Md. Bank To Pay $2.8M In Kickback Scheme Suit Settlement

Law360 (July 21, 2021, 8:40 PM EDT) -- Maryland-based mortgage lender Congressional Bank has agreed to pay $2.8 million to settle a proposed class action's claims that a bank it merged with took kickbacks from a title company in exchange for borrower referrals.

The proposed deal and a memorandum in support of it were filed Tuesday in Maryland federal court. 

Before merging with Congressional Bank in 2016, American Bank allegedly participated in a kickback scheme with Maryland-based title and settlement services company All Star Inc., according to the complaint that borrowers filed last year.

The plaintiffs alleged that between 2009 and 2011, All Star illegally paid American Bank in exchange...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!