Minnesota Task Force To Drop Mortgage Fraud Investigations; Lack Of Staff, Funding To Blame

In Minnesota, the Pioneer Press reported yesterday:

• The Minnesota Financial Crimes Task Force has decided to stop taking mortgage fraud cases in a move that may or may not dent the state's efforts to combat a widespread problem, depending on whom you talk to. Either way, the decision speaks to the tough time law enforcement is having tackling a new breed of financial crime, one that has played a significant role in the nation's foreclosure crisis and doesn't fit neatly into traditional police beats. In fact, the U.S. Attorney's office in Minneapolis is holding a special meeting today to discuss just how federal and state laws can be used together to better tackle mortgage fraud.

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• Chris Omodt, a Hennepin County Sheriff's lieutenant who heads the task force, said he thinks crimes will go unchecked, but acknowledges it doesn't have the resources. Mike Siitari, Edina police chief and oversight council chairman, said the group needed to return to its original mission: identity theft and financial crimes such as credit card fraud and check fraud. As for mortgage fraud, "We don't have the staff or funding to address it," Siitari said. "We have hundreds of cases of backlog."

For more, see Panel drops mortgage fraud cases (State task force says it lacks staff, funds to handle backlog).