Md. Bank To Pay $2.8M In Kickback Scheme Suit Settlement

Law360 (July 21, 2021, 8:40 PM EDT) -- Maryland-based mortgage lender Congressional Bank has agreed to pay $2.8 million to settle a proposed class action's claims that a bank it merged with took kickbacks from a title company in exchange for borrower referrals.

The proposed deal and a memorandum in support of it were filed Tuesday in Maryland federal court. 

Before merging with Congressional Bank in 2016, American Bank allegedly participated in a kickback scheme with Maryland-based title and settlement services company All Star Inc., according to the complaint that borrowers filed last year.

The plaintiffs alleged that between 2009 and 2011, All Star illegally paid American Bank in exchange...

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