US sues Wells Fargo for mortgage fraud
October 10, 2012  04:33
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The United States filed suit against US banking giant Wells Fargo, alleging mortgage fraud that cost the government hundreds of million of dollars after the home loans defaulted.

The civil fraud lawsuit, filed by Manhattan US Attorney Preet Bharara in New York federal court, seeks to recover damages in connection with Wells Fargo's residential mortgage lending business.

The San Francisco-based bank is the nation's largest mortgage lender.

As a result of Wells Fargo's false certifications of mortgages, the Federal Housing Administration has paid "hundreds of millions of dollars in insurance claims on thousands of mortgages that defaulted," the US attorney's office for the Southern District of New York said. 

It claimed the alleged misconduct occurred for more than 10 years.
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