| The director of the Federal Bureau of Investigation told Congress today that his agency is focusing on insiders in its mortgage fraud investigations.
Mortgage fraud cases handled by the agency jumped to 2,600 as of July 31 from 1,600 in fiscal 2008, FBI Director Robert S. Mueller III told the Senate Judiciary Committee today, according to a transcript of his prepared testimony. Losses on most cases exceed $1 million. The FBI has assigned around 300 special agents to mortgage fraud investigations, while “we direct 15 task forces and 59 working groups that target mortgage fraud,” Mueller said. Partnerships with federal, state and local law enforcement agencies enhanced the FBI’s efforts. Among its federal partners are the U.S. Department of Housing and Urban Development’s Office of Inspector General, the Financial Crimes Enforcement Network and the Federal Deposit Insurance Corporation. The FBI also participates in the national Mortgage Fraud Working Group — a collaboration of federal agencies chaired by the U.S. Department of Justice.
|
White House photo of Robert Mueller
|
The director noted that they have been successful utilizing statistical correlations and advanced technology to identify mortgage fraud patterns. The mortgage industry itself has also aided the bureau in identifying mortgage fraud trends.
In its attempt to generate the most results from the agency’s limited resources, Mueller said that the FBI is focusing its efforts on industry insiders.
He highlighted last year’s Operation Malicious Mortgage — which resulted in 144 mortgage fraud cases involving more than 400 defendants who were allegedly responsible for losses of approximately $1 billion. Previous operations included Operation Continued Action in 2004 and Operation Quick Flip in 2005.
