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Federal Eye
Posted at 05:00 PM ET, 03/12/2012

Settlement reached in veterans mortgage fraud suit

Settlement terms filed Monday by the Justice Department over flawed foreclosure practices include an agreement by JPMorgan Chase Bank to pay the federal government $45 million to settle a lawsuit alleging that it defrauded military veterans.

The whistleblower suit, filed by two mortgage brokers in 2006 and
(David Zalubowski - AP)
unsealed last fall in federal court in Atlanta, is still pending against seven other banks and mortgage companies.

It alleges they cheated veterans and taxpayers out of millions of dollars by hiding illegal fees in veterans’ home mortgage refinancing transactions.

“Our lawsuit alleges that these lenders committed blatant fraud,” said co-lead counsel Marlan Wilbanks of Atlanta. “Although JPMorgan Chase has paid to settle its claims, we are looking forward to moving the case against the other defendant lenders. These banks should be held accountable for causing the government to pay millions of dollars on void loan guarantees.”

By  |  05:00 PM ET, 03/12/2012

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