Banking Law

Bilked of $285K in Web Scam, Law Firm Faces Fla. Bar Probe re Its Related Financial Practices

Losing $285,000 in a scam by a virtual client has proven to be doubly painful for a Florida law firm. In addition to losing the money, which federal prosecutors are trying to regain through a bank forfeiture action, the KEL Law Firm is also facing a Florida Bar inquiry about…

Jan 25, 2012 2:57 PM CST

Obama Calls for Quicker Judicial Nominee Votes, Mortgage Crisis Unit; Four Justices Skip Speech

Justice Samuel A. Alito Jr. stayed away from the State of the Union speech for the second year in a row after his well-publicized reaction to the 2010 speech. Alito was one of four justices who did not attend on Tuesday evening, according to The BLT: The Blog of Legal…

Jan 25, 2012 12:59 PM CST

Stanford Lawyers to Blame Feds, Economy for Investors’ $7B Loss at Fraud Trial Beginning in Texas

Federal prosecutors say onetime Texas billionaire R. Allen Stanford made false representations to investors to persuade them to purchase so-called certificates of deposit at an offshore bank he controlled. However, his defense team is expected to point the finger at the feds and the global economic downturn at the federal…

Jan 23, 2012 7:18 PM CST

Disbarred NY Lawyer, 82, Gets 45 Days for Hiding $26M in Swiss Bank

A disbarred New York lawyer was sentenced today to only 45 days for tax evasion by a federal judge in Manhattan, apparently because of his advanced age and failing health. Kenneth Heller, 82, had faced a maximum 15 years in prison, and sentencing guidelines called for 30 to 37 months.…

Jan 20, 2012 7:09 PM CST

Federal Jury Says TD Bank Must Pay $67M to Investors Swindled by Ex-Attorney Scott Rothstein

After four hours of deliberation, a federal jury in Miami yesterday decided that a South Florida bank must pay $67 million to a group of 27 investors swindled by then-attorney Scott Rothstein. The award, which includes $35 million in punitive damages, is based on a determination that officials of TD…

Jan 19, 2012 6:05 PM CST

Consumer Chief Supports Legislation to Protect Attorney-Client Privilege for Supervised Banks

The recently appointed director of the new Consumer Financial Protection Bureau is siding with banks that hope to protect attorney-client privilege. At a news conference on Thursday, agency director Richard Cordray said he would support a push by banks that want the agency to be covered by a law requiring…

Jan 13, 2012 4:11 PM CST

NY Judge Nixes Bank’s Foreclosure Judgment Because Process Server Didn’t Keep Records

Opening a door to a potential defense that apparently has largely or entirely gone unnoticed in mortgage foreclosure cases, a New York judge last month overturned a bank judgment because a process server didn’t keep records required by law. A former police officer working for A&J Process Service admitted to…

Jan 12, 2012 10:02 PM CST

Supreme Court Upholds Arbitration Provision in Credit Card Contract

The U.S. Supreme Court has ruled that consumers who received the Aspire Visa credit card are bound by a mandatory arbitration provision in their applications. Justice Antonin Scalia wrote the majority opinion (PDF) in the case, CompuCredit Corp. v. Greenwood. The decision overturns a ruling by the San Francisco-based 9th…

Jan 10, 2012 4:29 PM CST

New IRS Program Allows Those with Secret Offshore Accounts to Avoid Prosecution

A new Internal Revenue Service program announced today allows individuals who evaded income tax by keeping assets in secret offshore bank accounts to avoid prosecution and pay reduced penalties by voluntarily disclosing their wrongdoing. They will also be required to identify bankers and other advisers who helped them, Bloomberg notes.…

Jan 9, 2012 9:55 PM CST

SEC Sues Life Partners for Defrauding Shareholders

The Securities and Exchange Commission has filed suit against Life Partners Holdings Inc. and three top executives for defrauding shareholders in life settlement deals. Chairman and Chief Executive Officer Brian D. Pardo, President and General Counsel R. Scott Peden and Chief Financial Officer David M. Martin have been accused of…

Jan 5, 2012 9:21 PM CST

Stanford Investors Sue Proskauer, Chadbourne and Ex-Partner Sjoblom in Texas State Court

Mexican plaintiffs who invested with accused Ponzi schemer R. Allen Stanford have filed three nearly identical lawsuits in Texas state court against lawyer Thomas Sjoblom and two law firms where he previously worked. The suits, which seek class-action status, claim Sjoblom aided and abetted the fraud by obstructing an SEC…

Jan 5, 2012 5:45 PM CST

Bankers Charged at Oldest Swiss Bank With Hiding $1.2 Billion From U.S. Government

U.S. prosecutors charged employees at Switzerland’s oldest bank this week of scheming with wealthy U.S. taxpayers to hide more than $1.2 billion. Wegelin & Company confirmed the indictment of three of its bankers Wednesday, a day after the United States attorney for the Southern District of New York announced charges…

Jan 4, 2012 6:22 PM CST

Despite Widespread Wrongdoing, Fed’l Prosecution of Institutions Involved in Mortgage Mess is Rare

Despite widespread evidence of fraud and other wrongdoing, federal prosecutions related to the reckless mortgage lending that nearly brought down the nation’s banking system in recent years are few and far between. From the “robosigning” of thousands of mortgage foreclosure documents by individuals who apparently didn’t have authority to do…

Dec 22, 2011 8:35 PM CST

SEC Sues Former Fannie and Freddie Officials over Subprime Loan Disclosures

The Securities and Exchange Commission alleges in civil suits filed today that six former executives of Fannie Mae and Freddie Mac downplayed the mortgage firms’ exposure to risky subprime mortgages. The defendants included former Fannie Mae CEO Daniel Mudd and former Freddie Mac CEO Richard Syron, report Bloomberg News, the…

Dec 16, 2011 5:14 PM CST

Judge Kills Foreclosure Over Law Firm’s Late Verifications, Speculates re ‘Conflicted Robosigner’

A New York judge has dismissed a mortgage foreclosure case, with prejudice, because of a well-known law firm’s delay in submitting to the court verifications that it took reasonable steps to check the accuracy of documents filed on the lender’s behalf. The verifications, which have been routinely required in foreclosure…

Dec 13, 2011 6:49 PM CST