The Huffington Post has revealed that a set of confidential federal audits accuse the nation’s five largest mortgage companies of defrauding taxpayers in their handling of foreclosures on homes purchased with government-backed loans. The audits conclude the banks cheated the government by overvaluing their losses on foreclosed homes and submitting faulty and defective documents to get federal reimbursement. According to the audit, the banks—Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial—violated the False Claims Act, which protects the government from fraudulent billing. The findings have been referred to the U.S. Department of Justice. [includes rush transcript]
Watch here:
http://www.democracynow.org/2011/5/18/will_the_justice_department_prosecute_bank
