RICO Suits May Pose Big Problem For Banks In Robosigner Scandal As Class Actions Begin To Pile Up

Bloomberg News reports:

• Foreclosure-fraud class action lawsuits are starting to pile up against major banks across the U.S., threatening a besieged industry with billions more in potential losses.

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• The class actions, which could be expanded nationally, seek damages for homeowners whose properties were illegally foreclosed upon by banks using fraudulent documents. Suits have been filed in Maryland, New Jersey and Massachusetts that target Bank of America Corp., Wells Fargo & Co., HSBC PLC and JPMorgan Chase & Co. In Florida and Maine, Ally Financial, formerly known as GMAC Mortgage, is also being targeted.

• Perhaps an even bigger threat are the lawsuits that contend the banks' foreclosure machinery amounted to a racketeering enterprise. One such case, an Indiana lawsuit against Bank of America, was filed under civil Racketeering Influenced and Corrupt Organizations or RICO laws, which allow damages to be tripled.(1)

For more, see Foreclosure class actions pile up against banks.

(1) For the Indiana RICO suit, see Davis v. Countrywide Home Loans, Inc., et al.

See also:

• Indiana foreclosure suit seeks class action (Knightstown couple who lost home allege document 'robo-signers' aided lenders),
• Indiana Class Action Quotes Brooklyn Jurist's Description Of Robosigner As "A Milliner's Delight By Virtue Of The Number Of Hats She Wears."