North Carolina Creates New Mortgage Fraud Task Force

Triangle Business Journal – by Chris Baysden

The U.S. Attorney’s Office for the Eastern District of North Carolina announced Thursday the creation of a new Mortgage Fraud Task Force for the district.

The task force will pool the resources of existing criminal and civil attorneys in the office as well as federal law enforcement agencies with the goal of fast tracking mortgage fraud cases in the district. As part of the task force’s creation, Assistant U.S. Attorney William Gilmore has been named to the new position of mortgage fraud coordinator.

“There’s somebody here right now to push these things forward and whose focus is almost exclusively dedicated to that,” says Gilmore, a 32-year-old Raleigh native who received an undergraduate degree from N.C. State University before earning his law degree at the University of Miami.

Gilmore says that the task force will target mortgage fraud at all levels, ranging from straw buyers to mortgage brokers to conspiring loan officers.

The Eastern District office, which is overseen by U.S. Attorney George Holding, also announced the results of a national mortgage fraud takedown called Operation Stolen Dreams. Starting on March 1, the operation has involved 1,215 criminal defendants nationwide, including 485 arrests of people who are allegedly responsible for more than $2.3 billion in losses, according to a statement issued by the U.S. attorney’s office. So far, the operation has generated 191 civil enforcement actions that have resulted in the recovery of more than $147 million.

Locally, Gilmore says that the Eastern District office has gotten convictions out of three cases so far and several other cases are expected to move forward in the next few weeks.

Reporter e-mail: cbaysden@bizjournals.com

9 Responses

  1. Need help with complaints and claims against Citifinancial regarding loan modification fraud and mis leading consumers about deferred interest at end of modification

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  2. does anyone know a lawyer involved in a lawsuite against wellsfargo in north carolina for loan modifacation fraud a have the same story as everyone else and i am now living in an apartment thanks to the fact they forclosed on my house, please email me at johnnvalerie91@aol.com if you know of anyone. thanks

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  3. […] case was investigated and prosecuted by the U.S. Attorney’s Office’s Mortgage Fraud Task Force, a group of federal and state law enforcement agencies whose goal is to fast-track mortgage fraud […]

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  4. This is like kicking a fly off a donkey’s ass… please do not get your knickers in a twist over this one!

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  5. Anonymous is right. The investigations are targeted at loan modification fraud. It is a shame that the authorities won’t acknowledge that what the banks did is no different. A fraud is a fraud, regardless.

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  6. Stan, don’t know if you saw the Chicago Tribune article last week, but they arrested 12 Wisconsin people for mortgage fraud. It may be too late for us, but the wheels of justice are starting to turn. Hang in there!

    I can’t help but think that someone will be going down soon from Wells Fargo. The investors are starting to wake up and realize they were scammed. Once enough of these upper-echelon investors figure out what happened, they’ll take the initiative to file lawsuits. I know of one on the way right now.

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  7. The mortgage fraud investigations appear to be targeted at current scams – such as modification fraud.

    We need investigations to target years of foreclosure fraud – and fraud from the onset in the mortgage origination. We need bank CEO fraud investigation. Will never get that.

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  8. Wis Also!
    Stan
    Racine

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  9. I wish Maryland would be this proactive.

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