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Bank of America Hit with Another Securities Fraud Lawsuit

By Andrea Gressman

 

Bank of AmericaOn December 17, 2012, German-based lender HSH Nordbank AG filed a securities lawsuit against Bank of America Corporation (NYSE:BAC). This represents a slew of legal issues Bank of America has recently faced. This particular securities lawsuit was filed for misrepresenting information on documents while they sold mortgage-backed securities (MBS). The securities lawsuit claims that Bank of America provided documents in which they modified in relation to the sales of residential mortgage-backed securities (RMBS). These were reportedly worth more than $218 million.

 

The Bank of America securities lawsuit has been filed in the New York State Supreme Court in Manhattan. Nordbank alleges in the Bank of America securities fraud lawsuit that BofA and its unit, Countrywide Financial, are distorted when it comes to the underwriting standards in mortgage loans that are being combined with the securities.

There have been a number of very similar securities fraud lawsuits filed against a number of United States banks. Many of these bank securities fraud lawsuits claim that the banks sold mortgages securities of a substandard nature that came about when the financial crises hit. As a result, the legal issues that many of these banks are facing are significant.

This year alone there have been many securities lawsuits filed. Some of the banks that have had securities filed against them include the following:

JPMorgan Chase & Co.
Citigroup Inc.
Morgan Stanley
The Goldman Sachs Group Inc.

Other Bank of America Lawsuits

This is not the first legal trouble that Bank of America has faced recently. There was a recent report of CIFG Assurance North America Inc., filing a lawsuit regarding a bond issuer. The claim was that Bank of America fraudulently represented their company. There was also a breach of contract claim with that lawsuit regarding the insurance policies connected to RMBS. The lawsuit claimed that Bank of America violated “CIFG’s five financial guaranty insurance policies.” This was in relation to the 2-structure transaction that Bank of America supposedly arranged. It was reported that Bank of America backed the deal with 22 risky RMBS.

Bank of America is also facing several charges in relation to the sales of mortgage securities that were defective. In November of 2012 Bank of America and their unit Country Financial was prosecuted by Phoenix Light SF Ltd in regards to a sale of flawed residential mortgage-backed securities worth $261 million, which Bank of America reportedly used misleading statements throughout the deal. However, that was just a fraction of the number of securities lawsuits filed by Phoenix Light. In September of 2012 they filed securities lawsuits not only against Bank of America but also JPMorgan, Goldman as well as Ace Securities – a wing of Deutsche Bank AG.

Phoenix Light requested $1.8 billion in their securities lawsuit against JPMorgan and Goldman. They are requesting $300 million from Ace Securities and they sued Bank of America for “$36.6 million over $69.8 million worth of MBS.”

The number of securities lawsuits being filed against United States banks, such as Bank of America, has been a common issue since the financial collapse. Not only are these lawsuits very expensive for the banking industry but they are also giving the industry as well as the specific banks a black eye. However, it does not appear that the filing of these securities lawsuit is slowing down any time soon.

If you have been a victim of stock fraud, securities fraud or investment fraud, you may eligible to file a securities lawsuit and possibly join a class action lawsuit against the parties responsible. Visit the Securities Fraud, Stock Fraud Investment Class Action Lawsuit Investigation for details.

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Updated January 4th, 2013

 

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8 thoughts onBank of America Hit with Another Securities Fraud Lawsuit

  1. Lamont Brantley says:

    Add me have banker but every
    Time bank my investment
    There say it a game not miss in
    1. Law suit A Ghents The Government they mail
    Me paper from
    Supreme court

  2. dawn casey says:

    I too have a countrywide now bank of America loan, a home equity for $50,000 of which I was charged interest only for the first ten years , never disclosed at the closing!!! Then out of nowhere, I owed them approx. $8000.00 and they put me in foreclosure in front of my first lien. They claimed the plaintiff was the bank of new York mellon who they have always claimed was the owner or funder of my loan. After receiving this foreclosure action I contacted the owner, bank of new York mellon and asked them If the had standing to foreclose on my loan. they wrote me back stating that they are only a trustee for a CWMBS, certificate holder and as such had no legal right to foreclose or modify my loan, so the bank of America put me in foreclosure without have a true owner and in fact listed a non-standing entity!!! They and their foreclosure mill attorneys both suck!!! I paid the $8000,00 which I feel was extorted from me in this illegal foreclosure attempt Now I am asserting that this loan is invalid as they do not have an owner on whose behalf they ever collected a dime from me for!!! I am going to sue them for illegal collection of unsecure, unowned debt, RICO violations wire and mail fraud, and any other violation I can come up with against the thieving bas–rds!!!

