Justice Department Uncorks 'Operation Malicious Mortgage'

The Justice Department announced that it has been quietly conducting a nationwide sweep of the real estate industry for the past three and a half months, dubbed “Operation Malicious Mortgage.” So far it has charged 406 defendants with mortgage fraud in 144 cases, Deputy Attorney General Mark R. Filip said at a news conference this afternoon, and the fight against white-collar crime is far from over.

Yesterday alone, 60 people were charged in Chicago, Miami, Houston; and arrests continue today.

“Operation Malicious Mortgage and the Bear Stearns case demonstrate that the Department of Justice is determined to detect and to punish mortgage fraud and help restore stability and confidence in our housing market,” Mr. Filip said. “While the law, of course, cannot dictate economic outcomes or protect individuals from bad investment decisions or unlucky breaks, it does protect them from fraud.”

We have a call into the DOJ to figure out if any of the alleged perps are from the Big Apple.