CHICAGO – A federal grand jury has indicted four people in the Chicago area on charges they fraudulently secured dozens of residential mortgage loans worth $9 million.
The U.S. Attorney’s Office said in a statement Monday that the indictments are part of an ongoing bid to crack down on mortgage fraud in northern Illinois. It says around 200 defendants have been similarly charged since 2008.
The defendants in the most recent case are charged with bank fraud, mail fraud and wire fraud.
Each count of bank fraud alone carries a maximum 30-year prison sentence and a $1 million fine.
A realtor, loan originators and others allegedly submitted fraudulent loan applications and other documents to land the mortgages. Lenders’ losses totaled nearly $5 million because mortgages never fully recovered.