Crime

Dept. of Justice Sues Banks for Mortgage Fraud

Published

13 years ago

August 28, 2013

The Department of Justice has announced that it is suing Bank of America for lying to investors regarding $850 million dollars worth of worthless mortgage back securities in 2008.

Bank of America is also embroiled in a lawsuit filed by New York Attorney General Eric Schneiderman, head of the Mortgage Crisis Task Force for lying to homeowners and taking their homes.

Affidavits by Bank of America employees are substantiating that B of A trained employees to systematically violate deadlines and push people into foreclosure by telling them they had not received the homeowner’s paperwork.

Hundreds of violations have been uncovered. Bank of America Customer Service Representative, Erica Brown says that, “During my time at Bank of America, I saw well over a hundred cases in which a Bank of America ‘analyst’ canceled loan modifications and stated ‘non-payment’ as a reason for the cancellation, when the computer system revealed that the homeowner had actually made the required payments.”

Simone Gordon, Senior Collector for Bank of America states that,“We were told to lie . . . We were asking for documents that we already had.”

In another suit, the Securities Exchange Commission, Department of Justice and the Consumer Financial Protection Bureau (CFPB) are investigating PNC Financial and SunTrust regarding allegations that they discriminated against protected borrowers based on race, color and religion.

Additionally, PNC has been subpoenaed for claims made for foreclosure expenses related to the loans insured or guaranteed by Fannie Mae or Freddie Mac. Sun Trust is being investigated for irregularities in their processing of mortgage-modifications and regulators are alleging that Sun Trust failed to properly process loan modification application of mortgages owned by Fannie Mae and Freddie Mac.

Sun Trust is accused of misleading borrowers with regard to timelines and other features of the HAMP modification procedure.

Last week, JPMorgan Chase & Co disclosed that it faces investigation by the Department of Justice (DOJ) and the Securities Exchange Commission (SEC) over the sale of risky residential mortgage backed securities (RMBS).

Bank misconduct has resulted in thousands of homeowners illegally losing their homes without banks facing sanctions. Attorney General Eric Holder informed the banks and the public in March that the banks are too big to prosecute.

Without fear of facing legal repercussion for their actions, new evidence reveals the nation’s largest banks continue to fabricate documents and illegally kick people out of their homes, even after inking a series of settlements over the same abuses.

Unfortunately the Attorney General’s settlement over foreclosure fraud was so weakly written that it still allows misconduct to occur.

Diane Thompson, a mortgage lawyer with the National Consumer Law Center said banks profit by cutting corners on documents. “Banks have tremendous monetary incentive not to comply with standard legal procedures. They have been doing it sloppily and illegally for a long time, and they have a sense of entitlement.”

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Oakland Post: Week of July 1 – 7, 2026

The printed Weekly Edition of the Oakland Post: Week of July 1 – 7, 2026

Published

2 days ago

July 5, 2026

Oakland Post

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NPRC Joins National Grand Jury Proceedings Seeking Accountability, Constitutional Restoration

Organizers state that testimony will explore historical and political developments that they believe have contributed to the expansion of corporate influence over public institutions and governmental decision-making. Participants are expected to discuss concerns regarding constitutional governance, individual liberties, property rights, and the protection of vulnerable populations, including seniors and persons with disabilities.

Published

2 weeks ago

June 26, 2026

Oakland Post

Photo by Billie Powers.

Special to The Post

The National Probate Reform Coalition (NPRC) has joined Toll and Roll and a growing coalition of advocacy organizations, victims, whistleblowers, and citizen groups in support of a nationally broadcast People’s Grand Jury proceeding scheduled for July 1 and July 7.

Organizers describe the event as a public forum designed to examine allegations of government abuse, judicial misconduct, legislative failures, and the erosion of constitutional protections affecting millions of Americans.

The proceedings will feature testimony from victims, families, advocates, and organizations from across the country who contend they have experienced harm through government actions, institutional neglect, and failures of oversight.

According to organizers, the People’s Grand Jury will focus on concerns involving probate courts, guardianships, conservatorships, child welfare systems, property rights, civil liberties, and what participants view as a growing disconnect between government institutions and the constitutional rights of the people they are sworn to serve.

NPRC is participating because many of the issues being examined mirror the concerns raised by advocates, victims, and families who have participated in its monthly town halls. For years, families have reported cases involving exploitation of elders, questionable guardianships, estate depletion, denial of due process, and a lack of meaningful oversight within probate court systems.

“This proceeding gives victims and advocates an opportunity to place their experiences on the public record,” said Tanya Dennis, lead facilitator of NPRC. “For too long, families have struggled to have their voices heard regarding elder abuse, probate exploitation, and government inaction. This forum allows those stories to be shared before a national audience.”

In keeping with principles of transparency and fairness, invitations have been extended to legislators, members of the judiciary, law enforcement representatives, and other public officials who may wish to respond to concerns raised during the proceedings or defend actions taken by their respective institutions.

One of the primary outcomes sought by organizers is public consideration and support for the People’s Remedy and Restoration Act, a proposed legislative framework that advocates believe would strengthen oversight, increase accountability, provide remedies for victims of governmental abuse, and restore constitutional protections.

The proceedings are expected to be broadcast nationally, providing citizens throughout the United States an opportunity to observe testimony, review evidence presented, and participate in an ongoing conversation regarding government accountability and the protection of individual rights.

Advocates hope the hearings will encourage meaningful dialogue, legislative reform, and renewed public engagement in the democratic process.

Individuals, organizations, public officials, and members of the media interested in attending or obtaining access information may contact the organizers at tollandroll2025@gmail.com.

As Americans continue to debate the future of constitutional governance, judicial accountability, and the protection of vulnerable citizens, the July proceedings are expected to serve as a significant forum for public testimony and civic engagement. For more information, go to https://tollandroll.com