Bank of America is going to pay the U.S. government $16.65 million to settle fraud claims arising from the massive, massive financial fraud that Countrywide Financial, Bank of America and other companies it acquired perpetrated in the last decade.  Two whistleblowers who provided information to federal attorneys will receive $57 and $56 million respectively from the settlement. One whistleblower, Edward O'Donnell, provided information about regarding the fraudulent practices Countrywide used to hustle mortgages; he will receive $57 million. The other whistleblower, Robert Madsen, provided information regarding the practice of inflating appraisals to pump up mortgage-backed securities; he will receive $56 million.  The New York Time DealBook blog reports on these cases: Whistle-Blower on Countrywide Mortgage Misdeeds to Get $57 Million and Another Whistle-Blower in Bank of America Case Set to Collect Millions.

Post A Comment