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Financial Institution Fraud

This archive displays posts tagged as relevant to fraud by or involving financial institutions. You may also be interested in the following pages:

Page 27 of 29

March 12, 2015

Germany-based Commerzbank AG and its US branch Commerzbank AG New York agreed to forfeit $563 million and pay a $79 million fine for violations of the International Emergency Economic Powers Act and the Bank Secrecy Act relating to its funneling of millions of dollars through the US financial system on behalf of Iranian and Sudanese entities subject to US economic sanctions.  The bank also entered into settlement agreements with the Treasury Department’s Office of Foreign Assets Control, the Board of Governors of the Federal Reserve System, and the New York State Department of Financial Services for a combined regulatory payout of $1.45 billion.  Whistleblower Insider

March 3, 2015

The DOJ US Trustee Program entered into a national settlement agreement with JPMorgan Chase Bank N.A. requiring Chase to pay more than $50 million (including cash payments, mortgage loan credits and loan forgiveness) to over 25,000 homeowners who are or were in bankruptcy.  As part of the settlement, Chase acknowledges it filed in bankruptcy courts around the country more than 50,000 payment change notices that were improperly signed by persons who had not reviewed the accuracy of the notices.  DOJ

September 9, 2014

Don Langford, former chief credit officer and senior vice president of Nebraska-based TierOne Bank, pleaded guilty for his role in a scheme to defraud TierOne’s shareholders and regulators. Specifically, Langford conspired with others to hide losses at the bank by cooking the bank’s books and reporting falsified information to stakeholders, regulators, external auditors, and the investing public. The bank even made an unsuccessful attempt to get taxpayer TARP funds in November 2008. TierOne filed for bankruptcy shortly after the Office of Thrift Supervision shut the bank down in June 2010. DOJ

August 21, 2014

Bank of America agreed to pay $16.65 billion to resolve federal and state mortgage fraud claims against the bank and its former and current subsidiaries, including Countrywide Financial Corporation andMerrill Lynch. It is the largest civil settlement with a single entity in American history. And it includes a $5 billion penalty under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), the largest FIRREA penalty ever. As part of the settlement, BofA acknowledged misrepresenting the quality of billions of dollars worth of risky mortgage loans. Whistleblower Insider

July 28, 2014

Lloyds Banking Group agreed to pay $86M for manipulating submissions for the London InterBank Offered Rate (LIBOR), a leading global benchmark interest rate. DOJ

July 24, 2014

An $80M False Claims Act judgment was entered against BNP Paribas for submitting false claims for payment guarantees issued by the U.S. Department of Agriculture. The judgment resolves government charges that from 1998 to 2005 the French bank participated in a scheme to defraud the USDA’s Supplier Credit Guarantee Program under which American agricultural companies are encouraged to sell their products abroad. DOJ

July 14, 2014

Citigroup agreed to pay $7B to resolve government claims related to the bank’s packaging, securitization, marketing, sale and issuance of residential mortgage-backed securities (RMBS) which, according to the government, “contributed mightily to the financial crisis that devastated our economy in 2008.” The settlement includes a $4B civil penalty — the largest penalty to date under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). Whistleblower Insider

June 30, 2014

US Bank agreed to pay the $200M to resolve allegations it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the Federal Housing Administration (FHA) that did not meet applicable requirements. DOJ

December 22, 2015

Rome Finance Company, Inc. will pay compensation exceeding $3.7 million to settle claims that it engaged in predatory lending practices targeted at men and women in the military. Rome Finance, which did business most recently as Colfax Capital Corporation and Culver Capital, LLC, financed consumer debts exclusively to service members, typically for computers, gaming systems, and other goods and services from retailers online or at malls near military bases. Over 550 New York State service members benefited directly from this settlement and ancillary resolutions. NY

December 18, 2015

Virginia reached a settlement with MoneyKey, Inc., a Delaware-based online consumer lender, for alleged violations of the state’s consumer finance statutes and the Virginia Consumer Protection Act. MoneyKey has agreed to provide approximately $4 million to over 5,000 Virginia customers to resolve allegations that it imposed illegal charges on borrowers who received open-ended credit loans. VA
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