Property fraud allegations are escalating as commercial real-estate values decline, driven by higher interest rates and an increase in defaults. U.S. prosecutors are intensifying their crackdown on commercial real-estate fraud, scrutinizing the financials underpinning major property loans. The Department of Justice (DOJ) is focusing on fraudulent activities based on doctored financials, a trend historically revealed during economic downturns. Companies such as Arbor are facing counterparty exposure in investigations into BBG and Meridian. Landlords have been falsifying income and expense data on crucial loan documents, prompting regulatory and prosecutorial actions. The Wall Street Journal (WSJ) and the commercial mortgage-backed securities (CMBS) market are prominently involved in these developments.