California Real Estate Fraud Report

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22
Dec

Countrywide Whistleblower to Get $57 Million

There is no category of businessperson I admire more than the whistleblower. Without them, our country would be even more corrupted by the acts of large corporations and our citizens would be the victims of that corruption. So it gives me a great deal of satisfaction to post the following story, published in DSNews.

Edward O’Donnell, a former executive with  Countrywide Financial Corp., will be getting $57 million for the key role he played in the government recovering more than $15 billion against Bank of America.

O’Donnell filed two whistle-blower lawsuits under the False Claims Act: the first having to do with Countrywide’s sale of faulty mortgage-backed securities to Fannie Mae and Freddie Mac through a program known as the High Speed Swim Lane (HSSL, or “Hustle”) (see this report from Bloomberg News). That suit, filed in 2012, resulted in the government negotiating a settlement with Bank of America, which bought Countrywide, for $1.27 billion.

The second suit O’Donnell filed against Countrywide resulted in a record $16.65 billion settlement with Bank of America with the government in August 2014.

Bank of America bought Countrywide for $4 billion in 2008. It probably doesn’t look like such a good investment anymore.

© Copyright 2007-2017 Monique Bryher

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The information and notices contained on The California Real Estate Fraud Report are intended to summarize recent developments in real estate fraud, mortgage fraud, short sale fraud, REO fraud, appraisal fraud, loan modification scams, loan modification fraud and other real estate related crimes occurring in Los Angeles and California. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about real estate fraud, mortgage fraud and appraisal fraud matters or who believe they require legal counsel should seek the advice of an attorney.

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