US Government Forms

Connecticut Mortgage Fraud Task Force

By Andrew Gorosko

The US government has formed the Connecticut Mortgage Fraud Task Force, which will investigate and prosecute mortgage fraud cases and related financial crimes occurring in the state.

Nora R. Dannehy, the acting United States Attorney for the District of Connecticut, and Kimberly K. Mertz, the special agent in charge of the New Haven Division of the Federal Bureau of Investigation, on July 31 announced the investigatory unit’s formation.

During the past year, the US Attorney’s Office in Connecticut has brought charges or secured convictions in several major mortgage fraud cases. These cases have been successfully investigated through a collaborative effort of multiple federal and state law enforcement agencies.

The task force will assist efforts in investigating and prosecuting mortgage fraud and related financial crimes.

The task force includes representatives from the US Attorney’s Office, the Federal Bureau of Investigation, Internal Revenue Service’s Criminal Investigation Division, the US Postal Inspection Service,; the US Department of Housing and Urban Development, Office of Inspector General, the Federal Deposit Insurance Corporation, Office of Inspector General, and the State of Connecticut’s Department of Banking.

“The investigation and prosecution of mortgage fraud is a key component of the US Attorney’s Office’s efforts to combat economic crime in Connecticut,” Ms Dannehy said in a statement.

“The formation of this task force will go a long way toward making sure that those who have profited while inflicting damage to our neighborhoods and our economy will be brought to justice,” she said.

Mortgage fraud cases often involve false statements on mortgage loan applications, including the falsification of income, liabilities ,or employment, and fraudulently inflated property appraisals.

Task force members will investigate cases involving a variety of mortgage fraud schemes, many of which involve multiple suspects, multiple borrowers, and millions of dollars in fraudulent loans.

“Mortgage fraud hurts everybody, and we need the public’s help to bring mortgage fraudsters to justice, as they have reaped a large amount of money and helped to create our state’s and our nation’s current housing and credit problems,” said Ms Mertz.

In addition to investigating past mortgage fraud schemes that have contributed to the nation’s current economic crisis, the task force also will focus on emerging crime trends that are associated with the growing tide of foreclosures, including “foreclosure rescue” schemes and “short sale” schemes.

Citizens are encouraged to report any suspected mortgage fraud activity by calling 203-333-3512 and requesting the task force, or by sending an email to ctmortgagefraud@ic.fbi.gov.

Ms Dannehy and Ms Mertz urged distressed homeowners to do business only with companies that are known to be trustworthy. Homeowners should never transfer title to a property, or disclose any personal information, unless they are certain that they are dealing with a reputable business. To see a list of housing counseling agencies approved by the US Department of Housing and Urban Development, visit www.hud.gov/offices/hsg/sfh/hcc/fc/ or contact the Better Business Bureau.

For more information on avoiding foreclosure and foreclosure scams, visit www.hud.gov/foreclosure. More information on mortgage fraud can be found at www.fbi.gov/hq/mortgage_fraud.htm.