The Senate today approved by a vote of 92-4 new legislation to combat financial fraud. The House Judiciary Committee passed a similar measure today, but without the Senate measures to strengthen the False Claims Act, which the House for now is considering in a stand-alone measure.
The Senate version of the Fraud and Recovery Act (FERA) would authorize $245 million a year over two years to hire more than 300 federal agents, 200 prosecutors and 200 forensic analysts to rebuild “white collar” enforcement efforts that took a back seat after the 9/11 attacks to counter-terrorism. “This bill is a step toward holding accountable those who have caused so much damage to our economy,” Senate Judiciary Committee Chairman Pat Leahy (D-Vt.), a leading sponsor of the bill, said in a floor statement.
Sen. Ted Kaufman (D-Del.), another leading sponsor, said in a statement: “We can’t have separate sets of rules for people who rob banks and banks who rob people.” Sen. Charles Grassley (R-Iowa) also introduced the bill.
The Federal Bureau of Investigation currently has fewer than 250 assigned to financial fraud cases throughout the country, and can’t investigate the more than 5000 mortgage fraud allegations the Treasury Department receives each month, Leahy’s statement said.
