Insurance Coverage / Bad Faith
September 4, 2017 - Confidential
United States Ex Rel. Bibby v. Wells Fargo, Et al. In United States ex rel. Bibby v. Wells Fargo, et al., Butler Prather LLP, was associated by Relators’ counsel while the case was still under seal after it became apparent the government would not intervene at that time. That case alleged that eight large financial institutions were committing fraud against the Veterans Administration by illegally charging veterans for attorneys’ fees and other charges when they refinanced their VA-guaranteed IRRRL loans, contrary to the statute and regulations, and then sought payment on those fraudulently-guaranteed loans when the veteran defaulted.
After the Government elected “not to intervene at this time,” Butler Prather LLP, secured settlements from six of the eight defendants-all of whom had filed motions to dismiss stating that the case had no merit-for over $161 million. These six defendants represent only approximately 30 percent of the market share, and BP LLP is still pursuing our clients’ claims against the remaining two defendants-Wells Fargo and Mortgage Investors Corporation.