2004 - FBI Warns of Mortgage Industry Fraud

Friday, Apr 03, 2009

Rampant fraud in the mortgage industry has increased so sharply that the FBI warned Friday of an "epidemic" of financial crimes which, if not curtailed, could become "the next S&L crisis."

...

"It has the potential to be an epidemic," said Swecker, who heads the Criminal Division at FBI headquarters in Washington. "We think we can prevent a problem that could have as much impact as the S&L crisis," he said.

...

In one operation, six individuals were arrested Thursday in Charlotte, charged with bank fraud for their roles in a multimillion-dollar mortgage fraud, officials said.

...

The number of open FBI mortgage fraud investigations has increased more than five-fold in the past three years, from 102 probes in 2001 to 533 as of June 30 this year, the FBI said.

Cnn.com: FBI warns of mortgage fraud 'epidemic', Terry Frieden, September 17, 2004, http://www.cnn.com/2004/LAW/09/17/mortgage.fraud/.

United States House of Representatives, Committee Holds Hearing on the Credit Rating Agencies and the Financial Crisis, October 22, 2008, [http://oversight.house.gov/documents/20081022112135.pdf](http://oversight.house.gov/documents/20081022112135.pdf).

Awesome guy. Truth always prevails:

http://www.forbes.com/2009/04/03/banking-andy-beal-business-wall-street-beal.html