How many smoking guns do the feds need?
How much longer will we have to wait until this scumbag is arrested?
At this point, I believe a citizen's arrest may be called for, if the US Justice Department, the SEC, the FBI or the California Attorney General are all unwilling to do their jobs. Maybe Angelo bribed all of them too?
Angelo Mozilo will go to jail HP'ers. Eventually. For a long, long, long, long time. Take that to the bank. And watch for bit players like Richard Aldrich, the California judge that Mozilo bribed, to do some time too.
Here's the latest excellent expose from Portfolio. Also watch this report on CNBC.
Angelo's Many "Friends"
The Countrywide V.I.P.-loan scandal went far beyond a few members of Congress. An exclusive look inside C.E.O. Angelo Mozilo's secret effort to curry favor with lawmakers, politicians, and others who could influence the company's fortunes.
In January 2004, Richard Aldrich, a California state appeals court judge, decided to refinance his 8,200-square-foot house next to a Jack Nicklaus-designed golf course at the Sherwood Country Club in Westlake Village. He turned to a prominent Sherwood member: Countrywide Financial chief executive Angelo Mozilo.
Aldrich’s application was assigned to a loan officer named Robert Feinberg; the judge was seeking a $1 million loan and a $900,000 line of credit. By email, Feinberg alerted Mozilo that the credit line was “above what guidelines allow.”
Mozilo responded, “Go ahead and approve the loan, and close it as soon as possible. Don’t worry about this deal, it’s golden.” Countrywide further waived half a point, or $5,000 on the million-dollar loan. (Homebuyers can reduce their interest rates by paying points, which are equal to 1 percent of the value of a loan.)
That wasn’t Aldrich’s only contact with Countrywide. At the time he refinanced, a class action lawsuit against Countrywide was pending before the appellate court, brought by borrowers contending that the company offered an inadequate payment to settle allegations that it charged excessive fees for credit reports. That August, Aldrich was part of a three-judge panel that unanimously rejected the borrowers’ appeal.
According to a person familiar with the case, Aldrich did not disclose his relationship with Countrywide to the plaintiffs or offer to recuse himself. California’s judicial code of ethics states that judges cannot accept gifts or favors from donors “whose interests have come or are reasonably likely” to come before them, nor can they take out a loan at better terms than are available to other borrowers. Reached by phone, Aldrich denied receiving a below-market loan and hung up.
July 28, 2008
HousingPANIC calls for the immediate arrest of former Countrywide CEO Angelo Mozilo for documented judicial bribery (amongst many, many other crimes)
July 16, 2008
FLASH: FIVE YEARS TOO LATE, FBI IS CONFIRMED TO BE INVESTIGATING LIAR'S LOAN KING INDYMAC FOR FRAUD. GREAT. WHAT TOOK SO LONG?
WHAT TOOK THE INCOMPETENT IDIOTS AT THE FBI FIVE YEARS TO FINALLY GET AROUND TO THIS, WE'LL NEVER KNOW.
Man, I'm happy to see this, but damn...
The very definition of "closing the barn door after the cows got out"
Michael Perry - you're going to jail. Your glorious frog-march-in-daylight is just days away. But you're lucky - you should have been arrested years ago. Mortgage fraud used to be a crime in America. If you're planning on fleeing to Mexico, you might want to get packing right about....... now.
Source: FBI investigating Indymac for fraud
WASHINGTON (CNN) -- The FBI is investigating Indymac Bancorp for fraud, a source tells CNN.
The California-based bank was taken over by federal regulators last week.
Indymac's collapse was the second-largest bank failure in U.S. history.
A source said the federal government is looking into whether the bank engaged in fraud when it made home loans to high-risk borrowers.
The source said the investigation is focused primarily on the company, not individuals.
July 15, 2008
More historic images coming out of California of screwed savers camped outside fraudster Michael Perry's IndyMac bank branches - c/o the OC Register
I hope Michael Perry remembers these images after his arrest and conviction, as he rots away for the rest of his life in jail.
Rampant mortgage fraud perpetuated by Michael Perry and the management and employees of IndyMac caused this mess.
And now it's time for the arrests to start.
Now. 
July 13, 2008
HousingPANIC Quote of the Day
"I would reject a loan and the insanity would begin. It would go to upper management and the next thing you know it’s going to closing. I’m like, ‘What the Sam Hill? There’s nothing in there to support this loan.’”
—Audrey Streater, former Indymac underwriting team leader, June 2008
July 01, 2008
HousingPANIC Stupid Question of the Day
Would you support a Mortgage Fraud Amnesty program?
Here's how it could work: The government would offer amnesty (with a fine or illegal proceeds payback) to individuals who admit to their fraud and to who else was involved, and then let the Justice Department focus on the corrupt ringleaders (i.e Mozilo), lenders (i.e. Countrywide and IndyMac), mortgage brokers, appraisers and realtors.
Assuming hundreds of thousands if not millions of people committed mortgage fraud these past few years, and that the undermanned, corrupt and incompetent US justice department doesn't have the resources or intelligence to enforce the laws of the United States anymore, I see an amnesty program as the only viable solution, if the goal is to imprison the top fraudsters while getting to the bottom of the scam that took down the US housing market.
I think it'd be interesting if law enforcement (or the IRS) called up every person who took out a liar's loan from 2001 - 2008 and offered them a deal. You'd be amazed at what we'd find out.
