Sunday, March 30, 2008
Will AG Mukasey appoint a task force to investigate and prosecute cases related to subprime and mortgage fraud? For right now it looks like Attorney General Mukasey has not made up his mind. (see Bloomberg here)
On one hand you see the practices used by foreclosure mills (NYTimes here) and you also see some mortgage fraud cases being brought throughout the United States. (see, e.g., here, here, and here). And the Wall Street Jrl has an article today titled, HUD Secretary Expected to Resign. One has to wonder if this change might influence DOJ to create a task force.
Shouldn't there be a Mortgage Fraud Task Force? After all, when the corporate scandals hit the news, we saw the Corporate Fraud Task Force, and when there was fraud after Hurricane Katrina there was the formation of the Katrina Fraud Task Force, and just this week Mukasey announced the formation of a "Safe Streets Task Force to combat gang violence in communities north of Los Angeles." (see here) Individual jurisdictions are reacting to the mortgage crisis.(See Cleveland PlainDealer describing mortgage fraud task force in Cleveland here; Miami-Dade Mortgage Fraud Task Force; US Attorneys Office in the Western District of Pennsylvania here). And the FBI is already in the loop (See FBI Launches Mortgage Fraud Task Force in the Nation's Capital)
So will we be seeing a DOJ Mortgage Fraud Task Force pretty soon?