Wednesday, October 15, 2008

Potential corporate fraud – FBI investigates

• FBI probes Fannie, Lehman & AIG Case studies

Guess who’re the current names in the FBI list? Fannie Mae is one; the rest are Freddie Mac, the Lehman Brothers Holdings Inc. and AIG Insurance. However, it’s the senior executives for AIG that are the prime targets of FBI. The reason? A potential fraudulence suspected on mortgage deals. Despite the lack of specifics by FBI, it is now an open secret that their inquiries are just a part of a broader investigation.

• What’s being investigated?

FBI suspects these financial institutions – to be precise, their senior executives - are responsible for misinforming the public that has contributed to the U.S. mortgage industry collapse. As reported by one of the federal law enforcement official, it is one of the 26 potential corporate fraud cases that are currently being investigated by FBI.

• From the horse’s mouth

The U.S. Congress has been reported of 24 such cases of potential corporate fraud. Robert Mueller (Director, FBI) disclosed the details of the same and also the fact of the count, which were 21 during July. As a testimony, the FBI chief also confirmed the House of Representatives Judiciary Committee regarding pursuing the corporate executives of the mortgage industry if the situation demands, from every level to frame the federal charges on the ground of misstatements of assets.

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