18 officials arrested in $5.7 million housing fraud scheme

KIRKUK — Iraq’s National Security Service said Thursday it had dismantled a network of 18 government employees accused of fraud and forgery in a housing program, causing losses estimated at 8 billion dinars (about $5.7 million).

“In a specialized operation with intelligence and field coordination, the National Security Service in Kirkuk governorate dismantled an organized network involved in property manipulation and forgery, which caused waste of public funds,” the agency said in a statement.

The arrests, carried out with judicial approval, included government employees, bankers, and investors. The agency said the network ran “complex fraud operations targeting a government program to provide housing units for citizens.”

Investigators said the suspects used two schemes. One involved fake loans arranged through forged deeds and promoted under the names of unsuspecting citizens who were told they would receive housing units. Authorities also froze 30 other transactions before disbursement.

The second scheme, according to the statement, involved an attempt to seize a 57,500-square-meter state-owned plot of land by using deeds that did not match the property, in an effort to appropriate public assets.

The agency said the operation prevented losses of 8 billion dinars. All suspects were referred to judicial authorities.