Business Spectator - Corporate mortgage fraud caseload grows to 24: FBI
Corporate mortgage fraud caseload grows to 24: FBI
WASHINGTON -- The FBI is investigating 24 cases of potential corporate fraud related to mortgage lending, up from 21 cases disclosed by the bureau in July, bureau director Robert Mueller has told the US Congress.
He did not identify specific targets as lawmakers expressed new concern about the impact of fraud cases in the wake of fresh turmoil in global financial markets tied to the collapse of the US mortgage lending industry.
An FBI spokesman declined to identify any of the companies under investigation but Mr Mueller vowed to pursue corporate higher-ups if necessary in mortgage fraud cases.
"Just like the (savings and loan) crisis in the early 1990s and the corporate excesses of the beginning of this decade, the FBI will pursue these cases as far up the corporate chain as necessary to ensure that those responsible receive the justice they deserve," Mr Mueller said in answering questions before the House of Representatives Judiciary Committee.
Mr Mueller said the FBI was looking at all levels of the mortgage systems. With respect to the corporate probes, which could result in federal charges, "the allegations would be there were misstatements of assets," he said.