Mortgage Fraud Case Against Bank of America Proceeding to Trial
A U.S. government lawsuit against Bank of America Corp. related to the sale of billions of dollars of toxic mortgage loans to Fannie Mae and Freddie Mac is headed to trial in September. The government brought the case pursuant to the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act alleging fraud by Bank of America in connection with the sales of the toxic mortgage loans.
The whistleblower lawsuit was originally brought by Countrywide Financial Corp. executive Edward O’Donnell. The U.S. Department of Justice then joined the action. The suit alleges that Countrywide, acquired by Bank of America in July 2008, caused more than $1 billion in taxpayer losses by selling defective home loans to Fannie Mae and Freddie Mac, the mortgage finance entities seized by the government in September 2008.
Bank of America had sought the dismissal of the whistleblower suit. In an Order released on August 27, U.S. District Judge Jed Rakoff of the United States District Court for the Southern District of New York denied the Bank’s Motion to Dismiss. That ruling clears the way for the lawsuit to proceed toward a jury trial scheduled to begin September 23 in New York.
Share ThisFOR FREE No Win, No Fee
Review Us
“I would like to leave a testimonial thanking Steven and Allison for their care and understanding. Steven’s pursuit and success in getting some compensation for our loss. A final closure of our loss of brother Mike. Thanks to Martin & Jones for looking after Mike’s care since his injury in 2005. You have been there for Mike and his family for a long time. Mike passed in 2016 and you stood for the family up to the present (July 2017). Many thanks.”
Contact Our North Carolina Personal Injury Law Firm
for a Consultation for Your Accident or Medical Malpractice Claim
FOR FREE No Win, No Fee
The law firm you choose makes a difference. If you are the victim of an accident or an illness that someone else caused, the North Carolina personal injury law firm of Martin & Jones has the depth of experience, skills and sensitivity to make your road to recovery as smooth as possible. Whether you have experience with the legal system or have never hired a medical malpractice or personal injury lawyer before, our attorneys and staff will do our best to answer your questions, provide clear advice and prepare you and your family for what to expect. If you would like more information or to meet with one of our attorneys, please fill out the form below or call us at 800.662.1234.