Monday, October 20, 2008

Fraud cases lacking FBI agents

Recently at the New York Times, they took a look at how the FBI is struggling to put agents on fraud investigations. Since 9/11, they cut the criminal investigation crime force when they needed agents for security. Although the agency saw the mortgage industry falling into a crisis as early as 2004, the sitting president never gave them money to properly investigate the crimes. Other grim numbers include the fact that from 2001, white collar investigation staff has fallen 36%. Prosecutions for financial fraud have decreased 48%. Insurance fraud prosecution has fallen 75%, and securities fraud prosecutions has fallen 17%.

So depleted are the ranks of the F.B.I.’s white-collar investigators that executives in the private sector say they have had difficulty attracting the bureau’s attention in cases involving possible frauds of millions of dollars.

The article also states that the recent bailout doesn't have enough controls on it to prevent fraud. Therefore the justice department will have to rely on state and local authorities to pick up on certain types of fraud.

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