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Tag Archives: Bank Industry Fraud

Bank of New York Mellon Agrees To Pay $714 Million to Resolve Claims Regarding Foreign Exchange Fraud

On March 20, 2015, the Attorney General of New York announced that a $714 million settlement had been reached to resolve allegations that the Bank of New York Mellon (“BNYM”) falsely told investors that it offered the “best rates” on securities trading involving foreign exchanges, even though BNYM allegedly assigned investors the worst rates, while […]

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MetLife Home Loans LLC Agrees to Pay U.S. Government $123.5 Million for Alleged Unqualified Government-Backed Mortgages

Last week, the Department of Justice (DOJ) announced that MetLife Home Loans LLC, successor of MetLife Bank N.A. (MetLife Bank) agreed to pay the U.S. Government $123.5 million to settle allegations that it violated the False Claims Act (FCA) by knowingly underwriting thousands of unqualified mortgage loans insured by the U.S. Department of Housing and […]

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The Government’s Entire Civil Anti-Fraud Arsenal On Display In Historic Settlement With Bank Of America

The Government recently entered into a massive settlement with Bank of America and its affiliated entities related alleged wrongdoing by the bank in connection with the packaging and sale of residential mortgage-backed securities that contributed to the Great Recession of 2008. The settlement, valued at $16.65 billion, is the largest civil settlement between the Government […]

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U.S. Bank Pays $200 Million in Settlement of Banking Fraud Case

On Monday, June 30, 2014, the Department of Justice (DOJ) announced that U.S. Bank has agreed to pay the United States $200 million to settle allegations that it violated the False Claims Act by knowingly underwriting thousands of unqualified mortgage loans insured by the Federal Housing Administration (FHA).  The FHA alleged that U.S. Bank misused […]

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JPMorgan Chase Pays $614 Million for Submitting False Claims in Mortgage Loans Case

The Department of Justice (DOJ) announced last week that JPMorgan Chase, the largest bank and financial institution in the country, will pay a $614 million settlement to the US government to resolve allegations that it approved thousands of unqualified home mortgage loans for government insurance and refinancing. According to the DOJ, JPMorgan knowingly created and […]

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FIRREA and FIAFEA: A Novel Approach To Protecting Financial Institutions From Themselves

In a matter of first impression, Judge Lewis Kaplan of the U.S. District Court for the Southern District of New York ruled that the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (“FIRREA”) not only prohibits fraud perpetrated by a third party that harms a financial institution, but also renders unlawful fraudulent conduct committed […]

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New York Attorney General Sues Credit Suisse For Residential Mortgage-Backed Securities Fraud

On November 20, 2012, the New York Attorney General, Eric Schneiderman, along with the Residential Mortgage-Backed Securities (RMBS) Working Group filed a Martin Act complaint against Credit Suisse Securities LLC.  The complaint accuses Credit Suisse of deceiving investors about the quality of the mortgage loans which were part of the RMBS the company was selling. […]

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Court Denies Motion to Dismiss in Fraud Case Against Wells Fargo and Mortgage Investors Corporation

Last month, United States District Judge Amy Totenberg denied in part a motion to dismiss in a whistleblower lawsuit that was originally filed against eight banks: Countrywide Home Loans, Inc., PNC Bank, First Tennessee Bank, SunTrust Mortgage, CitiMortgage, JP Morgan Chase, Wells Fargo Bank, and Mortgage Investors Corporation (MIC). Prior to Judge Totenberg’s decision, six […]

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MORTGAGE-FRAUD WHISTLEBLOWERS, UNCLE SAM WANTS YOU!

The Obama administration has created a task force charged with investigating fraud in connection with the packaging and sale of residential mortgage backed securities (RMBS).  Dubbed the Residential Mortgage-Backed Securities Working Group, the task force is a collaborative effort between the Securities and Exchange Commission, the Department of Justice, and many United States Attorneys’ Offices […]

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CitiMortgage, Inc. to Pay $158.3 Million to Settle Mortgage Fraud Allegations

On February 15, 2012, the United States Attorney’s Office for the Southern District of New York announced yet another case they brought against lenders for mortgage fraud.  CitiMortgage Inc., a subsidiary of CitiBank, has admitted to and accepted responsibility for committing fraud against the Department of Housing and Urban Development (HUD) and the Federal Housing […]

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