Banking Law

Wells Fargo Settles With NAACP, But 2 Cities File New Fair Lending Suits

Wells Fargo has just settled a fair housing lawsuit brought by the National Association for the Advancement of Colored People. But the bank’s court battle over its alleged discriminatory lending practices isn’t over yet. Two cities filed amended federal fair housing complaints against Wells Fargo this week, in which they…

Apr 8, 2010 11:22 PM CDT

Hacker Gets Record 20-Year Prison Term in $200M Credit- and Debit-Card Data Theft

Updated: A 28-year-old computer mastermind who last year pleaded guilty in a case involving the theft of millions of credit and debit card numbers from retailers and a major credit card processor was sentenced to a 20-year prison term today by a federal court in Boston, reports the Threat Level…

Mar 25, 2010 7:12 PM CDT

Lawyer Jailed in Lieu of $7.5M Bail in Alleged Real Estate Fraud

A California lawyer is in jail in lieu of $7.5 million bail, accused of participating in a fraudulent property transfer scheme that allegedly reaped $2.2 million in loans and involved the filing of falsified real estate documents. Investigators in the San Francisco County case also contend that San Jose attorney…

Mar 24, 2010 9:22 PM CDT

Complex Wall Street Salary Situation Adds Up to Extra Work for Divorce Counsel

It’s either the best of times or the worst of times for financial executives to get divorced right now, depending on your perspective. Restrictions on pay for many Wall Street financial executives, since the global economic crisis and government bailout that have taken place during the past 18 months or…

Mar 24, 2010 7:34 PM CDT

2 Attorneys Among 40 Defendants in $20M Texas Mortgage Fraud Case

Updated: Add at least two more lawyers to the ever-lengthening list of real estate attorneys criminally charged over their alleged participation in mortgage fraud schemes. Among 40 defendants charged by a federal grand jury indictment (PDF) announced this week in a Texas case are Daniel Ayers and Anthony Flores, reports…

Mar 17, 2010 5:24 PM CDT

After Serving His Time, Ex-Milberg Partner Lerach Blasts Wall Street

Former Milberg partner William Lerach is out of prison and just as outspoken as ever. In an interview with Reuters, the disbarred lawyer blasted Wall Street and warned of more problems ahead. “There will be another financial fraud wave if serious changes aren’t made,” Lerach said. “We keep repeating the…

Mar 10, 2010 2:05 PM CST

House of Cards

Banks have had free rein to set credit rules for consumers, but now Congress is looking for ways to restack the deck

Mar 1, 2010 11:20 AM CST

Court Shutters Allegro Law, Ending One of Nation’s ‘Largest Debt Settlement Schemes’

An Alabama circuit judge shut down Allegro Law and Allegro Financial Services, ending what the state’s attorney general characterized as “one of the largest debt settlement schemes in the nation.” The ruling by Judge Ben Fuller follows a complaint file seven months ago by the Alabama Attorney General’s Office and…

Feb 25, 2010 3:41 PM CST

Attorney Helped Me Mail Home $211K in Secret Swiss Account Cash, Va. Surgeon Says in Plea

In a plea bargain today that may signal a more sweeping prosecutorial approach to tax issues related to secret Swiss bank accounts, a Virginia surgeon admits that he conspired with a banker and an attorney to conceal from United States authorities the $250,000 he inherited from his mother, plus $18,000…

Feb 16, 2010 10:51 PM CST

As Jury Deliberates, Federal Judge Dismisses All Charges in Stanford Document-Shredding Case

In the latest blow to U.S. Department of Justice prosecutors pursuing high-profile charges, a federal judge today dismissed the obstruction and conspiracy case against two men accused of ordering the destruction of documents related to R. Allen Stanford’s alleged $7 billion Ponzi scheme. Citing a lack of intent as he…

Feb 12, 2010 10:32 PM CST

As Bank Takes Possession of Home, Couple Argues, to No Avail, ‘We Paid Cash,’ Suit Says

As mortgage foreclosures continue to surge throughout the nation, there’s at least one case that should never have been filed, a Massachusetts couple says. It concerns their future retirement home in Florida, for which, they say, they paid their life savings, in cash. Although there was no mortgage at all…

Feb 12, 2010 8:49 PM CST

Shareholder Suit re ‘Staggering’ Pay Says Morgan Stanley Is Run for Employees’ Benefit

Two pension funds have filed suit against the world’s biggest brokerage, seeking billions in restitution and contending that Morgan Stanley paid out “staggering” compensation and bonuses to its employees in 2006, 2007 and 2009 without regard to the interests of its shareholders. “The payments are staggering not only in absolute…

Feb 11, 2010 8:19 PM CST

Partner Says Secretary Stole $900K from Personal Account

A partner in a small Chicago litigation firm claims that his former secretary siphoned nearly $900,000 from his personal accounts. Details of the alleged theft have emerged in the federal bank fraud case against Crystal Sangiacomo, who is accused of writing more than 20 checks from the lawyer’s account over…

Feb 10, 2010 7:24 PM CST

Bank Blames Lawyers Now at Dykema for Part of its Financial Woes

New Century Bank, which is on a losing streak financially, has filed a legal malpractice suit against Dykema Gossett and Schwartz Cooper. New Century blames Schwartz Cooper in particular for giving the Chicago-based lender bad advice on a $1.8 million loan made to a trucking company, the Chicago Tribune reports.…

Feb 10, 2010 3:11 PM CST

Feds May More Closely Scrutinize Attorney-Client Accounts to Close Money-Laundering Loopholes

A federal report detailing how African politicians and their families used lawyers and others to evade U.S. money laundering laws has federal authorities poised to more closely scrutinize attorney-client bank accounts. The 325-page report by the U.S. Senate Permanent Subcommittee on Investigations revealed that Chicago-based Sidley Austin transferred about $21…

Feb 9, 2010 11:17 AM CST