Wells Fargo’s Lofrano Was ‘Critical’ to Fraud, U.S. Says
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Wells Fargo & Co. Vice President Kurt Lofrano played a “critical role” in helping the bank hide fraudulent home loans that cost the U.S. $189 million, the U.S. government claimed in a filing in Manhattan federal court.
Lawyers for the U.S. today asked a judge to let it add Lofrano to its fraud suit claiming Wells Fargo was reckless in underwriting mortgage loans and failed to report fraudulent and noncompliant loans to the U.S. Department of Housing and Urban Development. The fraud forced the Federal Housing Administration to pay $189 million in insurance claims on defaulted loans, the U.S. said.