G-Men in short supply as bailout fraud expected to rise
Can we expect to see more investigations into the financial shenanigans at major companies a la Enron? The FBI seems to think so, but apparently there aren't enough agents to deal with the expected uptick in financial crime.
The FBI told Congress this week it expects an increase in fraud cases tied to the bailout, but the agency doesn't have enough resources to deal with it. The FBI and Justice Department are already conducting about 2,300 investigations into suspected illegal financial activity and 38 are directly tied to the financial crisis.
With all the bailout money being handed out, FBI Deputy Director John Pistole said he expects a surge in fraud cases and that many of them will be at large companies "everybody knows about." A large number of federal agents and prosecutors have been focused on terrorism in recent years, so there aren't as many financial speialists available. In fact, only 240 agents are foused on mortgage fraud cases. Of course there's a scramble to find and train agents to handle the anticipated crush of cases.
Maybe they should hire some of the out-of-work economists having a tough time finding jobs. A Wall Street Journal article says that a lot of jobs for economists have disappeared at investment banks, hedge funds, and universities. Maybe they could round up a bunch of these out-of-work folks and train them as an elite force of financial fraud fighters.
Reader Comments (Page 1 of 1)
2-13-2009 @ 4:07PM
Succotash said...
Seems kind of like letting the fox protect the chickens. Seems like a good idea until you realize most of the people in those sectors are the ones who got us into this situation.
I think a better way to do this is to provide a "salvage law" or "prize stake" in which the person who turns a financial fraud into the feds gets 1% of the recovered value. Assuming they provide documentation and other tools for prosecution.
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2-14-2009 @ 11:03AM
Bobby said...
This article is particularly disturbing to me,, it wreaks of anarchy.
Our agencies are leveraged to the hilt just like the banks of Wall Street. Our gov't is going to be overwhelmed if these issues aren't hammered out sufficiently.
In all seriousness,, this will effect households in a very negative way when a large percentage have lost hope. Screw the down trodden out of their incentives & people will start taking matters into their own hands...
The "night of the living dead" will be acted out right before our eyes with every man for himself.... This better work or all the trillions being invested will evaporate into thin air like the investments of Wall Street & the gov't will have played it's last card,, forever....
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2-15-2009 @ 5:42PM
dude said...
Gee Government health care seems like such a good idea considering how much fraud they have in medicaide and medicare... now they can have fraud in another program along with the bail out fraud.. I'm sure there will be fraud in the stimulus plan too I bet only a billion or so will eventually be used to crate about 10,000 jobs.
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2-15-2009 @ 4:00PM
ruredy1 said...
This economy sux! I am trying everything I can to save some money.. a great way is to cook home more... My gf bought me this cookbook called "Get in the Kitchen, BIT@HES!" (bitchcooks.com)- now whenever she comes over she says "What's for dinner BIT@H?" or " Get in the Kitchen, and make me some food, BIT@H!" .. Yeah.. real fun... so tonight, I am gonna put on the apron on the front page of the website, make her the dish called "Bend Me Over Beef" and shove it up her butt... how you like them apples, sweetie pie?
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2-16-2009 @ 7:59AM
Kerri said...
Corruption has been running rampant for far too long, it needs to stop. It's time to get back to earning/winning... in an honest way. There is manipulation at every turn. It is no wonder we the people have no faith in our government. Respect needs to be earned and it seems all is going about it the wrong way. It's sad and pathetic for all involved. There are too many liars out there...too many people who don't mind seeing our Nation fail for their own political/monetary gain.
CEO's are absolutely NOT worth their salaries. I'm sure they took a full ride at the end of 2008. And, if the government came to them with money, let them give it back right away. Plus, they should EACH fully disclose how much was donated to the congressional committee members' reelection campaigns in 2008. If the public weren't so outraged, this would be swept under the rug as quickly as possible.
This is why we have got to start thinking about ourselves. I wouldn't put faith into any government. I say prepare for the worst, and hope for the best. Do what I did, and learn to trade the forex. If you don't know how, you can get a $100,000 free forex simulator account by going to http://forex-currencyexchange.com click the link at the top left corner, if I remember correctly. It will take you to a sign up page where all you have to do is give your name and email. You can then start practicing trading.
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2-16-2009 @ 5:24PM
RedMaven said...
Fraud and corruption will always be a constant thing because there will always be someone out there who tries to go against the system. Therefore there will always be a need for security to prevent or minimize the fraud and corruption.
http://www.moneyisjustanidea.com
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