Banking Misconduct Blog


Banks... Victims or Pariahs?

Earlier this week, I was called by a seminar promoter about an upcoming conference on whistleblowing and the False Claims Act. The promoter said I wasn’t invited to speak because the event was mostly defense oriented. Incredibly, the caller still wanted me to shell out $2095 to hear a bunch...

Myth – CMBS Servicers Look After The Owner’s Best Interest

We are litigating tens of millions of dollars of claims against CMBS special servicers. Companies like C-III, CWCapital and LNR Partners. Special servicers make their money when property owners are in trouble. Their industry is largely unregulated. And because of that lack of regulation, some...

FDIC Sues BONY in its Capacity as Trustee

By now, everyone knows that that many of the Residential Backed Mortgage Securities (RMBS) packaged and sold in the run up to the 2007 financial crisis were junk. There have been many suits against the issuers of these securities. The results have been mixed. Recently, however, the FDIC has set its...

CMBS Special Servicers – A Billion Dollar Problem?

A recent article by the CoStar News Team claims, “the gradual appreciation in leasing activity and property values has largely supported the quiet resolution of nearly $5 billion of properties that went into distress in the aftermath of the Great Recession. Despite dire predictions...

Bank of America Settles Lender Liability Suit

Anyone who regularly reads our Due Diligence blog knows that we are not fans of Bank of America. The bank has paid over $20 billion in fines and penalties yet continues to misbehave. It is almost as if big fines have simply become a cost of doing business.
It’s not just the government...

Associated Bank Challenge Fails in Ponzi Lender Liability Suit – Hope for Victims

Associated Bank Challenge Fails in Ponzi Lender Liability Suit – Hope for Victims

Associated Bank is back in the spotlight. The Green Bay, Wisconsin bank has lost its second challenge against a lender liability lawsuit alleging the bank aided in a scheme defrauding 700 investors out of nearly $200 million by violating the Bank Secrecy Act and federal anti-money laundering regulations. Luckily, a court-appointed receiver continues to pursue the case and the victims could potentially recover some of their losses.

Associated Bank’s String of AML Law Violations

Back in 2012, the Comptroller of the Currency alleged Associated Bank’s practices were in violation of anti-money laundering (AML) regulations and the Bank Secrecy Act. The claims resulted in a consent judgement and Associated agreed to take remedial measures....


Supreme Court Revives Lender Liability Suit against Bank of America

Nevada state law recommends that bank account owners check their monthly statements regularly for unauthorized or suspicious transactions and promptly report any findings.  The statute of repose protects the bank from liability for unauthorized transactions that are not reported by the...


A Stonewalling Session with Brian Moynihan, CEO, Bank of America

Brian Moynihan, Bank of America’s chief executive officer, just filed his deposition with the court in late November. I’ve read eerily similar transcripts in mobster cases. Is there a Guinness World Record for the most stonewalling? Moynihan has to be right up there with the...