Mortgage Fraud Surge Investigation Nets More Than 100 Individuals Throughout Middle Florida

The cases concern both mortgage schemes designed to defraud mortgage lenders and foreclosure rescue schemes which prey on distressed homeowners.

Palm Coast, FL – November 4, 2009

TAMPA, Fla., Nov. 4 [PRNewswire-USNewswire] – United States Attorney A. Brian Albritton today announced the results of a nine-month-long Mortgage Fraud Surge investigation that has resulted in charges against more than 100 defendants and involves allegations concerning more than $400 million in loans procured by fraud and more than 700 properties. U.S. Attorney Albritton is holding events throughout the district this week to highlight the announcement.
There are currently mortgage fraud-related charges pending against approximately 500 defendants in federal mortgage fraud cases around the nation. The cases concern both mortgage schemes designed to defraud mortgage lenders and "foreclosure rescue schemes" which prey on distressed homeowners.
Toby’s Commentary:  This is just the tip of the iceberg. Mortgage fraud made a significant contribution toward the rise and collapse of the real estate market. There will be a continuing flow of indictments over the next several months.
3 replies
  1. sleeplis
    sleeplis says:

    rental fraud

    Not only should they go after the mortgage fraud, they should go after the home owners and property management companies that collect rent and not pay the mortgage. The epidemic of this fraud is off the scale and should be punished. The renters that are left out in the cold with no deposit. I have also witness a local Real Estate company holding a renter to their lease while he renter was handed foreclosure papers by a sheriff and the owner is a Realtor for the company. Shame on them.

  2. Denis Logan
    Denis Logan says:


    I also believe that people in foreclosure or short sale should not rent their homes. But until the Bank completes foreclosure that home still belongs to the owner. In my office on the bulletin board there is a federal law that protects renters. This new law gives renters with a lease 90 days after their lease to vacate, regardless of the foreclosure. Renters’ on month to month have 90 days from the date the foreclosure is effective. Renters have to protect them selves. They have to be knowledgeable, not just move because the owner says so.

  3. John
    John says:

    Too little too late

    You know, I do applaud the authorities for rounding up this many people and I do hope that the charges stick but where was all of this activity in 2004-2006 when all of this was going on???

    The banks knew darn well that the was no way a janitor was making $500,000 per year nor that a college student could afford 7 mortgages.

    This effort although an important warning for the future is a bit late in my opinion. The crack down should have come while the crimes were being committed so that they could have been prevented. The total amount of fraud got to a point that it was business as usual and lying on an application or "flipping" a property was considered normal business.

    It was a very sad time in our history. Greed ran the world!

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