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JW Sues Deputy Attorney General for Alleged Stock Fraud Deputy Attorney General Larry D. Thompson, head of the Justice Department’s Corporate Crime Task Force, is charged with the responsibility of rooting out corporate fraud and corruption. A Judicial Watch lawsuit alleges that while a director for Providian Financial Corporation, Thompson engaged in the very acts he is now supposed to combat, while also using his new official position to engage in a scheme to cover it up. A shareholders’ lawsuit filed by JW in San Francisco, CA alleges that Thompson and other directors and officers of Providian employed misleading accounting practices and participated in securities fraud and insider trading. Similar to the perverse examples set by Enron and Global Crossing, Thompson and his co-defendants, allegedly adopted these tactics to hide Providian’s deteriorating financial condition in order to artificially inflate the company’s stock price. The defendants then allegedly dumped their stock options on to unsuspecting Providian investors in order to maximize their profits. Compounding his role in this allegedly fraudulent scheme, upon leaving the company to take his current position in Washington, Thompson then allegedly used his newly acquired influence to prevent the Justice Department from launching an investigation into Providian¹s fraudulent practices. "The Providian scandal is an egregious example of the corrupt connection between politicians and corporate power brokers," said JW Chairman Larry Klayman. "Here we have a director who allegedly participated in corporate fraud appointed to a position where he allegedly used his influence to cover up his crimes."
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