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Yo_Mama_Been_Loggin

(107,112 posts)
Tue May 24, 2016, 02:07 PM May 2016

Appeals court reverses fraud finding against Bank of America



NEW YORK— Bank of America Corp. was not liable for fraud and subject to a penalty of over $1.2 billion for its actions before the economy collapsed in 2008 despite a jury’s finding to the contrary, a federal appeals court ruled Monday.

The 2nd U.S. Circuit Court of Appeal in Manhattan said there was insufficient evidence for a jury to conclude at a 2013 trial that mail and wire fraud was committed by the bank’s Countrywide Financial unit in late 2007 and 2008 when it passed along mortgages to government housing agencies Fannie Mae and Freddie Mac.

Prosecutors had alleged that the bank sold mortgages at break-neck speed without regard to quality as the economy hurtled toward one of the nation’s worst financial downturns.

In July 2014, U.S. Attorney Preet Bharara touted the jury verdict and subsequent civil penalty as the first time a bank or its executives had been found liable under federal law for mortgage fraud leading up to the financial crisis. His office had no immediate comment Monday.

Lawrence Grayson, a spokesman for the Charlotte, North Carolina-based bank, said the bank was pleased with the 2nd Circuit’s ruling.

The three-judge panel, in a ruling written by Circuit Judge Richard C. Wesley, said trial evidence came up short.

http://www.theheraldbusinessjournal.com/article/20160523/BIZ02/160529669
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Appeals court reverses fraud finding against Bank of America (Original Post) Yo_Mama_Been_Loggin May 2016 OP
damn....i would have thought that countrywide was a leading contender for fraud Fresh_Start May 2016 #1

Fresh_Start

(11,330 posts)
1. damn....i would have thought that countrywide was a leading contender for fraud
Tue May 24, 2016, 02:12 PM
May 2016

since they had people rubberstamping loan documents without any controls whatsoever

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