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Mortgage Fraud

The Department of Justice's Financial Fraud Enforcement Task Force was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

In the mid- to late 2000’s, Nevada suffered from an overwhelming surge of fraudulent residential mortgage transactions which created life-altering financial hardships for many innocent homeowners and caused hundreds of millions of dollars of loss to financial institutions and investors. In 2008, the U.S. Attorney’s Office responded by making mortgage fraud prosecutions a priority. By 2009, the FBI had identified hundreds of potential targets responsible for the fraud. The District made full use of additional resources provided by DOJ Headquarters in Washington D.C. Since the inception of our mortgage fraud program in the spring of 2008 and through the end of 2012, over 200 persons have been charged with federal mortgage fraud crimes in Nevada. Most of those individuals were convicted and are in prison. For the first several years of this program, most of the investigations and prosecutions centered around loan origination fraud. Over the last several years, because of the residential housing and mortgage loan crisis, the fraudsters have moved into other areas, such as refinance and foreclosure rescue fraud, and we are now prosecuting some of those cases.

 

Updated February 10, 2017