Hedge Funds and Mortgage Fraud

Hedge Funds and Mortgage Fraudinformation from "America's Premier Online Legal News Source.
The FBI started Operation Malicious Mortgage in June 2008.

Item: 144 mortgage fraud cases causing $1 billion losses for homeowners.

Item: "Two former Bear Stearns are alleged to have told investors that two hedge funds were in good financial condition despite knowing that the funds were at risk of collapse".

Item: "Barclays...is refiling its $300-$400 million hedge fund lawsuit against Bear Stearns in the wake of Bear Stearns' collapse. Barclays was a sole shareholder in one of Bear Stearns' two hedge funds that collapsed in the summer of 2007. The bank described the Bear Stearns collapse as among the most shocking hedge fund failures in the past decade.

Item: "Two principals who were involved in a hedge fund swindle have been sentenced for their part in scamming millions of dollars from investors. The two received prison sentences of 220 months and 75 months after they were found guilty of lying to investors and providing counterfeit account statements. The men were involved in a hedge fund that was actually a Ponzi scheme, through which the defendants, along with one other accused, swindled more than $194 million from investors".

These cases must represent the tip of a massive iceberg that is crawling with maggots and rot at its heart, a toxic timebomb in the shipping lanes of world trade that threatens to explode covering the whole world with rotten lettuce, maggots and particles of ice. Also the polar bears will suffer.

Seriously, the derivatives market must be brought to account. Post-hoc legal cases will take years to unravel. We need a Toxic Asset Dump, where the damn things can be assessed, and the bad ones neutralised.