The newest twist in a long-running federal mortgage fraud case was revealed Thursday as a "Bank Bribery Scheme," in which prosecutors said three Bank of America or Wachovia employees pulled in bribes of as much as $55,000.
Federal prosecutors announced the scheme as they unsealed indictments against 10 more defendants in the serpentine case, part of a broader federal crackdown on mortgage fraud.
The nationwide "Operation Stolen Dreams" has involved 1,215 criminal defendants, including 485 arrests, officials said Thursday in Washington. Losses are estimated at more than $2.3 billion.
The FBI is working more than 3,000 mortgage fraud cases, almost twice as many as two years ago. Fraud helped fuel the nation's foreclosure crisis.
"Mortgage fraud ruins lives, destroys families and devastates whole communities...," Attorney General Eric Holder said.
In Charlotte, prosecutors showcased Operation Wax House, which has now produced charges against 35 people since the first in November 2008.
Of those 35, 25 had previously agreed to plead guilty, including 10 in the last week.
The latest defendants have been indicted, indicating they do not have plea deals.
From the beginning, prosecutors have said the mortgage fraud involved seven pricey subdivisions in Union and Mecklenburg counties. The investigation has touched every step of the mortgage process. Defendants include a real estate agent, an appraiser, a builder, buyers, mortgage brokers and attorneys.
Prosecutors have said the victims were banks that loaned money for the homes.
Read more: http://www.charlotteobserver.com/2010/06/18/1508309/mortgage-case-twist-bankers-and.html#ixzz0rSeh7M7C
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