41 Charged in Massive New York Mortgage Fraud Crackdown

As part of "Operation Bad Deeds," a joint federal, state and local law enforcement operation targeting mortgage fraud crimes, 41 individuals have been charged in eight separate mortgage fraud cases with allegedly engaging in various mortgage fraud scams that collectively defrauded lenders out of more than $64 million in mortgage loans on more than 100 properties across New York State. Among those charged are six lawyers, seven loan officers, three mortgage brokers, an accountant and a residential property appraiser. According to Preet Bharara, U.S. attorney for the Southern District of New York, 31 defendants were arrested or surrendered to authorities today in New York, Pennsylvania, Ohio and North Carolina. One defendant is expected to surrender to authorities soon. Four of the defendants were previously charged and will appear in Manhattan Federal Court at a later date. Five defendants remain at large. The mortgage fraud scams alleged included property flips, equity stripping and appraisal and loan fraud. In one case, defendants operated a foreclosure rescue scheme, targeting individuals who were on the verge of losing their homes by tricking them into giving up the equity in the properties with false promises that their homes would be saved. The defendants could not be reached for comment.