No 'vehicles' were fraudulently rated- the rates were those generally accepted although they had been riding the upward swing into oversold territory; this possibility was overlooked hence the sharp downward plunge.

I don't know whether the term "fraud" would be legally applicable, but because of the way they were being packaged, it was not possible for investors to know what they were getting. Many of the individual loans that had been repackaged into the "vehicles" were rated way below the rating of the "vehicle" in which they were bundled. There was some very creative bookkeeping that was allowed with those "vehicles".