Prior Deal Can't Stop Wells Fargo Mortgage Fraud Suit: DOJ

Law360, New York (November 30, 2012, 2:31 PM EST) -- The U.S. Department of Justice on Thursday told a Washington federal judge that a $25 billion settlement with Wells Fargo Bank NA and others doesn’t bar the government from bringing a separate action accusing the bank of defrauding a federal mortgage insurance program.

The DOJ argues it should be allowed to proceed in New York federal court with its action accusing Wells Fargo, the country's largest mortgage originator, of defrauding the Federal Housing Administration out of hundreds of millions of dollars by knowingly submitting nearly 6,600...
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