Daily Archives: May 30, 2013

Wells Fargo Closes My Account After $32,000 Fraud, Allows Bogus Payment To Go Through On New Account

Imagine waking up one day to find your bank account has not only been compromised, but that more than $30,000 in fraudulent checks have been written on it. Then to make matters worse, once things seem to be resolved, another bogus charge is placed on an entirely new account.

This is what happened to Consumerist reader Lisa, who recently received a call from a Chase bank because someone there believed a newly deposited check was a fake.

It was. Then Lisa looked at her Wells Fargo bank statement and found that in a matter of a couple days, a total of $32,526.27 had been drained from her account, putting her more than $30,000 into overdraft.

The Wells website had scans of the 30 scammy checks, which Lisa had obviously not written. The checks were fakes that had been created using her name and account number, but Lisa knew these weren’t stolen out of her checkbook because her partner’s name was not on the address information.

Even more curious were several checks that were written on her account number, but had the name of a home healthcare company in Ohio (Lisa is in Illinois) and appeared to be paychecks from that company, written to the same people in Chicago that cashed the other fraudulent checks:

Read on.


Lawmaker asks Justice Department to investigate JPMorgan power trading

Lawmaker asks Justice Department to investigate JPMorgan power trading

(Reuters) – A Congressman on Wednesday called on the Department of Justice to investigate JPMorgan Chase & Co’s (JPM.N) power trading in Michigan, as the Federal Energy Regulatory Commission (FERC) considers whether to sanction the firm.

Michigan Congressman Dan Kildee, a Democrat who sits on the Committee on Financial Services, said in a letter to the DoJ that it should pursue its own investigation into JPMorgan to see if it manipulated electricity markets.

The bank has told shareholders it has been notified by FERC staff that they intend to recommend that the five members of the commission take action over an alleged manipulative trading scheme in Michigan and California earlier this decade.

JPMorgan has denied that it manipulated power markets, and has vowed to “vigorously defend” itself and its employees.


Kickbacks as ‘a natural part of business’ at Fannie Mae alleged

Kickbacks as ‘a natural part of business’ at Fannie Mae alleged

Before dawn one hazy March day in L.A., Armando Granillo pulled his SUV into a Starbucks near MacArthur Park, where he planned to pick up an envelope full of cash from an Arizona real estate broker, federal investigators say.

Granillo, a foreclosure specialist at mortgage giant Fannie Mae, expected to drive off with $11,200 — an illegal kickback for steering foreclosure listings to brokers, authorities allege in court records.

Granillo would leave in handcuffs. And investigators are now looking into assertions by Granillo and another former Fannie Mae foreclosure specialist that such kickbacks were “a natural part of business” at the government-sponsored housing finance company, as Granillo allegedly told the broker in a wiretapped conversation.

Investigators are examining whether other workers in Fannie Mae’s Irvine office solicited illegal payments, according to three people with knowledge of the probe, who asked for anonymity because they were not authorized to speak publicly. Granillo at first offered to cooperate with investigators but later declined to talk, two of the people said.

Another former foreclosure specialist in Irvine, Cecelia Carter, contends in an Orange County Superior Court lawsuit that Fannie Mae fired her in 2011 for trying to expose the kickbacks.


Allstate Ends Citigroup Mortgage-Backed Securities Lawsuit

Allstate Ends Citigroup Mortgage-Backed Securities Lawsuit

Allstate, the largest publicly traded U.S. home and auto insurer, dropped a lawsuit in which it accused Citigroup of fraudulently selling hundreds of millions of dollars of mortgage-backed securities.

Allstate sued Citigroup in New York State Supreme Court in Manhattan in 2011, along with banks including Deutsche Bank, Bank of America and Morgan Stanley.

The Northbrook, Illinois-based insurer, which said in the suit that it bought more than $200 million of securities from New York-based Citigroup that were backed by residential mortgages, voluntarily discontinued the case, according to a court filing dated yesterday.