Liquidating trust securitization
Such acts are committed by individuals and organizations to obtain personal or business advantage.The FBI focuses its financial crimes investigations on such criminal activities as corporate fraud, securities and commodities fraud, health care fraud, financial institution fraud, mortgage fraud, insurance fraud, mass marketing fraud, and money laundering.In addition, before these companies’ stocks rapidly declined in value, executives with insider information sold their equity positions and profited illegally. However, the current financial crisis resulted in the exposure of several large Ponzi schemes perpetrated not on an individual community level, but on a corporate national level by executives of what were once considered legitimate investment brokerages, i.e., Bernard L. Corporate fraud remains the highest priority of the Financial Crimes Section and the FBI is committed to dealing with this significant crime problem.As of the end of FY 2008, 545 corporate fraud cases are being pursued by FBI field offices throughout the U.As the housing market declined, sub prime lenders have been forced to buy back a number of non performing loans.Many of these sub prime lenders have relied on a continuous increase in real estate values to allow the borrowers to refinance or sell their properties before going into default.As publicly traded companies suffered financial difficulties due to sub-prime market, analyses of company financials have identified instances of false accounting entries, and fraudulently inflated assets and revenues. In addition to the sub-prime market issue, corporate fraud matters involving seal-dealing by corporate executives, particularly utilizing companies to perpetrate large scale Ponzi fraud schemes, continue to be an issue of concern.Investigations have determined that many of these companies manipulated their reported loan portfolio risks and used various accounting schemes to inflate their financial reports. Traditionally, Ponzi schemes were perpetrated by individuals or small groups within a community environment.
Where appropriate, suggestions are made in order to protect the public from being victimized by fraudulent activity.However, based on the sales slowdown in the housing market, loan defaults increased, the secondary market for sub prime loans securities dwindled, and the securities lost value.As a result, publicly traded stocks dramatically decreased in value as financial institutions realized large losses due to the sub-prime securities they held or insured, resulting in financial difficulties and bankruptcies. Securities and Exchange Commission (SEC) and other U. regulatory agencies to identify possible corporate fraud centered on violations of insider trading, securities fraud, and accounting fraud.The FBI has placed greater emphasis on investigating allegations of these frauds by working closely with the SEC, Financial Industry Regulation Authority, Internal Revenue Service (IRS), Department of Labor, Federal Energy Regulatory Commission, Commodity Futures Trading Commission, and U. The FBI has also worked with numerous organizations in the private industry to increase public awareness about combating corporate fraud, to include: Public Company Accounting Oversight Board, American Institute of Certified Public Accountants, and the North American Securities Administrator’s Association, Inc.These organizations have been able to provide referrals for expert witnesses and other technical assistance regarding accounting and securities issues.