US Gov’t Takes Bank Of America To Court And Wins, Jury Finds Countrywide Liable For Fraud

Photo Credit: Forbes Thought those mortgage lawsuits against banks were winding down? Think again.

Today a jury found Bank of America liable for defrauding Fannie Mae and Freddie Mac when its Countrywide unit sold it bad mortgages.

The jury also found former Countrywide executive, Rebecca Mairone, liable on the one fraud charge facing her, Reuters reports.

The verdict is a win for the US government as this is one of the few cases stemming from the financial crisis that it’s taken to trial.

“In a rush to feed at the trough of easy mortgage money on the eve of the financial crisis, Bank of America purchased Countrywide, thinking it had gobbled up a cash cow. That profit, however, was built on fraud, as the jury unanimously found,” US Attorney Preet Bharara said in a statement.

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