American Financing Corp. Must Pay Fine After Firing Whistleblowers in Mortgage Fraud Case
American Financing Corp. was ordered by a judge in Arapahoe County District Court to pay out settlements to four former employees of the Colorado-based mortgage company. The employees claimed they were fired after raising concerns about widespread mortgage fraud propagated by the company.
In their lawsuit, the four former employees claimed they had attempted to report the instances of fraud to their supervisors. They alleged the company was using falsified documents and withholding some potentially unfavorable financial information on their clients’ behalf to originate mortgages that would not have been approved in most normal circumstances. The company’s alleged actions may have defrauded Wells Fargo, JPMorgan Chase, Flagstar Bank and other financial institutions.
The jury ultimately awarded $37,000 to one of those former employees, while the other three had their claims denied. The one who earned the award did so because the jury agreed she had been fired because she reported the fraud allegations to company management.
American Financing Corp. was not sanctioned by regulatory bodies for its mortgage fraud and issued a statement indicating its disagreement with the decision to rule in favor of one of the four ex-employees.
Whistleblowers protected from wrongful termination
There are a number of federal laws that protect whistleblowers from retaliation after they report internal incidents of fraud or wrongdoing. If you expose illegal activity and are then fired or demoted for doing so, you have the right to file a lawsuit and recover financial compensation.
For further guidance on how to proceed with a whistleblower claim, speak with a skilled attorney at Kardell Law Group right away.