NCJ Number
244081
Date Published
October 2013
Length
46 pages
Annotation
In this update of a similar 2010 study, the General Accountability Office (GAO) examined the available information on the prevalence and characteristics of foreclosure rescue schemes and the status and scope of the Federal multiagency effort and other major initiatives to combat these schemes.
Abstract
The study found that foreclosure rescue schemes remain at historically high levels and have become more complex. Complaints to various agencies about these schemes increased from approximately 9,000 in 2009 to just over 18,000 each year in 2010, 2011, and 2012. The complexity of these schemes poses challenges for law enforcement agencies; e.g., schemes that involve attorneys, which tend to cause greater losses, have become more common in recent years following a regulation that bans upfront fees, but provides an exception for attorneys. Since the 2010 GAO report, the Financial Fraud Enforcement Task Force (FFETF) and its members have undertaken a number of actions intended to inform borrowers on how to avoid being victimized by these schemes. These efforts have also emphasized the need for consumers and institutions to report possible fraudulent schemes and the importance of improving information-sharing among law enforcement agencies that are investigating and prosecuting these schemes. FFETF members contacted by GAO indicated that information-sharing and coordination on investigations among FFETF members had led to joint investigations and broad enforcement initiatives; e.g., one multiagency effort resulted in criminal charges against 107 defendants. Cases were also filed against 128 civil defendants in Federal courts across the country. Appended scope and methodology, and comments from the Treasury Department and the Special Inspector General for the Troubled Asset Relief Program