Whistleblower Records Shed Light On BNY Mellon Case

        [Article submitted by Justin Victor of Grant & Eisenhofer]

Whistleblower Grant Wilson has aided a lawsuit against and federal investigation into the Bank of New York Mellon Corp for fraudulent practices. According to Wilson, the bank provided and then charged fictitious foreign-currency costs for pension funds. Following his accusations and information, Virginia, Florida, and New York, and the Department of Justice have sued BNY Mellon for improperly charging state and local pension funds for foreign exchange. According to the New York Attorney General, BNY Mellon made a $2 billion profit from this activity over the past decade.

A bank spokesperson claims that the information is false and taken out of context, yet the scale and multiplicity of the lawsuits and investigations suggest otherwise. Several attorneys working on the case – including Harry Markopolos who is known for warning about Bernard Madoff’s fraudulent operations – cite the centrality of Wilson’s aid and status as a whistleblower; Wilson, a BNY employee, continued to work with the bank while providing information to the legal investigators. With almost 50,000 employees, $1.2 in assets under management and $25.5 trillion under custody and administration, BNY is the largest deposit bank in the world. Even so, it was the work of one individual that brought light to the events and information to spur the ongoing investigations and lawsuits.

The alleged practices of the Bank of New York constitute financial abuse. The Evans Law Firm handles banking fraud and other financial abuse cases in California.

A war is raging between Bank of America N.A. and Washington D.C. One battle is where a civil lawsuit should be heard: in arbitration, according to BofA, or in court, according to the Attorney General. Arguments were heard by the District of Columbia Court of Appeals on Wednesday October 19, 2011.

In 2008, it came to light that Harriette Walters, a mid-level manager in DC’s Office of Tax and Revenue, masterminded a tax refund check-cashing scheme. She stole $39 million by cashing fraudulent tax refund checks from a city-controlled account with BofA. The city filed an eight-count lawsuit against BofA for its role in Ms. Walter’s scheme, alleging negligence, fraud, and a violation of the local False Claims Act, seeking at least $105 million in damages.

The arguments advanced by the parties in court revolved around whether an arbitration clause in a 2000 agreement between the city and the bank is valid, whether the clause was deemed moot by a later agreement, and whether the contracting employees in the Office of the Chief Financial Officer had the authority to agree to a contract with an arbitration clause. The Court is currently reviewing these arguments; a decision is pending.

See Full Article Legal Times

Investigators with the California state attorney general’s office subpoenaed Bank America Corp. on Tuesday October 18, in order to determine whether the bank and its subsidiary, Countrywide Financial, sold investments backed by risky mortgages to California investors under false pretenses. The value of these investments dropped precipitously when the housing market collapsed.

A coalition of state attorneys general and federal agencies are engaged in talks with major banks to push for a broad foreclosure settlement. California left these talks because it was dissatisfied with the banks’ offers. The Tuesday subpoenas are a sign that California wishes to exert pressure on the banks to offer a larger settlement, as well as initiate its own investigation.

These subpoenas may also indicate that Attorney General Kamala Harris is launching her own probe of the big bank mortgage lenders. She created a mortgage fraud strike force that delves into all aspects of the industry.

Countrywide Financial Corp. is largely responsible for the housing bubble’s inflation and bursting, as it sold high-risk subprime and “lair” loans to borrowers. It bundled these high-risk, toxic loans to back private-label securities that went sour on investors. It lobbied the government to relax standards at the government-sponsored companies Freddie Mac and Fannie Mae, the results of wish have cost taxpayers billions of dollars. Bank of America Corp. acquired Countrywide Financial Corp. in 2008 and has been picking up the pieces since Countrywide skidded towards bankruptcy.

 See Full L.A. Times Article

By Ingrid Evans, Attorney

The Evans Law Firm, www.evanslaw.com

For more information or to speak to an attorney, please contact info@evanslaw.com or call us toll free 888.503.8267 for a free and confidential consultation.

PREDATORY LENDERS - PAYDAY LENDERS

Payday or Predatory Lenders Target Social Security Benefits

A large number of Americans surprisingly speculate that only young adults are having a hard time paying their bills. The prevailing opinion is that senior citizens have a significant bank account that allows them to pay all of their expenses with no dilemmas. The truth, often forgotten, is that about 75% of America's senior citizens are agonizing with troubles paying ever-rising medical expenses, medications, and the usual expenses of daily living.

The majority of senior citizens simply receive a Social Security check once a month. When the money is gone there is nothing left to spend. Predatory lenders have begun offering seniors short-term solutions that lead to devastating long-term ruin. So-called payday lenders offer high-cost, short-term loans that result in annual percentage rates of more than 400 percent. if a senior does not pay off the full amount of the loan at the end of the loan period (typically two weeks), he or she must pay additional fees without receiving any additional money. Too many seniors are getting caught in a cycle of payday lender debt.

Payday Lenders' Fraud

Helpful Hints to Consider Before Obtaining a Payday Loan

Some of the problems that can arise with payday loans are:

• The loan term is short and is often not enough time to obtain the money needed to repay the loan in full.
• If the loan cannot be paid back in full  at the end of the term, it has to be renewed, extended, or more money has to be borrowed to cover the first loan. Fees are charged for each transaction.
• The interest rates that are charged are very high - sometimes 400% or higher.
• If the lender deposits the check to repay the loan and there are insufficient funds in the borrower's account, the borrower is hit with even more fees for insufficient funds and still owes the amount of the loan to the lender.
• Also, be careful with auto title loans - these are small, high-interest loans given using a car as collateral. If you default on the loan, you lose your car.
• If you feel that a payday loan is your only option:
  • Do not under any circumstances agree to deposit your Social Security benefits in a bank account suggested by the payday lender.
• Shop for the lowest fees and penalties, some credit unions offer payday loans with low fees.
• Borrow only as much as you can afford to repay with your next benefit check.
• Know when your payment is due and be sure to repay the loan on time and in full.

Try to plan for the future by creating a budget that includes an emergency fund for unexpected expenses.

For more information or to speak to an attorney, please contact info@evanslaw.com or call us toll free 888.503.8267 for a free and confidential consultation.

About The Evans Law Firm

The Evans Law Firm is a plaintiffs’ firm concentrating on elder abuse (physical and financial), consumer fraud class actions involving, particularly insurance and banking claims,  consumer product liability and personal injury/wrongful death cases, particularly asbestos-mesothelioma, pharmaceutical product liability, negligence personal injury claims, as well as qui tam (whistleblower/false claims) and employment discrimination litigation.

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