January 29, 2008

FLASH: FBI probing 14 un-named companies for mortgage fraud, insider trading and improper lending

First question - WHAT THE F*CK TOOK SO LONG?

Second question - WHAT THE F*CK TOOK SO LONG?

Man, I hope someone there reads HP. And ML-Implode too. It's all here. FROG MARCHES!! WE WANT FROG MARCHES!

Let's guess the 14 companies. Here's my list

1) Countrywide (of course)
2) IndyMac
3) First Federal
4) Wells Fargo
5) WaMu
6) CIT Group
7) Citigroup
8) Merrill Lynch
9) KB Home
10) Toll Brothers
11) Hovnanian
12) Fannie Mae
13) Freddie Mac
14) Bear Stearns

Man, it's tough to get it down to 14. Didn't even have room for MBIA and Ambac.

Thanks HP'ers for the link.

WASHINGTON (Reuters) - The FBI has opened investigations into 14 corporations as part of a crackdown on improper subprime lending, agency officials said on Tuesday.

FBI officials told reporters the probes involved potential violations including accounting fraud and insider trading.

They did not identify the companies, but said the probes reached across the industry to include developers, subprime lenders, companies that securitized loans and investment banks that held them.

The cases could lead to potential civil or criminal charges, the officials said.

The FBI said it was investigating the cases with the U.S. Securities and Exchange Commission, which has opened about three dozen investigations into the subprime market collapse.


Anonymous said...

It is way too late for that. The FBI is a joke. Mortgage fraud is a great business to be in. The bigger the fraud, the better the gubbermint likes it.

Anonymous said...

i'm not surprised. the FBI's white collar crime investigations are very reactive.

they are slow but they do not frack around.

neither does the IRS.

Anonymous said...

On the subject of fraud:

Killer Credit: Attack of the $915 Billion Consumer Debt Monster

Candace Angus is not one to break the rules. When she served on the Chicago police force for 25 years, it was her duty to maintain order. And as a longtime credit card user, she was never late on a payment and never in debt. So when she found interest on her Capital One balance considerably higher than she anticipated, she was irked. A customer service representative explained that the charge was "residual interest" from two months prior that had not yet been applied. Although she didn't grasp the concept fully, Angus swallowed the news and paid her next bill in full. Thirty days later, residual interest was still on the statement, and higher than the month before. "[Capital One] caught me entirely by surprise," she says. "I'd never heard of that practice before."
What was this mysterious charge? Essentially, the payoff balance was obsolete by the time it reached Angus' mailbox because interest continued to build as her bill slid its way through the mail system. If her check took a week to reach the processing center, seven days worth of interest was eventually tacked on. And this caveat was hidden in the contract's fine print.

The article also talks about the CC companies policy that if you are late on your MasterCard, then Capital One will raise your interest rate to 27% based on the late pay to one of their competitors.


If you think mortgage fraud is a problem for an insolvent nation, wait until the CC companies get the game going full steam. They will pick up where the mortgage co's left off.

Hide your Big Screens!!!!!

Anonymous said...

Oh Mozilo, it's over for you pal. Better pack that fake tan lotion and head to Cuba. Scumball!

Anonymous said...

Can they lump Casey Serin into those indictments?

I am still appalled that the little snot stain is still out and about and sufferring no recriminations for his mortgage fraud.

And I don't wanna hear this shit about him being "small potatoes". He broke the law and defrauded companies out of $2.2 million! That isn't chump change. If he had robbed 2 mil from a bank, you can bet your ass they'd be hunting his skinny, metrosexual ass down.

So enough pussy-footing, Feds! Nail Fliptard to the wall!

Anonymous said...

Countrywide is STILL writing bad loans as of this date! Phony employment stubs, liar applications, etc. are still being written and approved!
Best to hit them.

Anonymous said...

RICO anyone?

Anonymous said...

If all the mortgage fraud would be prosecuted and all the real estate fraud, there would not be enough jails. . .I guess they will just have to get the big boys, but I would love to see some medium size crooks get jail time. . .San Diego, Phoenix and Las Vegas would sure be a place to start.

Anonymous said...

For once I don't mind the government spending my tax dollars lets see some perp walks now.


Anonymous said...

2008 and these effing losers finally show up. Typical gubbermint losers. Thanks for nothing assholes.

Anonymous said...

You forgot some of the companies doing appraisals for the lenders.
First American Corp should be #5.

Anonymous said...

We know the crimes were commited but will the punishment fit the crime?

So many people pumping the market and looking for debt suckers I don't think we have enough jails.

Maybe we should put them all in Alcatraz and feed them Ramen for the rest of their lives.

Oh wait, they like Ramen! Well, we'll give them a new kind of Ramen. How about crunchy Ramen with no water?

Anonymous said...

Ya, Countrywide has got to be one of those 14 companies involved in mortgage fraud.

And yes, Mozillo should go to jail for the rest of his life for the untold fraud he and his company committed.

But, come on, this is AMERICA. Does anyone actually think he's going to jail?

I bet if he ran for president, he'd get elected in a landslide.

Anonymous said...

Do you really think there will be a fair investigation and punishment dished out?

The politicians were bought and paid for by money of all sorts including the 14 company money. The FBI is a federal entity but is largely directed by civilian leaders who hold political office (the whores you too can buy with enough money).

