BOA DEATHWATCH: COUNTRYWIDE SLAMMED FOR FIRING WHISTLE-BLOWER ON FRAUDULENT LENDING AND PROCESSING PRACTICES

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SEE FINDINGS AND ORDER AGAINST COUNTRYWIDE FOR VIOLATING RIGHTS OF WHISTLE-BLOWER

WHISTLE-BLOWING FOR FUN AND PROFIT

THANKS TO INVESTIGATION OF SALLY ROBINSON BURKE, AWAITING HER LICENSE AS A DOCUMENT PREPARER IN TUCSON, AZ. CONTACT HER AT SJBURKE09@GMAIL.COM FOR INVESTIGATION SERVICES. LIVINGLIES ENDORSES HER AND WILL SHORTLY OFFER HER SERVICES DIRECTLY TO THE PUBLIC THROUGH THE AMERICAN HOMEOWNERS COOPERATIVE SITE.

Editor’s Note: I was just saying last night that these Ponzi schemes always collapse on themselves. Now the whistle-blowers are not only getting heard, they are getting paid in class action, qui tam actions and other proceedings. But this one is from an unlikely source. Countrywide has been investigated for fraud and found guilty in loan processing and origination and as a result, the employee they fired who was asking them for years to correct these abuses, just made himself a tidy sum of money.

Here are some interesting excerpts from the entire document:

Following an investigation by a duly authorized investigator, the Secretary of Labor, acting through her agent, the Regional Administrator for the Occupational Safety and Health Administration (OSHA), Region finds that that there is reasonable cause to believe that Respondent violated SOX and issues the following findings:

Complainant –
investigated, directed others to investigate, and reported to upper management that company fraud investigators concealed and manipulated findings to hide widespread bank, mail, and wire fraud. Complainant was particularly concerned that ER was engaged in the systematic cover-up of various types of fraud through terminating, harassing, and otherwise trying to silence employees who reported the underlying fraud and misconduct.

Complainant participated in an investigation which revealed multiple incidents of egregious baud spread throughout the entire region, including loan document forgery and alteration, manipulation of borrower’ assets and income, manipulation of the company’ automated underwriting system, the
destruction of valid client documents, and evidence that blank templates of bank statements from several different financial institutions were emailed back and forth among–loan- officers in- – – – – various branches for use in forging proof of borrower income and assets.

Examples of the fraud revealed by these investigations include, but are not limited to, loan document forgery and alteration, underwriting system, the destruction of valid client documents, evidence that blank templates for bank statements were emailed back and forth among loan officers in various branches document forgery, document alteration, destruction of genuine income documents, and other improper and/ or fraudulent activities in order to obtain funding for loans, the destruction of documents, loan’ manipulation, the knowing submission of false documents, and conspiracy . .. . with outside business partners to-obtain loans for such businesses Complainant also engaged in protected activity under SOX when she reported that employees –
who attempted to report underlying wire, mail, and bank fraud to ER suffered pervasive retaliation. SOX was enacted to protect whistleblowers who report fraud.6 SOX protects whistleblowers such `as Complainant who report that employees were retaliated against for reporting the very frauds SOX was designed to preventRespondent management had extensive knowledge of Complainant protected activity.-

Order
1. Respondent shall pay Complainant back wages, less interim earnin@at the rate of

(1) $100.96 per hour for a 40 hour workweek from September 8, 2008 to December 31, 2008,
(2) $110.50 per hour for a 40 hour workweek from Ianuary 1, 2009 to December 31, 2009
(3) $114.92 per hour for a 40 hour workweek from Ianuary 2010 to December 2010, and
(4) $119.51 per hour for a 40 hour workweek from Ianuary 2011, plus any additional

terminated, until Respondent makes the Complainant a bonafide offer? of reinstatement. Respondent shall pay Complainant interest on the back wages in accordance with 26 U.S.C.6621 Respondent pay. Complainant compensatory damages in the amount $37,998.00, which is- comprised of. costs Complainant has incurred to complete a Bachelor’s Degree and obtain an additional professional certification to improve her opportunity for employment, commuting costs to travel to work for a new. job, and- – mediation costs. Respondent shall also pay Complainant the value of the Key Associate Stock Options, Key Associate Restricted Stock, 401k Match, Defined Benefit Pension, and paid vacation that would have been granted to Complainant had.she not been terminated. – . –
– Respondent shall pay- Complainant attorney fees in the amount of $229,36400Respondent shall immediately reinstate Complainant to her former position at BofA with all the pay, benefits, and rights she had before her- termination. .
5. Respondent shall post the- attached “Notice to Emp1oyees” in a . .
conspicuous- place its office(s), including. all places where notices for employees are customarily posted and on the company’ internal website, and maintain for a period of at least 60 consecutive days from the date of posting. Said Notice to Employees shall be signed by a responsible Respondent official and the date of actual posting shall-be shown thereon.
6. Respondent shall not retaliate or against Complainant in any manner for instituting or causingto be instituted any proceeding under or related to SOX. –
7. Respondent shall provide Complainant a neutral employment reference, to include dates of employment, job title, andfinal wage rate, to all potential employers regarding Complainant., . .exercise of her rights under the whistleblower provisions of SOX and of any references to Complainantis termination.
Respondent-and Complainant have 30 days from thereceipt of these Findings to file objections and to request a hearing before an Administrative Law Iudge lf no objections are filed these Findings will become final and not subject to court review.