June 19, 2008
FLASH: FBI arrests over 300 realtors and mortgage brokers in mortgage fraud sweep. FINALLY!!! And only another million or so to go...
And after they're done arresting the realtors and mortgage brokers, they can move on to the millions of mortgage fraudsters. I think Casey Serin might still be in the country.
And then... of course... they can put the kingpin himself into the paddy wagon..
Angelo Mozilo - they're coming to get you!
(UPDATE: New classic frog-march image from today's headline story on HuffPo. FBI release here. Frog-march video here)
Hundreds swept up in mortgage fraud arrests
WASHINGTON - The FBI says it has arrested about 300 real estate brokers since March — including dozens over the last two days — in its crackdown on incidents of mortgage fraud that have contributed to the country's housing crisis.
One law enforcement official put the losses to homeowners and other borrowers who were victims in the schemes at over $1 billion.
The Justice Department and FBI plan to announce the recent arrests — including apprehensions in Chicago, Atlanta, Miami, and suburban Maryland — at a news conference set for Thursday afternoon in Washington.
Two former Bear Stearns managers in New York were also included in the sweep, becoming the first executives to face criminal charges related to the collapse of the subprime mortgage market.
May 20, 2008
HousingPANIC Classic Quote of the Day
"The stuff I did is technically mortgage fraud, but it's not officially called that until someone prosecutes me and proves that that is indeed mortgage fraud"
- Casey Serin, June 2007 (still waiting... still waiting...)
May 10, 2008
The Late Great Housing Bubble - just one big orgy of mortgage fraud, and a country of sheep and realtors on commission who fell for it.
Silly Americans - you thought those skyrocketing housing prices were because "they're not making any more land", or because of "year-round-golf and pro athletes".
Nope. It was just one big orgy of fraud. And you fell for it.
Silly Americans.
Here's just a sampling of headlines today over at the mortage fraud blog. Just a sampling.
Florida woman sentenced in fraud scheme
Florida mortgage fraud laws passed
Valley (CA) man indicted in HELOC fraud allegation
Concord (CA) lender indicted
Tampa man provided false employment references
California man given 16 months in deed fraud
Three Ohio men indicted in Kentucky fraud case
Man indicted in Ohio apartment fraud charges
Two plead guilty in Pittsburg area mortgage fraud
Texas realtor sentenced to 18 months
New Jersey man pleads guilty to mortgage fraud
5 sentenced in Georgia mortgage fraud scheme
Two plead guilty in $35 million fraud in Minnesota
March 30, 2008
Mortgage fraud case update - the St. Louis basketball coach, the straw buyers and a case of obvious mortgage fraud
Back in December of 2006, we came across this innocent little article in the St. Louis Post Dispatch about an obvious case of mortgage fraud by a popular high school basketball coach Floyd Irons. Obvious to us, but not to the St. Louis Post Dispatch.
So we emailed the reporter with how the scam works, and HP'ers also sent it in to the FBI. But then time went by, nothing happened, the reporter didn't understand mortgage fraud and wouldn't follow up, and just like Casey Serin and the other million mortgage fraudsters, we figured this would just be another case where crime did pay.
Well, for the first time in the history of this blog, we've got some good news on that front - we got our man, and the guilty are on their way to federal prison, with some hefty fines too. And the FBI in St. Louis should be commended for DOING THEIR F*CKING JOB.
Glad we could help.
One down. Millions to go.
St. Louis Post Dispatch reporter stumbles onto classic mortgage fraud and doesn't realize it
Floyd Irons sentenced to year in prison in mortgage scheme
February 22, 2008
It is now official - the United States is no longer a nation of laws - "FBI Will Not Go After Borrowers Who Lied on Mortgage Applications"
When I read reports like these, I feel sorry for America. A country founded on the rule of law. A once-proud country of order and fairness.
No more.
This sends a terrible message, that crimes will not be prosecuted, that laws will be ignored, that crime pays, and that playing by the rules is the wrong thing to do.
George Bush, the Justice Department, the FBI, the IRS and the 50 state attorneys general should be ashamed. This is un-American, and those involved in allowing this illegal behavior to go unpunished should be investigated by Congress, and tried for treason. But that would involve Conress not being corrupt and un-American themselves.
Hat-tip to ml-implode for the link
FBI Will Not Go After Borrowers Who Lied on Mortgage Applications
Borrowers who defrauded lenders by lying on their mortgage application could be thrown in prison for up to 30 years and forced to pay a $1 million fine under the current federal law. But the FBI says there is no intention to pursue borrowers at this time.
Almost 60 percent of stated-loan applicants inflated their incomes by at least 50 percent, according to the Mortgage Asset Research Institute. The worst part is that everyone knew the income was being inflated. The industry even had a name for these kinds of loans--'liar's loans.'
Although lying on a mortgage application is a federal crime, borrowers who committed mortgage fraud are low on the FBI's list of priorities. Joseph Schadler, an FBI spokesman, said investigators will be focusing on organized property flipping rings and bogus foreclosure rescue schemes instead of lying buyers.
HousingPANIC Stupid Question of the Day
What should the government do with the millions of mortgage fraudsters?
1) Fine them
2) Jail them
3) Reward them with taxpayer money and programs so they can stay in the homes that they can't afford, which they committed blatant fraud to get into
