The FBI is investigating IndyMac IDMC.PK for likely fraud concerning home loans availed to dicey borrowers. Citing an anonymous law enforcement official, the Associated Press on Wednesday reported that mortgage lender IndyMac has been included in the FBI’s list of possible companies involved in corporate fraud.
According to the report, the FBI’s probe into IndyMac may have actually started a long time ago although the specific date is not clear. However, the probe is known to be directed towards the company and not officials who run the Bank.
Friday’s seizer of IndyMac by U.S. banking regulators amidst withdrawals by scared depositors inevitably led to the third largest Banking failure in the History of the United States.
The FBI has since refused to give any statement regarding IndyMac, but an anonymous representative has confirmed that there are a number of high profile companies in the subprime lending industry being investigated by the FBI. According to him, the list has risen to 21, from 19 in April. It is suspected that this rise can be attributed to the IndyMac investigation.
"The FBI currently has 21 investigations related to the subprime market industry. We receive information from a variety of sources on a daily basis, and we have an obligation to review each allegation on its merits," spokesman Jason Pack replied when pressured to
comment on IndyMac.
The bureau spokesperson Richard Kolko could not deny or confirm the report when contacted for comments. He said that they do not substantiate or comment on particular companies that are under investigations .However, he acknowledged that the FBI has seen an increase in subprime related complaints. When pressured further, he hinted that the investigations into the volatile subprime market industry had increased but he could not give any names of companies under investigation.
The Doral Financial Corp is so far the only company to have been publicly acknowledged by FBI to be under investigation involving corporate fraud in the mortgage industry. The largest U.S. mortgage lender Countrywide is also known to be under FBI investigation despite the insistence by Countrywide that they are unaware of any such investigations. The FBI has also refused to comment on the issue.
Source: Based on Reuters
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