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."

Government Inc. welcome tips, insights and suggestions about fraud.

By Robert O'Harrow |  February 11, 2009; 4:11 PM ET fraud
Previous: FAA Employee Data Takes Flight | Next: Los Alamos Security Woes Worsen, Again

Comments

Please email us to report offensive comments.



Massive sums were thrown at the Hurricane Katrina problem, which resulted in horrendous waste, mismanaged funds, fraud in high gear. What save guards have we that the bailout funds won't have the same scenario. Let us not be fooled by smoke and mirrors. The only way to keep politicians somewhat honest is to enforce TERM LIMITS and cap the revolving door with a 4 year cap for those exiting from reentering as lobbyists or equal ilk.

Posted by: info13 | February 12, 2009 9:29 AM

I'm a senior who is caught in the need to request that my mortgage be re-structured. I had no cooperation from my lender and now I hesitate to go to go elsewhere for fear to be caught into a scheme from some unscrupulous lender. How should one go about getting the benefit of whatever solution the government offers and avoiding commercial tricks?

Posted by: Brownalex | February 13, 2009 10:24 AM

The chance of the government protecting anybody is slim. The recent stimulus package is a massive storm which will most likely cripple the country. When the president is running around shouting for the money, I only hear "quick with the money. The cops are coming." An administration of tax cheats and a congress of similar miscreants is certainly a disaster for America.

Posted by: bobinnewjersey | February 13, 2009 5:44 PM

The comments to this entry are closed.

 
 

© 2007 The Washington Post Company