It is being reported by Reuters that the whistleblower who sued Bank of America ("BofA") for fraud concerning bad loans that were sold by BofA and Countrywide Financial will receive compensation in the amount of $57 million. The whistleblower, Edward O'Donnell, has actually filed two suits alleging fraud by Countrywide, one being the famous "Hustle" case (which is on appeal by BofA) for which O'Donnell has not yet received any award, and a second suit against a unit of Countrywide Financial for defrauding Fannie and Freddie, which netted him the reported compensation.
O'Donnell provided information to state and federal officials which allowed them to pursue BofA which bought Countrywide for $4 billion in 2008. As you are no doubt aware, Countrywide was legendary for its sub-prime loans that led to the financial crisis and the Great Recession. Government officials recently agreed to a settlement with BofA under which BofA is to pay $17 billion over claims about mortgages it bundled and sold.
Image courtesy of Reuters.
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