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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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment LeBalance
LeBalance's picture

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

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

Fuck Bank of America. 

Wed, 09/14/2011 - 16:55 | Link to Comment 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 | Link to Comment 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 | Link to Comment Silver Pullet
Silver Pullet's picture

You can catch some old Bonanza episodes...

Wed, 09/14/2011 - 19:46 | Link to Comment 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 | Link to Comment fyrebird
fyrebird's picture

Angelo? Is that you?

Wed, 09/14/2011 - 15:31 | Link to Comment SilverTree
SilverTree's picture

Thats 516.6 oz's of GOLD...BITCHES

Wed, 09/14/2011 - 15:37 | Link to Comment 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 | Link to Comment 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 | Link to Comment TruthInSunshine
TruthInSunshine's picture

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

Wed, 09/14/2011 - 16:22 | Link to Comment Lord Welligton
Wed, 09/14/2011 - 15:30 | Link to Comment 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 | Link to Comment X.inf.capt
X.inf.capt's picture

LOL

Wed, 09/14/2011 - 15:34 | Link to Comment EscapeKey
EscapeKey's picture

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

Wed, 09/14/2011 - 15:34 | Link to Comment monopoly
monopoly's picture

What planet is this. I forgot.

Wed, 09/14/2011 - 15:39 | Link to Comment slyhill
slyhill's picture

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

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

Sounds sensible.

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

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

Wed, 09/14/2011 - 15:36 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment JohnG
JohnG's picture

Heheh, thanks Tyler. :)

Wed, 09/14/2011 - 15:37 | Link to Comment 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 | Link to Comment 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 | Link to Comment Catch-22
Catch-22's picture

Hmmm... what just happened?

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

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

Wed, 09/14/2011 - 15:39 | Link to Comment Bagbalm
Bagbalm's picture

Whistleblower special - sale on hot tubs.

Wed, 09/14/2011 - 15:40 | Link to Comment 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 | Link to Comment 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 | Link to Comment 1000yrdstare
1000yrdstare's picture

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

Wed, 09/14/2011 - 15:42 | Link to Comment hunglow
hunglow's picture

22,142 one troy oz Ag rounds

Wed, 09/14/2011 - 15:42 | Link to Comment monopoly
monopoly's picture

no shorts....ahem.

Wed, 09/14/2011 - 16:51 | Link to Comment Bagbalm
Bagbalm's picture

Commando

Wed, 09/14/2011 - 15:58 | Link to Comment 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 | Link to Comment orangedrinkandchips
orangedrinkandchips's picture

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

Wed, 09/14/2011 - 15:54 | Link to Comment 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 | Link to Comment LFMayor
LFMayor's picture

What?  Barack didn't pay her bills?

Thu, 09/15/2011 - 12:35 | Link to Comment 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 | Link to Comment Joe Davola
Joe Davola's picture

Laws really only deter honest people.

Wed, 09/14/2011 - 16:07 | Link to Comment topcallingtroll
topcallingtroll's picture

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

Wed, 09/14/2011 - 16:52 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Dingleberry
Dingleberry's picture

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

Wed, 09/14/2011 - 16:35 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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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