6 from Seattle-area indicted in crackdown on mortgage fraud

2008 June 20

June 20 2008 - Six Seattle-area people have been indicted by a federal grand jury in connection with “Operation Malicious Mortgage,” a national takedown of mortgage-fraud schemes that has resulted in more than 400 arrests nationwide and losses estimated at more than $1 billion — nearly $8.4 million in the Seattle case alone.

Those indicted included a disbarred lawyer, a former bank-loan officer and a mortgage broker, according to the U.S. attorney’s office. Others include the owner of several shell corporations that “flipped” houses as part of a scheme using unqualified “straw” buyers who allowed inflated loans to be made in their names, only to default on the mortgages, the indictment says.

The case is among 144 prosecutions involving 406 people nationally. More than 60 arrests were made Wednesday, the Department of Justice announced.

6 from Seattle-area indicted in crackdown on mortgage fraud
by Mike Carter | Seattle Times

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