No matter what at the end of the day there are 2 sets of laws. The ones for you and me that result in getting busted and paying if we break and those which are meaningless to people who have bought the system.

They might find some lamb to sacrifice like Andrew Fastow at Enron while the ring leader gets away scott free like Kenneth Lay. How many deaths will be faked is the more appropriate question.

Anonymous said...

Definite one for the list:

Beazer Homes (BZH)

They are the poster child for the bad homebuilder in this mess.

Paul E. Math said...

The FBI and the IRS all own homes too. That's why it took them so long.

But now that each of these files is someone's personal responsibility, these guys will all set sail on an epic power trip. It's the addictive nature of power for poor schmos who have never had any - that's what will ensure that each of these mortgage fraudsters are finally brought to justice.

I just wish orangelo was a little younger so that he would have more of his life left to experience jail-time and/or poverty.

Anonymous said...

Book 'em, Dano. Then show 'em their new main bedroom suit - ya know the one with the lidless toilet sticking out of the bare concrete floor? Metal slab beds are all the rage this year.

Anonymous said...

It's 'Oh, SH*T!' time for some shady folks here in SoCal. I've talked to several people who have been interviewed by the Fan Belt Inspectors over the past month. The fraud is so easy to track and prove that an enterprising agent can make an easy career skimming the scum from the REIC pool...

Anonymous said...

It's the Martha Stewart Dog ,and Pony SHowwwwwww!!
Hey all you stupid US Citizens,stay tuned for the biggest diversion,and hand slapping event since DOTCOM.Will you swallow it? We knew you could!
Will Mozillo ace out Ken Lay to become this decades most notable douchebag?Do you really G-A-F?
Will the FBI be able to pull off the Illusion of justice?Justice?Hahahahahahhahahahhaaa!!!!
The FBI has rabbits in their hatz,and I think they'll dazzle the Sheep with some rockem -sockem robot who dunnit hollywood drama theatrics.
Oh Yeah! You Get em FBI!
The mass of chickens that inhabit the US are glued to their TVs now,and this time they want some heads,some blood!
Oh fucking Brother.
Martha did a "Slump buster" for the team last time.So will Angle-O.

Anonymous said...

I wouldn't be surprised if some of these CEOs go down like Ken Lay. Might take 4-5 years to prepare a trial. But the gubment likes making examples out of individuals... like Barry Bonds.

Patrick, Foley Exteriors said...

Keith --

Check this site out... I found it on my local real estate market blog. I think you should have a topic on "Jingle Mail" (sending your keys to the bank).


Anonymous said...

you left out a mention of moody's

Anonymous said...

Do you think any chance of some of the 14 being RE Cos with Brokerages - like Coldwell Banker? I can see varied interests for huge profits.
Purchased through CB in 2005 - with heavy push to get financing through them.

Anonymous said...

I supposed the FBI had to wait until the Supreme Court ruled investors don't have recourse in cases of fraud or collusion.

I still don't know why the Supreme Court thinks this will help our markets. Sure all the companies who want to commit crimes will setup shop in America, but who's going to invest in them besides the people being forced into 401(k)'s?

Anonymous said...

FBI does a good job, they will be right on this now.

Anonymous said...

Who's going to play OrangeZillo in the movie?

"The Tannest Guys In the Room"

Anonymous said...

What took so long? The FBI is full of media whores. They don't investigate crimes unless it brings them big headlines. Nobody at the FBI cared about the Mafia until The Godfather came out. Nobody at the FBI cared about terrorism until the 9-11 attacks. Nobody at the FBI cared about subprime until now, when it's in the headlines everywhere. At the height of the fraud in 2004-2006, they wouldn't even investigate obvious cases of RE fraud that were pointed out to them. I personally sent them documentation on houses that were listed for a year without being sold. The listing was pulled and relisted at an even HIGHER price and sold immediately. It was all ignored because the FBI was busy chasing bookies who were taking in $500 bets on football games. They didn't have time to investigate billions of dollars in fraud that threatens to crumble the financial system.

Anonymous said...

There is no way that Fannie and Freddie are included in the "gang of 14." Sure, they have been lending improperly -- but it's not illegal, it's their new government mandate!

Anonymous said...


Anonymous said...

I thought you said "Subprime Court!"

I've got the bubble on the brain...

Anonymous said...


How about the other 206 Imploded Lenders?

Princess Mononoke said...

This is all just another charade for our benefit!

The FBI will make sure that ALL of these supposed investigative files are secure in one building AND then due to a 'terrorist attack' (inflicted by our very own government before the end of this year) ALL files will be destroyed.

Anonymous said...

Hey, I posted Casey Serin's email here and you moderated it out. Why Keith, why?

Paul E. Math said...

You didn't include Goldman Sachs or Morgan Stanley, who are now being investigated by the states of Connecticut, New York and by the SEC. But maybe there is some reason the FBI hasn't gotten around to probing the BIGGEST FIRMS ON WALL STREET.


Anonymous said...

agree with paul e. especially about Morgan Stanley.

Anonymous said...

Nothing will come of it. this is too big. They won't arrest the CEO of every bank in the country. Do you realize how much power these people have and how many millions they have given to each major politician? It is more likely that the FBI investigators will be fired than the bankers will go to prison.

Anonymous said...

Its more likely the banks will get bailed out than, well you know, get bailed out.