In May, 2011, Peter Belli filed a complaint in Boston. With guidance from whistleblower experts at Mahany Law, he accused Allied Home Mortgage Capital Corporation of massive mortgage fraud in a False Claims Act “qui tam” whistleblower lawsuit.
Over five years later, and after a trial that lasted five weeks, a jury found both the corporation and its CEO, Jim Hodge, guilty of knowingly representing to Housing and Urban Development (HUD) that certain loans were properly prepared and eligible for Federal Housing Administration (FHA) insurance, when in fact they were not.
Belli had managed several Allied branches in Massachusetts, Rhode Island, Arizona, and other states. He was thus in an ideal position to observe Allied Capital’s fraudulent practices, and he was determined to bring the scheme to light. Unfortunately, he passed away before the verdict came out only days ago in Texas. The move to a Texas court had been a choice of the defendants.
The Minneapolis City Council on Wednesday asked staff to explore ways the city could “stop doing business with financial institutions that invest in the fossil fuel industry and in projects such as the Dakota Access Pipeline,” including Wells Fargo.
The nation’s fourth largest bank, which was founded in the Twin Cities as Northwestern National Bank in 1872, took notice of the council’s action and on Thursday jumped to reaffirm its value to Minneapolis and its investments here.
JPMorgan Chase & Co., HSBC Holdings Plc and Credit Agricole SA were fined a total of 485.5 million euros ($521 million) for rigging the Euribor benchmark as European Union antitrust regulators wrapped up a five-year investigation into the scandal.
The trio colluded to rig the Euribor rate and exchanged sensitive information to suit their trading positions in correlated derivatives markets, in breach of EU antitrust rules, the European Commission said on Wednesday in an e-mailed statement. JPMorgan was fined 337.2 million euros, HSBC got a 33.6 million-euro penalty and Credit Agricole must pay 114.7 million euros.
McDonald’s is moving its non-US tax base to Britain from Luxembourg amid a battle with EU regulators.
The fast food giant is creating a new holding company through which it will route non-US royalties.
The announcement was welcomed by the Prime Minister’s official spokeswoman.
McDonald’s, led by Briton Steve Easterbrook, has come under fire from EU officials investigating claims that it has avoided more than €1bn (£800m) in tax through the use of a loophole in Luxembourg.
A U.S. bank regulator is ready to fail Wells Fargo on a national scorecard for community lending, sources familiar with the decision said on Wednesday, in a move that could limit near-term expansion for the bank.
Wells Fargo is due to be deemed a bank that “needs to improve” under the Community Reinvestment Act (CRA), a law meant to promote lending to poor neighborhoods.
The move is a two-notch downgrade from the “outstanding” tag Wells Fargo has held since 2008 and the change would give regulators a greater say on day-to-day matters like whether they may open new branches.