SAO PAULO, March 17 (Reuters) - Brazilian federal police began efforts on Tuesday to apprehend members of a group that allegedly defrauded about 100 million reais ($30.5 million) from state-run mortgage lender Caixa Economica Federal.
The fraud involved issuing inappropriately sized loans, with some real-estate units assessed at over 1,000 percent of market value, the federal police said in a written statement on Tuesday. Some loans were also given for homes that did not exist, the police said.
"Members of the organization, with the assistance of Caixa employees including regional managers, facilitated these transactions of up to 1 million reais, accepting false documents and liberating funds without the necessary guarantees," the statement added.
Press representatives for Caixa did not immediately respond to a request for comment.
$1 = 3.28 Brazilian reais Reporting by Pedro Fonseca; Writing by Asher Levine Editing by W Simon