The working
group formed by the Justice Department and several other agencies to
investigate residential mortgage-backed securities fraud during the housing
boom opened a website for potential whistleblowers.
The Obama
administration started the group
through a series of press conferences in January. The group headed by New York
Attorney General Eric Schneiderman subpoenaed 11 of the largest financial
institutions. The amount of subpoenas grew to 25 since, but the group has taken
no action, despite promises otherwise in
January.
Along with the website for whistleblowers to participate in
the investigations for a reward, the group also created a team to coordinate
investigations underway across the country. Matthew Stegman, a career
prosecutor at the DOJ, will head the new team.
"There are
scores of people who worked in the RMBS market who acted responsibly but who
also may have witnessed greed and misconduct that crossed the legal line and
created havoc for investors, homeowners and our economy," said Acting
Associate Attorney General Tony West. "We want to hear from them."
The taskforce
will hold a two-day meeting in Washington on May 31 and June 1. It expects more
than 180 attorneys, investigators and analysts from participating agencies to
attend.
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