APPENDIX IV
DISTRESSED HOMEOWNER INITIATIVE
PRESS CONFERENCE
Attorney General Eric Holder Speaks at the
Distressed Homeowner Initiative Press Conference
Washington, D.C. Tuesday, October 9, 2012
Good morning. Today I’m joined by several key leaders in the federal
government’s ongoing work to combat financial fraud – and specifically, to prevent
and punish the various types of mortgage fraud schemes that, in recent years, have
devastated homeowners, families, and communities nationwide. Secretary Shaun
Donovan, of the Department of Housing and Urban Development; FBI Associate
Deputy Director Kevin Perkins; Chairman Jon Leibowitz, of the Federal Trade
Commission; and HUD Inspector General David Montoya are here to help announce
the results of a groundbreaking, year-long mortgage fraud enforcement effort – the
first ever to focus exclusively on crimes targeting homeowners.
This national effort – known as the Distressed Homeowner Initiative – ran from
October 1st, 2011, to September 30th of this year – and was led by members of
the Mortgage Fraud Working Group of the Financial Fraud Enforcement Task Force.
This landmark Initiative, spearheaded by the FBI, was launched to help streamline
and advance investigations and prosecutions against fraudsters who allegedly
targeted, and preyed upon, Americans struggling to keep their homes. And it’s
been a model of success. Over the past 12 months, it has enabled the Justice
Department and its partners to file federal criminal charges against 107 defendants
for allegedly victimizing more than 17,185 American homeowners – and inflicting
losses in excess of $95 million. On the civil side, as part of this Initiative, Mortgage
Fraud Working Group Members have filed federal civil cases against 128defendants
for losses totaling at least $54 million, and involving more than 19,000 victims. In
addition, our Mortgage Fraud Working Group partners in the offices of state
attorneys general also have filed civil and criminal actions with at least 3,000
additional homeowner-victims identified. And, demonstrating that we are taking
significant steps to protect homeowners before they are victimized, the Treasury
Department and SIGTARP shut down or forced into compliance more than 900
fraudulent or confusing websites and web advertisers that displayed the Treasury
Seal – and key TARP housing program names – in an effort to dupe struggling
homeowners looking for someone to help them. All told, in both federal and state
criminal and civil cases, the Distressed Homeowner Initiative has identified – and
worked to assist – more than 36,000 vulnerable victims.
Thanks to the leadership of the Mortgage Fraud Working Group; the hard work of
our U.S. Attorneys’ Offices and the Justice Department’s Civil and Criminal
Divisions; the dedication of FBI officials – including personnel from at least 32 Field
Offices; the large volume of victim complaint information made available through
FTC databases and other sources; and the commitment of experts, agents, and
investigators from the FTC, HUD’s Office of Inspector General, SIGTARP, the FHFA’s
Office of Inspector General, and a range of other federal and state agencies – this
Initiative has had a tremendous impact.
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