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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWhistleblower facing foreclosure wins $18 million
Whistleblower facing foreclosure wins $18 million
(CBS News) When we first met Lynn Szymoniak on 60 Minutes last year, she was an angry homeowner facing foreclosure. Now, Szymoniak is walking away with an $18 million settlement after blowing the whistle on a "robo-signing" fraud that she says was perpetrated by some of the nation's largest mortgage companies.
Szymoniak described her win as "a little surreal," speaking by phone to 60 Minutes yesterday.
"Robo-signing" is the illegal practice of forging mortgage documents. As 60 Minutes learned in its investigation last year (video below), the documents underpinning homeowners' mortgages are sometimes missing or nonexistent. Banks need such documents to foreclose on a homeowner, so some banks have resorted to fraud: creating phony or "robo-signed" paperwork to throw people out of their homes.
Szymoniak uncovered the "robo-signing" fraud while fighting to save her Florida home from foreclosure. After receiving what she considered to be fake paperwork from her bank, Szymoniak -- a lawyer and fraud investigator -- began investigating tens of thousands of documents in other foreclosure cases that appeared to be falsified.
She blew the whistle, claiming that the country's four largest mortgage services had defrauded the federal government by creating fake documents to replace lost or nonexistent ones in order to receive government-funded payments. The government joined Syzmoniak's complaint, and it was announced this week that those banks -- Bank of America, J.P. Morgan Chase & Co., Wells Fargo & Co, and Citigroup Inc. -- settled the case for $95 million. Under law, the whistleblower is entitled to a share of the money recovered by the U.S. government, in this case $18 million
- more -
http://www.cbsnews.com/8301-504803_162-57397490-10391709/whistleblower-facing-foreclosure-wins-
(CBS News) When we first met Lynn Szymoniak on 60 Minutes last year, she was an angry homeowner facing foreclosure. Now, Szymoniak is walking away with an $18 million settlement after blowing the whistle on a "robo-signing" fraud that she says was perpetrated by some of the nation's largest mortgage companies.
Szymoniak described her win as "a little surreal," speaking by phone to 60 Minutes yesterday.
"Robo-signing" is the illegal practice of forging mortgage documents. As 60 Minutes learned in its investigation last year (video below), the documents underpinning homeowners' mortgages are sometimes missing or nonexistent. Banks need such documents to foreclose on a homeowner, so some banks have resorted to fraud: creating phony or "robo-signed" paperwork to throw people out of their homes.
Szymoniak uncovered the "robo-signing" fraud while fighting to save her Florida home from foreclosure. After receiving what she considered to be fake paperwork from her bank, Szymoniak -- a lawyer and fraud investigator -- began investigating tens of thousands of documents in other foreclosure cases that appeared to be falsified.
She blew the whistle, claiming that the country's four largest mortgage services had defrauded the federal government by creating fake documents to replace lost or nonexistent ones in order to receive government-funded payments. The government joined Syzmoniak's complaint, and it was announced this week that those banks -- Bank of America, J.P. Morgan Chase & Co., Wells Fargo & Co, and Citigroup Inc. -- settled the case for $95 million. Under law, the whistleblower is entitled to a share of the money recovered by the U.S. government, in this case $18 million
- more -
http://www.cbsnews.com/8301-504803_162-57397490-10391709/whistleblower-facing-foreclosure-wins-
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Whistleblower facing foreclosure wins $18 million (Original Post)
ProSense
Mar 2012
OP
Whoops! I meant to recommend but the computer did something funny and I
The Backlash Cometh
Mar 2012
#5
MineralMan
(146,317 posts)1. I remember watching the 60 Minutes episode
on her. Dynamite!
Turbineguy
(37,343 posts)2. She earned it.
And got lucky.
barbtries
(28,799 posts)3. that's terrific.
i wish her all the best.
The Backlash Cometh
(41,358 posts)4. This is so inspiring.
The Backlash Cometh
(41,358 posts)5. Whoops! I meant to recommend but the computer did something funny and I
thought it didn't take, so I hit the button again. Sorry!
Snake Alchemist
(3,318 posts)6. Was this one of the one's that was never delinquent? nt
ProSense
(116,464 posts)7. ? n/t