Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Housing News

Bank of America employee accused of taking $1M in bribes to rig short sales

One Bank of America employee has been charged with a scheme that put over $1 million in his pocket.

bank-of-america

Bank of America employee in hot water

Kevin Lauricella, 28 year old Bank of America employee in Simi Valley, California has pled not guilty to charges of taking over $1 million in bribes to rig short sales. According to the L.A. Times, Ariel Newman, assistant U.S. attorney in Los Angeles led the charge and a 28-count grand jury indictment, recently unsealed, listed 18 properties allegedly sold in late 2010, early 2011 at prices far below those that Bank of America would have approved.

Lauricella allegedly enabled the sales by improperly approving the short sales and falsifying bank records primarily in the San Fernando Valley, but also in Corona, Coto de Caza, Beverly Hills and Bel Air.

How the scam worked

“The buyers would either resell the homes at the actual property values or in some cases would refinance the property at the actual value, thereby extracting profits on the deals,” Newman said.

Bank of Amercia is not standing behind the employee, stating he was fired in 2011, and they have been cooperative with the FBI during the investigation. Lauricella’s Suburban has been seized on the grounds it had been purchased with criminal proceeds. Authorities state they are in the process of doing the same with his home.

Advertisement. Scroll to continue reading.

Lauricella’s lawyer had no comment, citing not yet having reviewed all details of the case.

Three other defendants have entered plea agreements after a multi-year investigation into the manipulation of short sales for personal profit.

Bank of America has been in hot water for various reasons after the housing crash, but this situation stands apart, as it appears on all counts that it is a handful of individuals that acted against the bank for personal gain rather than a systematic problem.

Advertisement. Scroll to continue reading.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Housing News

(Mortgage) Despite his role in the most colossal mortgage company failures in history, the mysteriously orange Mozilo claims the world wants to punish him...

Business News

(Business News) When a well known Realtor and his loan officer wife get rich off of $50 million in falsified loans and wash profits...

Business Finance

(Business Finance) Bank of America has seen the fallout from bad choices leading up to the economic crash, and one executive is facing the...

Housing News

Bank of America will shell out $404 million to settle their final claim between the big bank and Freddie Mac and Fannie Mae, covering...

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.