Bank Of America Hit With RICO Reinsurance Kickback Suit
Law360, New York (January 15, 2015, 5:12 PM EST) -- Bank of America Corp. and its reinsurance affiliate masterminded a captive reinsurance scheme under which it received kickbacks for referring its mortgage customers to private insurers, according to a proposed class action filed in Pennsylvania federal court Wednesday.
BoA conspired with Bank of America Reinsurance Corporation and a group of private insurers to receive a cut of private mortgage payments paid by customers who had been referred to the private insurers by BoA entities by means of purported reinsurance premiums, according to the complaint.
As a result of this arrangement, BoA Reinsurance collected at least $284.7 million from private mortgage insurers...
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