JPMorgan Pays Feds $45M In Loan Fraud Settlement

Law360, New York (March 13, 2012, 1:17 PM EDT) -- JPMorgan Chase Bank NA has agreed to pay $45 million to settle a Georgia whistleblower suit over alleged illegal fees in government-backed loans that defrauded military veterans and taxpayers of hundreds of millions of dollars, plaintiffs' counsel announced Tuesday.

The bank is just one of several large financial firms named as defendants in the suit, originally lodged by mortgage brokers Victor Bibby and Brian Donnelly in 2006. The complaint claims the banks and mortgage companies engaged in a “brazen scheme” to overcharge veterans who refinanced existing home loans guaranteed by the U.S. Department of Veterans Affairs.

The government will receive $33.3...

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