Kyle Lagow, a former home appraiser, will receive $14.5 million as part of a settlement of his whistleblower lawsuit filed against Bank of America Corp which alleged that Countrywide Financial inflated appraisals on government insured loans, Reuters reported.
The Lagow lawsuit sparked the probe into the banking industry and mortgage fraud. Lagow’s whistleblower lawsuit was one of five complaints that were involved in a $25 billion settlement made between Bank of America, which bought Countrywide Financial in 2008, and four other lenders and the U.S. Department of Justice.
Gregory Mackler, who filed another whistleblower lawsuit against Bank of America over their handling of HAMP mortgage settlements has also reached a settlement, however, his attorneys have declined to announce the amount of that settlement.
Both whistleblower’s lost their jobs after questioning their companies practices. Mackler worked for Urban Lending Solutions, and filed his lawsuit in 2011, while Lagow worked for Countrywide and filed suit in 2009.
Lawsuits brought under the whistleblower provision in the U.S. False Claims Act allow private individuals to bring suit against an entity on behalf of the government. Whistleblower’s are entitled to a percentage of the proceeds of any settlement.