A corporate apartment company is under investigation for allegedly selling apartments for more than advertised, a report says.
The Financial Crimes Enforcement Network, a division of the FBI, says the rental apartment rental company is one of the most common frauds on Wall Street, according to The New York Times.
The agency said the company allegedly sold apartments to people who could not afford them, and then resold them for far less.
“We are not at liberty to identify the individual or the individual’s broker or broker client, because of the nature of the investigation,” the FICO report says, referring to the Feds.
The report says FICO’s investigation is ongoing, and more information about the alleged frauds will be made public as the investigation continues.
The FICO investigation was spurred by the investigation by the Securities and Exchange Commission of alleged insider trading by a company called SkyNet, which is owned by the global investment firm Blackstone Group.
The SEC said in a press release that the company had been “lobbying for and receiving millions of dollars in government subsidies” and “fraudulent activity.”
The investigation found that SkyNet allegedly made a “brazen and deceptive” scheme to make apartments available for rent.
The company allegedly made up claims about its apartment-rental business that the SEC said it “failed to substantiate.”
The SEC also said that “SkyNet’s brokers and/or other senior executives knowingly and intentionally falsified and withheld documents from FICO.”
A spokesperson for the company did not immediately respond to a request for comment.