Archives For Regulatory Violations

Hencorp Becstone Capital L.C., Miami, Florida, has agreed to pay $3.8 million to resolve allegations under the False Claims Act that it made false statements and claims to the Export-Import Bank of the United States in order to obtain loan guarantees.  Continue Reading…

MetLife Home Loans LLC has agreed to pay $123.5 million to resolve accusations that its MetLife Bank unit violated the False Claims Act by knowingly originating and underwriting Federal Housing Administration-insured mortgages that did not meet applicable requirements.

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Justin T. Brough, 39, North Las Vegas, Nevada, a former senior vice president of Bank of America, Las Vegas, pleaded guilty to misapplication of bank funds in a scheme that led to over $6.4 million in losses on two loans.

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Gary Patton Hall Jr., 49, Tifton, Georgia, a former bank president and CEO, was charged for his role in a bank fraud scheme in which he is alleged to have hidden under-performing and at-risk loans from the bank and the Federal Deposit Insurance Corporation, among others.

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Standard & Poor’s Financial Services LLC (S&P) and its parent company, McGraw-Hill Financial Inc., entered into a $210 million settlement to resolve federal and state civil claims related to S&P’s conduct in inflating ratings of residential mortgage-backed securities and structured investment vehicle notes.

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GTL Investments, Inc., doing business as John Adams Mortgage Company, Southfield, Michigan, a mortgage lender, has agreed to pay $4.2 million to resolve allegations that it violated the False Claims Act in its origination of loans backed by the federal government.

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Golden First Mortgage Corp., and its owner, operator and President, David Movtady, have settled a civil mortgage fraud lawsuit alleging misconduct in connection with Golden First‘s participation in the FHA Direct Endorsement Lender Program.

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Wilbur Anthony Huff, Kentucky, pleaded guilty to bank fraud charges admitting that he engaged in a scheme to prevent Park Avenue Bank, New York, New York, from being designated as “undercapitalized” by regulators – a designation that would prohibit the bank from engaging in certain types of banking transactions, and that would subject the bank to a range of potential enforcement actions by regulators.

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Douglas Green, 50, Boca Raton, Florida, a former collateralized mortgage obligation bond trader was sentenced to 30 months in prison for engaging in a fraudulent trading scheme in which he manipulated the prices of CMOs by millions of dollars over a period of four years.

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Gilbert G. Lundstrom, 72, Lincoln, Nebraska, the former Chief Executive Officer of TierOne Bank, a publicly traded commercial bank formerly headquartered in Lincoln, Nebraska, was charged for his role in a scheme to defraud TierOne’s shareholders and mislead regulators by concealing the declining value of its loan and real estate portfolio.

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