The Interviews - Experts Address Recent Fraud Headlines. This collection of interviews offers analysis of recent financial fraud events and cases.
Posted on 31st Jul 2012 @ 12:04 PM
In an alert issued July 23, the FDIC said it has become aware of multiple instances in which individuals or purported investment advisors have approached financially weak institutions in apparent attempts to defraud the institutions by claiming to have access to funds for recapitalization.
“Before entering into any agreements or paying any funds, targeted institutions should verify the credibility of such solicitations, including the credibility of the investor group, their principals, and their representatives,” the FDIC said.
The FDIC said the scammers may claim that the investors, or individuals associated with the investors, include prominent public figures and that the investors have been approved by one or more of the federal banking agencies to invest substantial capital in the targeted institutions.
“Ultimately, these parties have required the targeted institutions to pay, in advance, retention and due diligence fees, as well as other costs. Once paid, the parties have failed to conduct substantive due diligence or to actively pursue the proposed investment,” the FDIC said. “Institutions should be extremely cautious if approached by any party in a similar manner.”
The FDIC also cautioned institutions deemed to be critically undercapitalized for purposes of Prompt Corrective Action that prior approval may be required for the payment of retention or due diligence fees, or other costs.
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