Time? Higher Than You Might Think
Amazingly, investors sometimes choose to roll the dice on someone with a shady background. Here's more proof why that's a lousy idea: According to a study released by the U.S. Dept. of Justice in 2000, one based on data from the Federal Bureau of Prisons, out of 23,970 offenders convicted of criminal fraud during the period, 13.2% returned to federal prison within three years of release from a U.S. District Court sentence --nearly the same percentage as those convicted of drug offenses (13.4%). The report is here. It’s also worth noting that unlike law enforcement agencies such as the FBI, the SEC’s Division of Enforcement has no formal program to deter recidivism. (Thanks, Justin.)
14 October 2008•1 min read
