» Six Banks Cheat Veterans on Refinanced Home Loans

Six Banks Cheat Veterans on Refinanced Home Loans

Cleveland, OH (Law Firm Newswire) January 9, 2013 – A whistleblower lawsuit will proceed against Wells Fargo and Mortgage Investors Corporation (MIC). It alleges that they illegally charged veterans hidden fees for refinancing home loans.

Mellino Robenalt LLC has Cleveland Medical Malpractice and Personal Injury Attorneys

Mellino Robenalt LLC has Cleveland Medical Malpractice and Personal Injury Attorneys

“This case is as shocking as it is disgusting,” said Christopher Mellino, a Cleveland whistleblower lawyer. “It involves six big name banks that apparently illegally charged vets hidden fees on refinanced home loans from the Veterans Administration (VA). The result of this perfidy is American taxpayers were taken for hundreds of millions of dollars.” The two remaining defendants, Wells Fargo and MIC opted to litigate, while the others settled out of court for a total of $161.7 million.

United States of America ex rel. Victor E. Bibby and Brian J. Donnelly, Defendants, Relators/Plaintiffs vs. Wells Fargo Bank, N.A. and Mortgage Investors Corporation United States District Court, Northern District of Georgia, Atlanta Division, Civil Action No. 1:06-CV-0547-AT should be interesting, as the two remaining banks carry about 70 percent of the damages. “Based on the evidence before the court, it also appears that a jury will have no difficulty understanding the issue, which is they misled veterans and ripped off taxpayers for almost ten years,” added Mellino.

The case is set to move forward and deal with the whistleblower’s claims that Wells Fargo and MIC committed fraud by creating false certifications to the VA, to get those claims paid by the government. Such acts are in direct violation of 31 U.S.C. § 3279(a)(2) of the False Claims Act. It appears that the eight banks involved in this scheme hid illegal fees in veteran’s home mortgage refinancing documents, then submitted claims to the federal government to recoup their fraudulent losses if a loan went into default. “The bottom line here is that any VA-backed loans are void, as illegal fees were charged,” Mellino stated.

The qui tam lawsuit was filed in 2006 by two whistleblowers, Brian Donnelly and Victor Bibby, under the auspices of the federal False Claims Act. The lawsuit is thus brought to court on behalf of the U.S. government, and it will be aimed at recovering damages, ultimately payable to the government. The whistleblowers will be paid a portion of the amount recovered at the end of the day.

“If you find yourself in a similar situation to this case, and are aware of fraud being perpetrated against the federal government, talk to me. We handle whistleblower cases and can advise you of your rights and the process involved,” added Mellino.

To learn more or to contact a Cleveland whistleblower attorney, or visit http://www.mellinorobenalt.com.

Mellino Robenalt LLC
200 Public Sq., Suite 2900
Cleveland, Ohio 44114
Call: (216) 241-1901

  • Cleveland Attorney: Don’t Choose Nursing Home Based on Medicare Rating
    Medicare has rated nursing homes like hotels since 2009, according to nytimes.com. About 15,000 facilities across the country have merited five stars, but Medicare bases its ratings on self-reported, unverified information. “Only one of the three criteria used to determine the star ratings — the results of annual health inspections — relies on assessments from independent reviewers,” the August 24, 2014, article stated. “The ratings also do not take into account entire sets of potentially negative information, including fines and other enforcement actions by state, rather than federal, authorities, as well as complaints filed by consumers with state agencies.” For […]
  • Woman Awarded $4 Million for Husband’s Heart Attack Misdiagnosis Death, Heart Surgeon Faces 4th Lawsuit
    August 20, 2014, al.com reported that a jury awarded a woman $4 million for her husband’s heart attack misdiagnosis after a seven-day medical malpractice trial. According to the article, her husband fell ill after breakfast in January 2008. Two days later, he went to the emergency room with chest pain and other symptoms. Those symptoms should have compelled the doctor “to question and investigate a serious and potentially life-threatening heart condition,” the lawsuit stated. Instead of performing necessary tests, he sent the patient home after four or five hours. Four days later, the man clutched his heart, told his wife […]
  • Medical Errors Skyrocket 70 Percent
    The number of medical errors in one state increased 70 percent last year, since it revamped its reporting requirements, insurancejournal.com said. According to the August 15, 2014, article, mistakes included bedsores, surgical fires, contaminated medication, and wrong site surgery, such as removing the wrong kidney. “Acute care hospitals in the state reported 753 incidents, while other types of hospitals reported 206 incidents,” fiercehealthcare.com stated. “Part of the reason for the hike may be due to the fact that hospitals must now report serious injuries, patient death or injury from failure to follow-up or communicate laboratory, pathology or radiology test results.” […]

See other news sources publishing this article. BETA | Tags: , , ,



Get headlines from Law Firm Newswire sent right to your inbox.

* indicates required