Mortgage Fraud Whistleblower Claims | Mortgage Fraud Whistleblower Attorneys

Mortgage Fraud Whistleblower Claims | Mortgage Fraud Whistleblower Attorneys

Mortgage Fraud Whistleblower Claims | Mortgage Fraud Whistleblower Attorneys | False Claims Act | False Claims Act Whistleblower Lawsuit | False Claims Act Mortgage Fraud | False Claims Act Mortgage Fraud Lawsuit

mortgage-fraud-whistleblower-claims-attorneysMortgage Fraud whistleblowers who have reported financial wrongdoing in recent years have been rewarded for helping the government successfully investigate schemes committed by banks, mortgage brokers, underwriters, and others. For instance, the Wall Street Journal reported in December 2014 that four whistleblowers will receive more than $170 million for providing information that led the government to pursue a mortgage fraud case against Bank of America (BOA) Corp. BOA and its former and current subsidiaries, including Countrywide Financial Corporation and Merrill Lynch, reached a record $16.65 billion settlement with the DOJ to resolve mortgage fraud claims in August 2014. According to the DOJ, the settlement was the largest with a single company in U.S. history. Generally, mortgage fraud involves borrowers or lenders intentionally submitting false information and documentation to financial institutions to receive loans or other types of funds. Both borrowers and lenders can become mortgage fraud victims, but so can U.S. taxpayers since tax dollars are involved in schemes against government-backed programs such as Freddie Mac and Fannie Mae.

[wsj.com/articles/third-whistleblower-to-collect-reward-related-to-bank-of-america-settlement-1419014474, December 19, 2014]

Alonso Krangle LLP is investigating Mortgage Fraud Whistleblower lawsuits. Our Mortgage Fraud Whistleblower Attorneys will evaluate your case CONFIDENTIALLY with you to ensure that your Whistleblower claim complies with whistleblower requirements, and will work with you as your claim progresses. If you are aware of illegal mortgage fraud practices and are willing to “blow the whistle” on it, contact the Mortgage Fraud Whistleblower Attorneys at Alonso Krangle LLP for a no obligation, legal evaluation of your claims.

Mortgage Fraud Whistleblowing Under the False Claims Act

The False Claims Act (FCA) allows whistleblowers to voluntarily report mortgage fraud against a wide range of governmental entities such as the Department of Defense or Medicare and Medicaid. Under the FCA, whistleblowers

file “qui tam” lawsuits which details the fraud being committed. The qui tam lawsuits are filed “under seal” meaning they are not made public pursuant to the FCA. The whistleblowers’ claims are reviewed by the DOJ which will decide whether to join the lawsuit and pursue an investigation. As of February 2014, the DOJ had filed more than 10,000 financial fraud cases, which includes more than 2,700 mortgage fraud defendants.

If the government’s probe is successful based, in part, on the whistleblower’s information, the FCA allows the whistleblower to receive between 15 percent to 25 percent of what the government recovers. Defendant under the FDA, defendants face a civil penalty of between $5,000 and $10,000 for each false claim plus three times the amount of damages the government sustained because of the fraud.

Among the most notable whistleblower mortgage fraud cases the DOJ joined was a case against JPMorgan Chase, which was accused of originating and underwriting non-complaint mortgage loans and submitting them to the Department of Housing and Urban Development’s Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA). In February 2014, JPMorgan Chase agreed to pay $614 million to settle claims of defrauding the government into insuring flawed home loans. The whistleblower received a $63.9 million reward from the FHA and the VA.

[law.cornell.edu/uscode/text/31/3729]

[law.cornell.edu/uscode/text/31/3730]

[stopfraud.gov/iso/opa/stopfraud/2014/14-civ-120.html, February 4, 2014]

Types of Mortgage Fraud

According to the FBI, mortgage fraud falls in two categories:

  • Fraud for profit – Committed by industry insiders such as bank officers, appraisers, mortgage brokers, attorneys, loan originators and other industry professionals.
  • Fraud for housing – Committed solely by borrowers who falsify their income and asset information on a loan application.

The FBI notes that there are several common mortgage fraud practices that include:

  • Foreclosure rescue schemes
  • Equity skimming
  • Loan modification schemes
  • Illegal property flipping
  • Silent second – When a property buyer borrows the down payment from the seller through a nondisclosed second mortgage. The primary lender believes the borrower has invested his own money in the down payment, when in fact, it is borrowed. The second mortgage may not be recorded to further conceal its status from the primary lender.

[fbi.gov/about-us/investigate/white_collar/mortgage-fraud/mortgage-fraud-overview]

Mortgage Fraud Whistleblower Attorneys

The knowledgeable Mortgage Fraud Whistleblower Attorneys at Alonso Krangle LLP assist clients in deciding the proper venue to file the qui tam mortgage fraud lawsuit. We also help our clients prepare strong qui tam mortgage fraud complaints that will help the government decide that its involvement is important in the case. Should the government join the lawsuit, our attorneys are experienced in working with federal prosecutors who will take the lead role on in the case. If the government does not join the qui tam complaint, we discuss the legal options available to the client, which includes proceeding with the case. Our attorneys also aggressively fight against any form of retaliation, whether harassment, discrimination, demotion or job termination, as a result of our client’s willingness to report wrongdoing.

About Alonso Krangle LLP And Filing A Mortgage Fraud Whistleblower Lawsuit

Andres Alonso and David Krangle, attorneys with 40 years of collective legal experience, have focused their law practice on the handling of significant personal injury cases, defective drug and medical device litigation, construction site accidents, nursing home abuse, medical negligence, qui tam/whistleblower actions and consumer fraud cases. A nationwide law firm representing injured victims throughout the U.S., Alonso Krangle LLP is headquartered in Long Island, New York, with offices in New York City, and New Jersey.

For more information about Alonso Krangle and filing a Mortgage Fraud Whistleblower Lawsuit, please contact us at 1-800-403-6191 or visit our website, http://www.FightForVictims.com

Contact:

Alonso Krangle LLP

445 Broad Hollow Road

Suite 205

Melville, New York 11747

Toll-FREE 1-800-403-6191

Tel: 516-350-5555

Fax: 516-350-5554