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According to the Collins English Dictionary 10th Edition fraud can be defined as: "deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage".[1] In the broadest sense, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation. Defrauding people or entities of money or valuables is a common purpose of fraud, but there have also been fraudulent "discoveries", e.g. in science, to gain prestige rather than immediate monetary gain
*As defined in Wikipedia

Thursday, May 26, 2011

Probe at Goldman Sachs Litton Loan Servicing

There are a lot of Goldman Sachs stories to choose from today: you can read about Goldman Sachs speculating on commodities here and here; or you can read about various regulatory bodies who are issuing subpoenas and/or investigating Goldman Sachs (CFTC, AG Schneiderman, SEC, DOJ here).

And then there is the Litton Loan Servicing unit which Goldman Sachs would very much like to sell and about which we posted information earlier here. There are hundreds of complaints by Litton customers which you can read about here. Since we first linked with the complaints page, there have been even more complaints accruing! No wonder Goldman Sachs would like to unload this tarnished little gem!

You can read about Litton here and here.

New York Fed Investigates Goldman Loan Division
By Michael J. DeLaMerced and Ben Protess - DealBook

The Federal Reserve Bank of New York has begun an investigation into the mortgage-servicing arm of Goldman Sachs, looking at whether it systematically rejected borrowers’ efforts to lower their loan payments through government programs.

The inquiry by the New York Fed arose from a letter sent by an anonymous employee, who accused the Goldman unit, Litton Loan, of denying loans without properly reviewing applications.

The letter was brought to the Fed’s attention by The Financial Times after it received the tip.

“We are in possession of the letter and are conducting an inquiry,” a spokesman for the New York Fed said in a statement.

A Goldman spokesman declined to comment.

According to The Financial Times, the anonymous whistle-blower said he had examined loans that qualified for government modifications but were consistently denied.

The accusation against Litton is the latest headache for the unit, which Goldman is seeking to sell.

Goldman disclosed in March that it was exploring a potential divestiture amid concerns that borrowers were being improperly evicted from their homes in foreclosures.

The controversy has led several firms, including Goldman, to disclose in regulatory filings that investigations into these allegations could lead to fines.

Goldman’s 2007 acquisition of Litton, meant to seize opportunities to buy up mortgage portfolios that could then be serviced, has not worked out as intended.

The investment bank remains a small player in the mortgage-servicing industry.

Last year, Litton was one of several firms that halted foreclosures because of criticism about how the industry processed the relevant paperwork.

Litton has since resumed foreclosure operations.

Read the article here


Anonymous said...

Former banking regulator William Black speaks about rackets and fraud in the financial sector. He says Wall Street’s fraudulent CEOs looted with impunity, were left in power, and were granted their fondest wish when Congress, at the behest of the Chamber of Commerce, Fed Chairman Bernanke, and the bankers’ trade associations, successfully extorted the professional Financial Accounting Standards Board (FASB) to turn the accounting rules into a farce.

Anonymous said...

Gerald Celente ....says we're stuck between parties that serve 1 interest

Anonymous said...

Goldman Sachs Sells Its 'Conviction Buys'

A so-called Chinese Wall is supposed to exist between investment banks' research and asset-management divisions, but recent calls, especially coming from subprime-securites proponent Goldman Sachs(GS_), warrant further scrutiny.

News broke yesterday, or rather, a blogger pulled data yesterday to show that Goldman dumped 1,260,802 shares of Apple(AAPL_) during the first quarter, even as its research division rated the stock "buy" and maintained its lofty $470 target. Little due diligence is done in the journalism community on the interplay between asset-management and research units.

Anonymous said...

I have personally experienced the fraudulent practices of Litton Loans. I never seen such crooked business practices ever. We have made every effort to work with them, but they feel they can make money on our house if they foreclose since we were not upside down in our mortgage. we are going on 2 years of battling with them! I hope they get closed down!!

Anonymous said...

It looks like individuals are on their own...but the corporations have back up...

Is American law enforcement colluding with Cisco?
A top Canadian court slams the U.S. for trying to crush a corporate whistle-blower

As if we needed any more evidence that the United States is fast becoming a Corporate Police State (i.e., systematically deploying police power to protect narrow corporate interests), make sure to check out this jaw-dropping story that broke in Canada late Friday. It details how the British Columbia Supreme Court uncovered what it says is a massive collusion between computer giant Cisco and U.S. law enforcement -- a collusion that seems designed to use criminal prosecution to stop a whistle-blower's antitrust case against a powerful politically connected corporation.

The machinations in this case are complicated, but the basics go like this: Ex-Cisco exec Peter Alfred-Adekeye filed a whistle-blower suit against his former employer Cisco in civil court -- a suit that could compel the company to pay millions in damages for allegedly "forcing customers to buy maintenance contracts," according to the Vancouver Sun.

jonwilson said...

Customers are now leaning towards online lenders due to the convenience they offer, leading me to believe Goldman Sachs would be hard pressed to sell Litton. As if the firm didn't have enough of a bad reputation in the first place.

online cash advance

Johnny said...

The real estate situation is going to make mortgage deals very tricky, be it for Goldman Sachs or any other big corporation. Mortgage is just not a good idea right now.
loan modification lawyer

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