Fraud Rises As Economy Turns Down
Oh, geez, wouldn't you know it.
On top of everything else bedeviling Americans and their government, it turns out that the economic downturn is leading to more fraud.
That's the conclusion of the Justice Department, according to acting assistant attorney general Rita Glavin, who testified in the context of the proposed Fraud Enforcement Recovery Act.
Glavin told the Senate Judiciary Committee today that mortgage fraud -- including the federal department of Housing and Urban Development -- and other kinds of financial fraud will flourish without vigorous enforcement. The massive flow of money related to stimulus effort could also lead to fraud and corruption.
"In addition to continuing our efforts to prosecute the types of fraudulent conduct described above, we must ensure that the funds that Congress authorizes to rejuvenate and stimulate the economy are used as intended. Where these taxpayer funds are not used appropriately or where misrepresentations are made in order to obtain such funds, we are committed to investigating and prosecuting the wrongdoers," she said in prepared testimony.
"The Department has always been committed to fighting fraud and, as the nation suffers through the current economic crisis, we are committed to redoubling our efforts. We are determined to move decisively to uncover abuses involving financial fraud schemes, mortgage lending and securitization frauds, foreclosure rescue scams, government program fraud, bankruptcy schemes, and securities and commodities fraud. Much remains to be done."
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