FBI chief targets "next wave" of fraud

FBI director Robert Mueller has said the bureau is working with regulators to ensure the government's bailout funding and economic stimulus packages do not fall victim to the "next wave" of financial fraud.

Robert Mueller told the Economic Club of New York that federal investigators are working with officials from the Securities and Exchange Commission and the inspector general of the Troubled Asset Relief Program (Tarp) to ensure it detects potential abuse of taxpayer funds at an early stage, Reuters reports.

"With billions of dollars at stake - from the purchase of troubled assets to improvements in infrastructure, healthcare, energy and education - even a small percentage of fraud would result in substantial taxpayer losses," he said.

In March, Tarp inspector general Neil Barofsky told Congress that the US had paid out over $3 trillion to support banks and other firms, which would "inevitably" attract those looking to profit criminally.

Mr Mueller added that the FBI is also ramping up its resources for combating white collar crime in New York, the home of Wall Street.

He said the bureau is currently pursuing 1,300 cases of suspected securities fraud, including a number of Ponzi schemes, as well as over 580 corporate frauds.