The penalty was imposed after Bank of America was found liable for mortgage-bond fraud committed by its Countrywide unit. Former Countrywide executive Rebecca Mairone, the only individual accused in the case, was fined $1 million. Mairone is also trying to convince the court to void the judgment.
But the government said the penalties are just, according to a Reuters report. The arguments against the penalties “defy the evidence, the law, and common sense,” government lawyers said. “Evidence of defendants’ fraud was abundant.”
Marc Mukasey, attorney for Rebecca Mairone, begs to differ.
“The government gets it wrong from the get-go,” Mukasey told Reuters. “There was no proof that Rebecca knew even a single loan was not of investment quality nor that she sold any loans knowing as much. Their continued scapegoating of her is heavy-handed and, frankly, nasty.”
The government has hit back against Bank of America’s bid to void its $1.27 billion fraud penalty, saying the bank’s motion defies common sense.