Tag Archives: Fraud

One week after announcing that CEO Bob Diamond stepped down in the wake of a rates manipulation scandal, Barclays: announced Tuesday that the bank reached an agreement with Diamond regarding the terms of his resignation. According to a release from Barclays, Diamond voluntarily offered to waive all of his deferred bonus awards and long-term incentive share awards. The release noted that consistent with his employment contract, Diamond will still receive up to a year's salary, pension allowance, and other benefits.

The Consumer Financial Protection Bureau (CFPB) proposed mortgage disclosure forms designed for understanding on Monday. The forms are a result of research, testing, writing, and review and are being created to help consumers comprehend the terms of their mortgage and the costs involved. The proposed forms are part of the agency's Know Before You Owe project and are to be provided after applying for a loan and before closing.

In a shareholder class-action lawsuit, former executives of IndyMac Bankcorp agreed to settle for $6.5 million following the bank's 2008 collapse, the Associated Press reported Sunday.

The FDIC announced Friday the closure of Montgomery Bank & Trust in Ailey, Georgia, after the disappearance of the bank's director. Aubrey Lee Price, an investment advisor and the director of Montgomery Bank & Trust, was accused by the government of wire fraud related to the embezzlement of $17 million from the bank.

Barclays was rocked when it was found that the bank's agents had manipulated the London Interbank Offered Rate (LIBOR) starting as early as 2007. The bank was fined hundreds of millions by British and U.S. authorities. As a result, a number of key figures have stepped down while Barclays prepares to launch a third party-led investigation into its practices. The news gets worse for the bank, however.

Investigative firm Mortgage Fraud Examiners (MFE) issued a release Thursday warning about a new foreclosure rescue scam. The scammers dupe distressed homeowners by promising to help reveal the actual owner of a promissory note through a securitization audit. MFE warned that the perpetrators of these scams are charging fees for information that can be found for free.

The California Homeowner Bill of Rights continues to move steadily forward with the announcement that a number of its components have passed out of legislative committees.

The Foreclosure Reduction Act and the Due Process Rights Act were approved by the Joint Conference Committee in a 4-1 vote, sending them up to an expected vote in both the Assembly and Senate next week. The Foreclosure Reduction Act restricts the process of ""dual-tracked foreclosures,"" in which lenders work with homeowners on trial loan modifications while at the same time continuing the foreclosure process. The Due Process Rights Act guarantees a reliable contact for struggling homeowners to discuss their loans with and imposes civil penalties on robosigning.

The Securities and Exchange Commission (SEC) announced Monday that it obtained a temporary restraining order and asset freeze against a Utah man and company charged with operating a Ponzi scheme. The SEC's complaint names Wayne L. Palmer and his firm, National Note of Utah, LC, both based in West Jordan, Utah. According to the complaint, Palmer told investors that he would use their money to buy mortgage notes and real estate assets or to make real estate loans and promise them returns of 12 percent annually.

Although mortgage fraud activity seems to be leveling off, a report from MortgageDaily.com showed that mortgage fraud continues to cause foreclosure problems for the most victimized states. Florida held the highest state index with 163. The state has held the No. 1 position for four of the past five quarters. For the first time since the index's inception in 2006, North Carolina broke into the top five with an index of 53.