38 indicted for Arizona mortgage fraud scams

PHOENIX - The Arizona Financial Fraud Enforcement Task Force has announced multiple indictments charging 38 people in various mortgage fraud schemes across the state this month.

Loan or escrow officers and real estate appraisers were among those indicted in the schemes, which included "cash back" and loan origination scams.

U.S. Attorney Dennis K. Burke joined members of the Task Force in making the announcement.

"These are the most indictments ever in one month for mortgage fraud," he said. "It reflects both how pervasive the problem is and how committed we are to investigate, prosecute and convict these scam artists."

President Obama's interagency Financial Fraud Enforcement Task Force organized the Operation Stolen Dreams sweep that started March 1, 2010.

To date, 51 defendents in Arizona have been indicted, convicted or sentenced. In addition to the 38 indicted this month, 13 others have been convicted and sentenced in the state.

Attorney General Eric Holder made the announcement following a press conference in Washington, D.C.

"Mortgage fraud ruins lives, destroys families and devastates whole communities, so attacking the problem from every possible direction is vital," he said. "We will use every tool available to investigate, prosecute, and prevent mortgage fraud, and we will not rest until anyone preying on vulnerable American homeowners is brought to justice."

Results of the nationwide takedown is the largest collective enforcement effort ever to confront mortgage fraudsters, involving 1,215 criminal defendents across the country.

That number includes 485 arrests of people allegedly responsible for more than $2.3 billion in losses and the recovery of more than $147 million.

U.S. Attorney Burke also annnounced the launch of an initiative to educate consumers about the various scams and risks of mortgage fraud.

"We want to give the tools to people so they can prevent these disasters before they begin," Burke said.

Email usaaz.community@usdoj.gov to request a presentation on fraud from the U.S. Attorney's Office.