$108 Million Settlement over a False Claims Act Allegations Against Wells Fargo Announced by Whistleblower Institute
The Whistleblower Institute announces that Wells Fargo reached a $108 million settlement in a whistleblower lawsuit.
San Diego, CA -- (SBWire) -- 09/20/2017 --The Whistleblower Institute announces that Wells Fargo reached a $108 million settlement in a whistleblower lawsuit filed by mortgage brokers claiming it had charged veterans hidden fees to refinance their mortgages.
Those who have a similar case or experienced a similar situation or any other wrongdoing within a corporation have certain options and should contact the Whistleblower Institute at email@example.com or call: 619-452–1218. There are no costs or obligations to you.
A settlement has been reached to resolve False Claims Act allegations against Wells Fargo.
On August 4, 2017, Wells Fargo announced that it would pay the U.S. government $108 million after settling a lawsuit that claimed it had charged veterans hidden fees to refinance their mortgages.
The allegations arose from a lawsuit that claimed Wells Fargo charged veterans hidden fees when refinancing mortgages and hid the fees when veterans applied for federal loan guarantees.
The whistleblower lawsuit was filed by Georgia mortgage brokers Victor Bibby and Brian Donnelly in 2006, who sought to recoup money the government and taxpayers lost when those loans went into default. These loans were made under a Department of Veterans Affairs program.
"We're glad it's over, at least as to Wells Fargo," according to whistleblowers, Victor Bibby.
Reportedly, a Wells Fargo spokesman stated that the bank changed its methods for handling veterans' refinancing loans several years ago to fix the alleged problems and that the company settled the lawsuit to "put the matter behind us."
Allegedly, in 2011, the bank settled a similar class-action lawsuit in Georgia claiming misconduct in refinancing VA-backed loans.
"More than six years ago, when questions about fees on Veterans Administration refinance loans were raised, we resolved those concerns by improving our internal controls and made compensation available to VA customers who closed a refinance before that time," said Tim Sloan, Wells Fargo's chief executive officer. "Settling this longstanding lawsuit allows us to put the matter behind us and continue to focus on serving customers and rebuilding trust with our stakeholders. We are committed to serving the financial health and well-being of veterans, and we will continue to honor that commitment now and in the future."
Under the federal whistleblowers law, known as the Federal False Claims Act, people with knowledge of wrongdoing by a company can sue on behalf of the government and collect up to 30 percent of any resulting settlement or jury award.
Based in San Francisco, California, Wells Fargo is an American international banking and financial services holding company.
The Whistleblower Institute is an information portal for current or former employees and other people having insight information about wrongdoing and other illegal activities by individuals either individually or within corporations, through company culture and or within international affairs. Whistleblowers should keep in mind that under the Dodd-Frank Act any person who provides the Securities and Exchange Commission ("SEC") with original information that leads to a successful enforcement action with over $1 million recovered must be awarded between 10%-30% of the total amount recovered. In order to determine the total amount of the reward there are numerous factors that need to be considered. Whistleblower actions are complex and our goal is to guide any whistleblower every step of the way. The Whistleblower Institute is dedicated to partnering with any individual who have information about fraud and we work with many of the best law firms worldwide.
Those who have a similar case or experienced a similar situation or any other wrongdoing within a corporation have certain options and should contact the Whistleblower Institute.
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The material was prepared by the Whistleblower Institute for informational purposes only and is not legal or financial advice. The information is provided only as general information which may or may not reflect the most currently available public information, is not provided as a basis for any established or existing relationship, and is not intended to constitute legal or financial advice, or to substitute for obtaining such advice from an attorney or other advisor licensed in your state.
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