Investigative Lessons Learned from the Financial Crisis Inquiry … · 2011-06-13 · Tom Borgers...
Transcript of Investigative Lessons Learned from the Financial Crisis Inquiry … · 2011-06-13 · Tom Borgers...
© 2011 Mesirow Financial Holdings, Inc. All rights reserved.
22nd Annual ACFE Anti-Fraud Conference:
Investigative Lessons Learned from the Financial
Crisis Inquiry Commission
Thomas Borgers
Managing Director
June 13 & 14, 2011
The Copyrighted Material, or any portion thereof, may not be reproduced, retransmitted, or posted on any Web site aside
from www.mesirowfinancial.com without the express written consent of Mesirow Financial.
© 2011 Mesirow Financial Holdings, Inc. All rights reserved. 2
Two Parts of our Presentation
Tom Borgers — Setting the stage and a CFE/Banker’s view of lessons
learned
Brad Bondi, Esq. — Lessons learned by the Assistant Executive Director
and Deputy General Counsel of the FCIC
The Copyrighted Material, or any portion thereof, may not be reproduced, retransmitted, or posted on any Web site aside
from www.mesirowfinancial.com without the express written consent of Mesirow Financial.
© 2011 Mesirow Financial Holdings, Inc. All rights reserved. 3
What happened on June 13?
The Copyrighted Material, or any portion thereof, may not be reproduced, retransmitted, or posted on any Web site aside
from www.mesirowfinancial.com without the express written consent of Mesirow Financial.
© 2011 Mesirow Financial Holdings, Inc. All rights reserved. 4
Events of June 13
1927 — Charles Lindbergh honored in New York City for his transatlantic
flight — 750,000 pounds of ticker-tape shower down.
1944 — Nazi Germany begins V-1 (Fieseler Fi-103) buzz-bomb attacks
against Britain
1966 — Supreme Court hands down Miranda v. Arizona decision.
Declares a suspect must be informed of rights.
1967 — Thurgood Marshall nominated as first black Supreme Court
justice.
The Copyrighted Material, or any portion thereof, may not be reproduced, retransmitted, or posted on any Web site aside
from www.mesirowfinancial.com without the express written consent of Mesirow Financial.
© 2011 Mesirow Financial Holdings, Inc. All rights reserved. 5
What happened on May 20, 2009?
The Copyrighted Material, or any portion thereof, may not be reproduced, retransmitted, or posted on any Web site aside
from www.mesirowfinancial.com without the express written consent of Mesirow Financial.
© 2011 Mesirow Financial Holdings, Inc. All rights reserved. 6
May 20, 2009
President Barack Obama signed into law the Fraud Enforcement and
Recovery Act of 2009 (FERA). The Act passed with impressive bipartisan
support: the House approved it by a vote of 367 to 59, and the Senate
vote was 92 to 4.
The Copyrighted Material, or any portion thereof, may not be reproduced, retransmitted, or posted on any Web site aside
from www.mesirowfinancial.com without the express written consent of Mesirow Financial.
© 2011 Mesirow Financial Holdings, Inc. All rights reserved. 7
Financial Crisis Inquiry Commission
The first part of the FERA provides funding and tools to help law
enforcement and prosecutors bring to justice the perpetrators of the many
frauds that caused the latest mortgage and financial crisis. The last part
of the FERA addresses the establishment of the bipartisan Financial
Crisis Inquiry Commission — FCIC.
The Copyrighted Material, or any portion thereof, may not be reproduced, retransmitted, or posted on any Web site aside
from www.mesirowfinancial.com without the express written consent of Mesirow Financial.
© 2011 Mesirow Financial Holdings, Inc. All rights reserved. 8
Financial Crisis Inquiry Commission
According to the act, the FCIC, housed in the legislative branch, will
“examine the causes, domestic and global, of the current financial and
economic crisis in the United States.”
The Copyrighted Material, or any portion thereof, may not be reproduced, retransmitted, or posted on any Web site aside
from www.mesirowfinancial.com without the express written consent of Mesirow Financial.
© 2011 Mesirow Financial Holdings, Inc. All rights reserved. 9
Financial Crisis Inquiry Commission
“The FCIC leaders will need a tremendous
–amount of purpose,
–integrity,
–talent,
–skill,
–expertise,
–administration,
–and people skills to manage the investigative and legal activities.”
