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Bank Of America To Pay $930,000 Restitution To Whistleblower Who Was Fired For Reporting Fraud At Countrywide

Tyler Durden's picture




 

We hardly needed confirmation that a) Bank of America is a den of criminals and thieves, that b) its toxic $1.3 trillion mortgage division, better known as Countrywide, is an even scarier and more putrid den of criminals and thieves, and that c) it retaliates against anyone who dares to remind the bank that there are such things as laws, and the aforementioned criminals and thieves actually have to follow these. Yet this is precisely what we just got after the Department of Labor said that it must pay $930,000 to an employee who led internal probes of abuses at its Countrywide Financial unit and was fired in violation of whistleblower protections.  Bloomberg reports "the employee, who also must be reinstated, had claimed that people who tried to report fraud to Countrywide’s employee- relations department suffered persistent retaliation, the agency said today in a statement. He was fired after Charlotte, North Carolina-based Bank of America’s 2008 purchase of Countrywide, according to the statement." So is it possible that the general public can now get the documentation that said whistleblower was fired for attempting to bring to his retaliating superiors' attention? And just how damaging will this development be to a bank which is already embroiled in litigation with virtually every single entity that has every transacted in mortgages both in America, and now abroad?

 

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Wed, 09/14/2011 - 15:29 | 1669913 Gubbmint Cheese
Gubbmint Cheese's picture

amount of restitution lower than expected.. this is bullish for the US stock market.

 

Wed, 09/14/2011 - 15:30 | 1669922 A.W.E.S.O.M.-O 4000
A.W.E.S.O.M.-O 4000's picture

Nobody likes a snitch. Especially a well compensated one.

Wed, 09/14/2011 - 15:35 | 1669945 nope-1004
nope-1004's picture

Banks used to be a place that housed money, PM's, and wealth.

Now they house lies, deceit, two sets of books, and satanic policy objectives.  Rape the public at any and all cost.  Nice gig.  Quite the transformation.  Why we even allow them to stay open, let alone dominate gov't policy, makes me wonder.

 

Wed, 09/14/2011 - 16:12 | 1670147 LeBalance
LeBalance's picture

You'll have to fill me in on when Banks were the former.

Wed, 09/14/2011 - 16:33 | 1670213 Fish Gone Bad
Fish Gone Bad's picture

Fuck Bank of America. 

Wed, 09/14/2011 - 16:55 | 1670298 Buckaroo Banzai
Buckaroo Banzai's picture

"CountrySlide Mortgage. You will never find a more wretched hive of scum and villainy. We must be cautious."

Thu, 09/15/2011 - 00:54 | 1671990 FEDbuster
FEDbuster's picture

I am starting to believe that Countrywide was a mafia run operation, or they at least had their hands in it.  There is a whole website devoted to exposing this and other crimes and financial terrorism:

http://www.deepcapture.com/

Wed, 09/14/2011 - 18:54 | 1670820 Silver Pullet
Silver Pullet's picture

You can catch some old Bonanza episodes...

Wed, 09/14/2011 - 19:46 | 1671066 Freewheelin Franklin
Freewheelin Franklin's picture

Banks used to be a place that housed money, PM's, and wealth.

 

Banks used to be a tool for business. Now, business is a tool for banks.

Wed, 09/14/2011 - 16:47 | 1670266 fyrebird
fyrebird's picture

Angelo? Is that you?

Wed, 09/14/2011 - 15:31 | 1669927 SilverTree
SilverTree's picture

Thats 516.6 oz's of GOLD...BITCHES

Wed, 09/14/2011 - 15:37 | 1669961 Mad Max
Mad Max's picture

It's more like 1100 ounces if valued at the time he was fired rather than today.

Wed, 09/14/2011 - 15:34 | 1669936 Al Huxley
Al Huxley's picture

S&P trading above 1200 - also bullish for the market. CNBC anchors must be creaming themselves on air at this. Meanwhile, Cramericans who followed advice to go to cash or short on Monday at S&P 1140 scratch their heads at the 60 point hole they now find themselves in.

