FBI Probing Fannie, Freddie, Lehman, AIG for Potential Mortgage Fraud: CNN

September 23, 2008

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The FBI is investigating Fannie Mae, Freddie Mac, Lehman Brothers Holdings Inc. and insurer American International Group Inc. and their senior executives for potential mortgage fraud, CNN reported on Tuesday.

The FBI did not provide specifics but said the inquiries were part of a broader probe, CNN said.

The bureau is trying to determine whether anyone in those financial institutions, including their senior executives, had any responsibility for providing “misinformation,” CNN reported.

A federal law enforcement official confirmed the FBI is now looking at 26 cases of potential corporate fraud related to the collapse of the U.S. mortgage lending industry.

FBI Director Robert Mueller told the U.S. Congress a week ago that 24 cases of potential corporate fraud were under investigation, up from 21 disclosed by the bureau in July.

In testimony before the House Judiciary Committee, the FBI chief also vowed to pursue corporate executives if necessary in mortgage fraud cases.

Mueller said the FBI was looking at all levels of the mortgage systems. With respect to the corporate probes, which could result in federal charges, “the allegations would be there were misstatements of assets,” he said.

(Writing by Joanne Allen; editing by Mohammad Zargham)

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Latest Comments

  • September 29, 2008 at 11:08 am
    Doesn't Matter says:
    Ben, So you are saying that if all branches of the government were controlled by the democratic party, this would not have happened? Why?
  • September 25, 2008 at 2:24 am
    Most fed up says:
    What does that mean? Really, I don't have a clue what you're saying.
  • September 25, 2008 at 2:20 am
    Ben says:
    Most, just admit when youve been pawned and move on...
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