Most types of financial fraud are relatively straightforward: the fraudster uses creative accounting, inflated numbers, or out-and-out lies to trick their victim into handing over money or valuables they wouldn’t otherwise part with, usually while twirling a villainous mustache. You can probably think of a dozen examples off the top of your head, from Bernie Madoff’s Ponzi scheme to the phone scams that try to convince your Nana her Social Security benefits are in danger. But until allegations were recently brought against Federal Reserve governor Lisa Cook, most people had never heard of mortgage fraud—and for good reason.

This type of fraud is exceedingly rare. In 2021, only 58 mortgage fraud offenders were sentenced in the federal system, and the number of offenders has decreased by ne

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