Law enforcement and oversight agencies need more funding to tackle an escalating number of mortgage and financial fraud cases, witnesses told members of a Senate panel on Wednesday.
The number of open FBI mortgage fraud investigations jumped from 881 in fiscal 2006 to more than 1,600 in fiscal 2008, said John Pistole, the agency’s deputy director, during a Senate Judiciary Committee hearing. In addition, the bureau has more than 530 open corporate fraud investigations, including 38 directly related to the financial crisis.
“The increasing mortgage, corporate fraud and financial institutional failure case inventory is straining the FBI’s limited white-collar crime resources,” Pistole said.
On Feb. 5, Sens. Patrick Leahy, D-Vt., chairman of the Judiciary Committee, and Charles Grassley, R-Iowa, introduced a bill that would authorize $40 million to hire additional fraud prosecutors and investigators in the criminal, civil and tax divisions of the Justice Department; $50 million for U.S. attorneys offices; $65 million for the FBI; $30 million for the Housing and Urban Development Department inspector general’s office; and $30 million for the U.S. Postal Inspection Service.
The 2009 Fraud Enforcement and Recovery Act would extend the 1863 False Claims Act to any fraudulent claim for government money or property, regardless of whether it was presented to a government official or employee, the government had physical custody of the money, or the defendant intended to defraud the government.
Full Article Officials seek more resources to fight mortgage and corporate fraud
Tags: corporate fraud investigations, mortgage fraud