NEW YORK, May 10, 2010 (BUSINESS WIRE) -- GlobalOptions Group, Inc. (NASDAQ: GLOI), a leading provider of domestic and international risk management services, today announced its Fraud and Special Investigations Unit (FSIU), in the first quarter of 2010, assisted in rescissions that mitigated client losses of more than $373 million.
This year's increase in mortgage fraud is a troubling trend, as California, Florida and Arizona now lead the nation in new foreclosures reported.
GlobalOptions is routinely working and partnering with insurance carriers to investigate suspicious claims, diligently uncovering a variety of misrepresentations, i.e. false income and employment claims, or overstating a home's appraised value, to rescind coverage and alleviate any undo risk to the client. In recent quarters, approximately 25% of FSIU client claims have been resolved by rescissions.
With more than 991,000 new foreclosure filings since the beginning of 2010, GlobalOptions has continued to support private mortgage insurers in mitigating, and exposing, fraud from material misrepresentations made during the origination of a loan. With the use of GlobalTrak(TM), clients can conduct and investigate potential mortgage fraud, nationally, across all 50 states by instantly accessing a comprehensive claim investigation file, allowing the user to investigate potential fraud claims from all angles.
"The risk of mortgage fraud will only increase as the year, and the fallout of the sub-prime mortgage crisis progresses," said Franklin Pinder, president of GlobalOptions' Fraud & SIU division. According to Mr. Pinder, "Our job is to provide our clients with the tools and capabilities to mitigate their claims exposure, and manage the review of potentially fraudulent claims. GlobalOptions will continue to closely work with law enforcement to combat insurance fraud." GlobalOptions Group, Inc.
GlobalOptions Group (NASDAQ: GLOI), with headquarters in New York City and offices in 16 cities, is an integrated provider of risk mitigation and management services to government entities, FORTUNE 1000 corporations and high net-worth and high-profile individuals throughout the world. We enable clients to identify, assess and prevent natural and man-made threats to the well-being of individuals and the operations of governments and corporations. In addition, we assist our clients in recovering from the damages or losses resulting from the occurrence of acts of terror, natural disasters, fraud and other risks. Our services currently include risk management, security, investigations, litigation support, anti-fraud solutions, business intelligence, and crisis management and preparedness services. Additional information is available at www.globaloptions.com.
Statements in this press release regarding the company's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. The company wishes to caution readers not to place undue reliance on such forward-looking statements, which statements are made pursuant to the Private Securities Litigation Reform Act of 1994, and as such, speak only as of the date made. To the extent the content of this press release includes forward-looking statements, they involve various risks and uncertainties including the successful integration of the acquired businesses, projected financial information, and the continued successful implementation of the company's business strategy.
Certain of these risks and uncertainties are described in greater detail in GlobalOptions Group's filings with the Securities and Exchange Commission.
GlobalOptions Group is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE: GlobalOptions Group, Inc.
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