Nine Indicted In $90M Mortgage Fraud Scheme

A federal grand jury in Brooklyn has returned an indictment charging nine defendants with a mortgage fraud scheme that resulted in losses exceeding $90 million. The indictment alleges the defendants conspired to defraud Washington Mutual Bank ("WAMU”) and DLJ Mortgage Capital, Inc. ("DLJ”), a subsidiary of Credit Suisse, in connection with the development of two tracts of land located in Brooklyn and Queens by staging the sales of the same properties to straw buyers in order to obtain multiple mortgages on those properties. Posted in: Collusive Networks