FBI to Investigate More Subprime Mortgage Cases

Washington, D.C.–The FBI will investigate more corporate fraud cases in connection with subprime mortgage issues, FBI director Robert Mueller says.In a speech to the American Bar Association in Washington, D.C. on corruption and white collar crime, Mueller confirmed that the FBI is investigating 19 subprime-related institutions and the financial and investment vehicles the firms used, ABC News reports.”We likely will see more corporate fraud cases in the months to come because of the ripple effect of the subprime crisis and its impact on the credit market,” Mueller said.The FBI is targeting accounting fraud, insider trading and deceptive sales practices, which he said could develop into “other instances of fraud from investment banks and private equity firms to hedge funds.”As a result, the FBI has dedicated more agents and field offices to financial crime investigations. Currently 200 agents are working on investigations involving mortgage fraud.