Bear Stearns Executives Ralph Cioffi, Matthew Tannin Indicted... FBI Announces "Operation Malicious Mortgage"

Two former Bear Stearns managers have been arrested, federal authorities said Thursday, becoming the first executives to face criminal charges in the wake of the subprime market debacle.

Matthew Tannin was taken into custody outside his New Jersey home on Thursday morning and Ralph Cioffi was arrested at his New York City home, the FBI said.

Read more about the indictments here.

The FBI also announced "Operation Malicious Mortgage":

The Department of Justice and Federal Bureau of Investigation (FBI) announced today a national takedown of mortgage fraud schemes, the culmination of substantial coordinated efforts during the last three and a half months to identify, arrest and prosecute mortgage fraud violators through the United States. Operation Malicious Mortgage highlights the strong enforcement response undertaken by the Department of Justice and its law enforcement partners to combat the threat mortgage fraud poses to the U.S. housing industry and worldwide credit markets.

From March 1 to June 18, 2008, Operation Malicious Mortgage resulted in 144 mortgage fraud cases in which 406 defendants were charged. Yesterday, 60 arrests were made in mortgage fraud-related cases in 15 districts. Charges in Operation Malicious Mortgage cases were brought in every region of the United States and in more than 50 judicial districts by U.S. Attorneys' Offices based upon the law enforcement and investigative efforts of participating law enforcement agencies. The FBI estimates that approximately $1 billion in losses were inflicted by the mortgage fraud schemes employed in these cases.

Comments

[blurredtruth]

Well both sides share the responsibility and this is certainly not the end. This problem started in the 1990s.

[CTtransplant]

Sure did! Check this out...

http://www.progressivehistorians.com/2007/11/bill-clintons-role-in-mortgage-crisis.html

[JaneaneTheAcerbicGoblin]

Good point. This is why I'm glad Obama's the nominee.

Bill Clinton never met a GOP idea he didn't like, steal, or pass into law.

[JBS]

Too little, too late!

[evekendall]

For anyone who wants to understand this mortgage mess and the high oil prices nightmare, here are two of the best links you can use to inform yourself:

1) Here's a link (video) to a major story on the situation that ran on Ke ith Olber mann's show last night. It has a lot of background:

http://www.msnbc.msn.com/id/3036677/#25252591

2) Here's a link (audio) to Terri Gross's interview with Michael Gre enberger on April 3, 2008. The topic was "The Shadow Financial System," and they discussed Ph il Gra mm's role in it:

http://www.npr.org/templates/story/story.php?storyId=89338743

[CTtransplant]

evekendall, here's another helpful link...

http://www.progressivehistorians.com/2007/11/bill-clintons-role-in-mortgage-crisis.html

[incontempt]

Thanks for posting...i have been too

Their house of cards are falling.

[DontBeFoolish]

BIG HOOPLA for nothing. Media will hype it up, and the judge will give them a LOVE TAP and tell them not to do it again. DON'T LOOSE FOCUS PEOPLE, the ENRON LOOPHOLE IS what we need to FOCUS ON and ensure it goes away for good. I think we already know the ending to this mortgage story.

[lennilenape]

"Don'tBeFoolish"

I'm with you DBF. Also, can we spread-the-word that the FISA Court "stuff" is coming up again in the House or Senate tomorrow or early next week, along with the White House's willingness to get a blanket immunity for all those who "helped" listen in on GOOD AMERICANS -- the communications conglomerates (phone companies etc) and all the rest, SO, we have to work fast.

It sure isn't fair that we all pay our fines or do our time, whatever the "PEOPLE" (the American Public) decide that which is proper punishment; IN THIS PARTICULAR CASE, I believe there are legal codes that dictate punishment for crimes committed.

We should all call our congressmen and senators and let them know that we (the public) still abide by the law; no loopholes for "us" hence, no loopholes for others rich and powerful.

While I'm at it, I might as well say that Nancy Pelosi took impeachment off the table as her first act as "Speaker," SAYING that "WE" had too much to do to be tied down with a magnifying glass looking into WRONG-DOING. Well, here we are, two years later with nothing done BECAUSE "...we don't have the votes." Since nothing got done that WE wanted them to do, we may as well have looked into any possible wrong-doing the past two years??????

[DontBeFoolish]

And the REPUBS bailed these knuckle heads out. UNBELIEVABLE....

[lizr]

I'd say it was completely consistent with their behavior and values, myself.

[TXfemmom]

Phil Gramm, McCain's economic advisor was the Senator most responsible for the loosening of controls, along with his Republican Congressional goon friends, which permitted this and Enron to happen. THEY SHOULD BE CHARGED RIGHT ALONG WITH THE HONCHOS.

