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FBI ‘Probe’ Into Mortgage Giants

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Sky News
Wednesday, Sept 24, 2008

The FBI is reportedly probing America’s bailed out financial institutions for potential mortgage fraud.

Fannie Mae, Freddie Mac, Lehman Brothers Holdings Inc and insurer American International Group Inc and their senior executives are being investigated, according to reports in the US media.

A federal law enforcement official confirmed the Bureau is looking at 26 cases of potential corporate fraud, related to the collapse of the US mortgage lending industry.

A Justice Department spokesman confirmed an inquiry was under way, but would not say who was being investigated.

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Brian Roehrkasse said: “As part of our investigative responsibility, the FBI conducts corporate fraud investigations. The number of cases fluctuates over time. However, we do not discuss which companies may or may not be the subject of an investigation.”

Officials want to determine whether anyone in the financial institutions was responsible for providing “misinformation”, CNN reported.

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This article was posted: Wednesday, September 24, 2008 at 4:04 am

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