Wed, 09/14/2011 - 15:36 | 1669952 TruthInSunshine
TruthInSunshine's picture

Hi Robo. The name may change, but your words will always stamp you.

Wed, 09/14/2011 - 16:22 | 1670181 Lord Welligton
Wed, 09/14/2011 - 15:30 | 1669921 DonutBoy
DonutBoy's picture

This is why Warren is such a big fan, an honest shop with a strong balance sheet.

Wed, 09/14/2011 - 15:32 | 1669929 X.inf.capt
X.inf.capt's picture

LOL

Wed, 09/14/2011 - 15:34 | 1669939 EscapeKey
EscapeKey's picture

I hope he'll get to enjoy it sometime before 2018.

Wed, 09/14/2011 - 15:34 | 1669941 monopoly
monopoly's picture

What planet is this. I forgot.

Wed, 09/14/2011 - 15:39 | 1669969 slyhill
slyhill's picture

Hellonearth. Third rock from sun. Greed is love. Money, the master.

Wed, 09/14/2011 - 15:35 | 1669946 Black Forest
Black Forest's picture

Sounds sensible.

Wed, 09/14/2011 - 15:35 | 1669947 1000yrdstare
1000yrdstare's picture

I'm with Bank of America, we'll take care of you.....

Wed, 09/14/2011 - 15:36 | 1669953 Sudden Debt
Sudden Debt's picture

MY BOSS HAS A AFFAIR AND ALMOST ALWAYS COMES IN LATE!!!

NOW WHERE'S MY MONEY BITCHEZ!!!

 

He's also a full blown retard, but I don't think that's a secret....

 

Wed, 09/14/2011 - 15:36 | 1669954 sunnydays
sunnydays's picture

For once they are having to pay for the truth being revealed as they tried to stop it.

 

Let's calculate - I wonder how many trillions they would have to pay for all the lies they have told, instead of the truth?

 

Everything about that bank is lies.

Wed, 09/14/2011 - 16:12 | 1670148 topcallingtroll
topcallingtroll's picture

that calculation is exactly why they will continue to punish and threaten whistle blowing.  It is better to take a small chance on a relatively small settlement or fine than it would be to let all the secrets out.  The die is cast.  They are in survival mode and merely calculating the least amount of loss.

Wed, 09/14/2011 - 15:37 | 1669958 JohnG
JohnG's picture

Heheh, thanks Tyler. :)

Wed, 09/14/2011 - 15:37 | 1669962 monopoly
monopoly's picture

MarketWatch

Meltdown fears emerge in Canada

 

This should be good for another 25 spoos points.

Wed, 09/14/2011 - 15:38 | 1669965 hunglow
hunglow's picture

"drip"   a small drop of blood  on the test strip is all it takes with a pitchfork.

Wed, 09/14/2011 - 15:39 | 1669967 Catch-22
Catch-22's picture

Hmmm... what just happened?

Wed, 09/14/2011 - 15:38 | 1669971 Gubbmint Cheese
Gubbmint Cheese's picture

Bloomberg: BAC Whistleblower to use $933k restitution towards Greek bond purchases.

Wed, 09/14/2011 - 15:39 | 1669973 Bagbalm
Bagbalm's picture

Whistleblower special - sale on hot tubs.

Wed, 09/14/2011 - 15:40 | 1669979 Dr. Engali
Dr. Engali's picture

Stupid ass record number of shorts are getting their asses handed to them again today.

Wed, 09/14/2011 - 15:41 | 1669980 monopoly
monopoly's picture

How can investors be so stupid as to buy these rumors. I mean I am not smart enough to work at the AAPL genius bar, but I do have a brain and can usually reason from time to time.

Gonna be up 300 soon. lol

Wed, 09/14/2011 - 15:41 | 1669984 1000yrdstare
1000yrdstare's picture

270 and up....unreal....simply unreal..

