The eight Dallas-Fort Worth area residents arrested by federal agents earlier this week is part of a national takedown of mortgage fraud schemes, according to the U.S. Department of Justice.
In an effort dubbed "Operation Malicious Mortgage," the department and the Federal Bureau of Investigation have charged 406 people in 144 mortgage fraud cases between March 1 and June 18.
"Operation Malicious Mortgage highlights the strong enforcement response undertaken by the Department of Justice and its law enforcement partners to combat the threat mortgage fraud poses to the U.S. housing industry and worldwide credit markets," the department said in a press release.
On Wednesday, federal agents arrested 60 people in 15 districts across the country on mortgage fraud. Locally, authorities arrested eight people and indicted three others in connection to a four-year mortgage scheme involving 11 Dallas-Fort Worth area homes. (See Dallas Business Journal story "FBI arrests 8 people for mortgage fraud")
U.S. attorneys have brought charges in every region of the United States and in more than 50 judicial districts. The FBI estimates that $1 billion in losses were inflicted by the mortgage fraud schemes employed in these cases.
The Justice Department has even gone after big companies. On Thursday, U.S. attorneys in New York indicted two senior managers of failed Bear Stearns hedge funds, charging Ralph Cioffi and Mathew Tannin with conspiracy, securities fraud and wire fraud. Cioffi was also charged with insider trading.
The indictment alleged that the two managers marketed the two funds as a low risk strategy, backed by a pool of debt securities such as mortgages. But by March 2007, the managers believed the funds were in grave condition and at risk of collapse, but made misrepresentations to stave off investor withdrawal, prosecutors said. The funds subsequently collapsed in the summer of 2007 resulting in $1.4 billion in losses to investors.
"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 of millions of American homeowners," said Deputy Attorney General Mark R. Filip. "Operation Malicious Mortgage and our other mortgage-related enforcement actions demonstrate the Justice Department's commitment and determination to combat these criminal schemes, hold their perpetrators accountable and help restore stability and confidence in our housing and credit markets."
Besides the FBI and Justice Department, other federal agencies involved in Operation Malicious Mortgage include the U.S. Postal Inspection Service, Internal Revenue Service, U.S. Immigration and Customs Enforcement, U.S. Secret Service, U.S. Trustee Program, Department of Housing and Urban Development Office, Department of Veterans Affairs, and Federal Deposit Insurance Corp.
In an effort dubbed "Operation Malicious Mortgage," the department and the Federal Bureau of Investigation have charged 406 people in 144 mortgage fraud cases between March 1 and June 18.
"Operation Malicious Mortgage highlights the strong enforcement response undertaken by the Department of Justice and its law enforcement partners to combat the threat mortgage fraud poses to the U.S. housing industry and worldwide credit markets," the department said in a press release.
On Wednesday, federal agents arrested 60 people in 15 districts across the country on mortgage fraud. Locally, authorities arrested eight people and indicted three others in connection to a four-year mortgage scheme involving 11 Dallas-Fort Worth area homes. (See Dallas Business Journal story "FBI arrests 8 people for mortgage fraud")
U.S. attorneys have brought charges in every region of the United States and in more than 50 judicial districts. The FBI estimates that $1 billion in losses were inflicted by the mortgage fraud schemes employed in these cases.
The Justice Department has even gone after big companies. On Thursday, U.S. attorneys in New York indicted two senior managers of failed Bear Stearns hedge funds, charging Ralph Cioffi and Mathew Tannin with conspiracy, securities fraud and wire fraud. Cioffi was also charged with insider trading.
The indictment alleged that the two managers marketed the two funds as a low risk strategy, backed by a pool of debt securities such as mortgages. But by March 2007, the managers believed the funds were in grave condition and at risk of collapse, but made misrepresentations to stave off investor withdrawal, prosecutors said. The funds subsequently collapsed in the summer of 2007 resulting in $1.4 billion in losses to investors.
"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 of millions of American homeowners," said Deputy Attorney General Mark R. Filip. "Operation Malicious Mortgage and our other mortgage-related enforcement actions demonstrate the Justice Department's commitment and determination to combat these criminal schemes, hold their perpetrators accountable and help restore stability and confidence in our housing and credit markets."
Besides the FBI and Justice Department, other federal agencies involved in Operation Malicious Mortgage include the U.S. Postal Inspection Service, Internal Revenue Service, U.S. Immigration and Customs Enforcement, U.S. Secret Service, U.S. Trustee Program, Department of Housing and Urban Development Office, Department of Veterans Affairs, and Federal Deposit Insurance Corp.
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