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by CareyBot

Ten people were arrested Thursday on federal charges in connection with a mortgage fraud land-flipping scheme that involved about 200 properties and $15 million in fraudulently obtained loan proceeds. U.S. Attorney Michael J. Sullivan announced that a federal grand jury returned an indictment against the 10, charging them with 62 counts of wire fraud and one count of conspiracy to launder money. According to the indictment, several of the defendants allegedly purchased distressed properties within low-income neighborhoods and then resold them rapidly at artificially inflated values between 1998 and 2002. Individuals known as "runners" allegedly were used to recruit prospective buyers and were paid finders' fees for the successful sale of a property. The defendants allegedly told prospect...