Monday, June 8, 2009

Nine Accused in NY $92M Mortgage Fraud

Last week, USA Today reported that nine people we indicted on charges of conspiring to defraud Washington Mutual Bank and DLJ Mortgage Capital, a unit of Credit Suisse Group, in a $92 million mortgage fraud, prosecutors said Thursday.

To finance the projects, the defendants are accused of staging sales of the properties financed by mortgage loans...Entities controlled by (the group) made monthly payments on the mortgages, ensuring that none became delinquent, until payments ceased in 2007 with about $92 million in principal outstanding on the fraudulent loans, prosecutors say.

This may be one of the biggest mortgage fraud schemes on record; so how will it ultimately play out? With the dwindling economy and lower home prices, we may see many fraudsters following suit. What are your thoughts?

Nine Accused in NY $92M Mortgage Fraud

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