Wed, 09/14/2011 - 15:42 | 1669990 hunglow
hunglow's picture

22,142 one troy oz Ag rounds

Wed, 09/14/2011 - 15:42 | 1669991 monopoly
monopoly's picture

no shorts....ahem.

Wed, 09/14/2011 - 16:51 | 1670281 Bagbalm
Bagbalm's picture

Commando

Wed, 09/14/2011 - 15:58 | 1670002 Catch-22
Catch-22's picture

... is it one of those deals like the lottery? $6,642.85 a year, for the next 140 years ... before taxes.

Wed, 09/14/2011 - 15:48 | 1670027 orangedrinkandchips
orangedrinkandchips's picture

no! No Way! I am SHOCKED...SHOCKED I TELL YA.....HARD TO BELIEVE...

Wed, 09/14/2011 - 15:54 | 1670059 chunga
chunga's picture

US Department of Housing and Urban Development (HUD) Evicts 101 Year Old Texana Hollis from Home of 58 Years

Isn't this sweet...I'm so proud of these hard workers at HUD I have a lump in my throat. This is the kind of thing that will get that old economy moving again.

Wed, 09/14/2011 - 16:52 | 1670285 LFMayor
LFMayor's picture

What?  Barack didn't pay her bills?

Thu, 09/15/2011 - 12:35 | 1673752 chunga
chunga's picture

No. Corporate welfare comes first. Actually HUD just back-pedaled and decided not to kick her out. Probably figured by the time they forged all of her docs she'd be dead anyway.

Wed, 09/14/2011 - 16:03 | 1670103 Joe Davola
Joe Davola's picture

Laws really only deter honest people.

Wed, 09/14/2011 - 16:07 | 1670127 topcallingtroll
topcallingtroll's picture

frequent public prosecutions are the only things that deter the dishonest.

Wed, 09/14/2011 - 16:52 | 1670287 fyrebird
fyrebird's picture

I don't know about that one. From observations I don't think anything deters them. You can lock them up after you've caught them, but that's not detering them it's taking them out of circulation. Many (most?) when released from custody go right back to doing what they did before, if not worse.

Most criminality is in the blood, and there it remains.

Wed, 09/14/2011 - 19:50 | 1671077 Freewheelin Franklin
Freewheelin Franklin's picture

Laws make otherwise normally law abiding citizens, criminals.

 

All a lock does is keep an honest man, honest.

Wed, 09/14/2011 - 16:07 | 1670122 faustian bargain
faustian bargain's picture

The employee must be reinstated? Talk about an awkward day returning to the office...

Wed, 09/14/2011 - 16:21 | 1670178 chunga
chunga's picture

Ooops. Sorry about the down arrow. Bad shot today...lol.

If he's smart he'll catch his tie in one of their big shredders and whack 'em with a worker's comp claim.

Wed, 09/14/2011 - 20:24 | 1671188 steelhead23
steelhead23's picture

Yeah, can you imagine what his duties might be?

  • make coffee
  • empty trash (after its been shredded)
  • clean toilets

I am not a vindictive guy, but were I BAC's CEO, I'd make the dude an offer - a couple of million should get him to go away forever.  I simply cannot imagine him coming back into the "team."  Also, if he even spent a minute watching porn or reading ZH, they'd fire him for cause.

Wed, 09/14/2011 - 16:07 | 1670124 topcallingtroll
topcallingtroll's picture

Never quit Tyler

The world needs you.

Prosecuting CountryWide for fraud would be like shooting fish in a barrel.  But it probably won't be done because it would undermine confidence.

 

Will they still be concerned about undermining confidence when there is no trust in the system because it didn't correct abuses?

Do TPTB not understand what happens in a credit based system when there is no trust at all in institutions and no assurance that bad behavior will be stopped?

Wed, 09/14/2011 - 16:09 | 1670140 topcallingtroll
topcallingtroll's picture

I will answer my own questions

Yes, but it will be too late

No they do not understand.

