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March 13, 2014 AT 6:08 AM
The Justice Department has repeatedly and significantly overstated its efforts to prosecute mortgage fraud, an internal watchdog said on Thursday in a report that cited the department’s “disturbing” inability to verify its information. The report by the department’s inspector general undercuts the Obama administration’s contentions that it is cracking down on those responsible for the collapse of the financial and housing markets. Attorney General Eric H. Holder Jr. announced in 2012 that prosecutors had charged 530 people over the previous year in cases related to mortgage fraud. The Justice Department said homeowners lost more than $1 billion to fraud in those cases.