Bank of America Whistleblower Lawsuit
$16.6 Billion
The court case against Bank of America involved four parties, namely an executive in the bank’s operations group (Shareef Abdou), a former property appraiser at a Bank of America subsidiary (Robert Madsen), a former financial executive at Countrywide (Edward O’Donnell), and a small New Jersey mortgage lender (Mortgage Now) run by James Marchese.
The lawsuit represented a major hit for Bank of America since it was responsible for creating questionable mortgage-backed securities for the purpose of marketing them to certain investors. They had to pay a penalty of $16.6 Billion, saying that they will meet all their obligations mentioned in the settlement agreement.
