‘Hustle’ Mortgage Fraud Case Falls Into Crevice of the Law
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The hustle case stood out because in addition to Bank of America, federal prosecutors had sought to hold Rebecca Mairone, a former Countrywide executive, liable for the faulty loans.CreditJonathan Ernst/Reuters
Proving fraud usually starts with finding a lie made to mislead someone into pursuing a transaction or spending money when they would not have done so if they knew the truth.
Figuring out exactly what constitutes the type of deception that can support a case remains a challenge, however, as shown by a federal appeals court decision last week. The United States Court of Appeals for the Second Circuit in Manhattan threw out one of the few verdicts finding fraud in how banks handled mortgages before the meltdown in the housing market…
‘Hustle’ Mortgage Fraud Case Falls Into Crevice of the Law
