Expect More Prosecutions in Tampa as Federal Mortgage Fraud Bill Passes Congress

Hot on the heels of an announcement by the U.S. Attorney for the Middle District of Florida that mortgage fraud cases would now be aggressively pursued by a special task force, the U.S. Congress has passed a new mortgage fraud bill aimed at funding such white-collar prosecutions.

President Obama is expected to sign the bill, which had broad bipartisan support. The new legislation authorizes the expenditure of $265 million a year to prosecute mortgage fraud. It is estimated that the funds will allow the hiring of about 160 special FBI agents and more than 200 support staff, including forensic analysts. The FBI currently has less than 250 agents assigned to mortgage fraud investigations, despite a quickly growing caseload.

The money will also allow the Justice Department to hire 200 more prosecutors and civil enforcement attorneys and an additional 100 support staff. The Securities and Exchange Commission, the Secret Service, Postal Inspection Service and the inspector general for the Housing and Urban Development Department are also expected to receive some of the funds.

Tampa’s U.S. Attorney Brian Albritton announced a multi-agency task force last week, focused on investigating and prosecuting mortgage fraud in and around the Tampa Bay area. He estimated that 100 new mortgage fraud cases would be filed by the end of the year.