BofA Can Face Criminal Fraud In $1B Civil Suit, US Says

Law360, Los Angeles (April 2, 2013, 9:21 PM EDT) -- The U.S. government on Monday told a New York federal judge that, contrary to Bank of America Corp.'s claims, a federal law under which it could face criminal prosecution could apply to the government's $1 billion False Claims Act civil suit against the bank over junk mortgage loans.

Scoffing at BofA's efforts to dismiss the civil suit, the government insisted the bank's alleged fraud scheme, nicknamed the "Hustle” — through which BofA allegedly stripped loan quality checks and sold junk loans as quality investments — violated...
To view the full article, register now.