It COULD be true these days.

NORTH POLE - Capping an elaborate sting operation, FBI officials yesterday announced that they will be charging 12 of Santa's elves with operating a recalled-toy scam that netted at least $20 million and could have put the lives of millions of children in danger this Christmas season.

"The allegations in this case reveal an extraordinary breadth of criminal activity by at least a dozen elves in the employ of Santa Claus," said US Attorney Michael J Sullivan. "This has been a painstaking investigation over more than six months, but is finally coming to a close thanks to the help of Mr Claus himself."

The scheme involved phony invoices and other fraudulent methods used by the elves to obtain hundreds of thousands of toys that had been recalled by their manufacturers, with the intent of repackaging them and passing them off as having been built by the elves themselves - and therefore safe for children to use.

"The callous disregard with which these elves operated under the guise of being Santa's helpers has devastated both Mr and Mrs Claus as well as the rest of the elf community," said Santa Claus spoksman Ted Brucker in a prepared statement.

Defense attorneys said at least some defendants had agreed to plead guilty and cooperate with the investigation. All are expected to face numerous charges, including racketeering, money laundering and extortion. Each of the 12 has already been fired from Santa's Workshop and added to his naughty list.

The economic impact of the sting operation this close to the holiday season remains to be fully realized. Some economists speculate that with Santa's knowledge of the investigation, he should have had time to cover for the lost workmanship. However, others like CAP News economic analyst Luke Isley say it may be too late to make up lost ground.

"My sources at the North Pole say the rest of the elves are being asked to work ridiculously long hours to mitigate any potential impact on the overall quantity of gifts this Christmas," said Isley. "However, there are increasing concerns over the quality of this year's presents, but one thing's clear - no one's gonna die from them, thanks to the FBI."

Isley said the hiring freeze instituted by Santa back in the spring remains in effect and negotiations between the Elves Local 105 and the North Pole Hiring Group have been at an impasse since Labor Day. No word whether talks will resume in light of the recent events.

Bob H