By Julie Steinberg
U.S. attorneys said in court Thursday that they plan to increase
the civil penalties being sought from a former Countrywide
Financial Corp. executive found liable for committing fraud in her
role leading a loan-processing program.
Assistant U.S. Attorney Pierre Armand said in a hearing in front
of U.S. District Judge Jed Rakoff that the government planned to
seek as much as $1.6 million from Rebecca Mairone, the former
Countrywide executive. Ms. Mairone, the government said, had
recently received a bonus of $487,000 for work she performed in
2013 while at J.P. Morgan Chase & Co. A J.P. Morgan spokeswoman
couldn't immediately be reached for comment.
The number isn't set in stone and Mr. Armand said the government
might request less, perhaps $1.2 million. The government had
previously requested $1.1 million based on Ms. Mairone's ability to
pay.
Ms. Mairone last October was found liable, along with Bank of
America Corp., for fraud related to loans the bank's Countrywide
unit sold in 2007 and 2008 to mortgage-finance firms Fannie Mae and
Freddie Mac in a program called the "Hustle." Bank of America
acquired Countrywide in 2008. A Bank of America spokesman declined
to comment on Thursday's court proceedings.
Write to Julie Steinberg at julie.steinberg@wsj.com
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