The Department of Justice and the Federal Bureau of Investigation charged more than 400 defendants in a nationwide fraud scheme coined “Malicious Mortgage” Thursday.
Two of those indicted included Ralph Cioffi and Matthew Tanin, former senior managers of the now bankrupt Bear Stearns hedge funds. Their indictment estimates they misrepresented the worth of their hedge funds resulting in a $1.4 billion loss to Bear Stearns investors.
Operation Malicious Mortgage found 144 mortgage fraud cases and have charged 406 defendants as a result of those cases.