Hundreds swept up in mortgage fraud arrests
Saturday, July 5, 2008
WASHINGTON - More than 400 real estate industry players have been indicted since March - including dozens over the last two days - in a Justice Department crackdown on incidents of mortgage fraud nationwide that have contributed to the country's housing crisis.
The FBI put the losses to homeowners and other borrowers who were victims in the schemes at over $1 billion.
"Mortgage fraud and related securities fraud pose a significant threat to our economy, to the stability of our nation's housing market and to the peace of mind to millions of Americans," Deputy Attorney General Mark Filip said in a statement Thursday. The Justice Department and FBI planed to announce the cases at an afternoon news conference in Washington.
Since March 1, 406 people have been arrested in the sting dubbed "Operation Malicious Mortgage" that saw 144 cases across the country. Sixty people were arrested on Wednesday alone, including in Chicago, Miami, Houston and a dozen other regions policed by the FBI.
In a separate sweep, two former Bear Stearns managers in New York were indicted Thursday, becoming the first executives to face criminal charges related to the collapse of the subprime mortgage market.
Across the country, reports of mortgage fraud have soared over the past year as the subprime mortgage market collapsed and defaults and foreclosures soared.
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Labels: mortgage frauds, mortgage news
Indictments mount in mortgage frauds
Thursday, July 3, 2008
The FBI put the losses to homeowners and other borrowers who were victims in the schemes at more than $1billion.
"Mortgage fraud poses a significant threat to our economy, to the stability of our nation's housing markets and to the peace of mind of millions of American homeowners," Deputy Attorney General Mark Filip said at an afternoon news conference.
Starting in March, 406 people in 144 cases across the country have been arrested in the sting dubbed Operation Malicious Mortgage. Sixty people were arrested Wednesday alone, including in Chicago, Miami, Houston and a dozen other regions.
Law enforcement officials said their stepped-up focus on mortgage cases aims to combat problems that have grown out of the risky lending practices prevalent until the mortgage-market collapse began last year. Officials have identified 10 places they consider hot spots nationwide in California, Colorado, Texas, Minnesota, Michigan, Illinois, Ohio, New York, Georgia and Florida.
To people who have committed fraud or are contemplating doing so, FBI Director Robert Mueller said: "We will find you, you will be investigated, and you will be prosecuted."
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Labels: mortgage cases, mortgage frauds, mortgage news