20 arrested in Fairfax mortgage fraud bust

FAIRFAX — Fairfax County police and FBI agents have arrested 20 people in connection with a massive mortgage fraud scheme that officials say may have involved as many as 200 properties valued at more than $100 million.

Authorities say real estate agents and mortgage brokers used straw buyers with good credit ratings and low income to fraudulently obtain loans. Properties were sold and resold within the alleged ring.

Police uncovered the alleged fraud after complaints from neighbors of overcrowding at several of the properties, some of which were being used as boarding houses.

Twelve people were arrested Thursday on federal charges including conspiracy and wire and mail fraud. Eight others were arrested on state charges of using false statements to obtain property or credit.

Officials say others could be charged.