Senior Investigator of Fraud at FCIC Asked by Media
Photo by Brooks Elliott
Steve Kroft in 60 Minutes points out although three years has elapsed since the onset of the foreclosure crisis that has brought down the American economy on its knees, not a single high ranking executive of Wall Street has been prosecuted. To find out why, the producer of 60 Minutes James Jacoby talked with Tom Borgers who helped in penning a book on this financial mayhem.
Previously Borgers was senior personnel with Financial Crisis Inquiry Commission of FCIC, in charge of investigating fraud. The commission was a panel set up with the nod from both political parties by the Obama government to find out the causes behind the crisis. At the end, FCIC submitted a report that ran into 500 pages.
One of the prime responsibilities of Borgers was to hone in on vetting, talk with whistle blowers; of these the two important ones were Eileen Foster and Richard Bowen.
The interview of Borgers by Steve Kroft was great – laced with important information, candid and direct. James Jacoby said, “I think he felt a real duty to make sure that a lot of their findings were followed up upon. Most people who leave those commissions don’t really ever talk about it”. Thus this interview of Borgers was really unique.
Tom Borgers has had vast experience as investigator of fraud. He had been engaged by the federal government following the scandal of Savings & Loan. He prepared and directed criminal referrals and was instrumental in recovering claims to the tune of multi-million dollars. During that tenure Borgers saw bank executives by the hundreds prosecuted and imprisoned. It is in naked contrast to what is happening now during the current foreclosures triggered crisis.
Borgers told Kroft that FCIC had dug out fraud running into trillions of dollars. There has been gross negligence. In mortgage related fraud he found crimes had been committed by those who originated mortgages, the underwriters, and the banks – all “across the board”. Despite this till now there have been no prosecutions.
However the personal contribution of Borgers had been recognized. He was given by the Association of Certified Fraud Examines, the Examiner of the Year Award. His “selfless and tireless service to the United States people” was mentioned. He was also honoured by FCIC with Special Act of Service award.
