The lead defendant in one of the largest mortgage fraud schemes ever prosecuted in Chicago is accused of threatening some of his codefendants and other individuals involved in his case, a federal prosecutor disclosed Tuesday during an arraignment at the Dirksen Federal Building.

Assistant U.S. Atty. Daniel May told a judge that 44-year-old defendant Bobbie Brown, Jr. is "a danger to the community."

In response to the disclosure, U.S. Magistrate Judge Jeffery Cole ordered that Brown be placed under house arrest at his mother's home pending a hearing today that will decide whether Brown should be detained.

"Several individuals involved in the case have expressed that they have been threatened by Mr. Brown," May said.

One of the targets of the alleged threats was defendant Leslie Love, 42, a licensed real estate agent and owner of the Total Real Estate, May said. In addition, Brown allegedly told several people that if they spoke to federal agents they "should be watching (their) back," the assistant U.S. attorney said.

The indictment was the result of a national investigation into mortgage fraud, code-named "Operation Malicious Mortgage," which led to charges against more than 400 people, 67 from the Chicago area.

Prior to Tuesday's court hearing, Brown, a Country Club Hills resident who operated several businesses, including Chicago Global Investments, Inc. and Brown Trucking, Inc., said in an interview outside the courtroom that he is being unfairly charged.

"I'm being railroaded," he said. "We did a lot of business with a lot of people who aren't here."

Brown cited loan officers, appraisers and investors.

Brown is one of about 20 defendants arraigned during two separate hearings. All pleaded not guilty to the charges, which included counts of mail, wire and bank fraud, as well as using false identification, according to an indictment released by the Department of Justice two weeks ago.

According to the indictment, Brown and his fellow defendants allegedly obtained 150 fraudulent mortgage loans on Chicago area homes, receiving $95 million from lenders and subsequently defaulting on some of the loans, leaving lenders with an estimated $19 million in losses.

According to the indictments, the defendants included "straw purchasers" recruited to purchase homes, loan originators who prepared false loan applications, a lawyer who oversaw home closings and builders.