May 30, 2012

Bank of America Whistleblower Cashes Out

“A former home appraiser will receive $14.5 million as part of a whistleblower lawsuit that accused subprime lender Countrywide Financial of inflating appraisals on government-insured loans, his attorneys said Tuesday. 
"Kyle Lagow's lawsuit sparked an investigation that culminated in a $1 billion settlement announced in February between Bank of America Corp and the U.S. Justice Department over allegations of mortgage fraud at Countrywide, his attorneys said in a news release. Bank of America bought Countrywide in 2008.”
Reuters also reported that Lagow's lawsuit was one of five whistle blower complaints that were put together in a $25 billion national mortgage settlement that state and federal officials reached with Bank of America and four other lenders this year. One of the attorneys on the case concluded, “These guys are inspirational. They both did the right thing. They should inspire other people to come forward.”