Settlement Reveals Whistleblower Lawsuits Against Bank of America and Others

The details of several whistleblower lawsuits filed in the aftermath of the recession were recently revealed when the cases settled as part of a landmark deal brokered between the Department of Justice and several, large U.S. banks. The $25 billion settlement, which resulted from alleged wrongdoing by the banks, includes six qui tam lawsuits against JPMorgan Chase and Bank of America.

One whistleblower settlement revolves around a lawsuit brought by a Florida attorney, Lynn Szymoniak, who alleged that that several banks, including Bank of America, JPMorgan Chase, Wells Fargo, and Citigroup, fraudulently foreclosed on as many as tens of thousands of mortgages. Specifically, the case involved the now renowned practice of “robo-signing.” Szymoniak’s case settled for $95 million.

Another case that has garnered significant attention following the Department of Justice settlement involves two Georgia mortgage brokers. That qui tam suit stemmed from allegations that various lenders hid attorney fees in loan documents under the category of a “title examination fee.” The case, which was filed in 2006, settled as a part of the massive deal for $45 million, 26 percent of which will go to the brokers and their attorneys.

The six False Claims Act cases, some previously known and others not, settled for anywhere from $6.5 million to $95 million, for a total of $227.7 million.

These cases, some of which only came to light recently, reveal the vital role individual whistleblowers play in holding big banks accountable. If you have questions about whistleblower laws or think you may have a case, please contact one of our attorneys for a free and confidential consultation by filling out the form to your right or calling (866) 981-4800.