BofA Defrauded Investors With $850M MBS Sale, Feds Say

Law360, New York (August 6, 2013, 9:46 PM EDT) -- Bank of America Corp. and its affiliates were hit Tuesday with parallel civil suits by U.S. government agencies that accuse them of defrauding investors with the sale of $850 million in mortgage-backed securities by, among other things, failing to properly review the loans underlying them.

In separate complaints filed in federal court in Charlotte, N.C., where the banking giant is headquartered, the U.S. Department of Justice and the U.S. Securities and Exchange Commission slung allegations that the bank “willfully” misled investors including federally insured financial institutions...
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