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Mortgage Fraud Probe Results in Almost 500 Arrests

home loans
home loans

The Justice Department says it has made nearly 500 arrests since March in a probe of mortgage fraud called Operation Stolen Dreams.

In prepared remarks Thursday, Attorney General Eric Holder says the government will use every law enforcement tool available to prosecute those who prey on vulnerable homeowners.

The investigation involves 1,250 criminal defendants who are allegedly connected to losses amounting to $2.3 billion.

Justice also plans to issue civil charges that seek to recover $147 million.

The U.S. Attorney for the Southern District of New York plans to make further annoucements at a press conference Thursday. Earlier, the Federal Bureau of Investigation conducted raids that resulted in the arrests of dozens of people related to the alleged scheme.

The Justice Department said that the probe has resulted in significant criminal cases in Chico, Calif.; Miami; Detroit; Duluth, Minn.; New Jersey, and Atlanta.

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    Diana Olick serves as CNBC's real estate correspondent as well as the editor of the Realty Check section on CNBC.com.

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