Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor, LLP announce that the firms are investigating legal claims against the officers and Board of Directors of Flagstar Bancorp, Inc. (“Flagstar” or “FBC”) (NYSE: FBC) for possible breaches of fiduciary duties and other violations of state and federal law relating to a complaint filed by the Department of Justice.
If you are an affected investor and you want to learn more about the lawsuit or join the action, contact Patrick Powers at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at firstname.lastname@example.org, or Willie Briscoe at The Briscoe Law Firm, PLLC, (214) 706-9314, or via email at WBriscoe@TheBriscoeLawFirm.com. There is no cost or fee to you.
On February 24, 2012, the DOJ filed a federal complaint alleging that, over the course of a decade, Flagstar improperly approved thousands of residential home mortgage loans for government insurance. Among other things, the DOJ complaint alleged that since at least January 1, 2002: (a) Flagstar used unauthorized staff employees to conduct key underwriting functions in the loan approval process; (b) Flagstar’s actual underwriters submitted false certifications that they had personally reviewed loan documents even though they had not; and (c) Flagstar falsely certified that loans were eligible for FHA insurance when they were not.
As a result of the complaint, Flagstar entered into a settlement agreement with the DOJ and agreed to pay the government $15 million dollars within 30 business days of the settlement’s approval, and make certain additional payments totaling $117,889,806 after certain financial events occur, including repayment of $226.7 million received under the Trouble Asset Relief Program.“We are particularly troubled by the allegations of misconduct in the complaint and the substantial amount of money that Flagship must now pay to the government. Based upon our investigation, we are prepared to pursue litigation to preserve the company and the value of Flagstar stock for all shareholders,” said shareholder rights attorney Willie Briscoe.