Lawsuit Claims Banks Cheated Veterans With Fees

A newly unsealed whistleblower lawsuit from 2006 claims several major banks and mortgage companies bilked military veterans and taxpayers out of hundreds of millions of dollars.

The lawsuit filed that year was unsealed Tuesday in federal court in Atlanta. It claims the firms engaged in a "brazen scheme" involving home loans guaranteed by the U.S. Department of Veterans Affairs.

It says the firms charge attorneys' fees or closing costs with the transactions despite Veterans Administration rules banning that practice. It says the firms "over-charged veterans, charged unallowable fees, and then deliberately concealed those facts."

The lawsuit targets several firms, including Wells Fargo, JPMorgan Chase & Co. and Bank of America. It seeks to recover damages on behalf of the government.

The banks have denied the charges in related court documents.


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Comments are posted from viewers like you and do not always reflect the views of this station.
  • by Surprised? Location: enc on Oct 7, 2011 at 07:04 AM
    Why do people think there are protests going on? Where's the TP? They claim to care about the "grass roots? Where are they-they are calling the people who are protesting these thieves as unAmerican?
  • by Carl Kolchack Location: Pitt County on Oct 5, 2011 at 06:51 PM
    The lawsuit seeks to recoup losses on behalf of the Government, I wonder how much (if any) of monies recouped will actually go to the people/veterans it was stolen from.
  • by Chuck on Oct 5, 2011 at 11:10 AM
    This should tell you not to do business with these banks.
  • by Anonymous on Oct 5, 2011 at 09:40 AM
    These banks are the Lindsay Lohens of the public. They will be fined, pay the fine with your money they stole. There are not words made to disscribe these low life. Be clear, a lot of politicians are not clean here either.
  • by pete Location: grifton on Oct 5, 2011 at 08:22 AM
    I would have never guessed Bank Of Amigo would do this LOL LOL LOL what a joke of a bank.
  • by here Location: here on Oct 5, 2011 at 06:28 AM
    And what is going to be done about it?? I think we all know the answer to that one. NOTHING!!
  • by Barlow Location: Winterville on Oct 5, 2011 at 02:27 AM
    Get ready to poney up everyone! Everytime the banks get caught breaking the law we get to pay the fine for them. This will never stop until they start locking people up. Again, these thieves are constantly finding new ways to rip people off. As long as money makes everyting and anything alright it will continue. go to getmoneyout.com and sign the petition.
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