Operation Malicious Mortgage

Over 400 people have been arrested as part of a major government crackdown on mortgage fraud. The arrests follow an investigation by the Federal Bureau of Investigation (FBI) and the Justice Department known as "Operation Malicious Mortgage."

Fast Facts

1. June 19, 2008: Operation Malicious Mortgage announced
2. FBI Director Robert Mueller and Deputy Attorney General Mark Filip announced details of the mortgage fraud arrests
3. Investigation began on March 1, 2008¹
4. Number of fraud cases: 144²
5. More than 400 people charged³
6. More than 60 people taken into custody on June 18, 2008, in several cities, including Houston, Baltimore, San Antonio and Miami²
7. 67 defendants charged in Chicago, Illinois, area⁴
8. Fraud schemes included: filing bogus bankruptcy claims, inflating appraisals and cheating lenders³
9. 173 convictions
10. Losses to victims estimated at more than $1 billion¹
11. Former Bear Sterns hedge fund managers Matthew Tannin and Ralph Cioffi among those arrested
12. 2007: Nearly 53,000 cases of suspected mortgage fraud reported by banks nationwide¹
13. Focused on lending fraud, foreclosure and bankruptcy schemes⁵
14. Mortgage fraud cases fueled, in part, by subprime mortgage crisis⁶

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