Mortgage Fraud Surge Investigation Nets More Than 100 Individuals Throughout Middle Florida

Mortgage Fraud Surge Investigation Nets More Than 100 Individuals Throughout
Middle Florida

Part of the Justice Department's Ongoing Initiative

TAMPA, Fla., Nov. 4 /PRNewswire-USNewswire/ -- United States Attorney A. Brian
Albritton today announced the results of a nine-month-long Mortgage Fraud
Surge investigation that has resulted in charges against more than 100
defendants and involves allegations concerning more than $400 million in loans
procured by fraud and more than 700 properties. U.S. Attorney Albritton is
holding events throughout the district this week to highlight the
announcement.

There are currently mortgage fraud-related charges pending against
approximately 500 defendants in federal mortgage fraud cases around the
nation. The cases concern both mortgage schemes designed to defraud mortgage
lenders and "foreclosure rescue schemes" which prey on distressed homeowners.

"This initiative sends a clear message that mortgage fraud will not be
tolerated. We must protect the integrity of the real estate market in our
communities, which is a major contributor to the health of our economy, here
and throughout the country," said U.S. Attorney Albritton.

Florida's Mortgage Fraud Surge was launched in late January 2009 in response
to the epidemic of mortgage fraud throughout the state, which began during
Florida's real estate boom earlier this decade. To address this wide scale
problem, the U.S. Attorney's Office for the Middle District of Florida, along
with the Federal Bureau of Investigation (FBI) in both its Tampa and
Jacksonville Divisions, began a nine-month intensive effort to identify,
investigate, and prosecute mortgage fraud in all of its forms.

To accomplish the Surge, the FBI and the U.S. Attorney's Office for the Middle
District of Florida devoted significant additional personnel and resources to
investigating and prosecuting mortgage fraud cases. All of the Assistant U.S.
Attorneys in the Ft. Myers, Orlando, and Jacksonville offices responsible for
criminal matters handled mortgage fraud investigations, and in the District's
largest office, Tampa, over half of the Criminal Division Assistant U.S.
Attorneys were assigned mortgage fraud matters. In addition, FBI Special
Agent in Charge Steven E. Ibison of the Tampa Division and FBI Special Agent
in Charge Jim Casey of the Jacksonville Division established mortgage fraud
task forces in their respective jurisdictions. A number of state and federal
law enforcement agencies joined these mortgage fraud task forces, and the
agents, investigators, and other law enforcement personnel from these
participating agencies conducted an intensive and wide-ranging investigation
into hundreds of mortgage fraud leads during this Surge phase. Along with the
FBI, the agencies that joined in the Surge and who participated in the
mortgage fraud task forces are: the Internal Revenue Service-Criminal
Investigation, U.S. Secret Service, U.S. Housing and Urban Development Office
of Inspector General, U.S. Postal Inspection Service, Florida Department of
Law Enforcement, Florida Department of Financial Services/Division of
Insurance Fraud, Florida Office of Financial Regulation, Florida Department of
Business and Professional Regulation, Lee County Sheriff's Office (Ft. Myers
Division only), Collier County Sheriff's Office (Ft. Myers Division only) and
Brevard County Sheriff's Office (Orlando Division only).

The U.S. Attorney's Office charged mortgage fraud defendants throughout the
Middle District of Florida. The number of defendants charged by office breaks
down as follows: Ft. Myers-32; Tampa-30; Orlando-19; and Jacksonville-24. Of
these defendants, 7 are related to cases under seal and not in the public
record at this juncture.

An indictment or complaint is merely a formal charge that a defendant has
committed a violation of the federal criminal laws, and every defendant is
presumed innocent unless, and until, proven guilty.

The surge investigation completed on October 31, 2009, and the announcement
today is the first phase of a continuing effort to investigate and prosecute
not only mortgage fraud professionals and other individuals who have engaged
in multiple fraudulent mortgage transactions, but also larger organizations
and even financial institutions.

SOURCE U.S. Department of Justice

Steve Cole of the Office of United States Attorney A. Brian Albritton, Middle
District of Florida, +1-813-274-6136, fax: +1-813-274-6300