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updated: 9/27/2013 7:48 AM

Feds: Illinois mortgage fraud led to $8 million in losses

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  • Ten Chicago-area suspects have been indicted in an alleged scheme to fraudulently secure around 50 residential mortgage loans worth more than $14 million.

      Ten Chicago-area suspects have been indicted in an alleged scheme to fraudulently secure around 50 residential mortgage loans worth more than $14 million.
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Associated Press

Ten Chicago-area suspects have been indicted in an alleged scheme to fraudulently secure around 50 residential mortgage loans worth more than $14 million.

The U.S. Attorney's Office said Wednesday the mortgages were used to buy properties -- mainly on the south and west sides of Chicago.

The mortgages weren't fully recovered through later sales or foreclosures. As a result of the alleged scheme, prosecutors say lenders lost at least $8 million in all.

The defendants face different sets of charges. If convicted, some charged with fraud face maximum sentences of 30 years in prison and fines of up to $1 million.

Since 2008, more than 200 people have been accused in federal court in Chicago and Rockford of mortgage fraud. The alleged losses total some $300 million.

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