U.S. Attorney General Charges 530 in Mortgage Probe With $1 Billion in Fraud Losses

U.S. Charges 530 in Mortgage Probe With $1 Billion in Losses

The U.S. brought charges against 530 people over mortgage schemes that cost homeowners more than $1 billion, Attorney General Eric Holder said today.

More than 73,000 homeowners were victims of various frauds for which charges were filed during a year-long crackdown, including “foreclosure rescue schemes” that take advantage of those who have fallen behind on payments, the Justice Department said in a statement.

“These comprehensive efforts represent an historic, government-wide commitment to eradicating mortgage fraud and related offenses across the country,” Holder said in Washington.

Typical schemes involved promises to homeowners that foreclosures could be prevented by payment of a fee, according to the statement. As part of the schemes, “investors” purchase the mortgage or the titles of homes are transferred to those taking part in the fraud, resulting in homeowners losing their property, the department said.

To contact the reporter on this story: Phil Mattingly in Washington at pmattingly

To contact the editor responsible for this story: Steven Komarow at skomarow1

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“…if anything was not well said, that is to be attributed to my ignorance.”
–St. Thomas Aquinas, upon his deathbed, 7 March 1274

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