Tuesday, January 29, 2008

FBI Probing 14 Companies in Subprime Lending Crisis

(Bloomberg) -- The Federal Bureau of Investigation is investigating 14 corporations for possible accounting fraud and other crimes related to the subprime lending crisis, officials said.

Neil Power, chief of the FBI's economic crimes unit, wouldn't identify the companies, though he said the cases involve ``valuation-type stuff.'' The probes include reviews of subprime lenders, housing developers and Wall Street firms that package loans as securities, he said.

``We're looking at the accounting fraud that goes through the securitization of these loans,'' Power said at a briefing with reporters in Washington today. ``We're dealing with the people who securitize them and then the people who hold them, such as the investment banks.''

The probes add to federal and state scrutiny of the home- loan industry as prosecutors and regulators seek to assign culpability for the mortgage rout that has forced people from their homes and resulted in losses to investors. The biggest banks and securities firms have posted at least $133 billion in credit losses and write downs related to the loans, which are typically made to buyers with the weakest credit.

Separately today, Goldman Sachs Group Inc., Morgan Stanley and Bear Stearns Cos. said in corporate filings that they are complying with regulatory requests concerning investment products linked to home loans. The companies didn't specify which agencies asked for the information.

Civil Cases

The Securities and Exchange Commission, which brings civil cases, has about three dozen inquiries open, the agency's deputy enforcement director said earlier this month.

The FBI works ``hand-in-hand'' with the SEC, Power said today.

On subprime lenders, Power said the bureau has been ``looking over their books and of course there are some irregularities there that we're looking into.''

Power said another area of criminal inquiry is insider trading -- whether executives sold shares when they knew loan defaults were going to surge.

The FBI also investigates other mortgage-fraud crimes, most centering on individuals such as brokers, appraisers, realtors, developers or straw buyers who illegally obtain loans.

The bureau has 1,210 pending mortgage-fraud cases, officials said.

10 comments:

Anonymous said...

Well two of the companies involved in the fraud are RW Hertel & Sons and his partner Point Center Financial National financial Corp. all are together in this one big scam.

Anonymous said...

Yes, I am to familiar with RW Hertel and his partner at Point Center Financial both of Calif. big loan fraud and scams, check the web sites or google either of them crooks the FBI should have busted them long ago glad to finally see some action.

Anonymous said...

Finally the Feds are stepping up to investigate the criminal elements of this financial scam. National Financial Lending, LLC along with Point Center Financial Mortgage Fund I, LLC and Point Center Financial Mortgage Fund II, LLC are all part of the same group of people RW Hertel is Ron Hertel with partner Robert JS Fowler, Dana Levy and Dan J Harkey. This is big news finally some criminal investigations into this Mortgage Fraud. They should also take a look at Atascadero Ventures, LLC and HFL Express, LLC with VERDOT, LLC as well. All con men

Anonymous said...

why can't they investigate the oil companies for fraud?

Anonymous said...

"the FBI has opened criminal investigations of 14 companies "

AND?

Why isn't CNN reporting the names of the companies being invetigated?

Is CNN part of the scam?

Someone should investigate the US Federal Gov for fraud,,, they'd have to figure out where to start.

Anonymous said...

I just saw this same builder and fraud company RW Hertel & Sons, dba Hertel Development has now defaulted on over $10,000,000.00 in loans in the Patterson, CA development of Diablo Grande Legends and has left hundreds holding the bag. I hope the FBI put him away for ever. What a bunch of cheaters they are.

Anonymous said...

The judge in several of the RW Hertel and Robert JS Fowler fraud case has ordered Hertel et al to now stand trial for defrauding a bank, loan fraud, investor fraud and grand theft so some justice is coming against them from Patterson, CA to Ventura, CA RW Hertel can run but he can not hide. Now the police know he is also in the Winery business of 5 Mile Bridge Wines another sham and con as well.

Anonymous said...

This is the very same developer who is now in defaulted under his LLC called ATASCADERO VENTURES, LLC to the tune of sum of $21 Million Dollars as is filed in the Clerks office as well as many liens for failure to pay his subs and Vendors.

This is one cheap lousy company, I suspect the Loan fraud people will get him in jail.

Anonymous said...

Indeed it is a Federal Crime to apply for loans and make false statements, thus is the case now pending against Ron W. Hertel and Robert JS Fowler of RW Hertel & Sons, Inc. Hertel Development, Hertel Investments, Atascadero Ventures, LLC Verdot, LLC Verdot Group, L.P. and the many others they have been using. If you have further information on these men or there companies and wish to provide it you can either post it or send it to your Local FBI & IRS CID office attention White Collar fraud Unit.

Anonymous said...

There is an ongoing Federal Criminal Investigation into both Ron Hertel & Robert JS Fowler, of R.W. Hertel & Son, Inc. which is now in Bankruptcy.

The FBI and the Criminal Division of the IRS are indeed investigating them for Federal Crimes as well as the State is investigating for Taxes still owed by these people. If you have information on there activities from Bank Fraud, Loan Fraud, tax Fraud, notify your local FBI or IRS-CID office and have them forward it to the Sacramento US Attorney's office of the FBI & IRS Office.