FRAUD ENFORCEMENT AND RECOVERY ACT
Fraud is a significant cause behind the U.S. subprime mortgage collapse and the international economic downturn. It is for this reason that the Fraud Enforcement and Recovery Act of 2009 (FERA) was created. FERA was designed to improve enforcing the mortgage fraud statutes. It will also assist in the recovery of funds that were lost during these fraudulent incidents and other related reasons.
FERA also offers the government additional tools needed in order to crack down on the occurrences of fraud that, unfortunately, have put numerous families at risk for losing their homes. Additionally, FERA expands the abilities of the Department of Justice to prosecute individuals and/or corporations responsible for predatory lending. Furthermore, through the passing of FERA, a bipartisan Financial Crisis Inquiry Commission has been established in order to explore the financial practices that have created our current economic crisis.
Under the Act, the following amounts have been allocated to combat mortgage fraud:
Fiscal Year 2010 2011 Total
(in millions of dollars)
FBI $75 $65 $140
US Attorney Offices $50 $50 $100
DOJ- Criminal Division $20 $20 $40
DOJ- Civil Division $15 $15 $30
DOJ - Tax Division $5 $5 $10
Postal Inspection Service $30 $30 $60
HUD Inspector General $30 $30 $60
Secret Service $20 $20 $40
SEC $21 $21 $42
Totals $266 $256 $522
The United States 2010 fiscal year begins October 1, 2009.
According to the U.S. Attorney’s office, they are attempting to fast track cases. In a case where the mortgage fraud is in the high millions, they may decide just to prove one to five million dollars of fraud and get a conviction with prison time instead of spending two years investigating to the get the maximum penalty.