Feds Have Arrested 485 in Mortgage Fraud

Since March, Department of Justice officials have arrested a 485 people for mortgage fraud in a massive crackdown. Bloomberg BusinessWeek has more on the crackdown, called Operation Broken Dreams:

During the enforcement effort, 1,215 criminal defendants responsible for $2.3 billion in losses faced some type of legal action, the department said. The crackdown…also included 191 civil cases resulting in the recovery of more than $147 million.

“This represents the largest collective enforcement effort ever brought to bear in confronting mortgage fraud,” said Attorney General Eric Holder at a news conference in Washington. “These schemes are despicable, they are dangerous to our economy and they will not be tolerated.”

The initiative was organized by President Barack Obama’s financial fraud task force. The Federal Bureau of Investigation has more than 3,000 pending mortgage-fraud cases, almost double the number in fiscal year 2008, Holder said.

From the Wall St. Journal:

The inter-agency effort involves more than 21 federal agencies who are members of the Financial Fraud Enforcement Task Force. Launched in November by the Obama administration, the task force is charged with uncovering illegal financial schemes nationwide.

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