Items Tagged with 'Corruption'


  • GAO: Rampant misconduct among senior HUD officials ran deep

    House subcommittee hears evidence of violations, cover-up attempts
    There have been serious violations of ethical, lobbying and hiring violations at the Department of Housing & Urban Development, and senior HUD officials have been involved in efforts to cover it up. Here’s what investigators have to say.
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  • FBI investigating flood insurance map fraud

    Irony: With Biggert-Waters gelded, map lines moot
    Now comes a story out of Florida serving as an example of how the current NFIP system is being abused, shifting the burden of flood insurance away from million-dollar beach homeowners and onto taxpayers.
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  • Countrywide's Mozilo May Face SEC Charges

    The Securities and Exchange Commission (SEC) may soon bring civil fraud charges against Angelo Mozilo, co-founder of Countrywide Financial, which folded into the Bank of America [stock BAC][/stock] name as part of the recent mortgage operations rebranding initiatives there.
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  • Prosecutors Step up Mortgage Investigations

    Federal prosecutors have intensified their investigation into Wall Street and the mortgage trade, forming a new task force led by assistant U.S. attorney Jonathan Green. Inquiries will range from fraud by brokers, to securities fraud and insider trading allegations, according to a report Monday in the Wall Street Journal. The group includes officials and agents from the FBI, Secret Service, the FDIC, and the New York State Banking Department.
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  • Countrywide in the Cross-Hairs

    Countrywide Financial is getting some unwanted attention from both investors and the U.S. Attorney's Office, according to two reports at Rueters this afternoon. Up first, unconfirmed rumors that the Calabasas, Calif.-based lender is the subject of a government probe:
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  • New Century in a Tailspin; Will it Survive?

    In a filing Friday with the Securities and Exchange Commission, New Century Financial (NYSE:NEW) disclosed a wide range of issues that have raised concerns among industry insiders about the subprime mortgage lender's ability to continue to operate. In addition to confirming earlier reports of class-action claims of securities fraud, as first reported by Housing Wire on February 12, the company disclosed in its SEC filing that it is involved in a federal criminal probe by the U.S. Attorney's office regarding possible violations of securities laws. New Century also acknowledged that it expects to breach numerous covenants associated with its short-term credit facilities, and warned that it had not yet obtained waivers from 5 of the company's 16 creditors relating to profitability provisions in its credit agreements.
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  • New Century Faces Claims of Securities Fraud

    Potential liabilities continue to mount for troubled subprime mortgage banker New Century Financial Corporation today, after announcing last week that it had failed to properly account for the impact of loan repurchases. Housing Wire has learned that at least seven law firms in four different states are currently seeking to gain class action status for claims of securities fraud against New Century, as a result of the company's pending income restatements and resulting stock tumble. The financial implications of any pending class action suit are as of yet unclear, as none of the existing classes have been certified by the respective courts in which the motions were filed.
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