FBI, bailout watchdog expands criminal probes

[Joanne98]

WASHINGTON (Reuters) - The FBI is investigating 38 cases of corporate fraud or financial institution wrongdoing tied to the economic crisis, and the federal bailout watchdog has already opened several criminal probes, officials told Congress on Wednesday.

U.S. officials also said in testimony prepared for a Senate hearing that fraud cases were straining resources for investigating white-collar crime, and that the U.S. Justice Department backs proposed legislation to tighten financial-fraud laws.

Neil Barofsky, special inspector general for the $700 billion U.S. Troubled Asset Relief Program, or TARP, told the Senate Judiciary Committee that several criminal investigations related to the program were already under way.

"We have already opened several criminal investigations involving multiple jurisdictions, and ... are closely coordinating our executive-compensation oversight efforts with the New York State Attorney General," he said.

Trillions of dollars in government money will be potentially at risk of fraudulent activity in the multiple rescue programs to address the financial crisis, he said.

"These huge investments of taxpayers money, made over a relatively short time period, will require close oversight and will invariably provide an inventive to those seeking to profit criminally," Barofsky said.

The FBI's caseload of 38 corporate and financial institution investigations linked to the crisis represents an increase from about two dozen publicly reported last year.

"The increasing mortgage, corporate fraud and financial institution failure case inventory is straining the FBI's limited white-collar-crime resources," FBI Deputy Director John Pistole said.

He said the FBI increased to 180 the number of agents working on mortgage fraud cases, from 120 in 2007.

Barofsky said counterterrorism efforts since the September 11 attacks seven years ago had drained resources from white-collar crime probes.

http://www.reuters.com/article/domesticNews/idUSTRE51A4H620090211

911 drained resources so the criminals ran wild. How convenient.

[midnight]

1. "Barofsky said counterterrorism efforts since the September 11 attacks

seven years ago had drained resources from white-collar crime probes." I bet it has. That way, no one was the wiser when they robbed the treasury.

[chill_wind]

2. K & R . n/t

[DCKit]

3. With BushCo gone, all the agencies are free to get back to work.

If this keeps up, the bailout won't cost U.S. a dime - we can just take it all back from the looters.