The Resolution Law Group: Bear Stearns Can Bid for $160M Insurance Coverage, Deloitte Pays NY $10M, Fraud Sentences Against Two Ex-Brokers Are Affirmed

Bear Stearns Allowed $160M Insurance Settlement Coverage Bid
The New York Court of Appeals said that JP Morgan Chase & Co’s (JPM) Bear Stearns & Co. (BSC) can go ahead with its attempt to obtain insurance coverage for the $160 million it disgorged in an SEC case over alleged wrongdoing involving mutual fund practices. Justice Victoria Graffeo says the evidence presented is not a decisive repudiation of Bear Stearn’s claim that the payment amount was largely determined by the profits of others and therefore the case cannot be dismissed at this time.

The SEC accused Bear of helping certain clients, mostly big hedge funds, take part in deceptive market timing and late trading, which let them reap profits of hundreds of millions of dollars at cost to mutual fund shareholders. The financial firm settled by consenting to pay $160 million in disgorgement and $90 million in civil penalties.

Deloitte FAS to Pay $10M Settlement to NY
Deloitte Financial Advisory Services will pay $10M to New York State and make a number of modifications to its financial consulting practices. The firm reached this agreement with the New York State Department of Financial Services and comes in the wake of a probe into its consulting work at Standard Chartered Bank. The DFS found that not only did Deloitte fail to show it had the autonomy needed to serve as a consultant, but also it disclosed the confidential information of some clients to Standard Chartered. Steps will be implemented to ensure that Deloitte is independent from its clients and isn’t tied to them because of fee payments.

The state wants this to settlement serve as a model for consulting firms that are approved or retained by the DFS. As part of the settlement, Deloitte FAS has consented to suspend its consulting work with financial institutions that the state regulates.

Prison Sentence Against Ex-Broker in Pump-and-Dump Scam is Affirmed
The U.S. Court of Appeals for the Tenth Circuit is affirming the 151-months prison sentence issued to ex-stockbroker Richard Clark who was convicted of 14 criminal counts in a “pump-and-dump” scam involving penny-stock company shares. The financial scheme was run by ex-securities lawyer George D. Gordon. The 10th circuit said that the lower court did not make a mistake when it imposed the prison term.

Clark unsuccessfully tried to appeal, arguing that placing a caveat on his real property was a violation of his constitutional rights, his Speedy Trial Act rights were violated, and there wasn’t enough evidence against him. He also spoke out against the decision by the lower court to not appoint another counsel or a substitute lawyer that was knowledgeable in complex securities issues.

Seventh Circuit Affirms Former Broker 78th-Month Prison Term for Fraud
The U.S. Court of Appeals for the Seventh Circuit has affirmed the 78-month prison term of an ex-stockbroker that misappropriated $2.8 million in customer money over four years. Brokerage firm owner Robert Loffreddi offered clients mutual funds, CDs, and other investments, but instead of investing their money, he used the funds for himself.

Loffreddi pleaded guilty to mail fraud but argued that while his pre-sentence report determined that there were 14 victims of his fraud (the district court gave him a sentence that was at the top of the guidelines range), there actually was just one. He says that the parent brokerage firm was the victim because it was forced to repay 12 of the clients.

Citing United States v. Panice, the appeals court said that even if they are reimbursed losses, such victims still sustain losses until that time, and this counts them as victims for purposes of sentencing.

If you have losses on investments that you believe were unsuitable for you or which you purchased based on the misrepresentations of the broker who made the sale, you may be able to recover all or a part of those losses through FINRA arbitration. Call The Resolution Law Group for a no charge consultation to discuss your legal rights. www.TheResolutionLawGroup.com

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

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Freddie Mac Sues Big Banks Over Rate Rigging

It’s the government-controlled mortgage finance company versus Bank of America, JPMorgan Chase, UBS, Credit Suisse Group, and many others. Freddie Mac says they all worked together to rig LIBOR – the benchmark rate used to establish interest rates on everything from mortgage loans to credit cards.

If you need some background on LIBOR or the scandal surrounding it, check out our story from last summer. But all you really need to know is that big banks were caught manipulating the rate to their advantage, in many cases for years, forcing millions to pay inflated interest on all kinds of loans, all over the world.

Many banks have already been fined hundreds of millions of dollars: Barclays paid the British and U.S. governments $453 million; UBS paid $1.5 billion; the Royal Bank of Scotland, $612 million.

And now Freddie Mac, which has major investments in mortgage-related securities affected by LIBOR, wants some payback too. A week ago, the mortgage company sued more than a dozen banks for unspecified damages. Reuters reports the bank shenanigans may have cost the company more than $3 billion.

If you, your family, friends, neighbors or associates have been subjected to Mortgage Fraud, please contact The Resolution Law Group at (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

Woman ‘tags’ home with message to her bank ‘JPMorgan Chase is stealing this home’

See Video: http://www.thedenverchannel.com/web/kmgh/news/local-news/woman-tags-home-with-message-to-her-bank-jpmorgan-chase-is-stealing-this-home

What’s her tactic? She’s using her own house to publicly shame the bank, scrawling a message across her garage door that says: “JPMorgan Chase is stealing this home.”

“They think everyone’s just going to go away,” Hansen (pictured below) told KMGH-TV in Denver of her bank. “I think they picked the wrong house.” Hansen is doing anything but going away — she’s fighting back. The entirety of the message addressed to JPMorgan and its CEO, Jamie Dimon, that Hansen spray painted on her home reads: “Jamie Dimon & JPMorgan Chase, JPMorgan Chase is stealing this home. Ignores homeowner for 21 months!! I will not violate federal law on your behalf as a condition of communication from you! Call me. Chase Me!!” Hansen ends the note with a heart sign.

According to Hansen, she notified JPMorgan in May 2011 that she had fallen on hard times and would not be able to pay her mortgage payments. She said the bank promised to work with her on getting a loan modification, then refused to do so two months later. “You’re told, ‘We need A, B and C,’ so you give them A, B and C, and then, ‘No, we need this and then we’ll talk to you,'” Hansen said. “So you did it, and they keep lying.”

JPMorgan Chase said in a statement, “Chase does not own this mortgage but services it on behalf of its investor, Fannie Mae, and must follow all investor guidelines.” It’s easy for distressed homeowners in these types of situations to view the banks as the bad guys, but to be fair, Chase recently began refinancing thousands of loans. Last year, as part of the $25 billion mortgage settlement, Chase offered $4.2 billion toward mortgage relief to slash the interest rates and principal loan balances of thousands of underwater borrowers.

Hansen’s attorney, Keith Gantenbein, said many Colorado homeowners find themselves in situations similar to Hansen’s because the state’s foreclosure practice is “very one-sided for lenders.” He told KMGH, “There isn’t a lot of due process protections for borrowers to say, ‘Hey, I don’t feel like I’m being treated fairly.'” The Gantenbein Law Firm estimates that about 20 percent of borrowers are underwater in Colorado. Nationally, 28.2 percent of borrowers were underwater in the third quarter of 2012, according to Zillow.

Hansen said her message to Chase was a last-ditch effort to save her home. “Doing this and making it personal, writing to Jaime Dimon was hard,” she said. “I never wanted to pick a fight with the bank, but you can make a choice. You can make a choice to stand up for what you believe in.”

If you, your family, friends, neighbors or associates have been subjected to Bank Misconduct, please contact The Resolution Law Group at (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud