June 19 (Bloomberg) — More than 400 people have been charged in a federal roundup targeting mortgage fraud, the Justice Department said. FBI Director Robert Mueller and Deputy Attorney General Mark Filip will announce the national crackdown, dubbed Operation Malicious Mortgage, this afternoon in Washington. Nearly 300 people have been arrested thus far in cities ranging from Chicago to Dallas to Miami, department officials said. The sweep began in March and authorities estimate that victims lost more than $1 billion as a result of the frauds, which include schemes to cheat lenders, rip-off people facing foreclosure and the filing of fraudulent bankruptcy claims. Targets include real-estate agents, lawyers, appraisers and borrowers.
“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 of millions of American homeowners,” Filip said in a statement. Also today, two former Bear Stearns Cos. hedge-fund managers were arrested at their homes after being indicted by a federal grand jury in Brooklyn. They face conspiracy, wire fraud and securities fraud charges for their roles in the collapse of hedge funds that helped ignite the subprime meltdown. More
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