Wells Fargo Bank, N.A., JPMorgan Chase Bank, N.A., Elaine Oliphant Cohen, and Todd Cohen
Documents in this case
- Complaint · · 14 p.
- Consent order · · 11 p.
- Consent order · · 11 p.
Case summary
CFPB and the Maryland Attorney General took action against Wells Fargo and JPMorgan Chase for an illegal marketing-services-kickback scheme they participated in with Genuine Title, a now-defunct title company. The Bureau and Maryland also took action against former Wells Fargo employee Todd Cohen and his wife, Elaine Oliphant Cohen, for their involvement.
Complaint ()
PDF of this document (14 pages)
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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND BALTIMORE DIVISION
CONSUMER FINANCIAL PROTECTION BUREAU 1700 G Street NW Washington, D.C. 20552
STATE OF MARYLAND, Office of the Attorney General of Maryland, Consumer Protection Division 200 St. Paul Place, 16th Floor Baltimore, MD 21202 Baltimore County
Plaintiffs,
v.
WELLS FARGO BANK, N.A. 464 California Street San Francisco, CA 94104
JPMORGAN CHASE BANK, N.A. 270 Park Avenue New York City, NY 10017
ELAINE OLIPHANT COHEN 2100 Heritage Drive Baltimore, MD 21209 Baltimore County
TODD COHEN 2100 Heritage Drive Baltimore, MD 21209 Baltimore County
Defendants.
Case No.
COMPLAINT
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Plaintiffs, the Consumer Financial Protection Bureau (“Bureau”) and the State of Maryland’s Office of the Attorney General’s Consumer Protection Division (“CPD”), allege as follows:
INTRODUCTION 1.
The Bureau and the CPD bring this action against Wells Fargo Bank, N.A. (“Wells Fargo”), JPMorgan Chase Bank, N.A. (“Chase”), Elaine Oliphant Cohen, and Todd Cohen (collectively, “Defendants”) to address Defendants’ participation in an illegal scheme to exchange money or marketing services for referrals of settlement-service business in connection with consumers’ home-mortgage transactions.
2.
The Real Estate Settlement Procedures Act (“RESPA”) prohibits giving or accepting a “fee, kickback, or thing of value” in exchange for a referral of business related to a real-estate-settlement service, including services ordinarily provided by title companies, such as title searches, title examinations, the provision of title certificates, and title insurance. 12 U.S.C. § 2607(a). 3.
A now-defunct Maryland title company, Genuine Title, LLC, from 2009 through 2013 provided marketing services to loan officers from Wells Fargo, Chase, and another financial institution (“Unnamed Financial Institution”). The marketing services that Genuine Title provided assisted these loan officers in generating business and increased the number of loans that Wells Fargo, Chase, and Unnamed Financial Institution originated or refinanced.
4.
Under agreements or understandings between Genuine Title and the loan officers, the loan officers exercised their ability to influence consumers in settlement transactions to use Genuine Title for settlement services.
5.
Genuine Title also paid loan officers for referrals of business. Todd Cohen, a loan officer who worked at several financial institutions, including Wells Fargo and Unnamed Financial Institution, Case 1:15-cv-00179-RDB Document 1 Filed 01/22/15 Page 2 of 14
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referred business to Genuine Title in exchange for marketing services provided by Genuine Title. In addition to receiving the marketing services, Genuine Title made cash payments of tens of thousands of dollars to Todd Cohen’s wife, Elaine Oliphant Cohen.
JURISDICTION AND VENUE 6.
This Court has subject-matter jurisdiction over this action because the action is “brought under Federal consumer financial law,” 12 U.S.C. § 5565(a)(1), presents a federal question, 28 U.S.C. § 1331, and is brought by an agency of the United States, 28 U.S.C. § 1345. This Court has supplemental jurisdiction over the state law claims because those claims are so related to the federal claims that they form part of the same case or controversy. 12 U.S.C. § 1367(a).
7.
Venue is proper in this district because a substantial amount of the transactions, acts, practices, and courses of conduct at issue occurred within this district, Wells Fargo and Chase maintain offices and do business in this district, and Cohen and Oliphant Cohen reside in this district. 28 U.S.C. § 1391(b), (c); 12 U.S.C. § 5564(f); 12 U.S.C. § 2614.
PARTIES 8.
