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JP Morgan Agrees to Settle Whistleblower Suit for $45 Million

JP Morgan Chase Bank (“JP Morgan”) has agreed to settle a qui tam lawsuit filed in 2006 in the United States District Court in Atlanta, Georgia. The whistleblower suit, initiated by two mortgage brokers, alleges that JP Morgan, as well as several other banks and mortgage companies, violated the False Claims Act in connection with the refinancing of veterans’ home mortgages.

According to the whistleblowers’ suit, JP Morgan committed fraud when it charged illegal fees to veterans and then illegally sought repayment from the federal government on void government loan guarantees. The complaint alleges that JP Morgan, and the other mortgage lenders named in the complaint, cheated military veterans and taxpayers out of millions of dollars with illegal hidden fees and by seeking to collect on void government loan guarantees.

Under the qui tam provisions of the False Claims Act, the two whistleblowers will share in a percentage of the $45 Million settlement as their reward.

The whistleblower suit remains pending against Wells Fargo Bank, Bank of America, CitiMortgage, Suntrust Mortgage, Washington Mutual Bank, PNC Bank (which acquired National City Mortgage Co.), Countrywide Home Loans, Mortgage Investors Corp., and First Tennessee Bank (which acquired First Horizon Home Loan Corp.).

If you have any firsthand knowledge, information, or evidence related to any federal, state, county or city government fraud, you should speak with an experienced qui tam lawyer who can help you understand your legal rights and help you obtain the compensation you deserve.

If you have a claim, contact the Florida whistleblower attorneys at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or e-mail kelly@mccaberabin.com.

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