Banking Misconduct Blog


Predicate Acts for NJ RICO Statute

Editor’s Note – The following article on RICO was written for lawyers and is to be published in the National Law Review. We are posting it here because it useful for business owners and individuals victimized by banks and others. RICO is one of the most powerful anti-fraud statutes on...

Small Banks and Punitive Damage Awards

In 1946, Jimmy Stewart starred in one of the great classic movies, It’s a Wonderful Life. His character was the head of a small local bank. 70 years later, that movie is still played every year at Christmas. One of the great scenes takes place in the bank’s board room. (I won’t...

SEC Sues Wells Fargo for Misleading Curt Schilling Bond Offering

Curt Schilling is a household name in New England. A former pitcher for the Boston Red Sox, Schilling helped lead three different Major League Baseball teams to the World Series. After retiring in 2008, Schilling went on to start a video game company. That is where this sad tail...

The Looming TIC Time Bomb

The year was 2006, the economy was booming and many thought the real estate market still had years more of growth. Promoters like Carlton Cabot and Tony Thompson were pushing a unique investment called a “tenant-in-common” or TIC investment. TICs took advantage of a 2002 IRS revenue...

Judge Says Automobile Dealer RICO Suit Is Untimely
RICO

The Racketeer Influenced and Corrupt Organization Act (RICO) is one of the most powerful and misunderstood anti-fraud tools available to private litigants. Originally enacted as a tool for government prosecutors to combat organized crime and biker gangs, the law contains potent remedies for...

Court Okays Lawsuit Against BNY Mellon as Mortgage Trustee

Earlier this week, a federal judge in Manhattan gave a green light to a lawsuit filed by an investor against Bank of New York Mellon. The investor claims it lost over $1 billion because of BNY Mellon’s poor performance as trustee over several Residential Mortgage Backed Securities (RMBS)...

Over One Third of CMBS Loans Could Default by 2017

Many CMBS loans are coming due in 2016 and 2017. Morningstar reports that almost half of the maturing Commercial Mortgage Backed Securities loans are overleveraged. That means that they are facing imminent maturity defaults.
According to a report published by Morningstar Credit Ratings, over...

KYC, Lender Liability & Daniel Roho Filho

Citigroup, JPMorgan Chase and Wells Fargo thought Daniel Fernandes Roho Filho was the perfect customer. He was rich and had lots of cash to deposit. Often banks turn a blind eye to the business activities of customers, especially when they believe them to be billionaires.
In 2009, the feds...

More Hope for Borrowers Who Want to Sue Their Bank

We sue banks for a living but its not an easy job. The laws are stacked in favor of the banks. And because most loan documents specify where suits must be brought, the banks can pick the states with the most favorable laws and bank friendly courts. Twice in recent weeks we wrote about cases in...

Delay in Foreclosure May Not Be Defense to Deficiency

Arguments over delays in the time it takes to foreclose can have a huge impact on any resulting deficiency judgment. It often takes a bank years and years to complete a foreclosure. Sometimes foreclosures are filed, dismissed and then refiled years later. In most instances, the property owner loses...