Wells Fargo Fined $1.2 Billion For Mortgage Insurance Fraud

3 Feb 2016

Wells Fargo to pay $1.2bn over mortgage insurance scam

The US bank was accused of improperly certifying government-backed home mortgage loans between 2001-2010.

The Justice Department argued Wells Fargo should not have certified the loans as eligible for the federal insurance scheme because it knew they did not meet the required standards for certification.


In Context – Citigroup

27 Dec 2011

2011/12/16 – SEC Files Historic Appeal of Judge Rakoff’s Citigroup Settlement Rejection [Forbes]
2011/11/28 – SEC v Citigroup – Opinion and Order [US District Court Southern NY]
2011/10/19 – Citigroup to Pay $285 Million to Settle SEC Charges for Misleading Investors About CDO Tied to Housing Market [4closure Fraud]
2011/10/17 – Citigroup Posts Big Profits, But No One’s Mentioning Its Bailout [The Atlantic Wire]

Too Big to Fail – Pfizer

19 Aug 2010

This is from back in April 2010.

Feds found Pfizer too big to nail

Pfizer was caught selling Bextra, a drug not allowed to be sold because of health concerns. They continued to sell it, making $1.7 billion. They got caught.

What should have happened is that Pfizer should have been no longer qualified to sell drugs in the Medicaid/Medicare program – which would have been a death sentence to the company.

However, Pfizer used a subsidiary, Pharmacia & Upjohn Co. Inc., to take the court judgment for Pfizer. The result is that Pharmacia & Upjohn is now excluded from Medicaid & Medicare accounts – but Pfizer, who committed the crime, remains intact, dealing drugs freely with Medicaid and Medicare patients.

It’s not deregulation, it’s lack of enforcement.

Of course – Pfizer donates big money to both parties as protection money.

Pfizer Political Action Committee Report