ATLANTA (AP) -- A newly unsealed whistleblower lawsuit from 2006 claims several major banks and mortgage companies bilked military veterans and taxpayers out of hundreds of millions of dollars.
The lawsuit filed that year was unsealed Tuesday in federal court in Atlanta. It claims the firms engaged in a "brazen scheme" involving home loans guaranteed by the U.S. Department of Veterans Affairs.
It says the firms charge attorneys' fees or closing costs with the transactions despite Veterans Administration rules banning that practice. It says the firms "over-charged veterans, charged unallowable fees, and then deliberately concealed those facts."
The lawsuit targets several firms, including Wells Fargo, JPMorgan Chase & Co. and Bank of America. It seeks to recover damages on behalf of the government.
The banks have denied the charges in related court documents.
(Copyright 2011 by The Associated Press. All Rights Reserved.)
KKTV firmly believes in freedom of speech for all and we are happy to provide this forum for the community to share opinions and facts. We ask that commenters keep it clean, keep it truthful, stay on topic and be responsible. Comments left here do not necessarily represent the viewpoint of KKTV 11 News.
If you believe that any of the comments on our site are inappropriate or offensive, please tell us by clicking “Report Abuse” and answering the questions that follow. We will review any reported comments promptly.powered by Disqus
Viewers with disabilities can get assistance accessing this station's FCC Public Inspection File by contacting the station with the information listed below. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, 888-835-5322 (TTY), or email@example.com.