Items Tagged with 'Department of Justice'

ARTICLES

  • Feds arrest dozens in sweeping action against hackers targeting wire transfers

    Including those targeting real estate transactions
    The federal government announced Monday that it conducted a massive sweep and arrested nearly 75 people who allegedly participated in schemes designed to intercept and hijack wire transfers from businesses and individuals, including those involving real estate transactions. The operation also resulted in the seizure of nearly $2.4 million, and the disruption and recovery of approximately $14 million in fraudulent wire transfers.
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  • RBS reaches $4.9 billion settlement with DOJ over pre-crisis mortgage bonds

    Proposed settlement would be far less than originally estimated
    For the second time this year and at least the seventh time in recent memory, the Royal Bank of Scotland is about to cut a massive check as part of a settlement over the bank’s mortgage practices in the run-up to the housing crisis. Back in March, it was a $500 million settlement with the state of New York. Now, RBS is preparing for a nearly $5 billion settlement with the DOJ that would cover the bank’s issuance and underwriting of mortgage-backed securities between 2005 and 2007.
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  • Minnesota's KleinBank reaches settlement with DOJ over redlining allegations

    Bank will expand service area to include certain minority neighborhoods
    The Department of Justice and Minnesota-based KleinBank reached a settlement agreement covering charges that the bank excluded minority neighborhoods from its service area and engaged in discriminatory lending. Now, despite continuing to disagree with the government’s claims, the bank is settling with the DOJ in order to move forward.
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  • GE books $1.5 billion for potential settlement with DOJ over WMC subprime loans

    GE sold WMC in 2007, but problems still remain
    General Electric may be facing a fine of at least $1.5 billion for the lending activities of its shuttered subprime lending unit, WMC Mortgage. GE revealed last week that it booked a reserve of $1.5 billion that may be used as a settlement with the Department of Justice over the company’s subprime lending from 2005 through 2007.
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  • New York foreclosure firm accused of cheating Fannie Mae out of millions

    Rosicki, Rosicki & Associates charged with “systemically overbilling” expenses
    A New York foreclosure law firm allegedly used its affiliated companies to “systemically” overcharge for foreclosure-related services and defraud Fannie Mae out of “millions of dollars.” According to the U.S. Attorney’s Office, Rosicki, Rosicki & Associates engaged in a scheme with its wholly owned affiliates, Enterprise Process Service and Paramount Land, to markup foreclosure services by as much as 750% knowing that Fannie Mae would pay the bills.
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  • St. Louis landlords reach $625,000 settlement over 20 years of alleged sexual harassment

    Accused of offering cheaper rent and other benefits in exchange for sexual favors
    Two St. Louis landlords will pay a fine of $625,000 and are banned from serving as property managers as part of a settlement with the Department of Justice, which accused one of the landlords of sexually harassing more than a dozen female residents over a 20-year period.
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  • Former Equifax executive accused of dumping stock after learning of data breach

    SEC, DOJ charge former CIO Jun Ying with insider trading
    The former chief information officer of Equifax’s U.S. business dumped nearly $1 million in company stock after learning of the massive data breach at the credit reporting agency, but before the breach was disclosed to the public, the Securities and Exchange Commission and Department of Justice said Wednesday.
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  • Paul Manafort now facing raft of bank, mortgage fraud charges

    Investigation leads to more charges against former Trump campaign manager
    Paul Manafort, who served as President Donald Trump’s campaign manager for five months in 2016, is now facing a number of bank and mortgage fraud charges as DOJ special counsel Robert Mueller’s investigation digs deeper into Manafort’s past. From the indictment: “Manafort and Gates fraudulently secured more than twenty million dollars in loans by falsely inflating Manafort’s and his company’s income and by failing to disclose existing debt in order to qualify for the loans.”
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  • CEO of banned lender Seckel Capital charged with lying to HUD

    John Seckel accused of making false statements to HUD about company’s finances
    Back in July, HUD banned mortgage lender Seckel Capital from originating or underwriting FHA-backed mortgages after an investigation found that company repeatedly lied to the FHA about its financials. As part of the action, HUD also suspended the company’s owner and CEO, John Seckel, from doing business with the federal government. As it turns out, the government isn’t done with Seckel yet.
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  • DOJ investigating FHA lending practices of Lennar subsidiary Eagle Home Mortgage

    Homebuilder discloses investigation in SEC filing
    Eagle Home Mortgage, the mortgage lending subsidiary of Lennar, could find itself on a list that includes Wells Fargo, Walter Investment, United Shore Financial Services, PHH, and many other lenders that were sanctioned by the government for underwriting mortgages that did not meet Federal Housing Administration standards.
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