Bank of America, Countrywide Whistleblower Kept 3-Year Secret
Would you be able to keep a secret for four years that was so big it would make the five large U.S. banks pay up about $25 billion in a legal settlement?
Kyle Lagow of Plano, Texas, had to keep secret even from his wife and five children that he was one of the whistleblowers who led to this year's $25 billion mortgage settlement with banks over inappropriate lending schemes. His lawsuit led to a $1 billion settlement with Countrywide Financial's parent, Bank of America, in February with the U.S. attorney's office. Lagow's suit was finally unsealed under the U.S. False Claims Act in May, when he was awarded $14.5 million, a percentage of the settlement.
Lagow, 50, said the settlement is a "start" in settling improper mortgage practices with FHA-sponsored loans, but that was only 6 to 10 percent of his company's practice.
This article can be found in its entirety on the ABC News website.