In a new report , the Federal Bureau of Investigation pats itself on the back for using "sophisticated investigative techniques" to target mortgage fraudsters. The FBI's 2010 "Year in Review" mortgage fraud report says the agency has used wiretaps, undercover operatives and "tactical analysis coupled with advanced statistical correlations and computer technologies."
Not everyone is impressed.
Consumer advocates say the FBI is missing the big picture, focusing its investigative muscle on small-time crooks and turning a blind eye to misconduct by big banks.
As the financial markets roil, one of the critical factors weighing down the U.S. economy is the flood of home foreclosures. Thursday's crash underscores how difficult it will be for the economy to make significant strides while the housing market is still in tatters.
The news about the nation's foreclosure scandal has been coming fast and furious, driven by tales of
backdated documents,
false affidavits and "rocket dockets" that push families into the street.
While millions of homeowners have been put at risk by dishonest tactics used by the mortgage industry, these advocates say, the FBI has targeted low-level lender employees and street-level fraudsters.
Richard Eskow, a senior fellow with the Campaign for America's Future, a progressive think tank, calls the new report the latest example of the "pseudo-investigatory approach" of the FBI, the Justice Department and the Obama administration in the aftermath of the mortgage meltdown.
"The only thing worse than doing nothing is to do what they've done―try to hoodwink the public into thinking they're doing something," Eskow told iWatch News.
The Obama administration, Eskow claims, has taken the view that the nation's largest banks are too important to the economy to be threatened by criminal investigations and indictments. "Too Big to Fail," he says, also means "Too Big to Jail."
A telephone call to the White House press office Monday afternoon wasn't immediately returned.
The FBI did not immediately respond to a request for comment from iWatch, but said in its report that it has "continued to dedicate significant resources" to the threat of mortgage fraud.
"The FBI continues to enhance liaison partnerships within the mortgage industry and law enforcement," the report says. "As part of the effort to address mortgage fraud, the FBI continues to support 25 mortgage fraud task forces and 67 working groups."
There were 3,129 pending mortgage fraud investigations in fiscal year 2010, a 12 percent increase from 2009 and a 90 percent increase from 2008. According to FBI data, 71 percent of all pending investigations involved dollar losses of more than $1 million.
The FBI offices most active in investigating mortgage fraud were Las Vegas, Los Angeles, New York, Tampa, Detroit, Washington, Miami, San Francisco, Chicago, and Salt Lake City, the agency said.
The report says mortgage fraudsters "recruit people who have access to tools that enable them to falsify bank statements, produce deposit verifications on bank letterhead, originate loans by falsifying income levels, engage in the illegal transfer of property, produce fraudulent tax return documents, and engage in various other forms of fraudulent activities."
One source of information that the FBI uses to launch investigations are Suspicious Activity Reports, or SARs, filed when a financial institution sees suspicious behavior or patterns of questionable transactions. The Financial Crimes Enforcement Network, or FinCEN, an arm of the Treasury Department, tallies the reports. While SARs are far from a guarantee that a crime has taken place, their numbers are considered important indicators of trends. As iWatch News previously reported , the increase in SARs could be leading to more mortgage fraud investigations.
Our 2024 Coverage Needs You
It's Another Trump-Biden Showdown — And We Need Your Help
The Future Of Democracy Is At Stake
Our 2024 Coverage Needs You
Your Loyalty Means The World To Us
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
The 2024 election is heating up, and women's rights, health care, voting rights, and the very future of democracy are all at stake. Donald Trump will face Joe Biden in the most consequential vote of our time. And HuffPost will be there, covering every twist and turn. America's future hangs in the balance. Would you consider contributing to support our journalism and keep it free for all during this critical season?
HuffPost believes news should be accessible to everyone, regardless of their ability to pay for it. We rely on readers like you to help fund our work. Any contribution you can make — even as little as $2 — goes directly toward supporting the impactful journalism that we will continue to produce this year. Thank you for being part of our story.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
It's official: Donald Trump will face Joe Biden this fall in the presidential election. As we face the most consequential presidential election of our time, HuffPost is committed to bringing you up-to-date, accurate news about the 2024 race. While other outlets have retreated behind paywalls, you can trust our news will stay free.
But we can't do it without your help. Reader funding is one of the key ways we support our newsroom. Would you consider making a donation to help fund our news during this critical time? Your contributions are vital to supporting a free press.
Contribute as little as $2 to keep our journalism free and accessible to all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. If circumstances have changed since you last contributed, we hope you'll consider contributing to HuffPost once more.
Support HuffPostAlready contributed? Log in to hide these messages.