Justice Department, Department of Justice, civil settlement, toxic mortgages, Bank of America, BofA, Merrill Lynch, Countrywide Financial

News outlets are reporting that the U.S. Department of Justice and Bank of America are near agreement on a record civil settlement for actions arising out of the toxic mortgages, which significantly contributed to the financial crisis in the last decade.  Reports indicate that BofA will pay between $16 and $17 billion to settle investigations […]

SunTrust Settles Mortgage Based Cases

In the last couple of weeks SunTrust Banks has entered into settlements arising out of its mortgage practices.  In mid June SunTrust reached an agreement with the Department of Justice, 49 states, and the District of Columbia to resolve two major investigations into mortgage related wrongdoing.  The settlement required the payment of approximately $1 billion […]

Corporate Prosecution: Double Standard or Government Weakness

In an interesting article in The New York Times, dated today, writer Jesse Eisinger discusses the Justice Department’s recent efforts to prosecute wrongdoing by large banks.  Specifically, Credit Suisse and BNP Paribas have been charged criminally with violations of federal criminal statutes.  While no large American banks or bankers have been charged since the financial […]

Internal Tension in SEC Surrounding Mortgage Investigations

Today, in The New York Times,there is an interesting article describing the internal tensions and conflicts in the Securities and Exchange Commission as it investigated possible wrongdoing by Wall Street power brokers and made decisions about bring cases in connection with the mortgage crisis. While the SEC has brought some significant cases, it has passed […]

SunTrust Settles Mortgage Claims for More than $1B

SunTrust Banks settled mortgage fraud charges with the government by agreeing to pay more than $1 billion. The settlement involved the Department of Justice, the Department of Housing and Urban Development, and the Federal Reserve. The settlement includes $468 million in cash payments and $500 million in mortgage borrower relief. Additionally, SunTrust will pay $200 […]

JPMorgan Seeks Global Settlement with Department of Justice

JPMorgan Chase’s CEO Jaime Dimon met with Attorney General Eric Holder to discuss a settlement over improper mortgage practices by the bank.  JPMorgan’s current offer is the payment of $7 billion in fines and another $4 billion to relieve struggling homeowners.  The government apparently wants more that the proposed $7 billion in fines and penalties.  […]

Fraud Recoveries Come from Pharmaceutical Giants

In 2009, the Department of Health and Human Services and Department of Justice jointly created the Health Care Fraud Prevention & Enforcement Action Team (“HEAT”). The goal of the venture was and remains the prevention of waste, fraud, and abuse in programs such as Medicare and Medicaid. The program utilized task forces throughout the country […]

DOJ Turns to FCPA

The Department of Justice is turning to a Watergate era statute to battle international business corruption. In 1977 the Foreign Corrupt Practices Act became law. The law responded to the fact that many companies maintained off shore funds about which they kept inadequate informaion. Investigations at the time revealed that companies used such slush funds […]

Subprime Mortgage Meltdown Enforcement and Civil Litigation Heating Up

All levels of government are becoming involved in responding to the subprime mortgage meltdown. In addition private litigants are beginning to file legal actions. The federal government’s enforcement response will be spearheaded by the Securities and Exchange Commission and the Department of Justice. The SEC has created a subprime task force to investigate cases associated […]

SEC and Fed Reach Memorandum of Understanding to Share Information

In an attempt to confront regulatory gaps the Securities and Exchange Commission and the Federal Reserve have reached a memorandum of understanding to allow the staffs of the two agencies to share information. The Fed has regulatory responsibilities for banks, bank holding companies, financial holding companies and their subsidiaries, and foreign banks. The SEC regulates […]