The U.S. Attorney’s Office recently announced an $85 million settlement with Cincinnati’s Fifth Third Bancorp over allegations of mortgage fraud. Image Source: Flickr CC user frankieleon In another case involving costly mortgage fraud, Cincinnati-based Fifth Third Bancorp recently settled False Claims Act allegations for $85 million.[1. United States Attorney’s [...]
In yet another mortgage fraud case, Walter Investment Management Corporation (Walter Investment) has agreed to pay over $29 million to resolve allegations it falsely certified residential home mortgages under the Department of Housing and Urban Development’s (HUD) Home Equity Conversion Mortgage (HECM)[1] program. The alleged scheme was uncovered following a whistleblower lawsuit filed by [...]
Mortgage fraud continues to plague the government’s anti-fraud task forces, notwithstanding the widespread 2008 economic downturn caused in part by various residential underwriting antics by big name lenders. Having apparently not learned the lesson, Nashville-based First Tennessee Bank recently settled similar claims of mortgage fraud for a whopping $212 million, making it one of [...]
In the wake of the 2008 financial crisis, which was primarily fueled by the housing bubble burst, many less-than-lawful residential home loan lenders have faced serious civil and criminal penalties for participating in shoddy underwriting practices, robo-signing, lax credit reviews, and outright fraud. Over the past several years, the U.S. government has targeted many [...]
Over the last few posts, we have engaged in an in-depth look at a relatively rare issue involving confidentiality during the investigative stage of a False Claims Act whistleblower case. The case, known as United States ex rel. Bibby v. Wells Fargo, N.A., has garnered some national attention as the Eleventh Circuit recently upheld [...]
As we discussed in yesterday’s post, the Eleventh Circuit recently handed down a ruling in a case of first impression: What sort of punishment should a relator face for breaching confidentiality rules during the investigative stage of a whistleblower action? We reviewed the rules of filing under seal and why this is an important [...]
Over the next three posts, we will explore a recent case handled by the U.S. Court of Appeals for the Eleventh Circuit – a jurisdiction covering Alabama, Florida, and Georgia – involving sanctions against a courageous whistleblower with an apparent misunderstanding of the rules of confidential seals. In today’s post, we introduce the concept [...]
Following the 2008 housing crisis, the federal government went to great lengths to ensure struggling homeowners were afforded every possible opportunity to keep their homes. One such effort, known as the Home Affordable Refinance Program (HARP), was enacted in 2009 to help borrowers who were “upside down” or “underwater” on their residential mortgages. In [...]
Under the False Claims Act’s qui tam provisions, individual private plaintiffs – who are often in a better position to report and relay the details of fraud against the government – can receive rewards of up to 30 percent of the total settlement or verdict obtained on behalf of U.S. taxpayers. These provisions are [...]
Earlier this month, Virginia Attorney General Mark R. Herring announced a record $1.15 billion lawsuit against several major banking institutions. The lawsuit stems from the rampant misconduct that eventually gave rise to the 2008 housing bubble, and includes the following defendants: Barclay’s Capital, Inc. Citigroup Global Markets Inc. Countrywide Securities Corporation Credit Suisse Securities [...]
