Links in “Fines, Penalties, Suits, and Settlements”
- NCUA Files Suit Against HSBC
The NCUA is continuing its initiative to recover losses resulting from faulty securities sold to corporate credit unions by filing suit against HSBC Bank USA, National Association. The complaint alleges that HSBC, as trustee, failed to provide required notices, failed to properly monitor loan servicers, and failed to take timely action to force repurchase, substitution, or cure defective mortgage loans. [3/23/15]
- Citigroup’s Settlement Mistake Triggers Congressional Inquiry of Other Banks
A single consumer complains, which triggers an investigation at Citigroup that found 24,000 customers hadn't received their part of a settlement over foreclosure abuses. Now Maxine Waters wants to know how the OCC and the Federal Reserve are handling these large settlement cases. [3/23/15]
- Target Agrees to Pay Consumers $10 Million in Class Action Suit
Target has agreed to pay the members of a consumer class action suit a total of $10 million as a result of Targetâs massive data breach in 2013. If approved by the court, members would receive about $10,000 each. Credit unions are still waiting to recover their estimated $30 million in costs as a result of the breach. [3/20/15]
- Target’s 9¢ Settlement Underwhelms Bankers
A $10 million class action settlement for Target's data breach works out to about 9 cents for the 110 million potential victims. And that's just the first shortcoming of this settlement. [3/20/15]
- Fraud Lawsuits Plague Alabama One CU
A second member has filed suit against $602 million Alabama One Credit Union claiming the credit union conned him into committing loan fraud. The suit alleges that the member was coerced by credit union staff into taking out a large business loan on behalf of another member, claiming the loan would be repaid very shortly, and then pressuring the member to disavow his complaint to authorities. [3/19/15]
- FinCEN: It’s Goin’ Down
The Taj Mahal Casino Resort was fined $10 million dollars for failing to maintain and implement an effective AML program. [3/9/15]
- Sign Without Checking for Accuracy? That’ll Be $50M
JPMorgan settles with the DOJ for $50 million for "robosigning" mortgage paperwork by workers who had not checked the paperwork for accuracy. [3/4/15]
- FinCEN Fines for Failure to File
First National Community Bank gets fined $1 million for willfully violating the Bank Secrecy Act and not catching suspicious activity related to judicial corruption. [3/2/15]
- OCC Cracks Down on Pennsylvania Bank
The OCC charged a half million civil money penalty for failing to file suspicious activity reports in a timely manner. [3/2/15]
- CU Exec in Bomb-Strapped Robbery a Victim or Suspect?
A CFO of a Connecticut credit union was confronted at home, had a device strapped to his body and was forced to drive to a branch to rob it. Police have come across some evidence that has them trying to work out whether he was coerced or a suspect. [2/25/15]