The Bureau is an agency of the United States charged with regulating the offering and providing of consumer-financial products and services under “Federal consumer financial laws,” 12 U.S.C. § 5491(a), including RESPA and the Consumer Financial Protection Act of 2010 (“CFPA”). 12 U.S.C. § 5481(12)(M), (14). The Bureau has independent litigating authority, 12 U.S.C. § 5564(a)-(b), including the authority to enforce RESPA and the CFPA. 12 U.S.C. § 2607(d)(4). Case 1:15-cv-00179-RDB Document 1 Filed 01/22/15 Page 3 of 14
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9.
The CPD enforces regulatory and consumer-protection laws, including the Maryland Consumer Protection Act., Md. Code Ann., Com. Law §§ 13-101 through 13-501 (2013 Repl. Vol.) (“CPA”).
10.
Defendant Wells Fargo is the main operating subsidiary of the holding company Wells Fargo & Company. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. and is a licensed mortgage lender. Wells Fargo offers and provides real-estate-settlement services to consumers primarily for personal, family, or household purposes, including but not limited to the origination of federally related mortgage loans by the taking of loan applications, loan processing, and the underwriting and funding of loans. See 12 U.S.C. § 2602(3). Wells Fargo is therefore a “covered person” under the CFPA. 12 U.S.C. § 5481(6), (15)(A)(iii). Wells Fargo is also a “merchant” under CPA § 13-101(g) because it offers or makes consumer credit available to consumers.
11.
Defendant Chase is an operating subsidiary of the holding company JPMorgan Chase & Company. Chase offers and provides real-estate-settlement services to consumers primarily for personal, family, or household purposes, including but not limited to the origination of federally related mortgage loans by the taking of loan applications, loan processing, and the underwriting and funding of loans. See 12 U.S.C. § 2602(3). Chase is therefore a “covered person” under the CFPA. 12 U.S.C. § 5481(6), (15)(A)(iii). Chase is also a “merchant” under CPA § 13-101(g) because it offers or makes consumer credit available to consumers.
12.
Defendant Todd Cohen was a loan officer for Wells Fargo and Unnamed Financial Institution. While employed by Wells Fargo and Unnamed Financial Institution, in connection with originating federally related mortgage loans to consumers primarily for personal, family, or household purposes, Todd Cohen provided “real estate settlement services,” including but not Case 1:15-cv-00179-RDB Document 1 Filed 01/22/15 Page 4 of 14
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limited to the taking of loan applications and loan processing. See 12 U.S.C. § 2603(3). Therefore, Todd Cohen was a “covered person” under the CFPA. 12 U.S.C. § 5481(6), (15)(A)(iii). Todd Cohen is also a “merchant” under CPA § 13-101(g) because he offered or made consumer credit available to consumers. 13.
Defendant Elaine Oliphant Cohen is married to Todd Cohen.
FACTS A.
Genuine Title provided valuable marketing services to loan officers in exchange for
referrals of business.
14.
Genuine Title provided services in connection with real-estate settlements. Genuine Title’s services included title searches, title examinations, the provision of title certificates and title insurance, and the handling of the processing and closing, or settlement, of real-estate transactions. The majority of Genuine Title’s settlement services were for refinance transactions. 15.
A consumer refinancing a mortgage ordinarily does not have a preferred title company; instead, a consumer typically relies on the loan officer processing the mortgage to recommend a title company. From 2009 through 2013, Genuine Title engaged in a scheme in which it provided marketing services to loan officers and, in exchange, the loan officers referred settlement-service business for federally related mortgages to Genuine Title by recommending Genuine Title to borrowers (the “Marketing Services Scheme”).
16.
Through the Marketing Services Scheme, Genuine Title and the loan officers involved in the scheme took advantage of a hot mortgage refinancing market and very low interest rates. Genuine Title provided substantial amounts of marketing services to loan officers as part of the scheme, and it resulted in referrals of business on a large number of loans to Genuine Title, as described below. Case 1:15-cv-00179-RDB Document 1 Filed 01/22/15 Page 5 of 14
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17.
Loan officers typically are paid by commission. Through the Marketing Services Scheme, Genuine Title offered loan officers valuable services to increase the amount of business they generated, and thus the commissions they would earn. The scheme was also intended to increase the amount of business generated by the participating loan officers and, through referrals, to increase Genuine Title’s profits.
