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Bank of America, Countrywide Accused of Racketeering

Bank of America, Countrywide Accused of Racketeering


October 19, 2010, 7:58 PM EDT

By Andrew M. Harris

(Updates with lender’s spokesman in seventh paragraph.)

Oct. 19 (Bloomberg) — Bank of America Corp. and its Countrywide Home Loans unit were sued by two Indiana residents claiming that perjured affidavits were used to foreclose on their Knightstown home.

Plaintiffs Dwayne Ransom Davis and Melisa Davis accused the lender and its unit of racketeering in a complaint filed today in federal court in Indianapolis. Their lawyer, Irwin Levin, confirmed the filing in a phone interview. The filing couldn’t be independently verified.

The defendants and their cohorts engaged in a pattern of racketeering activity in which they routinely and repeatedly prepared perjured affidavits in order to rapidly churn foreclosures,” the couple said in the complaint.

Bank of America, the largest U.S. lender, resumed foreclosures yesterday, after a 10-day nationwide pause to review more than 100,000 cases.

Continue reading…BUSINESS WEEK

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