Top Federal Financial Fraud Whistleblower Actions of 2022

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2022 was a big year for federal financial fraud whistleblower actions. Some of the country’s biggest financial institutions were targeted by the Consumer Financial Protection Bureau, the Department of Justice and the Department of Labor. Here is a brief overview of some of 2022’s biggest cases:

- Wells Fargo: Wells Fargo was ordered to pay over $3.7 billion in penalties and restitution for wrongdoing in auto loans, mortgages and illegal surprise overdraft fees, harming over 16 million customers. The wrongdoing included denying loan modification to mortgages customers, misapplied car loan payments and incorrect fees and freezing customer accounts for “suspicious deposits” when there was no need. The CFPB noted that Wells Fargo has been a repeat offender for years.

- Perfectus: Six companies in Southern California were ordered to pay $1.83 billion in restitution for defrauding investors and U.S. Customs and Border Protection. The companies avoided customs payments and mislead investors as to a Chinese company’s profitability. This allowed a Chinese billionaire to inflate his company value with fake U.S. sales.

- Bank of America: Bank of America was fined a combined total of $225 million by the CFPB and the Office of the Comptroller of Currency. The fines were levied for “massive failures” in carrying out contracts with 12 states to provide unemployment and other public benefits during the COVID-19 pandemic. Bank of America chose to freeze accounts in “overly sensitive” fraud detection policies, and made it “nearly impossible” for customers to get their accounts unfrozen.

- Regions Bank: Alabama-based Regions Bank was ordered to pay a combined total of $191 million after charging customers surprise overdraft fees in “authorized positive, settle negative” transactions. Their procedures made it very difficult for customers to determine whether a transaction would trigger an overdraft. The CFPB previously disciplined the bank for similar violations in 2015.

If you’ve noticed federal financial fraud at your job, an experienced whistleblower attorney at Kardell Law Group can help. Call today for a consultation.

By Steve Kardell | Published March 30, 2023 | Posted in Fraud, Whistleblower Litigation | Tagged federal financial fraud, financial fraud, Wells Fargo

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"Steve Kardell was terrific in representing me in some very adversarial discussions with Citigroup and also later represented me in my testimony before the Financial Crisis Inquiry Commission." -Richard Bowen, Citigroup Whistleblower
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