FBI charges hundreds in mortgage fraud roundup

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From CNN this morning: ‘Hundreds of people have been arrested for alleged mortgage fraud as part of an investigation by the FBI and Justice Department that began March 1, government officials told CNN Thursday.’

More: ‘Losses in the fraud cases total about $1 billion, one official said, adding that at least 300 were arrested.... Most of the arrests came Wednesday, federal law enforcement officials said, in cities including Miami, Houston, San Antonio, Baltimore, Chicago and others. The suspects are thought to have been involved mostly in small-scale schemes.’

Analysis/Bloviation: I’m always suspicious of these government dog-and-pony shows, which invariably involve a press conference and a specially named task force (Operation Malicious Mortgage ... Operation Sub-Prime Thunder ... Operation Get the Bad Guys, whatever). These roundups are clearly planned and executed with the hope of commanding extensive media coverage. I’m not particularly interested in the pronouncements from Washington today; I’m more curious to see what kind of cases the government is bringing here in Los Angeles.

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com