Two whistleblowers whose lawsuits against Bank of America played a role in the recent settlement agreement between the bank and the Attorneys General for the 50 states, have received settlements.
Appraiser Kyle Lagow’s complaint is said to have initiated the investigation by the U.S. Department of Justice into mortgage fraud at Countrywide Financial, which was purchased by Bank of America in 2008. Countrywide was one of many subprime lenders that were accused of pressuring appraisers to over-value properties (appraisal fraud) in order to inflate commissions and bonuses for its loan offices, management and executives (mortgage fraud). Lagow’s share of his claim, which was filed under the federal False Claims Act, is $14.5 million.
A second whistleblower, Gregory Mackler, has also reached an undisclosed settlement after challenging Bank of America’s management of the federal HAMP (Home Affordable Mortgage Program). Both men were represented by the Hagens Berman law firm.