Posts Tagged ‘mortgage whistleblower award’
Wednesday, May 30th, 2012
A former home appraiser for Countrywide (“Countrywide”) Financial will receive a $14.5 million whistleblower reward in connection with a qui tam lawsuit that alleged Countrywide fraudulently inflated appraisals on government insured loans.
The Countrywide qui tam suit, filed by Mr. Kyle Lagow in 2009, was one of five whistleblower complaints that were settled as part of the $25 billion national mortgage settlement that state and federal officials reached with Bank of America and four other lenders this year. Mr. Lagow’s suit was settled for $75 million.
All five qui tam complaints were brought under the whistleblower provisions of the federal False Claims Act, which is a longstanding federal statute that authorizes a private citizen with knowledge of fraud being perpetrated on the federal government to bring a lawsuit on the government’s behalf. If the whistleblower’s suit is successful, the whistleblower may be entitled to up to 30% of the government’s monetary recovery. The False Claims Act also provides for certain protections for employees who are subjected to retaliation for reporting fraud.
Kenney & McCafferty lawyers are experienced in the area of mortgage fraud. If you have knowledge of mortgage fraud and would like to discuss the possibility of a whistleblower award, please contact our attorneys today. Kenney & McCafferty will consult with you about your case, including your ability to remain anonymous in filing for an award, without obligation. All communications with Kenney & McCafferty attorneys regarding your case are confidential and protected by the attorney-client privilege.
Tags: mortgage whistleblower, mortgage whistleblower award
Posted in Bank Fraud, bank whistleblower, corporate fraud, False Claims Act, government fraud, mortgage fraud, Recent News, retaliation, Whistleblower Protection | Comments Off
Wednesday, May 23rd, 2012
Last week the Manhattan U.S. Attorney’s Office announced a $202.3 million settlement with Deutsche Bank’s AG mortgage unit for reckless mortgage lending practices. This is the third major bank settlement related to mortgage fraud by the Manhattan U.S. Attorney’s office in 2012, having announced a $158.3 million settlement with Citibank in February and a $132.8 million settlement with Flagstar Bank FSB in March.
Both the Citibank and Flagstar settlements were the result of whistleblower claims filed under the False Claims Act.
In February, the Brooklyn U. S. Attorney’s Office announced a $1 billion settlement with Bank of America related to improper mortgage practices. Part of that settlement included a settlement of two whistleblower actions that had been filed against Bank of America for mortgage fraud.
These cases highlight the importance of whistleblowers and the False Claims Act in continuing to combat financial improprieties at the banking institutions. It also suggests that more mortgage fraud cases brought by whistleblowers will be forthcoming given the success that both the Manhattan and Brooklyn U.S. Attorney’s Offices have experienced working with whistleblowers in this arena.
If you have knowledge of Securities Fraud and would like to discuss the possibility of a whistleblower award under the SEC whistleblower program, please contact our whistleblower attorneys today. Kenney & McCafferty will consult with you about your case, including your ability to remain anonymous in filing for an award, without obligation. All communications with Kenney & McCafferty attorneys regarding your case are confidential and protected by attorney-client privilege.
Tags: bank fraud, bank whistleblower, doj investigations, False Claims Act, FHA fraud, HUD fraud, mortgage fraud, mortgage whistleblower, mortgage whistleblower award
Posted in Bank Fraud, bank whistleblower, corporate fraud, False Claims Act, FHA fraud, HUD fraud, mortgage fraud, Uncategorized | Comments Off
Thursday, April 28th, 2011
The SEC has postponed adoption of rules for its whistleblower program. According to the Dodd-Frank Act, final regulations for the whistleblower program were to be adopted by the SEC no later than April 21, 2011. Earlier this week, the SEC announced on its website that it is planning to adopt new rules some time between May and end of July. SEC spokesperson John Nester did not provide any specifics about the delay, commenting only that the SEC was crafting all the new rules for Dodd-Frank with an emphasis on “getting it right.”
The financial industry needs an effective fast-track incentive program for whistleblowers. The Dodd-Frank program augments the SEC’s 40 year old insider trading reward program that never realized its potential as a decentralized fraud enforcement mechanism. The SEC, under the old insider trading program, only paid out awards to whistleblowers four times. SEC watchers generally discount the insider trading program and are skeptical about the SEC’s interest in working with whistleblowers in general.
The new Dodd-Frank whistleblower program has generated considerable interest among would be whistleblowers and large companies. Frustrated employees and fraud fighters are delighted to have another program that incentivizes whistleblowers; large companies criticize the program because it encourages whistleblowers to report fraud directly to the government, bypassing internal corporate compliance procedures.
Whistleblowers could file SEC claims for rewards under the Dodd-Frank Act as of last July but will be expected to comply with the new rules once the new rules are adopted. Kenney & McCafferty, P.C. is happy to assist you in assessing your potential SEC whistleblower claim. Call K&M for a free consultation today
Tags: bank fraud award, banking whistleblower, banking whistleblower award, corporate fraud, corporate fraud whistleblower, corporate whistleblower award, finance industry fraud, market fraud, market fraud whistleblower, market whistleblower award, mortgage fraud, mortgage fraud whistleblower, mortgage whistleblower award, Sarbanes Oxley award, Sarbanes Oxley violation, Sarbanes Oxley whistleblower, Sarbanes Oxley whistleblower award, SEC whistleblower, SEC whistleblower award, SEC Whistleblower Program, SEC whistleblower reward, securities violations, securities violations reward, securities whistleblower, securities whistleblower award, SOX retaliation, SOX whistleblower, SOX whistleblower award, whistleblower
Posted in retaliation, SEC Whistleblower Program, Uncategorized, Whistleblower Protection | Comments Off