FBI FAIL – Mortgage Fraud Summit Reveals Both Systemic Fraud and FBI’s Seeming Blind Eye

Mortgage Fraud Summit Reveals Both Systemic Fraud and FBI’s Seeming Blind Eye

Some excerpts from the report…

To combat mortgage and foreclosure fraud, we first need to understand the nature of the fraud. There are the small-potato schemes — the loan modification-aid scams, or the scams of fraudsters busting into foreclosed properties and renting them out. Yes, people get burned this way, but going after these frauds is like prosecuting the drug dealer on the corner, if you will.

The true nature of the fraud — the kingpin level, so to speak — is found in the current nature and structure of the financial / mortgage / foreclosure system itself. And that level of investigation is what the FBI carefully tip-toed around discussing at Wednesday’s Mortgage Fraud Summit that took place in Ontario, Ca.

California is one of the epicenters of mortgage trouble. According to the FBI, 24% of properties in the US are now underwater. Of those properties, 40% sit in California or Florida. San Bernardino County has one of the highest rates of foreclosures in the nation — one in 114 homes is in foreclosure. To help homeowners battling to save their homes, two grassroots groups — nonprofit Rhema Economic Research and Development and the Grassroots Assembly for Mortgage Fraud Victims — brought in an impressive array of authors and panelists.

What became clear from the presentations and discussion is that the FBI now seems more concerned by the fraud at the bottom of the chain instead of spending their energies and resources investigating the control fraud becoming evident throughout the entire system.

Sharon Ormsby — chief of all financial / white collar crimes for the FBI — came all the way to California to tell the crowd that robo-signing and foreclosure mills are mere “issues of concern.”

But she lost me and the audience: Where’s the action on the institutions committing this systemic fraud so many are confronting right here, right now? What are all the task forces and cross-department working groups doing to help those about to lose their homes because of it?

“Is BofA being investigated now?” an audience member asked Ormsby. … Silence.

Any criminal investigations? Any kingpin bankers about to be thrown in jail? No mention.

When asked about the culpability of the CEOs presiding over and reaping billions from this fraud-filled system, Ormsby simply fired back “Where’s the proof?”

The audience audibly winced.

We had just heard heavy-hitting speakers William K. Black and Nomi Prins go into great detail about where the fraud occurs and how the Ponzi scheme works.

But where’s an Eliott Ness when you need one?

Has the fraud come from the top? That’s been the consistent conclusion of various State Attorney General investigations.

Where is the fraud? William K. Black — beamed in via Skype — explained the recipe for these control frauds. “Control fraud” is a concept developed by Black to describe frauds in which the people who control seemingly legitimate organizations can commit fraud with impunity.

As William Black put it:

“[Lenders] start creating false statements, false affidavits. That means a false statement under penalty of perjury. That means a felony. That means tens of thousands of cases every month of Bank of America and other entities like it committing felonies.

Correct me if I’m wrong, but I think that any likelihood that tens of thousands of felonies are being committed every month by major banking institutions via false affidavits should damn well get the issue off the FBI’s “concern” pile and onto the “immediate action” burner.

Ormsby also hinted at a potential avenue for citizen action: She is obligated to act on issues brought to her by a member of Congress. So homeowners and others who care about clearing the control fraud from this system can apply pressure to those in Congress likely to be receptive and tell them to give Ormsby a call: put mortgage and foreclosure control fraud on the FBI’s front burner.

You can read this report in its entirety here…



7 Responses to “FBI FAIL – Mortgage Fraud Summit Reveals Both Systemic Fraud and FBI’s Seeming Blind Eye”

    MidFirst Bank bought our 2000 discharged FHA/HUD Mortgage debt in 2005. Midland Mortgage Service the discharge debt to date, its on their books as live and collectable. Is MidFirst in bed with HUD or someone? We have been hounded to death since 2001, intimidated, slaped, kicked, beat and left for dead by these thugs.
    How can they get away with this.

