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mortgage 5 articles

False Claims Act Cases Return $4.7 Billion To U.S. Taxpayers in 2016

False Claims Act lawsuits, much of which were initiated by whistleblowers, helped the U.S. government recover more than $4.7 billion in fiscal year 2016, the U.S Department of Justice (DOJ) said in a year-end review. The recoveries amounted to the third-largest return of federal funds to U.S. taxpayers in the history of the False Claims Act. The total False Claims Act recoveries in 2016 eclipsed the previous year’s recoveries totaling $3.6 billion and mark the fifth consecutive year that the government recovered more than $3.5 billion from False Claims Act complaints. “It’s the icing on the cake for an epic ... Read More

Whistleblower receives nearly $70 million for exposing JPMorgan mortgage fraud

N.Y., N.Y. — A whistleblower who was instrumental in recovering $614 million for federal mortgage loan programs from JP Morgan Chase & Co. will receive $63.9 million as his share, according to a Reuters report. Louisiana resident Keith Edwards sued JP Morgan on behalf of the U.S. government in January 2013 under the qui tam or “whistleblower” provisions of the U.S. False Claims Act. Mr. Edwards worked for the banking giant from 2003 to 2008 as an assistant vice president. His responsibilities involved supervising a government insuring unit of the company. Mr. Edwards alleged that JP Morgan defrauded the government ... Read More

JPMorgan settles whistleblower’s allegations of mortgage fraud for $614 million

JPMorgan Chase & Co has agreed to pay the U.S. $614 million to resolve more False Claims Act allegations that it defrauded federal agencies by knowingly originating and underwriting substandard mortgage loans that failed to comply with federal insurance requirements, the Justice Department said on Tuesday. The settlement began with a whistleblower, Keith Edwards, who sued JPMorgan in January 2013 under the False Claims Act, an anti-fraud law that allows individuals to sue government contractors, suppliers, and other entities for defrauding taxpayers. In exchange, whistleblowers receive a percentage of the recovery in successfully argued cases. According to court documents, JPMorgan, ... Read More

JPMorgan, U.S. reach record $13-billion settlement over mortgage and securities fraud

The U.S. Justice Department announced Tuesday that it reached a record $13-billion agreement with JPMorgan Chase to resolve allegations that it knowingly sold faulty mortgage investments that contributed to the 2008 financial crisis. The settlement is the largest settlement between the U.S. government and a single entity in history, the Justice Department said, and the largest sum ever paid by an American company. As part of the settlement, JPMorgan admitted it made serious misrepresentations to the public, including the investing public, about its numerous mortgage-backed securities transactions. The resolution also requires JPMorgan to provide$4 billion in relief, included in the ... Read More

Crackdown on bogus mortgage modification ads targets Google, Microsoft, and others

It never takes long for shady consumer predators to find another way to rip unsuspecting people off. While the U.S. is struggling to emerge from a mortgage crisis that tore down the national economy, dozens of mortgage-reduction scammers have been using major online search engines to sell their bogus services. Microsoft, the owner of Bing and the ad provider for Yahoo, and Google have been raking in millions of dollars by allowing – and allegedly encouraging — mortgage scammers to advertise with them. The victims: people who are struggling to make ends meet — desperate to avoid foreclosure and homelessness. ... Read More