Tag Archives: SunTrust

Foreclosure records reviewed in probe of Travis County deputy’s death

Highlights

Foreclosure proceeding is a thread in multiagency investigation that includes over 150 pieces of evidence.

 

Sgt. Craig Hutchinson was killed with his own gun, officials say; how it happened remains under investigation.

On the same morning hundreds of mourners gathered for the funeral of Travis County sheriff’s Sgt. Craig Hutchinson, his home near Round Rock was set to be publicly sold due to a foreclosure, documents obtained by the American-Statesman and KVUE-TV show.

SunTrust Mortgage Inc. filed a notice at the Williamson County clerk’s office on July 11 announcing that the Hutchinson home was eligible for a foreclosure sale. Fourteen days later, Hutchinson was found dead outside the house.

The foreclosure notice is among information investigators are assembling as they try to learn more about the sergeant, who after 32 years was set to retire later this year, and seek to determine his manner of death. Officials from the Travis County medical examiner’s office, which is conducting the autopsy, and Williamson County Justice of the Peace Bill Gravell haven’t issued a ruling.

Read on.

Revolving door: Kathleen Zadareky, FHA’s head of single-family housing, leaving for SunTrust

Kathleen Zadareky, who currently serves as the deputy assistant secretary for single-family housing for the Department of Housing and Urban Development, will soon leave that position and join the private sectorwith SunTrust Mortgage.

In her role at HUD, Zadareky oversaw all aspects of the Federal Housing Administration’s single-family housing operation, including origination, servicing, property disposition and program compliance.

Read on.

Former SunTrust Mortgage VP, his wife, her brothers sent to jail for mortgage fraud

This conspiracy was all in the family

For Mohsin Raza, his wife, Humaira Iqbal, and her brothers Farukh Iqbal and Mohammad Ali Haider, committing mortgage fraud really was a family affair.

And, as it turns out, the family that plays together also goes to jail together.

According to the U.S. Attorney’s Office for the Easter District of Georgia, Raza, his wife, Humaira, and her brothers will each serve time in federal prison for their roles in a scheme that saw the group falsify loan documents and commit mortgage fraud while all four were employed by SunTrust Mortgage in the 2000’s.

The U.S. Attorney’s Office stated that in 2005, Raza was hired to serve as vice president at SunTrust Mortgage, and the company then tasked him with opening a new office location in Annandale, Virginia.

Raza staffed the office with his wife and her brothers. Farukh Iqbal and Mohammad Ali Haider joined the company and served as loan officers.

From the time they joined the company until they left in 2007, the group falsified loan applications for borrowers and purchased fake tax documents to support the false loan applications.

According to court documents, SunTrust Mortgage underwriters approved the loans, which totaling several million dollars, based in large part upon the fake documents in the files, and ultimately borrowers were given loans to buy homes that they could not afford.

Read on.

Former SunTrust employee, Wells Fargo employee sentenced for $2.8 million tax refund fraud scheme

Jeoffrey Jenkins, a former employee of Wells Fargo Bank, and Vaughn Chambers, a former employee of SunTrust Bank, were sentenced for their roles in a two-year long tax refund fraud scheme that generated hundreds of false tax returns and sought more than $2.8 million in fraudulent tax refunds.

According to the U.S. Department of Justice, Jenkins and Chambers, both bank employees, stole personally identifying information from bank customers and used that information to open bank accounts to receive the fraudulent tax refunds.

Read on.

Language in the contentious clause in the laid-off IT workers’ severance agreement appears simliar to SunTrust filing with the SEC

Good catch and reporting by Computerworld.

What does SunTrust’s continuing cooperation clause say, exactly?

“For a period of two (2) years following the end of my employment with SunTrust, I agree to provide assistance and to make myself reasonably available to SunTrust regarding matters in which I have been involved in the course my employment with SunTrust and/or about which I have knowledge as a result of my employment with SunTrust. It is understood and agreed that such assistance, to the extent possible, will be requested at such times and in such a manner so as to not unreasonably interfere with my subsequent employment. Such assistance may include, but is not limited to, telephone or in-person meetings with SunTrust employees, attorneys and/or accountants, or the provision of truthful testimony by way of deposition, hearing, trial, interview, subpoena response or affidavit. SunTrust will be responsible for any reasonable and necessary expenses incurred by me and approved by SunTrust in connection with such services. I understand that I will not be entitled to any additional consideration or compensation of any kind from SunTrust in exchange for such assistance.”

