Atlanta Authorities Expose Mortgage Fraud Ring

Police in Atlanta have charged 12 people with mortgage fraud after investigating a scheme in the West End neighborhood.

Some $200,000 in assets has been seized, including homes and cars, Fulton County District attorney Paul Howard Jr. said.

The 12 men are accused of buying homes for around $100,000, then obtaining a valuation of $250,000 to $300,000.

A fictitious buyer would then file a false mortgage application to obtain a mortgage, with another person ensuring the fraudulent transaction was processed.

The group would then all receive profits from the scheme, officials said.

Detective Robert McFall of the Atlanta police department said many of the homes involved have already been bought and foreclosed upon, meaning they are easy targets for fraudsters.

According to the FBI, mortgage fraud is one of the fastest growing white collar crimes in the U.S., with the organization stating that its caseload for such investigations has doubled in the past three years.