The U.S. Securities and Exchange Commission (“SEC”) issued its Annual Report on the Dodd-Frank Whistleblower Program this week. A section of the Dodd-Frank Act requires the SEC’s Office of the Whistleblower to report annually to Congress on its activities, whistleblower complaints, and the SEC’s response to such complaints. The SEC […]
Monthly Archives: November 2012
Six Banks Settle Whistleblower Suit
A federal judge ruled that a whistleblower lawsuit may proceed against Wells Fargo and Mortgage Investors Corporation (“MIC”) with claims that the banks illegally charged veteran borrowers hidden fees on refinanced home loans backed by the Veterans Administration (“VA”). According to the suits, the banks’ misconduct cost taxpayers hundreds of […]
Government Seeks to Recoup Lossed from Mortgage Fraud
The recently filed lawsuit against Credit Suisse Group AG is the most recent effort to come from a working group created by President Barack Obama to recover government losses and to challenge wrongdoing that led to the 2008 financial crisis. Last week, the New York Attorney General filed suit against […]
SC Hospice Company Settles Whistleblower Suit
South Carolina-based Harmony Care Hospice, Inc. and its owner and Chief Executive Officer have agreed to pay nearly $1.3 million to settle allegations that the company submitted false claims to Medicare for patients under care at its hospice facilities. The United States Department of Justice announced the settlement of the […]
NY Attorney General Sues Credit Suisse for Mortgage Securities Fraud
The New York Attorney General has filed suit against Credit Suisse for mortgage securities fraud. In the lawsuit, the New York AG accused the Swiss bank of misleading investors over the quality of residential mortgage-backed securities. The deception resulted in losses to investors of some $11.2 billion, according to the […]
FTC Takes Action Against Mortgage Relief Schemes
The Federal Trade Commission (FTC) filed three separate lawsuits in federal court recently to halt the deceptive tactics of companies preying on distressed homeowners by falsely claiming they could save their homes from foreclosure. Instead, the fraudsters charged homeowners thousands of dollars in up-front fees while delivering little or no […]
U.S. Sues Wells Fargo Over Mortgages
United States prosecutors recently filed suit against Wells Fargo, claiming the lender misrepresented the quality of the mortgages it handled under a federal housing program. In the case filed in federal court in New York, Wells Fargo, the country’s largest originator of home loans, prosecutors alleged that the bank defrauded […]
US Supreme Court Hears Arguments in Class Actions
The United States Supreme Court heard arguments in two cases in which the defendants seek to expand the class action limits of last year’s Wal-Mart v. Dukes case. On November 5, 2012, the Supreme Court heard arguments in Comcast Corp. v. Behrend and Amgen, Inc. v. Conn. Ret. Plans & […]
CFPB Issues New Rule Regarding Oversight of Debt Collectors
The Consumer Financial Protection Bureau (CFPB) announced a new rule that will allow the agency to oversee consumer debt collectors for the first time at the federal level. Read the CFPB’s press release and information about the agency’s oversight of debt collectors can be accessed via CFPB’s website (www.consumerfinance.gov). Beginning […]
Concerns Raised Over Banks Entering Short-Term Loan Market
Concerns have been raised about large banks beginning to make short-term loans similar to those found in the oft-criticized and problem-plagued payday lending arena. Banks have faced lower revenue as a result of limits on debit card and overdraft fees. Those lenders are now offering high-cost loans that are meant […]