Whistleblower Attys Eye DOJ Fraud Theory For New Bounties

Law360, New York (August 7, 2013, 8:46 PM EDT) -- A 1989 fraud law at the center of recent government actions such as Tuesday’s mortgage bond suit against Bank of America Corp. features a little-noticed $1.6 million whistleblower award provision that has the plaintiffs bar abuzz.

The U.S. Department of Justice says BofA sold $850 million in mortgage-backed securities to five investors in 2008 without disclosing shoddy underwriting standards for the loans. The suit is the latest filed against a major Wall Street player under the Financial Institutions Reform, Recovery and Enforcement Act, an anti-fraud law...
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