REALTOR® Magazine-Daily News-FBI Sting: 24 Caught in Mortgage Loan Fraud

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Daily Real Estate News | March 26, 2009 | FBI Sting: 24 Caught in Mortgage Loan Fraud
An undercover FBI sting netted 24 people in the Chicagoland area, accusing them of mail and wire fraud that helped straw buyers get $4.2 million in home mortgages.

Among those charged were mortgage brokers, loan officers, loan processors, attorneys, property appraisers, accountants, and a banker. It’s possible that each could be facing prison terms as long as 20 years.

"We want to send a message to people that, if they think they can get $150,000 out of a bank by committing mortgage fraud, and they think that's easy money, our view is they may be walking into a criminal case," said Patrick Fitzgerald, the U.S. Attorney in Chicago who announced the indictments.

In nine of the cases, the straw buyers were actually undercover investigators and there was no financial loss. In the tenth case, the loans caused losses in excess of $1.1 million.

"We will not stand by while [some] exploit the financial system for their personal gain," Robert Grant, special agent in charge of the FBI's Chicago office, told a news conference.

Source: The Associated Press, Mike Robinson (03/25/2009)