1,406 people arrested in "Operation Malicious Mortgage"

[Fredledingue]

The FBI is cracking down hard on mortgage fraud.
It's very good because they no only tackle the problem at the root, but discourage other frauds in other areas.

During the dot.com bubble burst, there wasn't, even not remotely, such move.

Originally Posted by Lara Jakes Jordan, Associated Press Writer

More than 400 real estate industry players have been indicted since March -- including dozens over the last two days -- in a Justice Department crackdown on incidents of mortgage fraud nationwide that have contributed to the country's housing crisis.

The FBI put the losses to homeowners and other borrowers who were victims in the schemes at over $1 billion.
"Mortgage fraud and related securities fraud pose a significant threat to our economy, to the stability of our nation's housing market and to the peace of mind to millions of Americans," Deputy Attorney General Mark Filip said in a statement Thursday. The Justice Department and FBI planed to announce the cases at an afternoon news conference in Washington.
Since March 1, 406 people have been arrested in the sting dubbed "Operation Malicious Mortgage" that saw 144 cases across the country. Sixty people were arrested on Wednesday alone, including in Chicago, Miami, Houston and a dozen other regions policed by the FBI. In a separate sweep, two former Bear Stearns managers in New York were indicted Thursday, becoming the first executives to face criminal charges related to the collapse of the subprime mortgage market.

full article

[Stocktrading101]

It's about time!

[Airelon]

Amen to that.

I saw 400 hedge fund managers had been arrested on thoughts of fraud to their investors. I just had to step back and give a good ol' fashioned golf-clap to that one.

I have nothing against hedge funds. I've thought of starting my own in the past. But you handle that sort of money - and get involved in that sort of shinanigans? You deserve whatever the government decides to throw at you.