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FBI Uses Triage to Shift From Terror to Madoff, Subprime Probes

FBI Uses Triage to Shift From Terror to Madoff, Subprime Probes

By Patricia Hurtado

http://www.bloomberg.com/apps/news?pid=20601170&refer=home&sid=aAZwa1ACdRbc

Dec. 22 (Bloomberg) -- The FBI has engaged in “triage,” taking agents off terror and other crimes to respond to a cascade of financial frauds such as the alleged Bernard Madoff Ponzi scheme, the head of the bureau’s New York criminal division said.

The Federal Bureau of Investigation was forced to reallocate its manpower in New York to deal with recent frauds involving subprime mortgages, auction-rate securities and Madoff, who prosecutors said confessed this month to bilking investors out of $50 billion, FBI official David Cardona said in an interview.

“We have to work those cases which we think pose the greatest threat,” he said. “In this case, it’s a threat to the financial system and Wall Street.”