Stimulus, bailout will lead to more fraud: FBI
Reuters ^ | March 25, 2009 | By Andy Sullivan
Posted on Wednesday, March 25, 2009 1:09:38 PM by Oldeconomybuyer
WASHINGTON (Reuters) - The FBI is bracing for a wave of fraud and corruption cases stemming from the government's multitrillion-dollar effort to get the economy moving again, the agency's chief told Congress on Wednesday.
The expected surge in economic crimes will place further strain on an agency already stretched thin as it investigates mortgage fraud, terrorism and corrupt politicians, FBI Director Robert Mueller said.
"Our expectation is that economic crimes will continue to skyrocket," Mueller said.
After the September 11, 2001 hijacking attacks, the FBI moved more than 2,000 investigators out of its criminal division to place greater emphasis on national security.
But that reduced the agency's ability to cope with a subsequent explosion in corruption, fraud and gang-related cases, Mueller said.
Over the past three years the FBI has more than doubled the number of agents investigating mortgage fraud to 254 to keep up with its doubled caseload, he said. Bank data suggest that the pace will continue to increase.
Public corruption cases have increased by more than half since 2003 to 2,500 pending investigations, he said.
Gang-related cases have doubled since 2001 as the agency has had to cope with the emergence of international criminal groups like MS-13 and Mexican drug-smuggling cartels.
(Excerpt) Read more at reuters.com ...
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