Justice Dept. Seeks Information about Mortgage-Securities Fraud

The Justice Department launched a website on May 24, 2012 seeking information about securities fraud from individuals who worked in the mortgage securities market before the foreclosure crisis.

The Residential Mortgage-Backed Securities (RMBS) Working Group is comprised of the Securities and Exchange Commission, the Department of Justice, the New York State Attorney General’s Office, and others. The group says it is looking for evidence of misconduct by loan originators, sponsors, underwriters and others in the production and sale of mortgage-backed securities.

The group states on the website that it is particularly interested in receiving information from people who worked with residential mortgage-backed securities (corporate insiders). The group says those who come forward may be eligible for financial reward.

"There are scores of people who worked in the (mortgage securities) market who acted responsibly but who also may have witnessed greed and misconduct that crossed the legal line and created havoc for investors, homeowners and our economy," said Tony West, an acting associate attorney general. "We want to hear from them."

Source: Wall Street Journal

To speak with a securities fraud lawyer about misconduct, contact us today. Our attorneys have extensive experience in securities laws and other financial fraud matters.