Companies Targeted In FBI Subprime Mortgage Investigations
On April 16, Federal Bureau of Investigation director, Robert Mueller, told Congress that the probe of potential fraud in the U.S. subprime mortgage industry now includes at least 19 companies. Mueller was testifying on the agency's budget request for fiscal year 2009. "When this budget was put together, the subprime mortgage cases had not grown to the point where we could see the extent of the surge and I'm not certain at this point we can see the extent of the surge," Mueller said.
"We've had a tremendous surge in cases related to the subprime mortgage debacle. We currently have almost 1,300 cases that have grown exponentially over the last several years and we expect them to grow even further," Mueller advised.
According to Mueller, 19 cases involve institutions where mortgage fraud may have contributed to misstatements. To date, the Bureau has publicly acknowledged only one company targeted in the probe, Doral Financial Corp. Doral’s former treasurer was indicted for investment fraud last month.
When the FBI released its industry investigation, investment banks, Goldman Sachs, Morgan Stanley, and Bear Stearns Cos., each said that the government asked for information. It is unknown, at present, whether any Wall Street firms are targets of the FBI investigations. All FBI officials will say is that the probe targets both major and lower ranked corporate insiders and could take years to bring to a close.
Page Perry, LLC is an Atlanta-based law firm with over 125 years collective experience representing investors in securities-related litigation and arbitration. While past results are not indicative of future success, Page Perry’s attorneys have recovered over $1,000,000 for clients on more than 30 occasions. Page Perry’s attorneys are actively involved in counseling investors regarding their subprime investment problems. For further information, please contact us.
