The FNI refused to name the entities under investigation but they are working with the Securities and Exchange Commission on a subprime inquiry. The Federal Bureau of Investigation has opened criminal inquiries into 14 companies as part of a wide-ranging investigation of the troubled mortgage industry, F.B.I. officials said Tuesday. The F.B.I. said it was looking into possible accounting fraud, insider trading or other violations in connection with loans made to borrowers with weak, or subprime, credit.
By making companies aware of the probe, and the cooperation of the SEC, financial officers and those who certify Sarbane-Oxley compliance might be under pressure. Since the OCC failed to regulate, as is their mandate, FBI – SEC findings may reveal more than some people want to know.