In 2009, SunTrust filed with regulators a “noncompete, waiver and release agreement” it had made with an executive who was retiring from the bank. The executive was paid $100,000 to sign it. It included a two-year cooperation agreement. (The IT employee agreement borrows some of its language, but differs in other respects. The full agreement with the former executive is here; scroll down for the cooperation clause.)

And here is Suntrust SEC filing of noncompete, waiver, and release agreement with ex-executive and employee William R. Reed, Jr. Notice the verbiage:

Continuing Cooperation. I understand and agree that, in my role at SunTrust, I have been responsible for and involved in numerous matters and projects of a significant and/or confidential nature and that, in some instances, I possess knowledge regarding those and other matters that is unique to me and of value to SunTrust or any subsidiary, and that SunTrust or any subsidiary may have need of my continuing assistance in the future with respect to investigations, audits, litigation or potential litigation related to these matters. I understand that SunTrust’s willingness to provide me with the Consideration is expressly conditioned upon the promises made and obligations assumed by me in this Paragraph 8. I further understand and agree that my fulfillment of these promises and obligations hereafter is a condition precedent to SunTrust’s obligation to provide me with the Consideration set forth herein. I agree, beginning on September 1, 2009 and continuing for a period of twenty-four (24) months immediately thereafter, to provide assistance and to make myself reasonably available to SunTrust and its employees, attorneys and/or accountants with respect to investigations, audits, litigation or potential litigation regarding matters in which I have been involved in the course of my employment with SunTrust or any subsidiary and/or about which I have knowledge as a result of my employment with SunTrust. It is understood and agreed that such assistance, to the extent possible, will be requested at such times and in such a manner so as to not unreasonably interfere with any subsequent employment. Such assistance may consist of, without limitation, telephone or in-person meetings with SunTrust employees, attorneys and/or accountants, or the provision of truthful testimony by way of deposition, hearing, trial or affidavit. SunTrust will be responsible for any reasonable and necessary expenses incurred by me in connection with such assistance. I understand that I will not be entitled to any additional consideration or compensation of any kind from SunTrust in exchange for such assistance.

Busted! After a media backlash, SunTrust axes rule that laid-off workers be ‘on call for two years’ for no pay

US bank SunTrust has pulled a U-turn on a policy requiring laid-off IT workers to provide the company with assistance for no compensation for two years after they have been let go, the company told the Guardian on Friday.

The “continuing cooperation” clause, first reported on by ComputerWorld magazine, would have required laid-off workers to provide the company with information or assistance for up to two years after they were let go. ComputerWorld described the clause as requiring the workers to be “on call for two years” – a characterization that SunTrust called misleading.

When asked about the clause and the employees being offered no compensation for such continued cooperation, Mike McCoy, the company spokesperson, said: “We understand that a clause in our severance agreement was misconstrued versus its use in actual practice and therefore, we have removed it.”

The clause originally read: “For a period of two (2) years following the end of my employment with SunTrust, I agree to provide assistance and to make myself reasonably available to SunTrust regarding matters in which I have been involved in the course of my employment with SunTrust and/or about which I have knowledge as a result of my employment with SunTrust.”

It went on to say that the “assistance” – which could include phone and in-person meetings, testimonies, interviews, trial or affidavits – would “not unreasonably” interfere with the former employees’ new jobs. While SunTrust would cover expenses incurred by the former employees, it would not compensate them for their time.

Read on.

Feds bust Wells Fargo, SunTrust and PNC bank employees in tax refund scam

Federal investigators have indicted several Atlanta bank employees in a tax refund fraud scheme in which they filed more than 2,000 fraudulent tax returns in an effort to pocket more than $2 million in fraudulent tax refunds.

What’s more, the feds say, the fraudulent tax returns were filed using personally identifying information belonging primarily to elderly retirees and children aged 10 and younger.

Read on.