Overview

Criminal Investigation’s (CI) Financial Institution Fraud Program, addresses criminal violations involving fraud against banks, savings and loan associations, credit unions, check cashers, and stockbrokers. Criminal Investigation is a major contributor in the effort to combat financial institution fraud, and the United States Attorneys’ recognize CI’s financial investigative expertise in this complex area.

The ability to bring income tax and money laundering charges augments prosecutor’s effectiveness in combating fraud committed against financial institutions, whether the violators work within or outside of the financial institution.

During FY2001 CI continued its involvement in bank fraud working groups and in financial institution task forces at the field level, and the Interagency Bank Fraud Working Group at the Headquarters level. This group is composed of regulatory and law enforcement agencies that either regulate financial institutions or investigate fraud committed against them. The group seeks to improve coordination between agencies and regulators in the investigation and prosecution of financial institution fraud.

Criminal Investigation recognizes the potential for individuals and organizations to use the Internet to facilitate income tax evasion and money laundering. Criminal Investigation has taken proactive steps to combat fraud involving the Internet and is an active participant in the Cyberbanking Working Group to study electronic money and devise safeguards to protect consumers. This group is comprised of representatives of regulatory and law enforcement agencies.

The use of Sight Drafts, also known as Bills of Exchange, to defraud financial institutions has proliferated with the upsurge in use by radical militia groups. These fictitious financial instruments resemble bank cashier’s checks and have been issued in amounts exceeding $10 billion. Criminal Investigation has taken an aggressive role in these investigations by using the charge of Title 18 USC Section 514 (Fictitious Obligations). This statute was enacted to prosecute individuals and groups who use sham instruments to defraud financial institutions as well as the IRS.

Currency Transaction Reports and Suspicious Activity Reports continue to be an effective source of information regarding financial institution fraud. Criminal Investigation follows up on Currency Transaction Reports and/or Suspicious Activity Reports with the reporting financial institution. Direct contact is made with the financial institution, enhancing the constructive and cooperative relationship CI has established with the banking industry.

Statistical Data

Financial Institution Fraud enforcement statistics on investigations initiated, prosecutions recommended, indictments, convictions and months to serve in prison.

Examples of Financial Institution Fraud Investigations
Examples are written from public record documents on file in the court records in the judicial district in which the cases were prosecuted.

Criminal Investigation (CI) home page

How to Report Suspected Tax Fraud Activities