BUSINESS

Bailout Corruption: Feds Open 20 Criminal Probes Into Fraud, Insider Trading

05/21/2009 05:12 am ET | Updated May 25, 2011

Reporting from Washington and Los Angeles -- In the first major disclosure of corruption in the $750-billion financial bailout program, federal investigators said Monday they have opened 20 criminal probes into possible securities fraud, tax violations, insider trading and other crimes.

The cases represent only the first wave of investigations, and the total fraud could ultimately reach into the tens of billions of dollars, according to Neil Barofsky, the special inspector general overseeing the bailout program.

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