The improvement in the banking sector continued in the
first quarter of 2013, according to the FDIC's Quarterly Banking Profile for
the first quarter of 2013, which the agency released on May 29, 2013. A copy of
the Quarterly Banking Profile can...
A federal judge ruled that an accounting firm should pay
$180,000 in legal fees resulting from multiple failures to respond to a
subpoena issued by the trustee overseeing a massive Seattle Ponzi scheme whose
mastermind became known as Seattle's...
As discussed in an article in the Sarasota Herald
Tribune ( here ),
on May 22, 2013, a Middle District of Florida jury returned a verdict against
Sarasota law firm Icard Merrill , and
one of its partners, Robert
Messick , in a legal malpractice action...
According to the latest update on the FDIC's website, the
pace of the agency's filing of failed bank lawsuits picked up considerably in
the last month. According to the agency's website ( here ),
which the agency updated on May 22, 2013...
On May 8, 2013, the CFPB issued a report highlighting the
role that student debt increasingly plays in affecting both consumers and the
broader economy. Pursuant to a February 2013 Notice
and Request for Information , the CFPB received nearly 28,000...
by Jeffrey E. Jamison
As the CFPB-Lawblog predicted, the vote on Richard
Cordray's nomination as director of the Consumer Financial Protection Bureau
has been delayed. Senate Majority Leader Harry Reid had announced that the vote
There are indications from Washington that hedge funds,
long exempt from anti-money laundering reporting rules, may soon be
brought into the fold under new rules proposed by the Treasury
Department's Financial Crimes Enforcement Network (FinCEN...
A Chinese woman who masterminded a $70 million Ponzi
scheme has been sentenced
to death by a Chinese court - possibly by firing squad. Haiyan Lin, 39, from
the Wenzhou province, received the sentence as part of a broader push by
On March 14, 2013, the CFPB announced
a proposed rule to supervise nonbank student loan servicers. Under the
proposed rule, the CFPB would have supervisory authority for loan servicers
with more than one million accounts - a move that would bring...
The man responsible for the third-largest Ponzi scheme in
filed papers seeking to have his fifty-year sentence overturned, claiming
that his former attorney failed to disclose that prosecutors had previously
offered a 30-year sentence...
by Richard E. Gottlieb
As our readers will recall, the CFPB proposed back in
January 2013 to limit the ability of mortgage lenders to finance credit
insurance premiums. These prohibitions were to go into effect on June 1, 2013,
C. Kaye , Ethan
Chernin , and Kristen
A law firm hired to foreclose on a property was not
required under the Fair Debt Collection Practices Act (FDCPA) to inform a
credit reporting agency of erroneously negative credit reports...
Hutto-Schultz and Jeffrey E. Jamison
As expected, the Obama administration filed
a petition for certiorari asking the Supreme Court to review and overturn the
decision by the U.S. District Court for the D.C. declaring President
When Southern District of New York Judge Naomi Reice
her order in the consolidated LIBOR litigation on March 29, 2013, she
dismissed the plaintiffs' antitrust and RICO claims against the LIBOR
rate-setting banks, and she also...
SANTA ANA, Calif. — (Mealey’s) Wells Fargo Bank NA on April 30 agreed to pay $105 million to settle consolidated class action claims alleging that it breached its contract by giving noteholders’ funds to Medical Capital Holdings Inc...
In this week's episode of As the CFPB Turns questions remain regarding Director(?) Richard Cordray's constitutional authority to act as the Director of the CFPB. House Financial Services Committee Chairman, Jeb Hensarling, R-Texas, advised Cordray...
by Edward (Ted) W. Somers
Orwellian telescreens have not achieved ubiquity, but the
CFPB's massive data collection efforts in recent months feel little less
intrusive to industry participants. Thanks to an ongoing fishing
The fallout from the ongoing banking crisis continues to
emerge, with the arrival in recent days of still more bank failures and of even
more FDIC lawsuits involving failed banks. Unfortunately, the hopes that that
all of the bank failures might be...
Last month, U.S. District Judge Naomi Reice Buchwald in
Manhattan threw out a "substantial portion" of the proposed lawsuits
alleging wrongdoing by banks in connection with the London interbank offered
rate, known as the LIBOR. Among the...
On April 3, the Federal Reserve Board ("Board") published
a final rule ("Rule") specifying when a financial company that may be made
subject to systemic regulation under Title I of the Dodd-Frank Wall Street
Accountability and Consumer...
The Consumer Financial Protection Bureau has expanded its
public Consumer Complaint Database to include complaints about mortgages, bank
deposit products and services, student loans, and other consumer loans (which
category includes complaints about...
March continued the trend of way too many breaking news
stories in Ponzi scheme cases. Here is the summary of the stories that were
reported this month. Please feel free to post comments about these or other
Ponzi schemes that I may have missed. And...
Readers will remember that, before December 2012, the
Electronic Fund Transfer Act required
ATM's to include fee notices on the machines themselves. Congress
eliminated that requirement after banks faced repeated nuisance litigation
A federal jury needed just six
minutes to return with a guilty verdict against a Texas man on trial for a $11
million Ponzi scheme. Gary Lynn McDuff, 58, was convicted of one count of
conspiracy to commit wire fraud and one count of money laundering...
by John D. Socknat and Matthew Saunig
Uniform State Test Implementation Nearing
As we previously noted, on April 1, 2013, 20 state
agencies will begin to accept the Uniform State Test (UST) in connection with
the licensing of mortgage loan originators...