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400 charged in feds’ real estate sweep
The Justice Department said yesterday that more than 400 real estate industry players have been charged since March on mortgage fraud-related charges. The FBI said that the real estate agents, appraisers, developers and lenders cost homeowners and other borrowers over $1 billion. The FBI is investigating 19 companies, including investment banks and hedge funds, that were linked to mortgage securities. Ten “mortgage fraud hotspots” have been identified: California, Colorado, Texas, Minnesota, Michigan, Illinois, Ohio, New York, Georgia and Florida. Separately, two former Bear Stearns fund managers became the first Wall Street executives to be indicted yesterday for their roles in the subprime crisis.