The Colorado Bureau of Investigation plans to add six new fraud unit positions to pursue mortgage fraud in Colorado with a new $1.7 million grant that was awarded this month from the Bureau of Justice Assistance of the U.S. Department of Justice, CBI Director Ronald C. Sloan announced.
Colorado ranked tenth among the 50 states in mortgage fraud in 2008, according to the Mortgage Asset Research Institute. Colorado was first among the states in mortgage fraud in 2006.
“Despite a more stabilized, although weak, economy recently, Colorado continues to be plagued by a high incidence of mortgage fraud,” noted Director Sloan. “Colorado remains among the top states for mortgage fraud during the past four years. CBI intends to pursue aggressively those who perpetrate fraud with these new resources,” he said.
The grant award began October 1, 2010, and runs for two years. The total grant award is $1,700,500.
The grant provides for six new positions to supplement CBI’s fraud unit’s 1 ˝ positions currently dedicated to mortgage fraud investigation, explained Director Sloan.
Joining the CBI mortgage fraud effort are the Denver office of the FBI and several state and local agencies.
“The FBI and CBI continue working closely together to address mortgage fraud, and we are very pleased to have CBI’s efforts recognized with a significant new federal grant,” said Special Agent in Charge James H. Davis of the Denver Field Office of the FBI.
During the past four years, CBI reports that they concluded a number of mortgage fraud prosecutions, including one investigation that resulted in ten indictments involving 162 properties, with losses of $34.9 million.