AIG. Washington Mutual. Merrill Lynch. Lehman Brothers. In the wake of these and other recent shareholder debacles and corporate governance failures, the need for whistleblowers in the financial services sector has perhaps never been clearer.
When companies collapse, or bubbles burst, state and federal treasuries and public-employee pension funds, are often among the casualties. And when they are, federal and state False Claims Acts have a role to play.
False Claims Act liability may attach, for example, whenever fraud in the financial services sector or on Wall Street causes losses affecting:
- Securities purchased or sold for public-employee pension funds
- Bond issues and other public financings
- The underwriting of mortgages guaranteed by the FHA or the VA
- The underwriting of small business loans guaranteed by the Small Business Administration (SBA)
In 2014, J.P. Morgan Chase agreed to pay $614 million to resolve whistleblower claims that the company violated the False Claims Act by knowingly originating and underwriting non-compliant mortgage loans insured by HUD, the FHA and the VA. The whistleblower in the case, a former J.P. Morgan Chase employee, received $64 million as his share of the settlement. Read more
If you have knowledge and solid evidence of fraud or false claims involving federal funds and Wall Street or the financial services industry, please contact our whistleblower attorneys. Consultations are free and confidential.