Tuesday, Nov 24th

Last update04:10:09 AM GMT

You are here News Economy Suit alleges banks and mortgage companies cheated veterans and U.S. taxpayers

Suit alleges banks and mortgage companies cheated veterans and U.S. taxpayers

E-mail Print PDF

Dept. of Veterans AffairsA whistleblower suit unsealed in federal court in Atlanta on Monday alleges that some of the nation’s largest banks and mortgage companies have cheated military veterans and taxpayers out of hundreds of millions of dollars by hiding illegal fees in veterans’ home loan refinancing.

The suit accuses the companies, including Wells Fargo, Bank of America, J.P. Morgan Chase and GMAC Mortgage, of engaging in “a brazen scheme to defraud both our nation’s veterans and the United States treasury” of millions of dollars in connection with home loans guaranteed by the Department of Veterans Affairs.

The case involves refinanced loans that are available to retired or active-duty veterans on homes they already own. The program is aimed at giving veterans the opportunity to lower their interest rates or shorten the terms of existing home mortgages.

“This is a massive fraud on the American taxpayers and American veterans,” said co-lead counsel in the case, James E. Butler Jr., one of the lawyers bringing the suit.

The whistleblower suit seeks to recover damages and civil penalties on behalf of the U.S. government. The Justice Department has notified the U.S. District Court that it is not taking over the case but is reserving the right to intervene at a later date, according to court papers.


Most Recent Related Stories...

Another big corporation is flagrantly dodging tax. This must be outlawed

Another corporation evades taxesNo invention of modern capitalism so enrages the public as does the tax haven. When giant...

NY's Gov. Andrew Cuomo raising minimum wage for state employees

NY Gov. CuomoNew York Gov. Andrew Cuomo on Tuesday announced plans to give all state workers a minimum...

Inside the Money Laundering Scheme That Citi Overlooked for Years

Citi money laundering schemeWhen Antonio Peña Arguelles opened an account in 2005 at Citigroup’s Banamex USA, the know-your-customer documents...

Top 100 US CEOs sitting on retirement nest egg of nearly $5bn

CE0 retirement in the billionsForget retirement worries: once a fat cat, always a fat cat. The top 100 chief executive...
America's # 1 Enemy
Tee Shirt
& Help Support!
TVNL Tee Shirt
Conserve our Planet
& Help Support!
Get your 9/11 & Media
Deception Dollars
& Help Support!
The Loaded Deck
The First & the Best!
The Media & Bush Admin Exposed!