    1. Wayne says:

      Buy a share of thier to have standing

  3. Eddie says:

    In October of 2014 the courts ruled that Countrywide/America’s Wholesale Lender never had a license to do business as a lender in the State of Florida, making the note and the mortgage invalid and void and stated that Bank of America had no standing. However some of these judges are violating their Oath of Office by not upholding the Constitution and the Laws of the State of Florida by allowing this fraud to continue.
    The Justice Department needs to do an Investigation and start arresting these judges for violating the peoples rights guaranteed under the 5th and 14th amendments of the Constitution and committing fraud on the courts.
    The case, if you want to look it up or google it is BAC VS. NASH. FINAL JUDGEMENT 10/16/2014.

  4. Penny says:

    I feel for all of you, My husband and I have been put through the wringer also. We had done everything possible and also spent money on a lawyer for a year. only to finally get a modification trial letter, what a joke, it was still way to much to pay, and also the part about increases in interest later and a possible balloon payment. Are you kidding me. I refused to pay them or any lawyer another dime. Done playing this game and just so you know, We are still in our home, but who knows how much longer, no clue, no info. Keep the Faith!

  5. SABRINA CATO says:

    BASICALLY OUR SITUATION STARTED OF WITH A ROBO SIGNING AND PREDATORY LENDING BACK IN AUGUST 3, 2006 WITH COUNTRYWIDE AND 3RD PARTY BANK OF AMERICA. FIRST OF ALL THE LOAN PROCESS THEY VIOLATED OUR RIGHTS UNDER THE DUE PROCESS IN WHICH FALL UNDER THE GUIDE LINES OF FRAUD, EXTORTION, AND EMBEZZLEMENT!! DOING THE LOAN PROCESS WE WAS TOLD TO SIGN SOME PAPERS AND DO NOT DATED THEM AND SOME OF THE LOAN PAPERS WE WAS TOLD NOT TO SIGN NOR DATED THEM AT ALL!! ALSO IT WAS A 80% AND 20% LOAN MAKE IT A 100% NO MONEY DOWN!! THEY HAD US $1000.00 AND AT CLOSING $800.00 EARNEST MONEY!! THE 20% LOAN PRICE $78.547.33 & 80% LOAN AT $293,510.11 AND THE TOTAL COMING TO $372,057.44!! THE ORIGINAL PRICE OF THE HOME PURCHASE WAS $132,500 LISTED ON RECORD!! NOW, THIS IS WRONG AND ILLEGAL AND HORRIFIC AND HAS CAUSE MYSELF AND AS WELL AS MY EX-HUSBAND MAJOR MENTAL ARGUISH!! NOW, WE END UP SUFFERING HARDSHIP IN MAY OF 2010 END UP WORKING WITH NACA WHOM PROMISE US OUR MORTGAGE WITH TAXES WOULD BE $888.68! WHICH WHEN BOA TOOK OVER THEY COMMITTED FRAUD ON THE MODIFICATION AND I HAVE DOCUMENTS VERIFYING ALL THIS WHERE BOA DID THE WORST MODIFICATION EVER!! ORIGINAL (20%) $298.00 (MODIFICATION AMOUNT $290.59)—- (80%) ORIGINAL LOAN $819.17 (MODIFICATION $817.28) ONLY SAVING US A $9.60 OFF WITH US LOSING HALF OF OUR INCOME DUE TO AT THE TIME I WAS MAJORLY ILL!! AND NOT TO FORGET THE $3000.00 DOLLARS THEY TOOK THAT THE WHITE HOUSE PROVIDED THE COMMUNITY ACTION MORTGAGE HELP FUNDS THEY GAVE US IN NOVEMBER 2010 CATCHING UP THE MORTGAGE WE WAS BEHIND ON DISAPPEAR!! NOW, PLEASE TELL ME WHY IS IT MYSELF AND A REALITOR MARCELL COMBS IN OCT 2011 WAS WORKING TO DO A SHORTSALE AND BOA THEM PURPOSELY DECEIVED MYSELF AND HIM BY SAYING MY LENDER DIDN’T QUALIFY FOR THE SHORTSALE AFTER, MAKING US BELIEVE UNTIL JAN 2012 THE PROCESS WAS COMPLETED! AFTER, FAXING AND EMAILING AND MYSELF RECORDING THE LIES BY TAPE BECAME FRUSTRATED I STOP THE PROCESS WITH BOA IN MAY 2012! I WENT AND FILE CHAPTER 13 MAY 1,2012 NOT AWARE WE QUALIFIED FOR THE 35% OF MY LOAN DUE TO THE CLASS ACTION LAWSUIT!! MRS. HARRIET IRZARRY BLAITLY LIED MAILING THE PAPERS MAY 23,2012 IN THE MAIL I BLASTED HER OUT SHE NEVER MADE ME AWARE UNTIL AFTER I FILE I QUALIFIED!! AND MRS. HARRIET HAD ME SEND MY INCOME PAPERS IN AND THEN SHE REFUSED TO ACCEPTED MY INCOME AND THEN WENT ON TO LIE AND DECEIVED ME AS TO WHY WHICH WAS ILLEGAL REFUSING VERIFIABLE INCOME TO DENY ME FROM THE U.S. DEPARTMENT OF JUSTICE GLOBAL SETTLEMENT AGAINST BOA AND COUNTRYWIDE!!!THEN AFTER FILING CHAPTER 13 I HAD IT DIMISSED DUE TO IF I COULDN’T AFFORD THE $1107.87 BAD MODIFICATION IT WAS NO WAY I COULD AFFORD $817.28 PLUS TRUSTEE FEES TOTALING $320.00 AND ADDING TO $1137.28 TO BANKRUPTCY COURT!! ONCE I PAID BILLS AND THEN BANKRUPTCY I WAS FALLING SHORT ON MORTGAGE MONEY IN WHICH I HAIL AND PUT UP!! BUT, I AM UPSET THAT BANK OF AMERICA AND COUNTRYWIDE WAS AND STILL IS ALLOWED TO FULLY VIOLATED MY 7TH AMENDMENT RIGHTS UNDER DUE PROCESS DOING THE ROBO SIGNING AND PREDATORY LENDING AND BANK OF AMERICA WITH THE FRAUDULENT MODIFICATION NOT BEING HELD ACCOUNTABLE FOR THE MENTAL ANGUISH THEY HAS AND CONTINUE TO CAUSE MYSELF SABRINA CATO-FELTON AND MY EX-HUSBAND CHADNEZZAR FELTON!! I AM REQUESTING THEM TO BE SUED AND HELD ACCOUNTABLE FOR EXTORTION, EMBEZZLEMENT AND FRAUD ON OUR BEHALF AND THAT BOA IS REMOVED AS MY SERVICE DUE TO BOA ADMITTED TO FRAUD IN THE CLASS ACTION LAWSUITS BROUGHT AGAINST THEM BY US THE CATO-FELTON AND OTHER CUSTOMERS!!

