This is what Bernie Sanders is talking about when he says the system is "rigged" and why he says big banks need to be broken up. It's also abundantly obvious that justice is not served when it comes to the rich and powerful;
It's also noteworthy to say that these are some of the very people Hillary Clinton has personally financially benefited from; read more - (The Idea That Hillary Clinton Took $200k+ Per Speech From Banks and Corporations Is Obscene)
Wells Fargo & Co (WFC.N) admitted to deceiving the U.S. government into insuring thousands of risky mortgages, as it formally reached a record $1.2 billion settlement of a U.S. Department of Justice lawsuit.
The settlement with Wells Fargo, the largest U.S. mortgage lender and third-largest U.S. bank by assets, was filed on Friday in Manhattan federal court. It also resolves claims against Kurt Lofrano, a former Wells Fargo vice president.
According to the settlement, Wells Fargo "admits, acknowledges, and accepts responsibility" for having from 2001 to 2008 falsely certified that many of its home loans qualified for Federal Housing Administration insurance.
The San Francisco-based lender also admitted to having from 2002 to 2010 failed to file timely reports on several thousand loans that had material defects or were badly underwritten, a process that Lofrano was responsible for supervising.
According to the Justice Department, the shortfalls led to substantial losses for taxpayers when the FHA was forced to pay insurance claims as defective loans soured.
Several lenders, including Bank of America Corp (BAC.N), Citigroup Inc (C.N), Deutsche Bank AG (DBKGn.DE) and JPMorgan Chase & Co (JPM.N), previously settled similar federal lawsuits.
Massive crimes were committed and those that perpetrated them are allowed to walk; (It also resolves claims against Kurt Lofrano, a former Wells Fargo vice president.)
Wells Fargo & Co. Vice President Kurt Lofrano played a “critical role” in helping the bank hide fraudulent home loans that cost the U.S. $189 million, the U.S. government claimed in a filing in Manhattan federal court.
Lawyers for the U.S. today asked a judge to let it add Lofrano to its fraud suit claiming Wells Fargo was reckless in underwriting mortgage loans and failed to report fraudulent and noncompliant loans to the U.S. Department of Housing and Urban Development. The fraud forced the Federal Housing Administration to pay $189 million in insurance claims on defaulted loans, the U.S. said.
Lofrano, who was in charge of self-reporting for Wells Fargo, “played a critical role in the bank’s decision not to report to HUD, as required, more than six thousand materially defective loans that Wells Fargo had falsely certified to HUD for FHA insurance,” the government said in the filing.
The U.S. sued Wells Fargo last year under the Federal False Claims Act and the Financial Institutions Reform, Reinvestment and Recovery Act of 1989. The government said it notified Wells Fargo Nov. 1 that it planned to add Lofrano to the case.
‘Very Disappointed’
“Wells Fargo is very disappointed that the government is seeking to add Mr. Lofrano as a defendant in this civil case, Ancel Martinez, a spokesman for the San Francisco-based bank, said in an e-mail today. ‘‘Wells Fargo has not been presented with any facts or circumstances warranting this action nor has the government explained why it is even remotely appropriate to include Mr. Lofrano more than a year after first filing suit.’’ Read more;(Wells Fargo’s Lofrano Was ‘Critical’ to Fraud, U.S. Says)
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