Six banks to pay $161M in vets mortgage settlement

FOX 5 I-Team investigates

Six banks to pay $161M in vets mortgage settlement

Posted: Updated:
ATLANTA -

Six lenders, including Atlanta-based Sun Trust Mortgage, have agreed to pay $161 million to settle a massive whistleblower lawsuit that alleged they overcharged military veterans on their home refinancing loans.

The whistleblower lawsuit was filed by two local loan officers on behalf of the taxpayers. Most of the money recovered will be returned to the government.

The I-Team was first to tell you how Atlanta loan officers Victor Bibby and Brian Donnelly filed a federal whistleblower lawsuit against 13 banks and mortgage companies accusing them of taking part in a "brazen scheme to defraud both our nation's veterans and the United States Treasury."    

After our initial stories, their whistleblower lawsuit was unsealed and JP Morgan Chase agreed to a $45 million dollar settlement. Now, you can add $161 million to that total.

Sun Trust Mortgage paid $10 million. They had no comment.

Two defendants remain: Wells Fargo and Mortgage Investors Corporation.

  • I-Team Story ArchiveMore>>

  • FOX 5 I-Team Investigates

    Child traumatically injured in beach house elevator

    Child traumatically injured in beach house elevator

    Monday, July 21 2014 8:09 AM EDT2014-07-21 12:09:54 GMT
    Another child has been seriously injured in a residential elevator accident. This is a warning for any family renting a beach house.
    Another child has been seriously injured in a residential elevator accident. This is a warning for any family renting a beach house.
  • Governor reacts to Ethics allegations

    Governor reacts to Ethics allegations

    Friday, July 18 2014 6:40 PM EDT2014-07-18 22:40:07 GMT
    The Governor sat down with Senior Fox 5 I-Team Reporter Dale Russell for his first television interview following allegations of strong-arming by a member of his staff.
    The Governor sat down with Senior Fox 5 I-Team Reporter Dale Russell for his first television interview following allegations of strong-arming by a member of his staff.
  • I-Team: Doctor guilty of Medicaid Fraud

    I-Team: Doctor guilty of Medicaid Fraud

    Friday, July 18 2014 3:39 PM EDT2014-07-18 19:39:09 GMT
    Six years after the I-Team first raised questions about Dr. Nathaniel Johnson's medical practices, the noted OB/GYN and cosmetic surgeon pled guilty to Medicaid Fraud and aiding the unlicensed practice of medicine.
    Six years after the I-Team first raised questions about Dr. Nathaniel Johnson's medical practices, the noted OB/GYN and cosmetic surgeon pled guilty to Medicaid Fraud and aiding the unlicensed practice of medicine.
  • Contact the FOX 5 I-Team

    * denotes required fields

    We're sorry, but only one entry is allowed per person.
    Thank you for your continued interest.

    Thanks for contacting FOX 5.  To reach our newsroom by phone, please call (404) 898-0100.

Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices