Mortgage Fraud Arrests

Between March 1 and June 18 of 2008, the U.S. Department of Justice and the FBI arrested over 300 people on charges of mortgage fraud in an investigation known as "Operation Malicious Mortgage."

Fast Facts

1. Investigation called: "Operation Malicious Mortgage"
2. Over 400 people charged with fraud
3. By June 19, 2008, 300 people had been arrested
4. Investigation began on March 1, 2008
5. Former Bear Stearns hedge fund managers Ralph Cioffi and Matthew Tannin arrested in a separate sweep
6. FBI says the schemes caused a financial loss of over $1 billion¹
7. 53,000 cases of suspected mortgage fraud in 2007¹
8. June 18, 2008: 60 people arrested in over a dozen regions including Chicago, Miami and Houston¹
9. Schemes included: fraudulent bankruptcy claims, forged documents, misstatement of income and inflated appraisals
10. Fraud is factor in the housing crisis

FBI Statement on Arrests

"Through this operation more than 400 defendants have been charged. We have obtained 173 convictions in crimes that accounted for more than $1 billion in estimated losses."—FBI Director Robert Mueller²

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