CALIFORNIA BUSINESS MINUTE
Mortgage Fraud
06-23-10
Hi, I am Tim Johnson and welcome to the California Business Minute.
This past week federal indictments have been handed down in three separate cases
in California bringing dozens to justice related to mortgage fraud.
In a report released yesterday by the FBI, it illustrated that pending mortgage
fraud investigations increased by 71 percent in 2009 from 2008.
This activity has been a concern for the Justice Dept. The Department has launched
a program dubbed Operation Stolen Dreams which targets mortgage fraudsters throughout
the nation and is the largest collective enforcement effort ever brought to bear in
arresting and prosecuting people involved in mortgage fraud. The effort to date has
resulted in the criminal charges against 1,215 people since March 1, 2010. Those
accused are allegedly responsible for more than $2.3 billion in losses. The operation
also has resulted in 191 civil enforcement actions, which have resulted unfortunately
in only recovering slightly more than $147 million.
Of concern for California as illustrated in the FBI report, the Bureau cites a source,
Agoura Hills-based Interthinx which identifies that there are 7 cities from California
that
are in the Top Ten for the Highest Mortgage Fraud Risk in the Nation.
Top Ten for the Highest Mortgage Fraud Risk in the Nation
1. Stockton
2. Modesto
3. Las Vegas
4. Riverside-San Bernardino-Ontario
5. Merced
6. Reno
7. Vallejo-Fairfield
8. Bakersfield
9. Cape Coral Ft. Meyers, FL
10. Fresno
“We will use every tool available to investigate, prosecute and prevent mortgage fraud,
and we will not rest until anyone preying on vulnerable American homeowners is brought
to justice,” says U.S. Attorney General Eric Holder. And a warning from FBI Director
Robert Mueller, “Those who prey on the housing market should know that hundreds of FBI
agents on task forces and their law enforcement partners are tracking down your schemes
and you will be brought to justice.”
I am Tim Johnson and this has been the California Business Minute.
To view the FBI report: The 2009 Mortgage Fraud Report: A Year in Review, go to:
http://www.fbi.gov/publications/fraud/mortgage_fraud09.htm
|
