Banking Law

Newbie Lawyer Becomes a ‘National Mini-Celebrity’ After Attempt to Seize Bank Furniture

Florida lawyer Todd Allen had been practicing law for only eight months when he showed up with a moving truck at a Bank of America branch, ready to seize furniture to pay a $2,500 judgment. Since then, the Ave Maria School of Law graduate has become a “national mini-celebrity,” the…

Dec 5, 2012 12:00 PM CST

Bankruptcy Commission Exploring Major Overhaul of Chapter 11 Code

An American Bankruptcy Institute commission expects that labor and benefits will be key issues in the Chapter 11 code overhaul, Reuters reports. The group plans to issue a report of its recommendations in 2014. Approximately six public hearings are expected to take place in 2013. “We’ll be hearing from both…

Dec 3, 2012 7:41 PM CST

Forfeiture Complaint Accuses Michigan Justice of Defrauding Bank in Short Sale Transaction

The federal government is seeking forfeiture of a Michigan justice’s Florida home in a civil complaint that claims she defrauded a bank in a short sale transaction. Justice Diane Hathaway and her husband, lawyer Michael Kingsley, are accused of transferring the Florida property to Kingsley’s daughter to facilitate the short…

Nov 21, 2012 1:05 PM CST

Lawyer Who Says He Was Scammed Is Sued by Bank Re Fake $299K Cashier’s Check

A Minnesota attorney says he was scammed into depositing what he thought was a real cashier’s check for nearly $300,000 from a legitimate collection matter into the trust account for his solo law practice. Now Lawrence Marofsky is being sued by TCF Bank in federal court in Minneapolis, the Minneapolis/St.…

Nov 19, 2012 6:03 PM CST

Stanford Receiver Sues Greenberg and Hunton Firms, Says Lawyer’s Work Helped $7B Ponzi Scheme

A court-appointed receiver representing victims of a $7 billion Ponzi scheme for which former billionaire R. Allen Stanford is now serving a 110-year prison term has sued two well-known law firms. In a federal suit filed Thursday in Dallas that seeks class action status, receiver Ralph Janvey and several individual…

Nov 16, 2012 5:37 PM CST

Occupy Offshoot Buys Up Debt with Aim of Forgiveness

An offshoot of Occupy Wall Street is trying to improve the financial picture of some Americans by buying up debt for pennies on the dollar, with no intent to collect. The group is called Strike Debt, the New York Times reports. It has already raised $129,000 in online donations and…

Nov 15, 2012 11:29 AM CST

Unit of Bank of New York Mellon to Pay $210M Settlement for Madoff Investor Advice

A Bank of New York Mellon subsidiary that advised clients who invested with Bernard Madoff has agreed to pay $210 million to settle suits by the U.S. Department of Labor, the New York Attorney General’s office and private investors. Ivy Asset Management is paying the money to resolve allegations that…

Nov 13, 2012 3:41 PM CST

Video: Dramatic Pay Disparity for Non-Equity Partners; Barclays Under Fire; Photos of Ballots Legal?

Editor’s Note: We’re experimenting with using more video on ABAJournal.com and will be bringing you this short weekly legal news brief from Bloomberg Law for the next few weeks. Thanks for the feedback so far. Please note that adding video would not mean eliminating text-based stories. Rather, we’re exploring adding…

Nov 8, 2012 6:45 PM CST

BigLaw Partner Sues Feds for $4M, Alleges Malicious Prosecution In Retaliation for His IG Complaint

A BigLaw partner has sued the Office of the Comptroller of the Currency seeking $4 million in damages. Carlos Loumiet claims he was maliciously prosecuted on civil regulatory charges in retaliation for a complaint he made to the federal agency’s inspector general about the manner in which an investigation of…

Nov 7, 2012 10:52 PM CST

A Possibly Big Payday Awaits Two Law Firms Suing on Behalf of US Regulator

Two law firms could collect hundreds of millions of dollars in contingency fees as result of lawsuits filed on behalf of a U.S. regulator. The two law firms are Kellogg Huber Hansen Todd Evans & Figel and Korein Tillery, the Wall Street Journal (sub. req.) reports. They represent the National…

Oct 25, 2012 4:09 PM CDT

DOJ Alleges B of A, Countrywide Defrauded Fannie Mae and Freddie Mac; Seeks $1 Billion in Damages

The Justice Department announced Wednesday a mortgage fraud lawsuit filed against Bank of America, alleging that the corporation engaged in a scheme to defraud federal loan programs Fannie Mae and Freddie Mac. According to a press release from Preet Bharara, the U.S. attorney for the Southern District of New York,…

Oct 24, 2012 5:25 PM CDT

Law Firm Seeks 12.5 Percent Share of Ex-Banker Birkenfeld’s $104M IRS Whistleblower Award

A Washington, D.C., law firm retained by Bradley Birkenfeld to help him tell U.S. authorities how a Swiss bank was aiding Americans in evading taxes is now seeking a 12.5 percent of his $104 million whistleblower award from the Internal Revenue Service. The former employee of UBS AG, the biggest…

Oct 17, 2012 4:30 PM CDT

Consumer Bureau Considers Lawsuit Protection for Lenders in Some Foreclosure Suits

The new Consumer Financial Protection Bureau is considering rules that would give lenders protection from some lawsuits contesting foreclosures. The safe harbor rule would apply when lenders make certain high-quality loans, the Wall Street Journal (sub. req.) reports. Loans qualifying for protection may be those in which the borrower’s total…

Oct 16, 2012 11:35 AM CDT

Consumer Bureau Drafts Rules on Reverse Mortgages as New Abuses Are Alleged

Consumer advocates are reporting abuses in reverse mortgages that parallel risky lending practices that prevailed before the financial downturn. Reverse mortgages are intended to help keep seniors in their homes, the New York Times reports. The homeowners borrow money against the value of their homes, with no need to pay…

Oct 16, 2012 11:00 AM CDT

ACLU Suit Accuses Morgan Stanley of Encouraging Predatory Loans

The American Civil Liberties Union claims in a lawsuit that Morgan Stanley encouraged predatory loans when it lent money to the New Century Financial Corp. The would-be class action suit claims Morgan Stanley encouraged New Century to make risky loans with high costs that disproportionately targeted African American borrowers, report…

Oct 15, 2012 3:19 PM CDT