$fifty seven.6 million for Countrywide whistleblower
The increase and fall of Angelo Mozilo and Countrywide
It pays to be a whistleblower in the greatest financial settlement in heritage.
Edward O’Donnell, a previous executive at home loan financial institution Countrywide Economic, is set to acquire a great $ 57.six million from Bank of The united states ( BAC ) , for his role in exposing fraudulent action at the organization.
A federal jury ruled final year that Countrywide Financial, which is now owned by Bank of America, experienced defrauded federal government-backed corporations Fannie Mae and Freddie Mac by selling them faulty home loans. That fraudulent exercise contributed to the true estate bubble and mortgage loan crisis of 2008, which lastly led to the common financial fallout known as the Excellent Economic downturn.
O’Donnell is entitled to 16% of a $ 350 million payment from Financial institution of The united states, according to paperwork submitted this 7 days in the Southern District Court docket of New York. The payment is a portion of the $ sixteen.sixty five billion settlement that Financial institution of America has to pay out. It really is the most significant monetary settlement in history.
O’Donnell’s piece of the $ 350 million is equal to about $ fifty six million. He’s also entitled to an additional $ one.6 million payment from Lender of The us, to overall about $ fifty seven.6 million, which should be paid within a “reasonable time,” according to the federal court docket doc.
Financial institution of America acquired Countrywide in 2008.