This is the DOJ's MO, see my 12 September 2009 post: http://skepticaltexascpa.blogspot.com/2009/09/csi-las-vegas.html. $64 million? That's Lloyd Anoinette Blankfein's annual bonus. While over my "Blankfein test", why bother with this? Bank fraud, 18 USC 1344. Hmm. Was the investigation which likely cost tens of millions made because the fraud was against as opposed to for banks? What did the "alleged fraudsters" do? If big enough they're called leveraged buyouts! Right? Just get a solvency opinion from say KPMG, my 18 December 2008 post: http://skepticaltexascpa.blogspot.com/2008/12/deprizio-doctrine-and-aig.html and you're good as gold. "[W]e will go wherever the facts lead", says Bharara. Even to the Vampire Squid? Is this case part of the DOJ's continuing efforts to turn bankers into fraud victims as opposed to co-conspirators, my 31 March 2008 post: http://skepticaltexascpa.blogspot.com/2008/03/real-estate-charade.html.
Tuesday, October 27, 2009
SDNY Head Fake
"Federal prosecutors announced charges on Thursday against 41 lenders, lawyers and others in the real estate industry who they said used fraud to obtain more than $64 million in loans connected to more than 100 residential properties in New York State. An investigation involving the FBI, the Secret Service, the [NY] State Banking Department and other agencies led to the wire fraud, bank fraud and conspiracy charges against the lawyers, mortgage brokers and loan officers, who engaged in complex plots that operated over a period of years, said Preet Bharara, the [US] attorney for the [SDNY]. ... 'Whether the economy was going up or the economy was going down, these alleged fraudsters were working feverishly to game the system.' ... Eventually, prosecutors said, the defendants would strip all the equity from the homes, putting them through sham transactions and saddling the properties with enormous debt. ... 'This office has a tradition of looking at institutions and executives oif institutions,' [Bharara] said. 'And we will go wherever the facts lead'," my emphasis, Colin Moynihan ay the NYT, 16 October 2009, link: http://www.nytimes.com/2009/10/16/nyregion/16fraud.html.