Remarks Prepared for Delivery by Deputy Attorney General Mark R. Filip at Press Conference...

Remarks Prepared for Delivery by Deputy Attorney General Mark R. Filip at
Press Conference Announcing the Results of Operation Malicious Mortgage

WASHINGTON, June 19 /PRNewswire-USNewswire/ -- The following are remarks
prepared for delivery by Deputy Attorney General Mark R. Filip:

Good afternoon. I am pleased to be joined today by Robert Mueller, Director
of the FBI.

Today we are announcing the results of a nationwide law enforcement sweep
aimed at investigating and prosecuting mortgage fraud. In three and a half
months, this action, known as Operation Malicious Mortgage, has resulted in
charges against more than 400 individual defendants. Yesterday alone, 60
people were arrested and face charges, and arrests are continuing today.

Mortgage fraud poses a significant threat to our economy, to the stability of
our nation's housing market, and to the peace of mind of millions of American
homeowners. It includes a wide variety of criminal acts that have proved
devastating to many American families.

In a separate action today, an indictment was unsealed in the Eastern District
of New York charging two Bear Stearns portfolio managers with conspiracy and
fraud charges related to two hedge funds that invested in, among other things,
securities tied to mortgage debt.

According to the indictment, the men committed fraud by making
misrepresentations to the funds' investors. Even though they knew that the
funds were in danger of collapse because of the decline of the subprime
mortgage market, they misled investors about the financial prospects of the
funds by making misrepresentations about the amount of money other investors
were withdrawing and about the extent of their personal investment in the
funds.

Operation Malicious Mortgage and the Bear Stearns case demonstrate that the
Department of Justice is determined to detect and punish mortgage fraud and to
help restore stability and confidence in our housing and credit markets. The
cases announced today represent the ongoing enforcement work of federal
investigators and prosecutors across the country, working with the more than
40 task forces they and their state and local counterparts have formed to
combat fraud and related abuses.

Operation Malicious Mortgage marks the third nationwide sweep that the
Department has directed since 2004 against mortgage fraud and related crimes
that have roiled our housing and credit markets. The integrity and
credibility of these markets depend upon fair dealing. While the law cannot
dictate economic outcomes, or protect individuals from bad investment
decisions or unlucky breaks, it does protect them from fraud. Our
investigation and prosecution of these crimes will continue as we work with
other federal and state agencies to restore stability and confidence in our
nation's housing and credit markets.

I would also like to thank our partners in this operation and their
representatives in the audience today, including Assistant Inspector General
for Investigations at the FDIC Office of the Inspector General, Sara Gibson;
Director of Operations for the IRS Criminal Investigation Division, Rick
Raven; Deputy Assistant Director Matt Allen of the Office of Investigations
at Immigration and Customs Enforcement; Assistant Inspector General for
Investigations John McCarty from the U.S. Department of Housing and Urban
Development; U.S. Trustee Program Director Clifford White; Inspector in
Charge of Criminal Investigations at the U.S. Postal Inspection Service,
Robert DeMuro; as well as our partners at U.S. Secret Service, and the
Department of Veterans Affairs Office of the Inspector General.

This operation, and our ongoing efforts against mortgage fraud, work best as a
cooperative effort across the federal government, and with our state and local
counterparts. Our efforts depend upon the help of all of these organizations
represented here today, and dozens more around the country.

Finally, although I trust this is stating what is self-evident to every
American, all of the individuals charged in this operation, like anyone
charged in America, is presumed innocent unless and until convicted. The
Department and its partners welcome the chance to present our case to juries
and judges, but those charged are presumed innocent in our legal system.

Now I'd like to turn the microphone over to Director Mueller, and then we will
take any questions you have.

SOURCE U.S. Department of Justice

U.S. Department of Justice Office of Public Affairs, +1-202-514-2007, TDD
+1-202-514-1888