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Top Ten Federal Financial Fraud Recoveries of 2021

Posted 01/21/22

While 2021 may have felt like more of the same as the pandemic dragged on, it marked some new trends in federal financial fraud recoveries. As we predicted last year, the Anti-Money Laundering Act of 2020 has heralded some large recoveries against banks. The Act also established an Anti-Money Laundering Whistleblower Program, so that whistleblowers who report financial institutions engaging in money laundering –...

Tagged in: Antitrust General, Bribery and Bid-Rigging, Criminal Proceedings, Financial and Investment Fraud, FIRREA, Foreign Exchange, Market Manipulation and Trading Violations, Money Laundering, Price Fixing, Top 10,

Catch of the Week: In hot water again, now for fleecing customers in foreign currency transactions, Wells Fargo pays $72m in fines and restitution

Posted 09/29/21

Wells Fargo Bank Banners on Side of Building

Earlier this week, the Department of Justice settled an important case in which Wells Fargo Bank agreed to pay over $70 million in penalties and restitution to defrauded bank customers. Wells Fargo admitted that it defrauded 771 customers, mostly small businesses, who used the bank’s foreign exchange services when they needed to send money overseas or receive money from abroad. Rather than charging standard fees for...

Tagged in: Catch of the Week, Financial and Investment Fraud, Financial Institution Fraud, FIRREA,

Catch of the Week – Sour Grapes: Fruit-Broker Squashed for Role in Defrauding Federal Crop Insurance

Posted 08/13/21

The manager of a California fruit broker learned the hard way that it doesn’t pay to assist in defrauding the Federal Crop Insurance Program. The manager, at the behest of a grape farmer who sold crops through the broker, altered the farmer’s records to reflect lower-than-actual sales. The falsified records assisted the farmer to claim crop-losses falsely and receive insurance-reimbursements funded by the...

Tagged in: Catch of the Week, Crop Insurance, FCA Federal, FIRREA, Flood Insurance, Private Insurance Whistleblower Reward Programs,

As COVID-19 Stimulus Funds Flow, DOJ Puts Fraudsters on Notice and Calls Whistleblowers “Essential”

Posted 04/2/21

On March 11th, President Biden signed The American Rescue Plan Act of 2021 (ARPA), a sweeping economic stimulus plan that will pump $1.9 trillion into the US economy. In addition to direct relief to Americans, ARPA includes record-setting government spending in numerous areas to speed recovery from the economic and health effects of the COVID-19 pandemic and the ongoing recession. As we have previously written,...

Tagged in: COVID-19, FCA Federal, FIRREA, Government Loan Programs, Government Procurement Fraud, Government Programs Fraud, Importance of Whistleblowers,

Eastern District of CA Announces First Civil Settlement Related to CARES Act Fraud

Posted 01/22/21

The Eastern District of California announced the very first civil settlement to resolve allegations of fraud against the CARES Act Paycheck Protection Program. The agreement was entered into with SlideBelts, Inc., and its President, CFO and CEO, Brigham Taylor, for falsely certifying on its PPP applications to three financial institutions that they were not in bankruptcy when, in fact, they had been in the bankruptcy...

Tagged in: COVID-19, FCA Federal, Financial and Investment Fraud, FIRREA, Government Programs Fraud,

Top Ten Federal Financial Fraud Recoveries of 2020

Posted 01/14/21

The U.S. government has many enforcement options for financial and investment fraud, including those that provide for whistleblower rewards such as the SEC Whistleblower Program, the CFTC Whistleblower Program, and the IRS Whistleblower Program. These programs, along with a new one under the Anti-Money-Laundering Act of 2020, are open for business and promise to pay millions of dollars in whistleblower awards in...

Tagged in: Bribery and Bid-Rigging, Customs Fraud, Education Fraud, Financial and Investment Fraud, Financial Institution Fraud, FIRREA, Government Loan Programs, Housing and Mortgage Fraud, Top 10,

Catch of the Week: Guild Mortgage

Posted 10/30/20

stack of mortgage papers with gavel and money

We’re in the midst of a recession, 13 million Americans are out of work, GDP growth is slowing, and stock market volatility is approaching record-breaking levels. This recession is largely driven by the emergence of a mostly natural and random phenomenon, COVD-19, though there is plenty of blame to go around in how humans have reacted to the spread of the virus. This week’s catch of the week, however, harkens back...

Tagged in: Catch of the Week, COVID-19, FCA Federal, Financial and Investment Fraud, FIRREA, Housing and Mortgage Fraud, Whistleblower Case, Whistleblower Rewards,

Catch of the Week: Wells Fargo Pays $3 Billion, and another $35 Million, in Latest in Long Line of Government Enforcement Actions against the Bank

Posted 02/28/20

On February 21, 2020 the Department of Justice announced that Wells Fargo & Co. agreed to pay $3 billion to resolve civil and criminal allegations that Wells Fargo’s “cross-selling” practices led to millions of accounts being opened for customers under false pretenses and without consent. These practices allegedly led to Wells Fargo collecting millions of dollars in fees. Less than one week later, two of...

Tagged in: Catch of the Week, Financial and Investment Fraud, Financial Institution Fraud, FIRREA, Importance of Whistleblowers,

Top Ten Federal Financial Fraud Recoveries of 2019

Posted 01/17/20

The U.S. government has a range on enforcement options for financial and investment fraud, including those that provide for whistleblower rewards such as the SEC Whistleblower Program, the CFTC Whistleblower Program, and the IRS Whistleblower Program, each of which are very much open for business and continuing to pay millions of dollars in whistleblower awards in exchange for their assistance in exposing...

Tagged in: Financial and Investment Fraud, Financial Institution Fraud, FIRREA, Housing and Mortgage Fraud, Top 10,

Catch of the Week — General Electric to Pay $1.5 Billion under FIRREA in Subprime Loan Scheme

Posted 04/12/19

The Department of Justice today announced that General Electric will pay a civil penalty of $1.5 billion under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) to resolve claims of fraud involving the marketing of subprime residential mortgage loans. The loans at issue originated by a GE subsidiary, WMC Mortgage. The government alleged that WMC, GE, and their affiliates allegedly...

Tagged in: Catch of the Week, FIRREA, Housing and Mortgage Fraud,

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Top Ten Federal Financial Fraud Recoveries of 2021

Catch of the Week: In hot water again, now for fleecing customers in foreign currency transactions, Wells Fargo pays $72m in fines and restitution

Catch of the Week – Sour Grapes: Fruit-Broker Squashed for Role in Defrauding Federal Crop Insurance

As COVID-19 Stimulus Funds Flow, DOJ Puts Fraudsters on Notice and Calls Whistleblowers “Essential”

Eastern District of CA Announces First Civil Settlement Related to CARES Act Fraud

Top Ten Federal Financial Fraud Recoveries of 2020

Catch of the Week: Guild Mortgage

Catch of the Week: Wells Fargo Pays $3 Billion, and another $35 Million, in Latest in Long Line of Government Enforcement Actions against the Bank

Top Ten Federal Financial Fraud Recoveries of 2019

Catch of the Week — General Electric to Pay $1.5 Billion under FIRREA in Subprime Loan Scheme

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