    1. T.B. says:

      Same here! We finally just moved after fighting them for 10 years. Our refi was on 3/27/2007 Wilmington Financial..aka Countrywide, Bank of America, Bank of New York Mellon asset back 2007-07! Our nightmare is over finally but the amount of fraud was constant with no legal ramifications! We spent thousands on attorneys to no avail.

  6. Nicole Lang says:

    Below is my story of what Bank of America has put me and my family through. We are close to losing our home and its not fair. We have done everything asked and after 6 months of pure hell we have no other options but to find an attorney. However, before we start paying someone we want to know someone really has the knowledge of our case and is determined they can win. As the money we will spend can be put into saving for our mortgage to “save it”. However, I want to sue them for the torture they have put us through and save my home for my children. I am begging for a professionals help. After reading your bio I thought you could help. Here is a summary of my story and things have gotten MUCH WORSE! Please email me if you feel you can help otherwise I will keep looking.

    THANK YOU!

    BANK OF AMERICA MORTGAGE ABUSE
    COMPLAINT of BANK OF AMERICA PROCESS and MORTGAGE ABUSE ON FAMILIES

    Date: January 26, 2013

    Dear Madam or Sir:

    I am writing in regarding the horrific business practices by Bank of America of which we have been a victim of.
    I am going to show positive proof regarding the process in which we have been put through.
    It all started mid July of 2012 when my husband and I had a downturn on our income. However, we contacted BOA right away to make sure we could work something out. The end of October our financial situation increased and we are now making great income to afford our mortgage. We started with a request for a modification, forbearance, or repayment plan. It has now been an EMOTIONAL
    process dragging on for almost 8 months. (We are also 8 months behind on our mortgage because of them failing to work with us).

    Below is a short summary of what has been going on:

    1. July 18, 2012-I called to speak with BOA regarding loan modification. (1 month behind). I am instructed to fax, fill the following out, and provide proof of:

    •2010, 2011 Taxes
    •4506T
    •RMA
    •Pay stubs
    •Hardship letter

    I fax these documents into fax number 888-694-1879
    2. August 1, 2012-We receive letter from Marcy Pope, Customer Relationship Manager.
    3. August 6, 2012-Call to see if documents are received and what the next step is.
    Marcy does not answer so I leave a message.
    4. August 11, 2012- I call Marcy back again and she answers. She stated shed did not receive documents and I need to refax them to 888-694-1879. I fax below:

    •2010, 2011 Taxes
    •4506T
    •RMA
    •Pay stubs
    •Hardship letter

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