Silly me, berating Attorney General Eric Holder and his DOJ as nincompoops on the issue of mortgage fraud investigations and prosecutions. As an alert reader pointed out, they're making cases alright: you just haven't heard of them because they are individuals, not corporations.
Plainfield Woman Involved in Mortgage Fraud Scheme Sentenced to Two Years in Prison:
Maria Logan, 47, of Plainfield, was sentenced today by Senior United States District Judge Alfred V. Covello in Hartford to 24 months of imprisonment, followed by two years of supervised release, for her participation in an eastern Connecticut mortgage fraud scheme.In other words, the same thing Goldman Sachs, Bank of America, Wells Fargo and JP Morgan Chase were doing in the run-up to the Great Crash of 2008. The only difference here is that Ms. Logan and her bumbling compatriots didn't have Ivy League degrees and a Wall Street facade of legitimacy to hide behind.
According to court documents and statements made in court, from approximately 2004 to 2007, Jose Guzman, Maurizio Lancia, Stacey Petro, and others used mortgage brokerage, property management, and home improvement companies to arrange for individuals (“borrowers”) to purchase real estate, primarily residential housing properties located in New London County, by obtaining funding from various mortgage companies and mortgage originators after submitting false information on the borrowers’ mortgage loan applications.
Three Loan Officers Plead Guilty to Mortgage Fraud Scheme:
Three mortgage loan officers, Frederick Warren, Dorian Brown, and Fritz Bonaventure each pled guilty today for their roles in a $9 million mortgage fraud scheme. The defendants pled guilty before U.S. District Judge Naomi Reice Buchwald. Manhattan U.S. Attorney Preet Bharara said, “Frederick Warren, Dorian Brown, and Fritz Bonaventure betrayed the lending institutions for which they worked, approving loan applications they knew were bogus and would end up in default.Not only are their "lending institutions" never mentioned in the presser, but we are led to believe that these three engaged in such activity only to benefit themselves.
And that, ladies and germs, is the true tragedy of white-collar criminal prosecution in the U.S. If you rip off investors to benefit yourself, we'll come getcha and make a "sterling example" of you (as per the one U.S. Attorney).
However, if you pinch investors to benefit your company and its stockholders, and plunge the economy into the toilet via your massive, criminal, Wall Street Cosa Nostra, you'll get a pass from Eric Holder and the DOJ.