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Justice Department Expands Efforts to Uncover Mortgage Fraud
Wednesday, May 30th, 2012
On Thursday, May 24, 2012, the Justice Department’s Residential Mortgage-Backed Securities (RMBS) Working Group announced new resources in the ongoing efforts to investigate and uncover mortgage fraud and abuse that helped precipitate the 2008 financial crisis. These efforts include the launch of a new whistleblower website to report fraudulent activities in the mortgage-backed securities market. The Working Group wants to hear from people “who worked in the RMBS market who acted responsibly but who also may have witnessed greed and misconduct that crossed the legal line and created havoc for investors, homeowners and our economy.” These market participants include loan originators, sponsors, underwriters, trustees, and others.
The RMBS working group was established by Attorney General Eric Holder in January and has been dedicated to initiating, organizing and advancing new and existing investigations by federal and state authorities into fraud and abuse in the RMBS market. The RMBS Working Group is a collaborative effort focused on investigating potential false or misleading statements, deception or other misconduct by market participants in the creation, packaging and sale of mortgage-backed securities.
While the Justice Department said the group’s efforts are law enforcement sensitive and, as a result, must remain confidential, generally it continues to: identify specific RMBS offerings for priority investigation through the use of various forensic tools including risk-based analytics; analyze pending private RMBS litigation throughout the country for evidentiary connections to existing law enforcement investigations; and convene operational meetings among investigators, attorneys, analysts and RMBS market experts and insiders.
Associate Attorney General Tony West said that “although the working group … [has] done a tremendous amount of investigative work already – including having issued more than 25 civil subpoenas – we know that hearing from insiders is particularly valuable.” Substantial financial rewards may be available to whistleblowers who provide specific information if that information leads to a monetary recovery by the government.
If you have knowledge of mortgage fraud and would like to discuss the possibility of a whistleblower award, 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, False Claims Act, mortgage fraud, mortgage whistleblower, residential mortgage fraud, RMBS, RMBS website, RMBS working group, SEC investigation
Posted in Bank Fraud, bank whistleblower, False Claims Act, government fraud, mortgage fraud, Recent News, SEC Whistleblower Program | Comments Off
