Washington – The Justice Department announced Thursday that investigators have made nearly 500 arrests since March in a major crackdown on mortgage fraud.
Subscribe to our Daily Roundup Email
The nationwide initiative called Operation Stolen Dreams is the largest collective enforcement effort aimed at confronting the problem of mortgage fraud, Attorney General Eric Holder told a news conference. It involves 1,215 criminal defendants in cases that uncovered more than $2.3 billion in losses.
The Justice Department also has engaged in civil enforcement actions to recover more than $147 million in the operation.
Two Countrywide companies will pay $108 million to settle allegations that they inflated the fees that homeowners paid.
Hundreds of FBI agents are working on task forces with other law enforcement agencies to combat a type of crime that poses “a risk to our economic stability” as a nation, FBI Director Robert Mueller told the news conference.
The Justice Department said the probe has resulted in significant criminal cases in Chico, Calif.; Miami; Detroit; Duluth, Minn.; New Jersey, and Atlanta.
In Detroit, investigators broke up a “ghost loan” mortgage scheme in which the conspirators allegedly posed as mortgage brokers, appraisers, real estate and title agents. They recruited over 108 straw buyers and obtained some 500 mortgages totaling more than $100 million.
The alleged mortgage fraud scheme in Miami targeted the Haitian-American community. One of the defendants advertised herself as someone who could assist with immigration issues. The defendant also said she could provide assistance with the manager of a government-sponsored housing program. The defendants in the case used the personal information they gathered to fraudulently buy various properties without the permission of Haitian residents.
In Chico, Calif., one of the biggest home builders in the area was sitting on unsold new homes as the housing market cooled in 2006. The builder sold the homes to straw buyers at inflated prices, then rebated tens of thousands of dollars on each home to shell companies controlled by the buyers’ agents. The lenders were unaware of the rebates. The Justice Department said that to date, 38 of the homes are in foreclosure.
In New Jersey, the servicing manager of U.S. Mortgage pleaded guilty for his role in the fraudulent sale of more than $136 million in mortgage loans to Fannie Mae and other investors.
For those of us who were ripped off on wall Street there is no recovery?
One hand washes the other.
I hope none of mishelanu involved we don’t need more chilul Hashem.
i believe there that there is no yidden involved
I wonder when the liability will hit Mr. Carter who initially required and Mr. Clinton who subsequently increased the percentage of Fannie and Freddie Mac’s lending portfolio required to service sub prime mortgages?
When will Mr. Clinton additionally be held responsible for the disaster that the abolishing the Glass-Stegal Act wrought?
Both of these narrow minded decisions are what led to the undermining of the U.S.’s sound S&L system which ultimately led to enabling fraud that was perpetrated by both independent and corporate mortgage brokers and ultimately the housing market and banking system collapse…
These brokers while guilty are not the root cause of the problem!
What’s the diffrent if jews are involved or not??? All every one cares about the jews…there’s other people and where a littel fraction that no one even notices
It seems like at least some were goyim – We hear “mortgage scam in brooklyn” and we get all excited – hopefully no haimishe involved
reply to # 8 u apparently dont know anything about jews then
Reply to #6
Your comment is so typical of a sean hannity listener….
Last time I checked bush was president for 8 years if according to you clinton did something wrong(which he didn’t)bush had 8 years to fix it….
Wake up and smell the coffee