FBI Director Reports Surge in Mortgage Fraud Cases
Sunday, April 20, 2008
The Director of the Federal Bureau of Investigations (FBI) Robert Mueller told a Senate panel this week that his agency is investigating 1,300 active fraud cases related to the subprime mortgage meltdown and 19 larger cases involving financial institutions, according to testimony provided by Congressional Quarterly.
“We currently have a total of 204 agents who are working these cases,” Mueller told the committee. “The vast majority of them are working cases on brokers, buyers, lenders and the like.”
In addition, Mueller said the FBI has 33 active task forces working on this issue and expects an influx of new cases. To accommodate the recent surge in cases, Mueller told the committee that agents have been pulled from health care fraud and other fraud cases to assist in mortgage-related investigations.
In his testimony, Mueller told the Senate committee that one particular type of case is expected to become more problematic in the future.
“One other point that you have raised in the past, I know, and that is the possibility of seeing an upsurge in cases relating to reverse mortgages, and that is something that we are seeing and may well need additional resources to address,” Mueller concluded.
“We currently have a total of 204 agents who are working these cases,” Mueller told the committee. “The vast majority of them are working cases on brokers, buyers, lenders and the like.”
In addition, Mueller said the FBI has 33 active task forces working on this issue and expects an influx of new cases. To accommodate the recent surge in cases, Mueller told the committee that agents have been pulled from health care fraud and other fraud cases to assist in mortgage-related investigations.
In his testimony, Mueller told the Senate committee that one particular type of case is expected to become more problematic in the future.
“One other point that you have raised in the past, I know, and that is the possibility of seeing an upsurge in cases relating to reverse mortgages, and that is something that we are seeing and may well need additional resources to address,” Mueller concluded.