 

"ok what happens when trust is lost in a credit based fiat system?"

Monetary aggregates decrease, spending declines, taxes decline, services decline, and we become a third world country.

Wed, 09/14/2011 - 20:12 | 1671150 Dingleberry
Dingleberry's picture

Look at Mexico or Detroit if you want to see what endemic corruption brings.....

Wed, 09/14/2011 - 16:35 | 1670221 jekyll island
jekyll island's picture

DoJ wants employees to rat out their companies and then the gov't can decide if it is fraud.  Next step forward for the police state, can't have their snitches abused, then no one would do it. 

 

 

Wed, 09/14/2011 - 17:02 | 1670325 fyrebird
fyrebird's picture

This is probably somewhat true. The lesson here is not that ratting out bad companies is itself bad, but that promoting fraudulent operations and punishing anyone that tries to set things right advances us toward a police state.

What is at risk is fairness, and what is lost is decency. When we accept these as the norm because "that's business" then the police state (the ultimate fraud) is the next bump in the road.

Wed, 09/14/2011 - 19:22 | 1670948 honestann
honestann's picture

Get real.  Individual human beings legitimately have rights.  Corporations are delusions AKA fictions (called "fictitious entities" in law).

The police state is indeed extremely dangerous for real living breathing individual human beings.

But corporations?  They are fiction to start with, and fraudulant practices NEED to be found and punished, along with any individual who promotes, practices and protects those frauds.

Long live CORPORATE whistleblowers.

Snitch out friends and neighbors to government predators?  You deserve to die.

Wed, 09/14/2011 - 16:52 | 1670283 Bagbalm
Bagbalm's picture

I can imagine going back and the first day nobody will get in the elevator with you...

Wed, 09/14/2011 - 16:59 | 1670312 fyrebird
fyrebird's picture

No. Everyone gets in the elevator with you with a 15 second tell-all, hoping for some personal cover and CYA when the big DoJ ax comes looking for fresh heads to cut off.

Rats when abandoning the ship have no loyalty.

Wed, 09/14/2011 - 16:53 | 1670288 The Bandit
The Bandit's picture

30,000 out the door and 1 back in.....would that be considered "created" or "saved" by the administration?   

Wed, 09/14/2011 - 16:56 | 1670300 fyrebird
fyrebird's picture

$900K is chump change. BofA probably made 50x that penality in fraudulent gains by having the guy out of their hair for a while.

Wed, 09/14/2011 - 17:01 | 1670316 Dr. Hannibal Lecter
Dr. Hannibal Lecter's picture

Brilliant.  Reinstate the guy, so when BAC goes tits up, he can collent unemployment for 199 weeks.  why not just make the settlement $1 shy of $1mil?

Wed, 09/14/2011 - 17:01 | 1670320 Ruffcut
Ruffcut's picture

I bank at comerica because they pay me .00023 interest verses BAC .00021. To make 50k in interest I only need 12 million, in my 401 k.

I'm moving up, but still $11,934,00 short.

Wed, 09/14/2011 - 17:07 | 1670346 Nascent_Variable
Nascent_Variable's picture

I picked the wrong career.  I should have been a spy at BAC.

Wed, 09/14/2011 - 17:52 | 1670533 Downtoolong
Downtoolong's picture

the employee….also must be reinstated

Whoever you are, be careful.  I suggest you don’t eat any food in the company cafeteria that isn’t commercially pre-wrapped and don’t go to the bathroom alone.

P.S. You had better not be Angelo Mozilo!

Wed, 09/14/2011 - 18:46 | 1670796 PulauHantu29
PulauHantu29's picture

Medal of Honor...Barry should award this guy with the Medal of Honor....the very medal he pinned on Buffet's fat chest.

Wed, 09/14/2011 - 22:22 | 1671579 MalthusWasRight
MalthusWasRight's picture

Well, I think we all know who will be the first of the 30,000 to be laid off.

 

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