I think prosecuting real estate fraud is a great use of government money.
Knowing that the rules of the game will be enforced, creates more confidence in the economic system, confidence that is kinda shaky right now.
For example, if the government had more strongly enforced the fraud and abuse that went on during the Enron and similar scandals and more people went to jail, that would have had a deterrent effect on the fraudsters to come during the real estate boom and bust.
The rules of the game need to be enforced to help ensure the integrity of the game.
I don’t think there was much enforcement during the dot com bubble, the Enron type scandals or, so far, during the real estate bubble. There was a HUGE amount of fraud during the real estate boom, yet few have been prosecuted.