U.S. ex rel. Victor Bibby and Brian Donnelly v. JPMorgan Chase, et al.

James E. Butler Jr.

Case Conclusion Date:November 19, 2012

Practice Area:Fraud

Outcome:Cash Settlement--$161,700,000

Description:Fraud/Qui Tam. Whistleblower. Six banks have settled claims under the False Claims Act brought by two whistleblowers for recovery of money on behalf of the U.S. Government. The banks which have agreed to settle are JPMorgan Chase ($45 million), Countrywide Home Loans, Inc. ($45 million), PNC Bank ($38 million), First Tennessee Bank ($16 million), SunTrust Mortgage ($10.2 million), and CitiMortgage ($7.5 million). The case alleges that eight banks cheated military veterans and taxpayers out of millions of dollars by hiding illegal fees in veterans' home mortgage refinancing transactions and then sought to collect on void government loan guarantees. The case is still pending against Wells Fargo Bank, N.A. and Mortgage Investors Corporation-the biggest defendants with 70% of the total damages exposure.