[itsyourthang]

Locals are small potatoes my friend. Corruption ALWAYS starts at the top. In the venacular of the Great Muhammad Ali "kill the head, and the body will soon follow". Look it up!

[lizr]

PS- anyone remember the Keating Five?

I understand Cin dy McC ain was right in there with that gang of thieves.

Still waiting to see those financials....

[xargaw]

I am glad to see some of the big shots being taken down, but we should remember, that it was the local community Mortgage Bankers selling these loans on a commission basis that defrauded their neighbors and folks in their community to make a commission. It was the guy in your town that sat across the table from you and lied to you about the mortgage instrument he was selling. Then he got his buddy appraiser to appraise the property for what was generally an inflated value. They were greedy and never stopped to think about the consequences. It's only when these guys start being indicted will the spiral stop. The big guys could only pull off this crooked enterprise because all the little guys around the country were eagerly committing fraud and making it possible for them.

[thegreatgiginthesky]

String these corporate goons up

[monkeybreath]

the media makes all the bs of politicians possible by its fraudulent,fact free,biased reporting. STEP 1 BOYCOTT newspaper and other media forms that support the professional liers in DC and NY. they would collapse if denied non right wing revenue. STEP 2 boycott advertisers of offending media programs

[Obamican7]

well thats cool lol.. "CORPORATE WELFARE" all i have to say

[LuckyBlessed]

Corporate Welfare, love that phrase.

[rollingdivision]

Hammer all the mortgage company thieves. But stop the mortgage company bailout bill which bailout all the irresponsible lenders and few homeowners. Let the big mortgage companies fail and only help needy homeowners.

About the current bill the Congressional Budget Office] estimates that under this program, quote, "Mortgage holders would have an incentive to direct their highest-risk loans to the program," close quotes. For a modest write-off, lenders who were in a number of cases either fraudulent or negligent in their treatment of borrowers will be able to clear out many of their problem loans.

At the same time, CBO estimates that the cumulative default of the home program would be about 35 percent, meaning that one out of every three loans refinanced would fail. Creating a new federal program that takes on the worst of the worst subprime loans, which will hurt [the Federal Housing Administration] and ultimately the taxpayers, is extremely troubling.

[alamacTHC]

Perfect. First the criminal corporations (and their Clinton/Republikan enablers) destroy Glass-Steagall in 1999 which kept the finance pigs out of the banking industry. Then 8 long years of destruction to the mortgage market goes on, in which hundreds of billions of dollars is stolen. Then, after the damage is done and the thieves have spirited their pelf to parts untraceable or unreachable, a few operational offenders are "arrested". Why, someone might even do a few years in jail! While millions are going to do LOTS of years without their houses--or their down payments, or their credit ratings.

The swindles continue...

[LaFeminazi]

The unemployment rate has dropped by half, to 4%, a 40-year-low, while the economy has created some 15 million jobs.

The stock market grew even faster - by more than three times - creating thousands of millionaires among middle class stockholders, and employees of fast-growing companies like Microsoft - before the high tech index, the Nasdaq, fell back sharply this year.
http://news.bbc.co.uk/1/hi/business/1110165.stml

Thanks Bill

2 unresolved quagmires, a stagnant stock market, a credit crisis, rising inflation, a cosseted elite and a dollar worth the same as a rock.

Thanks George.

[LaFeminazi]

Oh sorry George

Thanks for allowing the greatest terrorist attack in history

Bravo.

[SCG]

1997 Asian Financial Crisis - that was our boom, oil fell and Greedspan slashed interest rates.

[SCG]

http://en.wikipedia.org/wiki/Asian_financial_crisis

[kellygrrrl]

so this is just the tip of the doucheberg

when will we see the Big Pigs hauled off in hoof-cuffs?

[Nochnoi]

Oh... my guess would be about five minutes before never............

[incontempt]

I love it,..... douchberg LOL...consider it stolen;-)

[sowhatdemos]

Probably never. Wall street whities never pay for their crimes because they have the money to buy someone off!!

[Wild West]

No worries for Tannin and Cioffi, George will provide a pardon, you'll never serve a day in prison or pay a fine.

This is capitalism run amok and killing the consumer base for ultimate profit and power, same thing is taking place with oil futures.

[robbor]

Yes, oil futures - the Enron loophole, check out this video: olbermann - http://www.msnbc.msn.com/id/3036677/#25252591

[sowhatdemos]

Yeah, who voted these thugs into office TWICE??
Not me, reap what you sow, you stupid independents.