Obama Signs Bill to Combat Mortgage and Financial Fraud, Creates Commission
In the wake of the subprime crisis and mortgage meltdown, on May 20, 2009, President Obama signed The Fraud Enforcement and Recovery Act ("FERA"). Among other provisions, the new law provides federal law enforcement with additional resources to combat mortgage and financial fraud, and authorizes federal prosecutors to prosecute anyone who fraudulently obtains funds under the American Recovery and Reinvestment Act or Troubled Asset Relief Program.
The law also creates a "9/11"-style commission comprised of outside experts with authorty to review the causes of the economic crisis and recommend changes. The "Financial Crisis Inquiry Commission" will have subpoena power to bring in individuals for investigation and questioning. FERA grants the Commission authority to refer evidence of wrongdoing to the U.S. attorney general and state attorneys general.
Further information about FERA is available in an article ("Obama Signs Fraud Enforcement and Recover Act in Effort to Combat Mortgage and Financial Fraud") published by Perkins Coie attorney Joel Levin.
