California Real Estate Fraud Report

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05
Nov

Whistleblowers victorious in qui tam lawsuits against BofA, Fifth Third for appraisal fraud

Two qui tam lawsuits filed by the U.S. Department of Justice (USDOJ) against Fifth Third and Bank of America have recently been settled.

George Mann, the former chief appraiser for Fifth Third, had filed a whistleblower lawsuit against his employer, which has resulted in the bank agreeing to pay almost $85 million in settlement for fraudulent appraisal practices. The lawsuit alleged that “… fraudulent and misleading appraisals were used by Fifth Third to qualify for funding from the Troubled Asset Relief Fund (TARP), the Federal Deposit Insurance Corporation (FDIC), Fannie Mae, Freddie Mac, and other federal funding and securitization programs.” The $85 million compensates the government for over 1,400 loans that were insured through the FHA loan program and were later discovered to be defective.

Earlier, Kyle Lagow, of Countrywide, received $14 million in a whistleblower case that led to a $1 billion settlement between Bank of America (BoA) and the USDOJ, and Robert Madsen, who received $56 million for his part in a $16.65 billion settlement, also with BoA.

Read the original article in Mortgage News Daily.

© Copyright 2007-2018 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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