Banking Misconduct Blog

Congress enacted the Racketeer Influenced and Corrupt Organizations Act (RICO) as a response to organized crime and biker gangs. A few decades later and this powerful statute is now mostly used by savvy private litigants seeking redress for a wide variety of fraud claims. This month a group of...

There is a tremendous amount of case law surrounding the civil RICO statute. Because it the law provides for treble damages, arguments frequently arise over the proper measure of damages. This is particularly true when the damages claims include lost profits. Given the explosion in RICO claims,...

2016 and 2017 are the years when many CMBS (Commercial Mortgage Backed Securities) mortgages mature. Loans that were written in the height of the real estate market are now coming due. Even though most of these loans are not in default, we are already seeing problems with those forced to...

The Racketeer Influenced and Corrupt Organizations Act (RICO) is one of the most powerful anti-fraud statutes on the books. It can really level the playing field for victims of fraud and criminal conspiracies. Triple damages, costs and attorney’s fees are what make the law so attractive to...

More bad news from the oil patch. Oil prices have been at historic lows since the summer of 2014. Although prices have rebounded a bit, prices are still well below the $65 per barrel benchmark that most companies need to be profitable. In recent months approximately 50 exploration and production...

Yesterday Seeking Alpha published an article on Starwood Property Trust, the owner of embattled special servicer LNR Partners LLC. The article hails Starwood as a "cash cow" and worthy investment. Where does Starwood get much of its cash? From LNR.
LNR Partners is the nation's largest...

A three judge federal appeals panel tossed a lawsuit by a borrower against Wells Fargo. Last month the U.S. 4th Circuit Court of Appeals upheld the dismissal of a lawsuit originally filed in state court. The case impacts other borrowers who want to sue their bank but waited until after their...

“Rearranging the deck chairs on the Titanic,” that is how I describe the many owners of real estate projects financed with CMBS or tenant in common structures. The ship is sinking, slipping under the surface, yet the party on the upper decks continues. Unfortunately, the folks most at...

Editor’s Note – The following article on RICO was written for lawyers and is to be published in the National Law Review. We are posting it here because it useful for business owners and individuals victimized by banks and others. RICO is one of the most powerful anti-fraud statutes on...

In 1946, Jimmy Stewart starred in one of the great classic movies, It’s a Wonderful Life. His character was the head of a small local bank. 70 years later, that movie is still played every year at Christmas. One of the great scenes takes place in the bank’s board room. (I won’t...