Criminal probe said to focus on collapsed lender
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Federal prosecutors and the FBI have opened an investigation into whether criminal misconduct was involved in the collapse of American Home Mortgage Investment Corp., according to several people familiar with the situation.
The investigation, said to be in its preliminary stages and going on for several weeks, is looking into whether violations of federal criminal statutes may have occurred that resulted in the company’s bankruptcy filing, the sources said. The statutes, they said, cover conspiracy, securities, mail and wire fraud, money laundering and other crimes.
Melville, N.Y.-based American Home Mortgage, once one of the nation’s 10 largest mortgage lenders, filed for bankruptcy protection Aug. 6 and laid off most of its 7,000 employees.
A number of regulatory agencies have said they were looking into the company’s troubles. At least a dozen securities-related civil class actions also have been filed in recent months, most claiming that the company misrepresented its financial situation to shareholders.
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