New York AG hires prosecutor for mortgage probe

(Reuters) – New York Attorney General Eric Schneiderman has hired a former federal prosecutor to help bring lawsuits over misconduct in the mortgage-backed securities market during the financial crisis.

Virginia Chavez Romano, a former assistant U.S. attorney in New York, will help Schneiderman as he coordinates with a federal task force on the mortgage meltdown, Schneiderman spokesman James Freedland said on Monday.

The Obama administration formed the task force in January to probe fraud and abuse in the mortgage-backed securities market. Schneiderman is co-chairman of the group. So far, little activity has been made public and federal authorities have been criticized for not pouring enough resources into the effort.

Romano, who led an investigation into mismarked mortgage-backed securities while an assistant United States attorney, is working closely with the task force, Freedland said.

Rest here…

Unfortunately, that “mismarked” investigation appears to have gone nowhere…

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