BOA's bid to void fraud penalty 'defies common sense' -- government

by Ryan Smith19 Sep 2014
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.

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.”


  • by don broadway | 9/19/2014 11:51:15 PM

    When will the Roland Arnold and the Ameriquest debacle be questioned and answered. Roland may be deceased, but what Ameriquest did was far beyond what CountryWide, Bank of America, Wells Fargo, J P Morgan Chase (Jamie Dimon, whom had a mortgage division called "Chase Sub-Prime") and other lenders along with what Wall Street did. Roland blantally did a clasic Bait and Switch with the 2/28 ARM based on the Libor Index and then a Margin that guaranteed rate increases after 2 years plus a 6 month pre-penalty for 3 years.

    But Roland paid for an entire Super Bowl Halftime show and had a baseball park named "Ameriquest Park" in Dallas. Then paid the entire bill for George W. Bush's 2nd inaguration party. Was then made the Ambassador to the Netherlands, appointed by George W. Bush and approved by the US Senate while 48 States Attorney Generals were sueing his company, Ameriquest, for obvious violations resutling in, at the time, the largest monetary penalty given. Strange how it works? Have money and pay to play! Roland had cut himself from Ameriqust and let it die but not before taking every dime he could.

    Pity the man passed. Should have been held liable for what he did! For his heirs that benefited with millions from his scams, suggest you own up, recognize what he did was wrong, admit it, and try to correct his errors. In other words, look to help people rather that rip them off! Roland did a very good job at that.

    Just a suggestion

  • by sbharkness | 9/22/2014 11:35:56 AM

    I am outraged and angry. This megabanks under the auspices of the Federal Reserve have committed crimes that have cause extreme financial hardship to not only millions of Americans, but billions of people worldwide. I want to see some butts in federal prison, and if our corrupt, bought and paid for politicians, and their lobbyist friends won't do it....we should start by throwing their corrupt carcasses in the Federal pen first! What do you want to bet this Ponzi scheme known as the world banking system starts falling like dominos? It is time to take back our government. We "the people" do not control anything. It's the uber elite that meet at the Bilderberger ever years that decides our fates, but the time is now to do something about it.


Should CFPB have more supervision over credit agencies?