Updated on Wednesday, September 24, 2008 at 1:12PM by Kay B. Day, Editor
Public documents available at the FBI website paint a picture in dollars of the figurative rape of the American people, with mortgage fraud robbing the U.S. economy of millions. The Associated Press said on Tuesday, “The FBI is investigating 4 major financial institutions whose collapse helped trigger a $700 billion bailout plan…” In a column here at The US Report on July 17, I asked, “How much fraud figures into mortgage disaster…?” In that column I referenced Kimberly M. Davis, 43, of Lee’s Summit (Mo.) who was sentenced to four years in federal prison without parole. Davis tied up more than $1,000,000 in mortgage loans. She used stolen identities, social security numbers and birth dates for fraudulent loans. The woman actually worked as a mortgage broker.
In press release files at just a few FBI field offices, I found hundreds of millions of dollars tied up in fraud cases. How every government official managed to ignore this is impossible to understand. It took me an hour to find information pointing to fraudulent loans totaling millions. I also found a rather incredulous letter from an FBI assistant director who defended his agency after a critical story appeared in the L.A. Times.