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.
“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.
Mellino Robenalt LLC
200 Public Sq., Suite 2900
Cleveland, Ohio 44114
Call: (216) 241-1901
- Were You Overcharged for Your Surgery? Attorney Tom Robenalt Invites Your Medical Billing Questions
When recovering from surgery, the last thing you need is a surprise medical bill, but that’s what’s happening to many people. One spinal fusion patient told nytimes.com that his hospital charged him $56,000, his anesthesiologist charged him $4,300, and his orthopedist charged him $133,000. He was also billed $2,470 and $3,990 for two surgical screws. “He was blindsided, though, by a bill of about $117,000 from an ‘assistant surgeon’ [that he] did not recall meeting,” the September 20, 2014, article stated. Reasons behind unexpected fees are manyfold. First, the insurance company isn’t present in the OR, so it doesn’t know […]
- Ohio Woman Awarded $1.2 Million in Perforated Bowel Lawsuit
A Hamilton County resident and her husband have been awarded a total of $1.2 million in a medical malpractice lawsuit that could have been avoided if her doctor had diagnosed and treated her perforated bowel sooner, per Cincinnati.com September 11, 2014. In 2009, the woman sought treatment for stomach pain. After undergoing two partial hysterectomies, her pain persisted. According to her medical malpractice attorney, her doctor neglected to order a CT scan until she was critically ill with acute respiratory distress syndrome. She now has 80 percent lung capacity and walks with a walker. A Perforated Bowel Can Cause Septic […]
- Surgeon Admits Mistake, Hospital Insurer Denies It
Last summer, a 74-year-old woman fell and broke several vertebrae due to osteoporosis. She underwent spinal fusion surgery but started suffering leg spasms, according to bostonglobe.com. “A doctor recommended she have a pump stitched underneath her skin to get calming medication directly to her spine, and out to her muscles, faster — often a two-hour outpatient procedure,” the August 31, 2014, article stated. “In the operating room [months later], the neurosurgeon requested a special dye to test the location of tubing that had been threaded into her spine. But the pharmacy didn’t have it and provided a different one.” The […]
See other news sources publishing this article. BETA | Tags: Cleveland medical malpractice, Cleveland medical malpractice lawyer, Cleveland whistleblower lawyer, Personal Injury Law Cleveland malpractice lawyer