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Major Banks Accused of Defrauding Veterans, Taxpayers

While five major banks continue to deliberate with the state attorneys general for a settlement involving violations in mortgage documentation, the same five banks, plus several others, also face charges for committing fraud against veterans and taxpayers.

Two Georgia-based mortgage brokers – Victor E. Bibby, president and CEO of U.S. Financial Services, Inc., and Brian J. Donnelly, VP of operations of U.S. Financial Services, Inc. – brought the case before a federal court in Atlanta. The case was just recently released to the public.

Bibby and Donnelly accuse 13 banks of “a brazen scheme to defraud both our nation’s veterans and the United States Treasury of millions of dollars in connection with home loans guaranteed by the United States Department of Veterans Affairs,” according to the court filing