Household HSBC Watch

It looks like our government is trying to make us think they are doing something about mortgage fraud. More than 400 defendants were charged by federal prosecutors Thursday in connection with alleged mortgage fraud over schemes carried out since March, said to have resulted in about $1 billion in losses. In a probe over three and a half months, dubbed Operation Malicious Mortgage, the Justice Department and the Federal Bureau of Investigation uncovered 144 mortgage-fraud cases. U.S. authorities arrested 60 people on Wednesday alone in 15 districts around the country.

This is a two-way street, although the currect focus is on individuals. Lenders and brokers can also perpetrate fraud, which will soon be discovered. The multiagency operation primarily went after lending fraud, foreclosure-rescue scams and mortgage-related bankruptcy schemes. Let’s not forget the two former Bear Stearns managers were charged in a nine-count indictment Thursday alleging wire fraud, conspiracy and securities fraud.