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Tag Archives: Bank Industry Fraud

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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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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Bank of America to Pay Government $1 Billion Settlement – The Largest Mortgage Fraud Settlement In The History Of The False Claims Act

On February 9, 2012, the United States Attorney’s Office for the Eastern District of New York announced the largest ever False Claims Act settlement relating to mortgage fraud.  Bank of America, Countrywide Financial Corporation, and other Countrywide subsidiaries have been under investigation since 2009 and were accused of mortgage origination and underwriting fraud.  They have […]

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Wall Street Reform Passes Congress, Increases Whistleblower Protections And Rewards

On July 15, 2010, Congress gave final approval of the Restoring American Financial Stability Act (H.R. 4173).  President Obama is expected to sign the bill into law next week.  The aim of the bill is to transform financial regulation in light of the 2008 financial crisis. The bill contains a number of whistleblower provisions designed […]

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