New York Paralegal Blog

Preet Bharara, the United States Attorney for the Southern District of New York, Stuart F. Delery, the Acting Assistant Attorney General for the Civil Division of the U.S. Department of Justice, Helen Kanovsky, General Counsel of the U.S. Department of Housing and Urban Development (“HUD”), and David A. Montoya, Inspector General of HUD, announced today that the United States has settled a civil fraud lawsuit against DEUTSCHE BANK AG, DB STRUCTURED PRODUCTS, INC., DEUTSCHE BANK SECURITIES, INC. (collectively “DEUTSCHE BANK” or the “DEUTSCHE BANK defendants”) and MORTGAGEIT, INC. (“MORTGAGEIT”).

NEW YORK – The United States has filed a civil mortgage fraud lawsuit against Deutsche Bank AG and its wholly owned subsidiary, MortgageIT Inc.  The government’s complaint seeks damages and civil penalties under the False Claims Act for repeated false certifications made to the U.S. Department of Housing and Urban Development (HUD) in connection with the residential mortgage origination and sponsorship practices of MortgageIT.  To date, the Federal Housing Administration (FHA) has paid insurance claims on more than 3,100 mortgages, totaling $386 million, for mortgages endorsed by MortgageIT.   Today’s announcement was made by Preet Bharara, U.S. Attorney for the Southern District of New York; Tony West, Assistant Attorney General for the Justice Department’s Civil Division; Helen Kanovsky, General Counsel of HUD; and Michael P. Stephens, Acting Inspector General of HUD.   According to the government’s complaint filed today in Manhattan federal cour...

One year ago today two of New York’s bravest were killed in the line of duty, while responding to a fire at Deutsche Bank. The tragic deaths of Joseph Graffagnino and Bobby Beddia were, and are still, a reminder of the dangers faced by our uniformed first responders each and every day. Today, in memory of Mr. Graffagnino and Mr. Beddia, we suspended the work being done by the 400 men and women cleaning the Deutsche Bank building. The greatest tribute to the sacrifices made by these firefighters will be to complete the work on this building safely. My thoughts are with the families and loved ones who still endure the pain of these sudden losses, and my thanks go to their comrades who continue to keep New York safe.