Jail Time For False Affidavits? Is It Possible For A Banker To Go To Jail?

Alain Sherter writing for BNET covers many of the angles in the foreclosure mess. In fact, his article is a good general guide to the controversy and the continuing crisis. Nevertheless, I am focusing on one part of that article.

The Following –

In looking into cases of improper foreclosure, federal officials are also raising the heat by exploring whether financial institutions broke the law in filing fraudulent paperwork. Such inquiries are usually left to the states, which usually have jurisdiction in real estate disputes. Since government housing agencies buy and guarantee bank mortgages, however, a criminal investigation could have teeth. And unlike private investors, obviously, the government has enormous power to compel banks to provide evidence of faulty documentation involved in originating and securitizing loans:

“In more than 25 years dealing with major financial crisis issues, I have never seen this many agencies focused on a single issue,” said Andrew Sandler, a lawyer who works on government investigations. “We are beginning to see signs of extensive governmental investigation that may also have criminal law implications.”

So, are we about to see some actual criminal justice? It would be a strange thing indeed to see justice done to those so high in their own estimation.

James Pilant