13 Responses

  1. Wow! Anyone see B of A’s stock today? It is tanking!

  2. @m.soliman

    Who’s stopping you????

  3. Even some of the police are sick and tired of the 1%

    “Today we received unconfirmed reports that over one hundred blue collar police refused to come into work in solidarity with our movement. These numbers will grow. We are the 99 percent. You will not silence us.”

    “It appears that not only are (if reports are correct) 100 or more officers refusing to participate in felonies against peaceful citizens, the media is now getting involved too, and not on the side of the cops and banksters either. ”

    http://market-ticker.org/akcs-www?singlepost=2727299

  4. zurenarrh – don’t know if this is the individual referenced in the story above, but here is a Mother Jones story about Countrywide’s former Chief Fraud Examiner, Eileen Foster, who was apparently fired for doing her job too well… Unfortunately, this kind of termination seems to be happening in both corporations and government…

    http://motherjones.com/mojo/2011/09/countrywide-subprime-mortgage-whistleblower

  5. Add another $50 billion in possible losses to the B of A death watch hits keep coming chart. This one just might poke Ken Lewis’ wallet.

    http://dealbook.nytimes.com/2011/09/27/for-bank-of-america-a-looming-50-billion-claim-of-havoc/?hp

  6. Can I post?

  7. E. Tolle: I absolutely HEAR YOU and that is exactly what I have been saying. The good news is these desperate kleptocratic too big to fail corrupt sociopaths are going down. When EXACTLY, I do not know; but the reek of desperation is at hand and it is indeed a massive land grab. Our bought-and-paid-for bankster-owned politicians cheer their corporate masters on & placidly ignore the sheer numbers of people who elected them. Please remember them the next time you vote. File BK or do what you can to protect yourself while the massive land grab is going down. By Christmas some of these Too Big To Fails will be out of business and wiped off the face of the earth – What a MERRY CHRISTMAS that will be!

  8. And so now everyone and their uncle knows the dasterdly deeds (no pun) performed by CW. And yet, B of A has ramped up foreclosures in CW’s name to a dizzying pace. In my neck of the woods, they’re probably behind 85% or better of the recent filings. Up 70% overall in the western states.

    This is a land grab of massive porportions taking place right in front of the OCC’s Cease and Desist, and being pushed forward by MERS, as nominee, also against a Cease and Desist. The FHFA be damned as well. The AG’s are impotent as well. Steal while the stealing’s good. Don’t be fooled, THERE IS NO JUSTICE!

  9. PETITION—HELP GET THE MONEY OUT OF POLITICS:

    http://www.msnbc.msn.com/id/31510813/#44691743

  10. Meanwhile, dugh…! I could have predicted that.

    That’s why we don’t want to see settlements before investigations have been completed!!!!!!!

    http://www.marketwatch.com/story/freddie-settled-too-cheaply-with-b-of-a-auditor-2011-09-27

  11. OK, here’s a perfect example of what some of us have been complaining about with respect to treatment by judges. Judges act like “lenders” are angels, but here is the Secretary of Labor issuing findings that what we have all been saying about fraud, document alteration/destruction, etc. WAS IN FACT GOING ON. We are validated, in other words. We TOLD you there was fraud, and now the Secretary of Labor is acknowledging that. They’re making Countrywide pay this guy almost $1 million! This alone should be the dam-breaking report that makes the scales fall from the eyes of the government and the media. Even more so when added to the robo-signing scandal, the 17 (!) separate FHFA lawsuits, and so on.

    Now does this mean that this type of fraud went on in my particular case or your particular case? Maybe, maybe not. But that’s beside the point, which is that IT DID GO ON IN AT LEAST SOME CASES (probably more cases than not), which necessarily means that these “lenders” in general, and Countrywide in particular, are not entitled to a presumption of being angels and having proper paperwork and clean hands.

  12. BRAND NEW REPORT BY FHFA 9-27-2011 ON EVALUATION OF FHFA OVERSIGHT OF FREDDIE MAC REPURCHASE SETTLEMENT WITH BANK OF AMERICA

    ‘Freddie Mac used a flawed analysis when it accepted $1.35 billion from Bank of America to settle claims that the bank misled it about loans purchased during the mortgage boom, according to an oversight report scheduled for release on Tuesday.’

    READ NEW FHFA REPORT AND STORY HERE:

    http://www.scribd.com/doc/66563185/READ-HERE-BRAND-NEW-RELEASE-BY-THE-FHFA-Freddie-Mac-Protecting-Banks-Not-Homeowners-SEPT-2011

  13. […] Livinglies’s Weblog Filed Under: Foreclosure Law News, Foreclosure News Tagged With: crisis, foreclosure, […]

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