Great Story In Another Department Of Justice Penalty ($29M)

midsection of male judge striking gavel while holding scale with money in courtroom

Moral Of This Story: Buy A Whistle

The DOJ and Walter Investment Management doing business as Reverse Mortgage Solutions (RMS) agreed to this settlement. The allegations were that the defendant submitted false claims for debenture interest and for the reimbursement of unlawful referral fees stating that they were sales commission.

The transaction involved foreclosed properties, straw companies, real estate agents, kickbacks, intrigue, and other HUD violations. The statement from Walters said, “We believe this resolution is in the best interest of the Company and our shareholders and are pleased to have resolved these claims”. They accepted financial responsibility but admitted no wrongdoing. These are all normal items in these claims, but there is one other factor.

Matthew McDonald, A Former Executive At RMS

Under the whistle-blower provisions of the False Claims Act filed the law suit. His reward is $5.15M as in Million. I believe that I will be blowing a whistle soon on Duane Gomer Education if I can make $5.5M.

How much money must a company be making illegally to absorb these $29M penalties in the best interest of the company? Boggles my mind.

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