New Bank of America whistleblower
Whistleblowing seems to be in vogue at big banks. And why not? For better or worse, the incentives have been boosted to stratospheric levels.
For example, Sherry Hunt, still a vice president of quality assurance at Citigroup, will receive $31 million for her role in turning in Citigroup for falsely declaring massive volumes of mortgages to be fit to be sold to federally backed insurance programs. A whistle blower at BNY Mellon was instrumental to the investigatory process that resulted in state fraud charges. We've also seen whistleblowers emerge at JPMorgan, Fidelity, Charles Schwab and others. And now comes news that another whistleblower has emerged at Bank of America.
This whistleblower was instrumental to the effort to bring charges against the bank related to the bank's efforts to thwart modifications to avoid losses while at the same time receiving financial incentives for taking part in modification programs. The Bank of America settlement is also part of the $25 billion deal between state and federal authorities.
"Final settlement documents have yet to be filed in the Bank of America settlement, which the U.S. Attorney's Office said was the largest ever False Claims Act payout related to mortgage fraud."
So someone is going to get rich instantly. While the whistleblower provisions of Sarbanes-Oxley and Dodd-Frank get the most attention, the False Claims Act may be the most lucrative for whistleblowers, as they can earn up to 25 percent of the settlement amount.
- here's the Huffington Post article