FBI and DOJ Now Involved in Orange County Mortgage Fraud Prosecutions

The Justice Department today reported filing 151 criminal mortgage fraud prosecutions in the first ten months of 2008. Of those, 19 were in California, while 73 were in Florida. Considering the fact that California is the largest U.S. market for high-risk home loans, followed closely by Florida and the Las Vegas area, we can expect the investigation of the collapsing subprime mortgage industry by the Department of Justice, as well as the California Attorney General Jerry Brown, to result in more California prosecutions being filed.

Although 151 prosecutions have been filed, only 37 prosecutions so far have been reported as being complete. The FBI says that each mortgage fraud scheme contains some type of “material misstatements, misrepresentation or omission relied upon by and underwriter or lender to fund, purchase or insure a loan.

According to the recent report, “given the broad troubles now confronting the economy of the United States, and the role that mortgage fraud may have played in these problems, the relatively small number of cases … is somewhat surprising.” In other words, expect the number of indictments and arrests to increase in the coming months. For example, during the same period U.S. attorney offices criminally prosecuted 554 individuals for simple drug possession, 399 cases for environmental wildlife protection and 405 for child pornography. After watching the extreme volatility and economic collapse in the markets in the last few weeks, we can expect the DOJ to shift focus and go after the alleged culprits of the collapse.

According to the Financial Crimes section of the FBI, mortgage fraud is now a white-collar crime “of special interest” to the Bureau. Other areas of white collar crime investigated by the FBI include: health care fraud, securities and commodities fraud, corporate crime, identify theft, insurance fraud (non-health care related), and money laundering.

If you are being investigated or have been arrested for allegations of mortgage fraud in Orange County, you need the assistance of competent defense attorneys working to ensure your rights are protected and that you receive your constitutional due process. The criminal defense lawyers at Houston & Blanco can assist with any mortgage fraud allegations and handle any other criminal accusations against you. Call TODAY! Do NOT WAIT! The difference between an acquittal and a conviction sometimes comes down to responding early and conducting a thorough and timely investigation. Call the Orange County criminal defense attorneys of Houston & Blanco at 714.841.3921 or email at info@HBLawyers.net .