Grant & Eisenhofer recovered $95 million in whistleblower settlement addressing mortgage servicing fraud
Plaintiff(s):
U.S. ex rel. Szymoniak
Case type / claims:
Whistleblower action under the False Claims Act alleging that major mortgage servicers failed to obtain required mortgage assignments and used false documents to submit Federal Housing Administration (FHA) mortgage insurance claims, contributing to widespread servicing misconduct during the financial crisis.
Defendant(s):
Bank of America, et al.
Jurisdiction:
U.S. District Court for the District of South Carolina and U.S. District Court for the Western District of North Carolina
Year:
2012
Outcome:
- Settled for $95 million as part of broader government recoveries totaling $25 billion against mortgage servicers.
- The case exposed systemic documentation failures and fraudulent assignment practices in mortgage servicing.
