Links in “Financial Crime”

The complaint alleges that RPM Mortgage and its CEO incentivized loan originators to steer consumers into costlier mortgages. In addition to $18 million in redress to consumers and a $1 million penalty, the complaint is also seeking $1 million in civil penalties from the CEO. [6/5/15]

CFPB Director Richard Cordray issued a decision in the first appeal of a Bureau administrative enforcement proceeding against mortgage lender PHH upholding the January 2014 action. This action charged PHH with illegally referred consumers to mortgage insurers in exchange for kickbacks. PHH is required to avoid further violations and to pay $109 million to the Bureau. 6/5/15]

The CFPB filed a complaint in federal district court and is seeking a combined $20 million in penalties for redress against RPM Mortgage, Inc. and its CEO, Erwin Robert Hirt. The company was found illegally paying bonuses and higher commissions to loan originators as incentives to steer consumers into costlier mortgages. [6/5/15]

FinCEN announced a $75 million civil penalty against Hong Kong Entertainment (Overseas) Investments and Tinian Dynasty Hotel & Casino for failure to develop and implement an AML program. The casino went years without an AML program in place, willfully conducted suspicious transactions, and offered advice for avoiding laws in the U.S. [6/4/15]

FinCEN has fined King Mail & Wireless Inc. $12,000 today for “willful and repeated violations of the Bank Secrecy Act.” [6/2/15]

The NCUA has issued prohibition orders against three former credit union employees for theft and embezzlement. All will be serving prison terms and have been ordered to pay restitution. [6/1/15]

A Michigan credit union is spearheading a campaign to raise awareness of the latest scam sweeping the nation. Con artists are reaching out to individuals online promising "easy money" but end up stealing victims' ATM card numbers and PINs. The scam, called "card cracking," is primarily targeted at young people. [5/22/15]

"Card cracking," a scam targeting the 19 to 25-year-old crowd, uses social media to invite consumers into making "easy money" online by allowing a third-party to make a fraudulent withdrawal, then reporting the card as lost or compromised. The action earns the consumer a few bucks and the label of accomplice. [5/19/15]

They say truth is stranger than fiction and that certainly appears to be the case with Alabama One Credit Union, which has been much in the news lately due to a large fraud and a cease and desist order from NCUA.  Now the credit union is drawing more attention by asking the state regulators and NCUA for permission to make a $120,000 business loan to Danny Butler, who is in federal prison for fraud and check kiting. [5/13/15]

That appears to be the question that has brought the FBI into the case of a $1 million robbery at Achieve Financial Credit Union in Bristol, CT.  CFO Matthew Yussman had claimed that two men broke into his home, strapped a bomb to his chest, and forced him to rob his credit union, but conflicting stories and a failed lie detector test have caused law enforcement to take another look. [5/11/15]