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400 People Charged in Mortgage Fraud Schemes - Fox Dismisses it as a "Witch Hunt"

Reported by Melanie - June 19, 2008 -

The FBI announced today (June 19, 2008): "More Than 400 Defendants Charged for Roles in Mortgage Fraud Schemes as Part of Operation 'Malicious Mortgage'."

It said, "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."

Two of the people indicted are former Bear Stearns executives (watch their perp walk here). When Bear Stearns was on the verge of collapse earlier this year, the Fed "lend" it $30 billion (that's with a "b") of our tax dollars to bail the dirt bags out. Who knows if we'll ever get it back.

Dagen McDowell, a reporter for Fox "business news," covered this today on Your World in a roughly 90-second report. Cavuto introduced her with:

Two former hedge fund managers busted today in connection with the collapse at Bear Stearns. All this as the Feds announced hundreds of arrests in a major mortgage crackdown. Is it a witch hunt?

McDowell didn't address that issue but as she was speaking Fox aired this chyron: "Two Former Bear Stearns Fund Managers Blamed for Collapse: A Witch Hunt?," which was signal enough, combined with Cavuto's intro, that this isn't anything to be concerned about.

Comment: When reporting on the Bear Stearns bailout, Fox wouldn't touch that word, preferring instead to use terms like "inject liquidity." Now that these guys are doing the perp walk, Fox continues to protect them. What's the saying? Something like, socialism is great when it benefits corporations but not when it benefits the people?