By Brenna Ehrlich/Medill News Service
 
The lead defendant in one of the biggest mortgage fraud schemes ever prosecuted in Chicago has allegedly been threatening some of his co-defendants and other individuals involved in his case, a federal prosecutor disclosed Tuesday during an arraignment at the Dirksen Federal Building.
 
Assistant U.S. Atty. Daniel May told a judge that defendant Bobbie Brown, Jr., 44, is “a danger to the community.” In response to the disclosure, U.S. Magistrate Judge Jeffery Cole ordered that Brown be placed under house arrest at his mother’s home pending a hearing Thursday, July 3, to decide whether or not Brown should be detained.
 
“Several individuals involved in the case have expressed that they have been threatened by Mr. Brown,” May said. One of the targets of the alleged threats was defendant Leslie Love, 42, a licensed real estate agent and owner of the Total Real Estate, May said. In addition, Brown allegedly told several people that if they spoke to federal agents they “should be watching [their] back.” May added.
 
Prior to the court hearing, Brown, a Country Club Hills resident who operated several businesses, including Chicago Global Investments, Inc. and Brown Trucking, Inc., said in an interview outside the courtroom that he is being unfairly charged. “I’m being railroaded,” he said. “We did a lot of business with a lot of people who aren’t here,” including loan officers, appraisers and investors. When asked if he believes that the trial will be fair, Brown responded: “They’re going to crucify me like they crucified Jesus Christ.”
 
Also Tuesday, the judge appointed a lawyer to represent Brown after his original attorney failed to appear in court because Brown had not paid him.
 
Brown was one of approximately 20 defendants arraigned during two separate hearings. All pleaded not guilty to the charges, which included counts of mail, wire and bank fraud, as well as using false identification, according to an indictment released by the Department of Justice two weeks ago. According to the indictment, Brown and his fellow defendants allegedly obtained 150 fraudulent mortgage loans on Chicago area homes, receiving $95 million from lenders and subsequently defaulting on some of the loans, leaving lenders with an estimated $19 million in losses.
 
According to the indictments, the defendants included “straw purchasers” recruited to purchase homes, loan originators who prepared false loan applications, a lawyer who oversaw home closing and builders. The indictment was the result of a national investigation into mortgage fraud, code-named “Operation Malicious Mortgage,” which lead to charges against more than 400 people, 67 from the Chicago area.