(From AP, Bloomberg & Reuters)
FBI chief: Are Americans becoming more crooked?
By LARA JAKES JORDAN – 1 day ago
WASHINGTON (AP) — The FBI is grappling with growing numbers of public corruption cases and a surge in mortgage fraud investigations, FBI Director Robert Mueller said Thursday, wondering aloud whether Americans are "becoming more crooked."
"Anyone who follows the news these days and sees repeated references to corporate fraud and public corruption might think the nation is in the midst of a moral crisis," Mueller told the defense attorneys. "Have we as a society become more corrupt? Or have we in the FBI simply become more adept at rooting out fraud and corruption?"
corporate fraud cases have increased by more than 80 percent, Mueller said, pointing to the recent surge in mortgage fraud investigations. The FBI is investigating an estimated 1,300 mortgage fraud cases — including 19 into subprime lending practices by U.S. financial institutions.
FBI's Mueller Says Subprime Fraud Probe May Lead to Hedge Funds
By Robert Schmidt
April 17 (Bloomberg) -- FBI Director Robert Mueller said the agency's investigations into the subprime loan meltdown may uncover financial crimes committed by hedge funds and private equity firms.
``These investigations may well lead to other instances of fraud, from investment banks and private equity firms to hedge funds,'' Mueller said. ``We do not take these investigations lightly.''
On hedge funds and private equity firms, the FBI is primarily looking into potential insider trading by investment managers. The agency is also reviewing whether hedge funds, either on their own or on behalf of investment banks, improperly hid losses on securities tied to subprime loans.
Subprime probe may lead to hedge funds, others: FBI
Thu Apr 17, 2008 6:55pm EDT
WASHINGTON (Reuters) - To date, the FBI has publicly acknowledged the identity of only one company involved in the probe, Doral Financial Corp (DRL.N: Quote, Profile, Research). A former Doral treasurer was indicted for investment fraud last month. He denied the allegations and the company has declined to comment.
The largest U.S. mortgage lender, Countrywide Financial Corp (CFC.N: Quote, Profile, Research), also is under FBI investigation, authorities have said, although the FBI has declined to comment and Countrywide said it was unaware of any investigation.
When the FBI disclosed its industry investigation, major investment banks Goldman Sachs Group Inc (GS.N: Quote, Profile, Research), Morgan Stanley (MS.N: Quote, Profile, Research) and Bear Stearns Cos Inc (BSC.N: Quote, Profile, Research) each said the government had asked them for information, but there was no confirmation of any FBI role. Beazer Homes USA Inc (BZH.N: Quote, Profile, Research) said last year it received a federal grand jury subpoena related to its mortgage business.
WASHINGTON (Reuters) -
Saturday, April 19, 2008
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