New details in suspected mortgage fraud case

January 23, 2008 5:29:51 PM PST
There's new evidence in a massive mortgage fraud case that's being presented to a new grand jury. It's the latest twist in the controversy stemming from the arson case involving Texas Supreme Court Justice David Medina. Prosecutor Kate Dolan is presenting the mortgage fraud case to a grand jury. Meanwhile, some of the 37 defendants in that case are waiting in another courtroom to find out what happens.

Yesterday, Judge Jim Wallace disbanded a grand jury that handled the tampering and arson cases, respectively, against Justice Medina and his wife. That grand jury is the same on that heard this mortgage fraud cause, so now a new grand jury is listening to the evidence.

I spoke with fraud division supervisor Lester Blizzard in the district attorney's office this morning and he says that new evidence and new witnesses have come to light since the original indictments were handed up and there could be fewer people accused in this case this time around. He declined to say what this evidence might be.

As of today, three people who were arrested about a month ago remain in custody. Blizzard reiterates this is a large case and that some grand juries take months to complete their work.

This is a story we'll be covering all day. We'll let you know what happens with the new grand jury.

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