Weekly fraud alert: Federal audits accuse lenders of defrauding taxpayers
A set of confidential
federal audits accuse the nation’s five largest mortgage companies – Bank of
America, JPMorgan Chase, Wells Fargo, Citigroup, and Ally Financial – of
defrauding taxpayers in their handling of foreclosures on homes purchased with
government-backed loans, according to a story in the Huffington Post.
The audits accuse the
lenders of violating the False Claims Act. The audits were completed
between February and March, according to four officials briefed on the
situation. The internal watchdog office at HUD referred its findings to the
Department of Justice, which now must decide whether to file charges
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