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| Version 2 | Version 3 |
|---|---|
| FBI holds 406 for mortgage fraud | FBI holds 406 for mortgage fraud |
| (about 3 hours later) | |
| The FBI says it has arrested 406 property market players as part of its crackdown on mortgage fraud. | The FBI says it has arrested 406 property market players as part of its crackdown on mortgage fraud. |
| The arrests include estate agents and loan originators, who help homebuyers to take out loans. | The arrests include estate agents and loan originators, who help homebuyers to take out loans. |
| Reported mortgage fraud has soared in the past year, with the most common type being mis-statement of assets. | Reported mortgage fraud has soared in the past year, with the most common type being mis-statement of assets. |
| Earlier in the day, two former Bear Stearns managers in New York were arrested following the collapse of a fund linked to sub-prime mortgages. | Earlier in the day, two former Bear Stearns managers in New York were arrested following the collapse of a fund linked to sub-prime mortgages. |
| They are the first executives facing criminal charges following the crisis. | They are the first executives facing criminal charges following the crisis. |
| The property market investigation, known as Operation Malicious Mortgage, relates to a number of types of alleged mortgage fraud. | |
| "Operation Malicious Mortgage and the Bear Stearns case demonstrate that the Department of Justice is determined to detect and to punish mortgage fraud and to help restore stability and confidence in our housing and credit markets," said deputy US attorney general Mark Filip. | |
| Billion dollar losses | Billion dollar losses |
| The Justice Department said it was pursuing 144 cases against the 406 defendants. | The Justice Department said it was pursuing 144 cases against the 406 defendants. |
| Sixty of them were arrested on Wednesday alone. | Sixty of them were arrested on Wednesday alone. |
| The Justice department estimated that the losses to homeowners and other borrowers from the mortgage frauds amounted to about $1bn (£500m). | |
| "Mortgage fraud and related securities fraud pose a significant threat to our economy, to the stability of our nation's housing market and to the peace of mind to millions of Americans," said Mark Filip. | |
| Some of cases involve the alleged use of false employment records or the inflation of property values. | |
| Others are looking into alleged foreclosure rescue scams which target struggling homeowners offering to help prevent them losing their home for a fee. |