Bank of America sued in RICO class action

House key ring vectorA class action lawsuit was filed against Bank of America alleging that the financial institution accepted $45 billion intended to assist homeowners with loan modifications, but failed to grant those modifications pursuant to the government’s Home Affordable Modification Program (HAMP).

The complaint also accuses Bank of America of violating the Racketeering Influenced Corrupt Organizations Act (RICO).  Specifically, the lawsuit claims that Bank of America engaged contractors such as Urban Lending Solutions (“Urban”) who misrepresented themselves to customers as Bank of America employees.

The lawsuit also accuses Bank of America of orchestrating massive loan modification denial schemes know as “blitzes.”  In connection with a blitz, Bank of America allegedly directed its employees to delay modifications and falsely claim that it had not received paperwork and payments from loan customers when it had already received them. According to the complaint, Bank of America aimed to silence and disciplined employees who questioned the validity and ethics of improperly denying modifications or of lying to customers.

The proposed class includes “individuals whose home mortgage loans have been serviced by Bank of America and who, since April 13, 2009, (1) applied to Bank of America for a HAMP loan modification, (2) fulfilled an FHA Trial Period Plan Agreement or any other trial-payment agreement that was not issued pursuant to SD-09 (form 3156), (3) sent documents to, or received documents or other communications from, Urban employees in connection with their attempts to modify their home mortgage, and (4) did not receive, within 30 days after making all required trial payments, a permanent loan modification that complied with HAMP rules.”

Steve Larson
An experienced trial lawyer who handles both hourly and contingent fee cases, Steve has expertise in class actions, antitrust litigation, securities litigation, corporate disputes, intellectual property disputes, unfair competition claims, and disputes involving family wealth. Steve regularly represents individuals and businesses in federal and state court and has obtained class-wide recovery in multiple class actions. A veteran practitioner, Steve's clients value his creative approach to resolving complex litigation matters.


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