Tag Archives: jp morgan

JPMorgan whistleblower gets $63.9 million in mortgage fraud deal


Finally, A whistle blower who lived to tell about it.

By Jonathan Stempel

Fri Mar 7, 2014 3:48pm EST

(Reuters) – A whistleblower will be paid $63.9 million for providing tips that led to JPMorgan Chase & Co’s agreement to pay $614 million and tighten oversight to resolve charges that it defrauded the government into insuring flawed home loans.

The payment to the whistleblower, Keith Edwards, was disclosed on Friday in a filing with the U.S. district court in Manhattan that formally ended the case.

In the February 4 settlement, JPMorgan admitted that for more than a decade it submitted thousands of mortgages for insurance by the Federal Housing Administration or the Department of Veterans Affairs that did not qualify for government guarantees.

JPMorgan also admitted that it had failed to tell the agencies that its own internal reviews had turned up problems.

The government said it ultimately had to cover millions of dollars of losses after some of the bank’s loans went sour, resulting in evictions and foreclosures nationwide.

“There were a lot of bad loans made during the financial boom, and the United States taxpayer was left holding the bag through the VA and FHA loan programs,” Edwards’ lawyer, David Wasinger, said in a phone interview. “Hopefully the settlement sends a message to Wall Street that this conduct is not allowed, and that in the future it will be held accountable.”

Edwards could not immediately be reached for comment.

About $56.5 million of Edwards’ award concerns the FHA portion of the case, and $7.4 million concerns the VA portion.

Wasinger declined to discuss his legal fees.

Edwards, a Louisiana resident, had worked for JPMorgan or its predecessors from 2003 to 2008, and had been an assistant vice president supervising a government insuring unit.

He originally sued in January 2013 under the federal False Claims Act, which lets individuals sue government contractors and suppliers for allegedly defrauding taxpayers. The U.S. Department of Justice later joined as a plaintiff.

Whistleblowers can recover portions of False Claims Act settlements, which often grow if the government gets involved.

Wasinger also represented Edward O’Donnell, whose tips led to an October 2013 jury finding that Bank of America Corp was liable for fraud over defective mortgages sold by its Countrywide unit. The government is seeking $2.1 billion of penalties in that case.

Citigroup Inc, Deutsche Bank AG and Flagstar Bancorp Inc were among lenders that settled False Claims Act mortgage cases in recent years.

The Justice Department in December said it had paid out roughly $1.98 billion of whistleblower awards from 2009 to 2013.

The case is U.S. ex rel. Edwards v. JPMorgan Chase Bank NA et al, U.S. District Court, Southern District of New York, No. 13-00220.

(Reporting by Jonathan Stempel in New York; Editing by Phil Berlowitz and Amanda Kwan)

Source:  http://www.reuters.com/article/2014/03/07/us-jpmorgan-whistleblower-idUSBREA261HM20140307

Bix Weir sent me an email (others too)


Interesting stuff, hope the wheels are turning.

2013 had some dominant theme’s that hit the Mainstream Media and it seems that many of the items related to the Road to Roota Theory are still with us. For example, JP Morgan just can’t get out cleanly anymore from their criminality…
JP Morgan Nears $2B Deal Over Involvement with Madoff
“JPMorgan Chase & Co is nearing a  $2 billion settlement with federal authorities to resolve  suspicions that the bank ignored signs of Bernard Madoff’s Ponzi  scheme, the New York Times reported, citing people briefed on  the case.”
“The bank’s civil and criminal settlements would also involve  a deferred prosecution agreement, a criminal action that would  suspend an indictment as long as the bank acknowledged the facts  of the government’s case and changed its behavior, the NY Times  said.”
I know a lot of you are thinking…”SO WHAT? THEY JUST PAID A FINE AND WALKED AWAY AGAIN!”
On one level you are right. On another level these settlements and lawsuits are laying out a very clear message to JPM and the banking cabal…THE FUTURE WILL BE DIFFERENT.
Remember, in order to run a truly unbacked fiat monetary system you MUST rig the markets…especially gold and silver. Their prices must be kept under control. It is a requirement. It is a necessity. It has been done via computer programs since the very first computer trading programs were introduced by Alan Greenspan in the 1970’s.
That’s the way the unbacked fiat system has worked for over 40 years.
And now that is ending…at least on the Bankster level. Removing the Institutionalized Market Rigging avenues is very, very bad for the system. Of course the Bad Guys will try to work around the new barriers. For example, they are TRYING to move the rigging control mechanism into the hedge funds. Currently it’s BlackRock “trading” collusively with companies like Tim Geithner’s hedge fund, Warburg Pincus, but I’m not convinced that it will work. They don’t have the protection of the Fed and US Treasury so it leaves them very vulnerable to an “official take-down” by the Good Guys. Keep an eye on the hedge funds if you are looking for future gold/silver market manipulation.
Anyway you slice it silver and gold rigging operations as 2014 is a whole new ball game.
As for the other big theme that has made the transfer from 2013 to 2014…
Now I know how hard it has been for many of you to understand and trust the concept behind Bitcoin because for so long we have understood physical gold and silver as the only alternatives to unbacked fiat money. But Bitcoin is just that…ANOTHER alternative! True, it doesn’t have thousands of years of history as money but how could it have? Computer money has only been around for 40 years! You have no problem accepting our current digital money issued from the Banksters and Fed so why would you have a problem trusting a digital money that CAN’T be mass produced and is controlled by NOBODY??
Oh, and please don’t send me any more “anti-bitcoin” articles. I’ve read them all and they all fall short of convincing me that Bitcoin won’t be with us during and after the Global Monetary Meltdown. Even the arguments that bring up weakness in the Bitcoin protocol forget that Bitcoin is anti-fragile…meaning it learns from it’s own weaknesses and failures and becomes stronger and stronger by understanding and fixing the problem.
In the end you will find that Bitcoin will be used side-by-side with physical gold and silver after the CRASH so you’d better just get used to it.
Here’s an interview I did on it in 2013 and information on how to get started with Bitcoin.
INTERVIEW: Bitcoin, Gold & Silver will Survive the Global Implosion
I will be posting an updated “Timeline” article for 2014 in the next few weeks. Of course it’s not exact but it gives you an idea about when I think certain important things will occur in this most important year.
For Private Road Subscribers here’s the Timeline I posted in September 2013. Not bad for an amateur Nostradamus :-)…
Timeline on the Road to RootA
For those of you suffering through the freezing cold…hang in there! According to Clif High it’s going to last a very, very long time 😦
May the Road you choose be the Right Road.
Bix Weir