$850M BofA Fraud Case Should Stay Alive, Judge Says

Law360, Los Angeles (March 31, 2014, 10:25 PM EDT) -- A North Carolina magistrate judge on Monday recommended the rejection of Bank of America Corp.’s motion to dismiss an $850 million suit in which the U.S. Securities and Exchange Commission says the bank lied to investors about loans in a residential mortgage investment.

The SEC brought sufficient claims that the financial institutions that wrote, packaged and sold the loans to investors promising a low-risk place to put their money knew the loans weren’t as good as the banks were promising, U.S. Magistrate Judge David S. Cayer...
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