30-01-2008
FBI launches investigations over accountancy fraud
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The US Federal Bureau of Investigation (FBI) is looking into a number of different companies in relation to insider trading offences and accountancy fraud.
Reports stipulate that the bureau is examining a total of 14 organisations, in relation to alleged criminal activity linked with the sub-prime mortgage market. Sub-prime lending, which can also be called second chance lending, refers to a practice of providing loans to individuals despite deficiencies in their credit histories.
"We view mortgage fraud as a significant and growing crime problem and an area of concern," said Bill Carter, a representative from the FBI. "Combating this is a priority given the housing market’s impact on the wider economy."
Mr Carter has confirmed that the organisation has worked "closely" with the securities and exchange commission in the US, an organisation with a number of outstanding investigations in relation to the subprime market.
The FBI has not identified the companies which are the focus of investigations.