Justice Department Admits it Vastly Overstated Mortage-Fraud Initiative


The U.S. Justice Department vastly overstated the number of defendants it charged in a 2012 mortgage-fraud crackdown, reports MainJustice.com. Attorney General Eric Holder said last October that 530 people had been charged in the Distressed Homeowner Initiative. The department now has revised that number to 107, and it corrected the number of victims from 73,000 to 17,185. DOJ said frauds prosecuted in the initiative amounted to $95 million, not $1 billion as originally claimed.

The department said the original claim included defendants who had been charged before the initiative started and cases in which victims did not fit the “narrow definition” of distressed homeowner involved in the initiative.

Comments are closed.