    December 6, 2010, I got fed up, Handcuff my self to the Houston, Tx, Housing and Urban Develpemen Office begging for help in the abuse of the discharged debt that refuse to die 15 yrs after chapter 13. Wacth it on YouTube and read the story at: “Zombie Debt Refuse To Die”

  2. l vent says:

    The FBI are not elected officials. Their boss is the Government. The Elected Officials that you and I voted for. “THEY” sign their paychecks but “WE THE PEOPLE” FUND their paychecks as well as this whole Government Cabal. The FBI CAN NOT do what IS NOT in their bosses best interest. I understand APPOINTED SECRETARY OF THE TREASURY, Timothy Geithner does not want a moratorium on foreclosures. Well, Well. I did not know that he had the authority to make such decisions. This is not a democracy as long as the rich control everything. This is a dictatorship and will soon become a facist dictatorship if “THEY” have their way. Facists fear their own people and want to eliminate them to protect themselves from losing power. That is why they robbed us of our wealth in the biggest Ponzi scheme in World History. I guess “THEY” think only “THEY” can get away with criminal activity. We need to be marching in the streets demanding our national sovereignty from them. WE THE PEOPLE have the power to do this. Our country is now an oligarchy and a plutocracy as well as a kleptocracy ruled by dictators. We are being ruled and taxed to death by the richest people in the world. ‘THEY’ do not care what we want. ‘THEY’ do what ‘THEY” want not what WE THE PEOPLE WANT. They are trying to make us all government reliant peasants. Have any of you watched Michael Moore’s movie Capitalism A Love Story? WE CLEARLY DO NOT OWN THIS COUNTRY. The top 3% do. I do not understand why there is not complete outrage by WE THE PEOPLE. They stole our freedom, our wealth and now they want our homes too and God only knows what else. “THEY” gained all of their wealth through us. So if “THEY” destroy us “THEY” also destroy themselves. “THEY” need to realize this as soon as possible and give us our country back. They are proven failures. God Bless America.

  3. l vent says:

    The FBI blew the whistle on the mortgage fraud in 2003. They warned this would cause a financial collapse. This is no secret. Our Elected Government Officials TURNED A BLIND EYE TO IT. Now the FBI is being inundated with complaints from every direction. They know full well of the origination fraud and how the banks are trying to cover it up with fraudclosures. The FBI is surely overwhelmed at this point. The only solution is to put a NATIONWIDE MORATORIUM on all foreclosures. With all of us complaining and trying to combat fraudclosures how can the FBI know where to start? In order to get to the bottom of the BIGGEST FRAUD IN U.S. HISTORY, FORECLOSUREGATE, THERE NEEDS TO BE A NATIONWIDE MORATORIUM ON ALL FORECLOSURES. I do not think the FBI is to blame here. They seem to be as overwhelmed as all of us are. Our Elected Government Officials and those appointed by our Elected Government Officials need to get up off of their asses and do the right thing here. There should not be another fraudclosure allowed in this country right now and this is a complete travesty of our freedom, rights and justice system. Not only the fraud in our mortgages but the INTENTIONAL COLLAPSE of our financial system which caused massive job loss and therefore caused We The People to become unable to pay our mortgages. That fact alone should have made “THEM” put a moratorium on all foreclosures at least a year or better ago. Our Government is begining to seem more like a facist regime rather than a democracy. How much more proof do “THEY” need of all of the fraud and crimes that have been committed here in our own country?

  4. nofraudhere says:

    The proof of the systemic fraud begins with the statement by the FBI Chief of white collar/economic crimes – “where is the proof?”

    This is the saddest day in American History.

  5. George Frederick& Cecilia Engle says:

    “Look like you people are being watched…

    Thanks for all the response to my requests… Happy Holidays”

    The aforementioned is message I just sent to Eric Holder’s Office Economic Fraud Division FBI, Washington DC…

    Been working with these losers for several years…

    To think I truly believed in the justification of this agency…

    I have better luck with the “TOOTH FAIRY”!

  6. cilantro says:

    theyre probably profiting from it themselves.

  7. ny says:

    Are you all stupid? The FEDS created this and what do you think the FEDS B I is going to do about it?

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