Officials See $11 Billion in Fraud at Failed S
Federal investigators say they have identified more than $11 billion in potential fraud at more than 25 failed or ailing Texas thrifts, with a handful of institutions accounting for most of the damage.
“The potential losses in the cases being investigated total in excess of $11 billion,” Bobby Gillham, special FBI agent in charge of a bank-fraud task force, said in an interview.
Marvin Collins, U.S. attorney for northern Texas, said five institutions account for half of the losses. But he added that the investigation is widening and improprieties at several Texas banks and in some state political circles are coming to light.
“I think there will be some prominent political figures involved, either directly or indirectly,” Collins said.
“Something this large, with this much money, you’ve got to believe there are political implications. I don’t think it will be tied to any one party, but to individuals attempting to get into the good graces of political leaders,” Collins said.
Investigators would not identify the subjects of their inquiries. Collins would only say, “There were extravagant parties with extravagant women.”
Of the money, Collins said, “A lot of it is gone forever.”
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
