They Can Run, But They Can't Hide! (More Good News) FBI, SEC Probe Subprime Companies
Daily Real Estate News | January 31, 2008 FBI, SEC Probe Subprime Companies The Federal Bureau of Investigation is investigating 14 mortgage-related companies, looking for accounting fraud, insider trading, and other violations in connection with loans made to borrowers with weak or subprime credit.
The FBI refused to identify the companies under investigation, but said it had begun looking at the companies last spring and may broaden the investigation soon.
The FBI is cooperating with the federal Securities and Exchange Commission, which is conducting three dozen civil investigations into subprime lending. State prosecutors are also investigating the mortgage industry.
“It’s significant firepower,” says Carl W. Tobias, a professor at the University of Richmond Law School.
Source: The New York Times, Vikas Bajaj (01/30/2008)