Newly formed mortgage fraud task force meets for first time

The newly formed U.S. Attorney's Mortgage Fraud Task Force met for the first time Wednesday at the federal prosecutor's office in St. Louis, according to a news release from federal prosecutor Catherine Hanaway.

A range of professionals including those in real estate, law enforcement and government form the task force, and it aims to focus on education, prosecution of mortgage fraud cases and giving victimized communities a voice in the court system when a case is heard, Hanaway said.

Representatives from the following agencies attended Wednesday's meeting: Federal Bureau of Investigation, Internal Revenue Service, U.S. Postal Inspection Service, U.S. Department of Housing and Urban Development, Missouri Department of Insurance Financial Institutions and Professional Registration, Missouri Mortgage Bankers Association, Missouri Association of Mortgage Brokers, Missouri Bankers' Association, St. Louis Association of Realtors, the City of St. Louis Office of Development, the Washington Police Department, the Webster Groves Police Department, the Ferguson Police Department, the Hazelwood Police Department, the St. Louis County Police Department, the Missouri Sheriffs' Association, the St. Louis Better Business Bureau and the U.S. Attorney's Office.

Putting together so many different agencies will strengthen the prosecutorial response to the mortgage fraud crisis, Hanaway said.

Dishonesty and corruption have damaged the integrity of the mortgage industry, Hanaway said.

"We have a strong record of prosecuting these fraudsters to the full extent of the law," Hanaway said in a prepared statement.

Hanaway said she hopes the formation of the task force will allow a broader net to be cast to apprehend those attempting to commit mortgage fraud.

On Monday, Hanaway announced at a news conference that Russell T. McBride and Robert P. Wrolstad were being charged with 34 federal felonies in connection with a mortgage fraud scheme based in Sikeston, Mo.

The indictment was handed down in April but unsealed Monday. It charges both men with vastly inflating the prices of mortgaged properties between July 2005 and November 2006 through the a company called Century Mortgage and Finance Inc., which operated in St. Louis, Cape Girardeau and Sikeston.

bdiscosmo@semissourian.com

335-3635

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