Two Memphis prosecutions are included in Operation Malicious Mortgage. In October 2005, Fred Kratt was indicted (remains under seal) in the Western District of Tennessee and charged with Wire Fraud, Bank Fraud, Loan and Credit Application Fraud and Money Laundering. In December 2007, Kratt was convicted of all counts following a jury trial. On June 17, 2008, Kratt was sentenced to 46 months incarceration and ordered to pay restitution of $85,945.00. The Kratt investigation was conducted jointly by the FBI and the Memphis Police Department.

In a separate case, in November 2007, Deborah Brown was indicted in the Western District of Tennessee and charged with Wire Fraud in connection with a real estate transaction. Brown allegedly made misrepresentations in a loan application to Argent Mortgage for the purchase of a property located at 8550 Pleasant Hill, Olive Branch, Mississippi. In May 2008, she entered a plea of guilty and currently awaits sentencing.

Lawrence J. Laurenzi, Acting United States Attorney for the Western District of Tennessee and My Harrison, Special Agent in Charge of the Federal Bureau of Investigation-Memphis Office are participating in the national takedown of mortgage fraud schemes announced today by the Department of Justice and the Federal Bureau of Investigation. The national takedown, titled "Operation Malicious Mortgage" highlights enforcement efforts throughout the United States to identify, arrest and prosecution of mortgage fraud violators.

Nationally, Operation Malicious Mortgage resulted in 144 mortgage fraud cases in which 406 defendants were charged. Charges in Operation Malicious Mortgage cases were brought in every region of the United States and in more than 50 judicial districts by U. S. Attorneys' Offices based upon the law enforcement and investigative efforts of participating law enforcement agencies. The FBI estimates that approximately $1 billion in losses were inflicted by the mortgage fraud schemes employed in these cases.