» 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

  • Morcellator Used During Hysterectomy May Spread Cancer
    Did a doctor use a power morcellator during your hysterectomy or fibroid removal surgery? If so, attorney Chris Mellino welcomes you to contact our Cleveland office with any questions you may have. Anesthesiologist Brings Morcellator Danger to Light In October 2013, Dr. Amy Reed, an anesthesiologist and mother of six, underwent a laparoscopic hysterectomy to have fibroids removed. As umm.edu has stated, “Fibroids are the most common type of tumor found in female reproductive organs.” Typically, the word ‘tumor’ sends a patient into a panic, said WebMD. “But when it’s a fibroid tumor, experts say there is little to fear.” […]
  • Anesthesia Malpractice Claims Suggest Increase in Surgical Fires
    July 14, 2014, Crain’s reported that “a series of operating room fires” burned patients at the Cleveland Clinic in 2009 and 2010. Staff members were forced to undergo extensive training on how to prevent such incidents in the future, but hospitals in general are reluctant to change their procedures unless something happens in their own OR. In June 2013, a patient at another facility suffered second-degree burns to his neck and shoulders during an emergency tracheostomy. The surgical team violated the FDA’s Preventing Surgical Fires Initiative by using an alcohol-based cleanser to prep the patient’s skin, administering 100 percent oxygen, […]
  • Military Hospital Malpractice Statistics
    June 28, 2014, nytimes.com reported that military hospitals have “consistently had higher than expected rates of harm and complications in two central parts of its business — maternity care and surgery.” Since punishing doctors for medical malpractice hadn’t affected these statistics, in 2001, the Pentagon instructed military hospitals to conduct an investigation, or “root-cause analysis,” within 45 days of a debilitating injury or death. These reports were to be forwarded to the Pentagon’s patient-safety office where analysts would review what happened and come up with a solution to prevent it from happening again. “Unfortunately, R.C.A.s are used relatively infrequently,” a […]

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



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

* indicates required