18.
Through the Marketing Services Scheme, Genuine Title provided and paid for a variety of marketing services to loan officers. For example, Genuine Title purchased marketing leads – data on consumers likely to refinance a mortgage – from a third-party vendor and provided the leads to loan officers at Wells Fargo and Chase. In exchange, the loan officers referred loans for closing to Genuine Title.
19.
For other loan officers, Genuine Title provided additional marketing services. For these loan officers, Genuine Title not only analyzed and purchased leads from a third-party vendor, it also paid for marketing letters directed to the consumer leads to be printed, folded, stuffed into envelopes, and mailed.
20.
Although different loan officers worked out slightly different arrangements with Genuine Title, loan officers participating in the Marketing Services Scheme did not pay for the full cost of the leads, the printing and processing of the marketing materials, or the cost of postage to mail the materials to the leads.
B.
Wells Fargo loan officers participated in the Marketing Services Scheme. 21.
More than 100 loan officers from at least 18 Wells Fargo branches participated in the Marketing Services Scheme. Genuine Title provided marketing services to these loan officers under Case 1:15-cv-00179-RDB Document 1 Filed 01/22/15 Page 6 of 14
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agreements or understandings that the loan officers would, in exchange, refer real-estate closings to Genuine Title.
22.
Genuine Title provided Wells Fargo loan officers marketing leads that it had analyzed and purchased from a third-party vendor. The loan officers, in turn, submitted the leads to Wells Fargo’s advertising department for approval.
23.
When submitting the leads to the advertising department, the loan officers also submitted an additional form required by Wells Fargo’s internal procedures, known as a List Services Request (“LSR”) form. The form required the loan officer to identify the source of the leads and the preapproved marketing letter the loan officer intended to use. Through the LSR form the loan officers informed Wells Fargo that the leads were obtained from Genuine Title.
24.
Once Wells Fargo’s advertising department approved the list of leads and the loan officer’s marketing letter, the loan officer provided the marketing letter and Wells Fargo-branded stationery and envelopes to Genuine Title. Genuine Title then caused the leads to be “merged” with the marketing letter, printed onto Wells Fargo stationery, and folded and inserted into envelopes. 25.
In some cases, Genuine Title then returned the ready-to-mail letters to the loan officer and the loan officer used the postage machine in his or her Wells Fargo branch. In other instances, Genuine Title paid for first-class postage for the letters.
26.
Some Wells Fargo branch managers were aware that loan officers at their branches were receiving marketing services from Genuine Title. For example, one branch manager knew that marketing materials for loan officers at his branch were paid for by Genuine Title because some loan officers told him of the arrangement directly, because he reviewed LSR forms identifying Genuine Title as the source of the leads submitted by the loan officers, and because the branch manager, at the request of the loan officers, Case 1:15-cv-00179-RDB Document 1 Filed 01/22/15 Page 7 of 14
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ordered the Wells Fargo-branded stationery and envelopes that the loan officers used for the mailers created by Genuine Title.
27.
Eventually this branch manager told the loan officers there that they could no longer use the postage machine because the branch no longer wanted the expense of funding the mailers. The branch manager did not tell the loan officers to discontinue accepting Genuine Title’s assistance, and the loan officers continued to submit leads to the advertising department and to order Wells Fargo stationery through the branch manager. 28.
When the loan officers at this branch no longer had access to the branch postage machine, Genuine Title began paying for the cost of postage as well as the other costs of preparing the mailers.
29.
Genuine Title and participating Wells Fargo loan officers knew that the Marketing Services Scheme violated applicable laws. In October 2011, a Genuine Title employee emailed one of the printing and mailing companies used by Genuine Title for the Marketing Services Scheme and wrote, I need you to provide me with some invoices that we will ultimately not use. This is so our clients have records. The true invoices will be sent to [Genuine Title] and we will still pay on Friday’s [sic]. Please just put their names in the BILL TO: Section. They will not actually be paying the invoice to you, as [Genuine Title] will do that.
Later that same day, the same Genuine Title employee again emailed the mailing-and-printing company and wrote, Can we also have “Invoices” for [certain loan officers] Printed, Stuffed, Folded & Posted for 500 each? They would be individual “Fake” invoices for the job you did for them last week. You did a few jobs for them, so we just need fake invoices BILLED TO: [certain loan officers] stating that you Printed, Folded, Stuffed, Posted & Mailed 500 for each.
