Chicago is My Home

19
Jun

Authorities Begin to Make Arrests Related to Mortgage Fraud, Identity Theft

Author: Adam Fendelman, Category: Business

CHICAGO – Federal authorities on Thursday began making arrests and pressing charges in the Chicago area against defendants suspected of mortgage fraud and identity theft, according to a Chicago Tribune report.

The arrests, which could reach as many as 70, are part of a nationwide mop up following the mortgage crisis that has rocked the United States economy and particularly the real estate industry. In perhaps the most high profile of the cases, two former Bear Stearns managers (Ralph Cioffi and Matthew Tannin) were arrested in New York on Thursday on charges of securities fraud.

According to the Chicago Tribune report, mortgage fraud has become increasingly sophisticated as criminals and street gangs use real estate to launder drug money. In a case earlier in 2008 involving the Black Disciples and Black P Stone gangs, investigators found as many as 100 Chicago-area properties tied up in a mortgage fraud scheme.

The arrests are expected to include real estate agents, brokers and appraisers.

By Megan O’Neil