The Copyrighted Material, or any portion thereof, may not be reproduced, retransmitted, or posted on any Web site aside
from www.mesirowfinancial.com without the express written consent of Mesirow Financial.
© 2011 Mesirow Financial Holdings, Inc. All rights reserved. 10
Dedicated and Talented Investigative Team
Brad Bondi, Esq.
Vic Cunicelli, Postal Inspector & CFE
Tom Krebs, Esq.
Donna Norman, Esq., CFE
Bob Hinkley, Esq.
Bruce McWilliams
Troy Burns, IRS Special Agent
Jon Armstrong
George Wahl, Special Agent – U.S. Secret Service
The Copyrighted Material, or any portion thereof, may not be reproduced, retransmitted, or posted on any Web site aside
from www.mesirowfinancial.com without the express written consent of Mesirow Financial.
© 2011 Mesirow Financial Holdings, Inc. All rights reserved. 11
Numbers
GSE
Agency and Non Agency
One Lender
Mortgage Fraud
Affordable Housing Goals
The Copyrighted Material, or any portion thereof, may not be reproduced, retransmitted, or posted on any Web site aside
from www.mesirowfinancial.com without the express written consent of Mesirow Financial.
© 2011 Mesirow Financial Holdings, Inc. All rights reserved. 12
Complex and Massive
Surround yourself with brilliant people
Make it simple
Industry Leaders
Domestic and Overseas
Whistleblowers and Other Hidden Experts
All Others
The Copyrighted Material, or any portion thereof, may not be reproduced, retransmitted, or posted on any Web site aside
from www.mesirowfinancial.com without the express written consent of Mesirow Financial.
© 2011 Mesirow Financial Holdings, Inc. All rights reserved. 13
Budget $8 Million
Creative
Detailees
Research
Travel
Transcripts
Systems
Computers
Space
The Copyrighted Material, or any portion thereof, may not be reproduced, retransmitted, or posted on any Web site aside
from www.mesirowfinancial.com without the express written consent of Mesirow Financial.
© 2011 Mesirow Financial Holdings, Inc. All rights reserved. 14
Power
The FCIC had far-reaching powers
–Subpoena rights: Virtually everything in the private and public perform
its functions.
–People wanted to help
–Limited number of people
The Copyrighted Material, or any portion thereof, may not be reproduced, retransmitted, or posted on any Web site aside
from www.mesirowfinancial.com without the express written consent of Mesirow Financial.
© 2011 Mesirow Financial Holdings, Inc. All rights reserved. 15
Challenge
Professional
Unknown
Testing Abilities
Stress
Many others
The Copyrighted Material, or any portion thereof, may not be reproduced, retransmitted, or posted on any Web site aside
from www.mesirowfinancial.com without the express written consent of Mesirow Financial.
© 2011 Mesirow Financial Holdings, Inc. All rights reserved. 16
For Country
The Copyrighted Material, or any portion thereof, may not be reproduced, retransmitted, or posted on any Web site aside
from www.mesirowfinancial.com without the express written consent of Mesirow Financial.
© 2011 Mesirow Financial Holdings, Inc. All rights reserved. 17
And now I present…
Brad Bondi, Esq. -
Mesirow Financial refers to Mesirow Financial Holdings, Inc. and its divisions, subsidiaries and affiliates. The Mesirow Financial name and logo are
registered service marks of Mesirow Financial Holdings, Inc., © 2011, Mesirow Financial Holdings, Inc. All rights reserved. Some information contained
herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. Any opinions
expressed are subject to change without notice. Any performance information shown represents historical market information only and does not infer or
represent any past performance of any Mesirow Financial affiliate. It should not be assumed that any historical market performance information
discussed herein will equal such future performance. It should be assumed that client returns will be reduced by commissions or any other such fees and
other expenses that may be incurred in the management of the account. Fees Performance information provided also contemplates reinvestment of
dividends. Advisory Fees are described in Mesirow Financial Investment Management Inc.’s Part II of the Form ADV. Mesirow Financial does not
provide legal or tax advice. Advisory services offered through Mesirow Financial Investment Management, Inc. an SEC-registered investment advisor,
Securities offered by Mesirow Financial, Inc. member NYSE and SIPC.
Investment Management Global Markets Insurance Services Consulting
mesirowfinancial.com