Mortgage Fraud Keeps Prosecutors Hopping

December 11, 2008


Special task forces have been created to contend with the monumental increase in mortgage fraud. The rapid influx of prosecutions makes it nearly impossible to estimate how much damage has been done and what the cost is for justice.

More than 40 mortgage fraud task forces nationwide are tackling the some 1,600 investigations that are estimated to have cost lenders at least $4 billion. The FBI said the caseload has more than doubled from three years ago and they have about 200 agents assigned to cover mortgage fraud.

From March to October, more than 630 people have been charged with mortgage fraud nationwide. One defense attorney claims prosecutors should be seeking to prosecute bigger fish, saying they are “just picking off little people … They’re doing scapegoats is what they’re doing.”

Read story at San Francisco Gate