Justice Department Says Nearly 500 Arrested in Mortgage Fraud Probe - Spokane, North Idaho News & Weather KHQ.com

Justice Department Says Nearly 500 Arrested in Mortgage Fraud Probe

WASHINGTON (AP)- The federal government is cracking down on mortgage fraud.

Attorney General Eric Holder announced that nearly 500 people have been arrested since March in a nationwide effort called Operation Stolen Dreams. He says investigators uncovered more than $2.3 billion in losses in cases involving more than 1,200 criminal defendants.

Meanwhile, Justice Department civil actions have recovered more than $147 million. Two Countrywide companies will pay $108 million to settle allegations that they inflated the fees that homeowners paid.

At Washington news conference today, FBI Director Robert Mueller  told reporters mortgage fraud threatens the nation's economic stability.

The Justice Department says the probe has resulted in significant criminal cases in Chico, Calif.; Miami; Detroit; Duluth, Minn.; New Jersey, and Atlanta.

   

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