A federal task force targeting mortgage fraud and foreclosure-rescue scams today released their tally since March 1: 485 arrests, 191 civil enforcement actions and the recovery of more than $147 million.
Operation Stolen Dreams targets fraudsters taking advantage of many desperate homeowners hoping to avoid foreclosure through bogus mortgage relief programs, federal officials said. The operation is run by President Obama’s Financial Fraud Enforcement Task Force, composed of representatives from several federal civil and criminal enforcement agencies.
Those arrested are allegedly responsible for more than $2.3 billion in losses.
“The last several years have seen enormous and damaging developments in the mortgage and housing markets, and the government has stepped in to bolster unstable marketplaces and devastated communities,” said Housing and Urban Development Inspector General (HUD-OIG) Kenneth M. Donohue. “The HUD-OIG, in partnership with other agencies, is deeply committed to ensuring that scarce resources are not diverted to those who seek to enrich themselves at the expense of those who so desperately need assistance today.”
On the civil enforcement front, the Federal Trade Commission also announced legal actions against more than a dozen marketers accused of promoting bogus mortgage modification or foreclosure relief programs, often charging up-front fees.
An FTC settlement order bans 16 marketers from the mortgage modification or foreclosure relief business.
One particular promoter has been ordered to pay $11.4 million for “flouting a previous court order,” the FTC said.
The $11.4 million contempt order against Bryan D’Antonio and three companies he controls – The Rodis Law Group Inc., America’s Law Group Inc., and The Financial Group Inc. – came at the request of the FTC. The companies allegedly issued false claims that they would stop foreclosures and negotiate lower mortgage interest rates, monthly payments, and principal balances.
See the FTC’s list of civil actions against the mortgage relief marketers.
The federal task forces provides the following website for reporting mortgage fraud. http://stopfraud.gov/
