By Justin Rohrlich Jun 01, 2012 2:00 pm
“Today’s indictment re-affirms our commitment to transparency and straight dealing in the financial markets,” says prosecutor.
A 184-count indictment was handed down yesterday against a group of bankers for falsifying mortgage documents “so that they could earn commissions and fees by ensuring that otherwise unqualified borrowers would receive loans.”
The fraudulent loans were then sold to Fannie Mae (FNMA.OB), after which they were repackaged into mortgage-backed securities and purchased by outside investors.
“We are proud to have contributed to this effort, which to date has produced multiple indictments of individuals who allegedly engaged in this significant fraud scheme,” beamed Steve A. Linick, Inspector General of the Federal Housing Finance Agency. “My office is committed to ferreting out fraud throughout the housing system, and partnering with law enforcement agencies making a similar commitment.”
Manhattan District Attorney Cyrus Vance echoed Linick’s thoughts.
“The public must have confidence that when a bank issues a loan that it…
View original post 772 more words