Daily Archives: June 6, 2012

Courthouse News Service: Bank of America May Have Aided Fraudster

Courthouse News Service.


(CN) – A car dealership operator that says its former chief financial officer embezzled millions of dollars can pursue claims that Bank of America helped the fraud, a federal judge ruled.
Simi Management dba Connell’s Auto Center says it discovered that its chief financial officer Roger Reichart had embezzled $4 million from the company after it sold the last of its franchises in 2007.
Reichart was allegedly sentenced in Alameda County Superior Court for grand theft and tax evasion last year. The auto center sued a Bank of America branch in Oakland, Calif., around the same time, claiming that it helped Reichart embezzle.
“Stealing millions of dollars by checks made payable in amounts less than $10,000 requires lots of trips to the bank,” the complaint says.
“Reichart was in Oakland Main Branch numerous times a week, every week of the month, presenting Connell Auto checks that individually did not exceed $10,000.”
After the Northern District of California dismissed Connell’s aiding and abetting claims, the company filed an amended complaint, and Bank of America again moved to dismiss.
This time, U.S. Magistrate Judge Donna Ryu refused.
Though the bank claimed it could not be held liable for legal duties it did not have, Judge Ryu said that argument “misses the point.”
“California law does limit the duties of a bank toward its depositors. Nevertheless, a bank’s actions, even if they do not independently give rise to liability, may serve as indicia of actual knowledge that buttress an aiding and abetting claim,” Ryu wrote Monday.


Courthouse News Service

Courthouse News Service. At Last, Some Money for Mortgage Relief for Hawaii.

Biloxi Buzz for Wednesday

Did Jerry Sandusky Send ‘Love Letters’ To Victims?

Ex-CIA Official: Drone Attacks Create Terrorist Safe Havens

Prop 8 Headed To Supreme Court

Bank Gives Man Counterfeit Money, Refuses To Refund It

IMPORTANT !!..Dodd-Frank Act: QWR Timelines Shortened and Other RESPA and TILA Changes

The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law on July 21, 2010. The Act changes the timelines for qualified written requests (QWRs), prohibits various servicing practices, significantly raises the stakes for certain RESPA violations, and makes a few TILA changes.

Shorter QWR Timelines
Servicers now have less time to acknowledge and respond to QWRs. The Act changes the acknowledgment deadline for QWRs from 15 days to only 5 days. The Act also changes the substantive response deadline from 60 days to just 30 days. It does allow a 15-day extension, if the borrower is notified of the extension and the reasons for the delay; but even with the extension, the time frames are still short enough that servicers must act quickly. Procedures for promptly responding to QWRS are now even more imperative.

Read on.