Mortgage-Fraud Crackdown in U.S. Brings 485 Arrests

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http://www.businessweek.com/news/2010-06-17/mortgage-fraud-crackdown-in-u-s-brings-485-arrests-update1-.html

Business Week:

June 17 (Bloomberg) — Authorities arrested 485 people since March in the largest nationwide mortgage-fraud crackdown of its kind, the U.S. Justice Department said in a statement.

During the enforcement effort, 1,215 criminal defendants responsible for $2.3 billion in losses faced some type of legal action, according to the statement released today. The crackdown, dubbed Operation Stolen Dreams, also included 191 civil cases resulting in the recovery of more than $147 million.

The initiative was organized by President Barack Obama’s financial fraud task force. FBI Director Robert Mueller testified at a congressional hearing in March that the number of mortgage fraud cases under investigation by his agency increased more than sixfold since 2003. Mueller said at the hearing there were more than 2,900 cases pending at the end of the first quarter of fiscal year 2010.

“Mortgage fraud ruins lives, destroys families and devastates whole communities, so attacking the problem from every possible direction is vital,” Attorney General Eric Holder said in the statement.

Holder, Mueller and other officials called a news conference for 11:30 a.m. Washington time to discuss the results of the crackdown.

Federal officials in New Jersey yesterday announced criminal complaints charging 28 people with participating in mortgage scams that sought to defraud lenders out of more than $5.5 million. Among the defendants were real estate agents, investors and mortgage consultants, according to a statement from the FBI and U.S. Attorney Paul Fishman.

[Arraya]

http://www.stanfordalumni.org/news/magazine/2009/marapr/features/born.html
“Well, Brooksley, I guess you and I will never agree about fraud,” Born, in a recent interview, remembers Greenspan saying.

“What is there not to agree on?” Born says she replied.

“Well, you probably will always believe there should be laws against fraud, and I don’t think there is any need for a law against fraud,” she recalls. Greenspan, Born says, believed the market would take care of itself.

[Arraya]

http://www.stanfordalumni.org/news/magazine/2009/marapr/features/born.html
“Well, Brooksley, I guess you and I will never agree about fraud,” Born, in a recent interview, remembers Greenspan saying.

“What is there not to agree on?” Born says she replied.

“Well, you probably will always believe there should be laws against fraud, and I don’t think there is any need for a law against fraud,” she recalls. Greenspan, Born says, believed the market would take care of itself.

[Arraya]

http://www.stanfordalumni.org/news/magazine/2009/marapr/features/born.html
“Well, Brooksley, I guess you and I will never agree about fraud,” Born, in a recent interview, remembers Greenspan saying.

“What is there not to agree on?” Born says she replied.

“Well, you probably will always believe there should be laws against fraud, and I don’t think there is any need for a law against fraud,” she recalls. Greenspan, Born says, believed the market would take care of itself.

[Arraya]

http://www.stanfordalumni.org/news/magazine/2009/marapr/features/born.html
“Well, Brooksley, I guess you and I will never agree about fraud,” Born, in a recent interview, remembers Greenspan saying.

“What is there not to agree on?” Born says she replied.

“Well, you probably will always believe there should be laws against fraud, and I don’t think there is any need for a law against fraud,” she recalls. Greenspan, Born says, believed the market would take care of itself.

[Arraya]

http://www.stanfordalumni.org/news/magazine/2009/marapr/features/born.html
“Well, Brooksley, I guess you and I will never agree about fraud,” Born, in a recent interview, remembers Greenspan saying.

“What is there not to agree on?” Born says she replied.

“Well, you probably will always believe there should be laws against fraud, and I don’t think there is any need for a law against fraud,” she recalls. Greenspan, Born says, believed the market would take care of itself.

[Diego Mamani]

[quote]Greenspan, Born says, believed the market would take care of itself.[/quote]

Yes, the market would take care of itself 99% of the time, but it won’t if the Fed keeps interest rates too low for too long, or if the government is ready to bail out irresponsible mega banks, or if monstruosities like Fannie and Freddie seriously distort what otherwise would be a free-market economy.

[Diego Mamani]

[quote]Greenspan, Born says, believed the market would take care of itself.[/quote]

Yes, the market would take care of itself 99% of the time, but it won’t if the Fed keeps interest rates too low for too long, or if the government is ready to bail out irresponsible mega banks, or if monstruosities like Fannie and Freddie seriously distort what otherwise would be a free-market economy.

[Diego Mamani]

[quote]Greenspan, Born says, believed the market would take care of itself.[/quote]

Yes, the market would take care of itself 99% of the time, but it won’t if the Fed keeps interest rates too low for too long, or if the government is ready to bail out irresponsible mega banks, or if monstruosities like Fannie and Freddie seriously distort what otherwise would be a free-market economy.

[Diego Mamani]

[quote]Greenspan, Born says, believed the market would take care of itself.[/quote]

Yes, the market would take care of itself 99% of the time, but it won’t if the Fed keeps interest rates too low for too long, or if the government is ready to bail out irresponsible mega banks, or if monstruosities like Fannie and Freddie seriously distort what otherwise would be a free-market economy.

[Diego Mamani]

[quote]Greenspan, Born says, believed the market would take care of itself.[/quote]

Yes, the market would take care of itself 99% of the time, but it won’t if the Fed keeps interest rates too low for too long, or if the government is ready to bail out irresponsible mega banks, or if monstruosities like Fannie and Freddie seriously distort what otherwise would be a free-market economy.

[CA renter]

Exactly, Diego.

The fraud would be flushed from the system if not for the enablers of that fraud (Fed and govt).

[CA renter]

Exactly, Diego.

The fraud would be flushed from the system if not for the enablers of that fraud (Fed and govt).

[CA renter]

Exactly, Diego.

The fraud would be flushed from the system if not for the enablers of that fraud (Fed and govt).

[CA renter]

Exactly, Diego.

The fraud would be flushed from the system if not for the enablers of that fraud (Fed and govt).

[Author]

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