Until recently, Darryl Woods was the chairman and Chief Financial Officer of Mainstreet Bank in Ashland, Missouri. Last week he pleaded guilty to defrauding the federal government and taxpayers. His crime? The feds say he took $381,000 of TARP bailout monies and used the cash to purchase a luxury condo in Fort Meyers, Florida. Now […]
Recruiting Whistleblowers!
January 24th, 2012. President Obama addressed the nation in his State of the Union speech and told Americans that those responsible for the housing market crash would be held responsible. While few bankers have been sent to prison – and none from America’s “Too Big To Jail” banks – whistleblowers have helped the Justice Department […]
FIRREA – An Overlooked Whistleblower Tool?
I chuckled this morning when reading the paper. The big financial news this week is the Department of Justice suit against Bank of America for the sale of residential mortgage backed securities. The article claims the plaintiff’s bar “is abuzz” over the government’s use of a little known law called the Financial Institutions Reform, Recovery […]
Feds Charge Another Mortgage Lender – (Whistleblower Post)
by Brian Mahany Five years after the housing crisis began and the feds continue to pursue those responsible for the mess. Although the federal false claims act statute of limitations prevent some whistleblower cases from going forward, whistleblowers can still earn a hefty payday under FIRREA statute. FIRREA is short for the Financial Institutions Reform, […]
Bank of America Hopes To Skirt $1Billion False Claims Suit
by Brian Mahany Bank of America is back in the news. And once again, its not good news for America’s “Too Big To Fail, Too Big To Jail” banking giant. Last week, BoA asked a federal judge to toss a billion dollar false claims suit against it. The suit, brought by former Countrywide Senior V.P. […]
"Do The Hustle" – Feds Slam Bank of America in Billion Dollar Fraud Case
by Brian Mahany For those who remember the disco era, Van McCoy scored a number 1 hit on the Billboard charts back in 1975 with a song called “Do The Hustle.” Decades later, federal prosecutors announced a billion dollar civil prosecution against America’s largest bank, Bank of America. Prosecutors say that BOA engaged in a […]
Government Accuses Wells Fargo Of Massive Mortgage Fraud
[Post Updated] Lately we have been writing a lot of stories about Bank of America. It seems America’s biggest bank is also the most inept. Every now and then, however, they get a break and the bad headlines go to one of the other behemoth lenders. Today’s Wall of Shame honors go to Wells Fargo. […]