H: White Collar Crime

Reduce the level of significant white collar crime.

Other Information:

Situation: Since the 1990s, tremendous growth of and involvement in the securities and commodities markets at the institutional, corporate, and private investor levels have led to great numbers of individuals involved in intentional corporate fraud and misconduct, particularly senior corporate executives. For example, the FBI is currently investigating over 189 major corporate frauds, 18 of which have losses over $1 billion. The erosion of public confidence in the management of public companies will, if left unchecked, have a negative impact on the stock markets and capital raising, which will in turn have a negative impact throughout the U.S. economy. Health care fraud continues to plague the United States, with losses exceeding $50 billion annually. Frauds involving durable medical equipment, staged auto accidents, and medical transportation services are examples of this pervasive crime problem. In addition to Medicare/ Medicaid and private insurers, state providers lose billions of dollars per year to blatant fraud schemes in every sector of the health care industry. As health care spending increases over the coming years with the aging of the “baby boom” generation and Medicare prescription drug coverage, health care fraud is expected to have a corresponding increase. Financial institution fraud (FIF) continues to be a significant white collar crime problem throughout the country. Since 9/11, the FBI has refocused its FIF program and is now investigating higher-priority cases to a much greater degree. Large-scale mortgage fraud and identity theft operations, many perpetrated by organized criminal enterprises, also continue to plague the United States. Aggressive use of anti-money laundering statutes and forfeiture of ill-gotten assets are integral parts of nearly every financial crime prosecution. Many top executives involved in corporate scandals have been charged with money laundering in addition to other criminal violations. Additionally, corrupt money launderers introduce illegal proceeds into the financial community, and this asset flow must be reduced through aggressive prosecution, seizure, and forfeiture. The ability of the U.S. Government and industry to function effectively is likewise threatened by complex frauds. The amount of taxpayer funds involved in the government procurement process is staggering, as billions of dollars are spent each year on everything from highways to rockets. The GAO estimates that as much as 10 percent of appropriated funds for domestic programs may be lost to fraud in the government procurement and contracting process, and this type of crime is critically linked to public corruption imperatives. Insurance, telemarketing, and investment frauds often operate across jurisdictional and international boundaries. When losses to individual victims are aggregated, the economic impact can be dramatic. Additionally, anti-trust offenses and bankruptcy fraud have a significant negative affect on the U.S. economy, and environmental crimes represent a serious threat to the public health and natural resources of our nation. The FBI will continue its successful efforts in the white collar crime arena by using its expertise, broad criminal investigative resources, and strong relationships with regulatory agencies to maintain public confidence in the country’s financial institutions and markets, ensure the integrity of government expenditures of taxpayer funds, and protect individuals and businesses from catastrophic economic loss.

Objective(s):

H.1: Corporate Fraud

H.2: Health Care Fraud

H.3: Financial Institution Crime

H.4: Money Laundering

H.5: Telemarketing, Insurance, and Investment fraud

H.6: Procurement, Contract, and Entitlement Programs, Environmental Crimes, Bankruptcy Fraud, and Anti-Trust Offenses

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