The financial crisis has sparked a rise in securities fraud suggests a new report on financial crime from the U.S. Federal Bureau of Investigation.

On the corporate fraud front, the FBI says that it has focused its efforts on cases that involve accounting schemes, self-dealing by corporate executives, and obstruction of justice. While the number of cases involving the falsification of financial information remains relatively stable, the FBI says it has observed an increase in the number of insider trading cases. Additionally, it says that corporate fraud matters involving self-dealing by corporate executives, particularly utilizing companies to perpetrate large-scale, high-yield fraud schemes, continue to be an issue of concern.

At the end of fiscal 2011, 726 corporate fraud cases were being pursued by the FBI, it says. And, during the year, cases pursued by the FBI resulted in 242 indictments/informations and 241 convictions. It also secured US$2.4 billion in restitution orders and US$16.1 million in fines from corporate criminals.

In terms of securities and commodities fraud, the FBI reports that since 2008 investigations have increased by 52%, and it currently has over 1,800 pending investigations. The securities and commodities frauds being investigated include market manipulation, investment frauds, and miscellaneous matters such as broker embezzlement, it says. During the year, it recorded 520 indictments/informations and 394 convictions in cases in this area, and it won US$8.8 billion in restitution orders, US$36 million in recoveries, US$113 million in fines, and US$751 million in forfeitures.

It also investigates financial institution fraud, such as embezzlement, cheque fraud, counterfeiting, cheque kiting, and fraud contributing to the failure of financial institutions. During the year, cases pursued by the FBI in this area resulted in 521 informations and indictments, and 429 convictions. It also secured US$1.38 billion in restitution, US$116.3 million in fines, and seizures valued at US$15.7 million. The report also notes that 157 banks failed in 2010, and 85 have failed since January 1, 2011, with the total number reaching 410 closures since 2007, it says.

As for insurance fraud, it says that 140 cases investigated by the FBI resulted in 19 indictments/informations, 13 arrests, and 21 convictions, along with US$87.6 million in restitution. Also, money laundering brought 303 cases investigated by the FBI, resulting in 37 indictments and 45 convictions; US$18.4 million in restitution, US$809,414 in recoveries, and US$983,536 in fines.