Employee convicted in short-sale scheme after bilking Bank of America for 5.7 million

By Jennifer Felten

A former Bank of America employee has been sentenced to 30 months in federal prison after pleading guilty to taking more than $1.2 million in bribes to approve artificially low-price short sales of properties on which the bank held mortgages. In addition to the prison term, Kevin Lauricella was ordered to pay $5.7 million restitution to Bank of America and to forfeit his residence, which had been purchased with some of the bribe money.

The fraudulent short sales that Lauricella approved in return for the bribes resulted in at least $5.7 million in losses to the bank. The fraudulent short sales also clouded the title on the properties, which in turn resulted in expensive litigation for innocent parties, including individuals who purchased the homes later. In return for bribes Lauricella used his position to “approve” short sales that he was not authorized to approve and that were for sales prices far below the fair market value.

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Jennifer Felten, Esq., Partnerfelton, LLP, www.hhlawgroup.com, 699 Hampshire Road, Suite 105, Westlake Village, CA 91361, (805) 265-1031, [email protected].  Ms. Felten specializes in representing both individuals and legal entities, providing representation and guidance on a variety of real estate related matters.

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