| Mortgage Gangsters
Chicago police going after $70 mil fraud ring in ‘Operation This Old House’ October 4, 2004 By PATRICK CROWLEY |
| Think Chicago gangsters and what typically comes to mind is Al Capone, hit men and bootlegging. But the real estate finance industry has found a place in the government’s little black book.Police in the Windy City say a Chicago street gang — notorious for violence and drug dealing — is now under investigation in a $70 million mortgage fraud ring involving more than 100 phony mortgage applications.
The probe is a joint investigation between Chicago Police and the U.S. Attorney’s office in Chicago, police spokesman Pat Camden said in an interview. Camden released a statement from Chicago Police Superintendent Phil Cline on the investigation. “We’ve known that the gangs are sophisticated in how they launder their money,” Cline said in the statement. “This is the first time we’ve seen it as this scale. We’ve executed search warrants and we’ve uncovered information that the gangs are using real estate deals and mortgage fraud applications to launder their drug proceeds.” Camden said because the investigation — dubbed “Operation This Old House” — is ongoing, he could not provide additional details, including specifics about how the gang was operating the fraud scheme. Camden did say authorities were hoping to wrap up the problem “in a couple of months.” Revelations about the scam came during a press conference involving police and Mayor Richard M. Daley. Daley and Cline announced that it was adding 30 officers to its Gang Intelligence Section. Police learned about the mortgage scam from gang members’ conversations that were recorded during an undercover operation of a murder, authorities said. “We’re making real progress in our effort to curtail guns, gangs and drugs and the murders that accompany them,” Daley said in a statement. Authorities said the Internal Revenue Service is also investigating the mortgage fraud ring. The U.S. Attorney’s office in Chicago did not return a phone call to comment. Police said the office is expected to eventually return indictments against the gang members suspected in the mortgage fraud. |
|
Patrick Crowley is a political reporter and columnist and former business writer for The Cincinnati Enquirer. Email Patrick at: [email protected] |
