Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

FBI Dragnet Snags 530 Foreclosure Fraudsters
VIENNA, Va. (4/17/13)--The Distressed Homeowner Initiative, a program launched six months ago by the Federal Bureau of Investigation, resulted in 530 criminal defendants charged with involvement in a fraud scheme preying on distressed homeowners, reported Jennifer Shasky Calvery, director of the Financial Crimes Enforcement Network (FinCEN), addressing a mortgage fraud issues conference.

The defendants included 172 executives and the cases involved more than 73,000 homeowner victims, with total losses by those victims estimated at more than $1 billion, Shasky Calvery noted. The FBI initiative is intended to be a year-long project.

While the FBI generated new investigations by gathering victim complaint data from Federal Trade Commission databases and other sources--analyzing the data, and distributing information of lead value to field offices from coast-to-coast--another key tool for law enforcement were Suspicious Activity Reports (SARs)  filed by "alert financial institutions," Shasky Calvery pointed out.

"Critical to the investigation were 4,395 SARs reporting 'foreclosure rescue fraud.' These SARs were crucial to the law enforcement officials conducting these investigations," she said. Shasky Calvery went on to note that during 2011 and 2012, FinCEN saw dramatic growth in the number of SARs discussing "foreclosure rescue" scams in the narrative. In 2011, nearly 2,800 SARs indicated this activity, and in 2012, over 4,400 SARs reported this activity, she said.

The FinCEN director also discussed third-party payment processors, advanced analysis, and the universal SAR, and gave a regulatory update in her address to the Mortgage Bankers Association conference.

To read her remarks, use the resource link.
Other Resources

FinCEN Release
RSS print
News Now LiveWire
.@TheNCUA open board meeting starts at 10 a.m. ET tomorrow. It is board member J. Mark McWatters' first. Watch @NewsNowLiveWire
10 hours ago
.@CFPB is proposing to oversee larger nonbank auto finance companies for the first time at the federal level.
10 hours ago
.@CUNA's Bill Hampel moderates a discussion on the future of credit unions in the post-100 million member world.
13 hours ago
#Breaking: QE likely to end next month, @federalreserve says #NewsNow #Market
13 hours ago
.@Experian study confirms that building a credit history is beneficial to financial marginalized communities. 64M are "credit invisibles"
13 hours ago