Home >> News >> Data >> Chase Becomes First Bank to Settle Veteran Fraud Case
Print This Post Print This Post

Chase Becomes First Bank to Settle Veteran Fraud Case

""JPMorgan Chase"":www.jpmorganchase.com/ has finalized a deal that puts an end to mortgage fraud allegations that created critical headlines for the bank. The company announced on Tuesday that it has reached a settlement agreement to conclude a lawsuit that accused JPMorgan Chase of refinancing fraud against military veterans and taxpayers.

[IMAGE]

In total, JPMorgan Chase will pay the federal government $45 million to settle the legal issue. The claims included in the original lawsuit sought to bring the bank to justice for hiding illegal fees within home mortgage refinancing transactions for veterans, which JPMorgan Chase then allegedly used to collect on the void government loan guarantees.

Many of the nation's major financial institutions were also targeted in the lawsuit, and cases are still pending against ""Wells Fargo Bank"":https://www.wellsfargo.com/, ""Bank of America"":https://www.bankofamerica.com/, ""CitiMortgage"":www.citimortgage.com/, ""SunTrust Mortgage"":www.suntrustmortgage.com/, ""Washington Mutual Bank"":https://www.chase.com/wamuwelcome3/, ""PNC Bank"":https://www.pnc.com/ (acquiring

[COLUMN_BREAK]

institution for National City Mortgage Co.), ""Countrywide Home Loans"":www.bankofamerica.com/loansandhomes/index.cfm?template, ""Mortgage Investors Corp."":www.mortgageinvestors.com/, and ""First Tennessee Bank"":www.firsttennessee.com/ (acquiring institution for First Horizon Loan Corp.).

JPMorgan Chase is the first bank to successfully settle the legal matter, which was bought under the False Claims Act by two so-called whistleblowers. The same individuals are also responsible for bringing accusations against the remaining eight institutions involved.

The co-lead counsel on the case for the government, James E. Butler, Jr., attorney for ""Butler, Wooten & Fryhofer, LLP"":www.butlerwooten.com/, said of the settlement, ""We are proud to be part of an effort to return tens of millions of dollars to the government for fraud that would have otherwise gone undetected. JPMorgan Chase is but one lender that thought it could get away with charging illegal fees to veterans and hiding these illegal charges.""

Three legal firms works collaboratively on the government's lawsuit, and the team of representatives was comprised of lawyers from Butler, Wooten & Fryhofer, as well as members of ""Wilbanks & Bridges, LLP"":wilbanks-bridgeslaw.com/, and ""Phillips & Cohen, LLP"":www.phillipsandcohen.com/. Working together, the three companies have won record verdicts and settlements in whistleblower cases.

Marlan Wilbanks, who was also the co-lead counsel for the government and is part of Wilbanks & Bridges, commented on the deal, saying, ""Our lawsuit alleges that these lenders committed blatant fraud. Although JPMorgan Chase has paid to settle its claims, we are looking forward to moving the case against the other defendant lenders.├âÔÇÜ├é┬á These banks should be held accountable for causing the government to pay millions of dollars on void loan guarantees.""├âÔÇÜ├é┬á ├âÔÇÜ├é┬á

About Author: Abby Gregory

x

Check Also

Survey: Homeownership Remains Elusive for Baby Boomer Renters

A recent look into housing affordability by NeighborWorks America has found that three in five long-term baby boomer renters feel homeownership remains unattainable.