30.
In December 2012, Wells Fargo was named as a defendant in a proposed class action. The action alleged that:
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Genuine Title and others offered Wells Fargo … something of great value …: leads for new mortgage business. These leads consisted of individuals whom title companies, including Genuine Title, had reason to believe were in the market for mortgage loans.
To sweeten the deal for [Wells Fargo] … title companies including Genuine Title also “sold” those valuable leads to the banks for less than their fair market value as part of an understanding or agreement that, in return, Wells Fargo … would refer title/closing business to title companies including Genuine Title.
31.
Despite having multiple warnings of the illegal arrangements between its loan officers and Genuine Title – including a federal lawsuit alleging the existence of such agreements – Wells Fargo took no action to stop the Marketing Services Scheme.
32.
From 2009 through 2013, Wells Fargo loan officers participating in the Marketing Services Scheme referred to Genuine Title settlement-service business on thousands of loans. 33.
Wells Fargo did not have an adequate system in place to identify violations of RESPA resulting from the Marketing Services Scheme.
C.
Chase loan officers participated in the Marketing Services Scheme.
34.
The Marketing Services Scheme also operated at Chase. Genuine Title purchased leads from a third-party vendor and caused marketing materials branded with Chase’s logo and the loan officer’s contact information to be printed and mailed to the leads from the vendor. In addition to purchasing the leads, Genuine Title paid for the cost of the printing and postage. 35.
Loan officers at three Chase branches received marketing services paid for or subsidized by Genuine Title.
36.
From 2010 through 2013, six Chase loan officers participating in the Marketing Services Scheme referred settlement-service business to Genuine Title on nearly 200 loans. Case 1:15-cv-00179-RDB Document 1 Filed 01/22/15 Page 9 of 14
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37.
Chase did not have an adequate system in place to identify violations of RESPA resulting from the Marketing Services Scheme.
D.
While Todd Cohen worked for Wells Fargo, he participated in the
Marketing Services Scheme.
38.
From April 2009 to August 2010, Todd Cohen worked for Wells Fargo as a loan officer.
39.
Todd Cohen participated in the Marketing Services Scheme while working at Wells Fargo.
40.
In exchange for valuable marketing services, Todd Cohen referred Wells Fargo borrowers to Genuine Title for settlement services. 41.
Wells Fargo did not have an adequate system in place to identify Todd Cohen’s participation in the Marketing Services Scheme. 42.
In addition to Todd Cohen’s participation in the Marketing Services Scheme, Genuine Title also made cash payments to Todd Cohen for Wells Fargo loans he referred to Genuine Title for settlement services.
43.
Genuine Title did not pay Todd Cohen directly. Instead, to disguise the payments and make them appear more “compliant,” Genuine Title paid Todd Cohen’s wife, Elaine Oliphant Cohen.
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E.
Todd Cohen engaged in similar conduct while he worked at Unnamed Financial
Institution.
44.
In August 2010, Todd Cohen left his job at Wells Fargo, and in February 2011 he began working at Unnamed Financial Institution as a loan officer. 45.
As he had done at Wells Fargo, Todd Cohen participated in the Marketing Services Scheme at Unnamed Financial Institution.
46.
While Todd Cohen was employed at Unnamed Financial Institution, Genuine Title paid cash payments to Elaine Oliphant Cohen for loans from Unnamed Financial Institution that Todd Cohen referred to Genuine Title for settlement services.
47.
Before the Bureau initiated the investigation underlying this Complaint, Unnamed Financial Institution became aware that Todd Cohen was using unauthorized marketing materials and conducted its own thorough investigation. Following its investigation, Unnamed Financial Institution recognized that Todd Cohen’s participation in the scheme may violate RESPA and, in April 2012, terminated Todd Cohen’s employment.
CAUSES OF ACTION Count I: Violations of RESPA (By the Bureau against All Defendants)
48.
The allegations in paragraphs 1-47 are incorporated by reference. 49.
Wells Fargo, Chase, Todd Cohen, and Elaine Oliphant Cohen gave and received fees, kickbacks, or things of value under agreements or understandings that business incident to or a part of a real-estate-settlement service involving federally related mortgage loans would be referred to Genuine Title, in violation of RESPA, 12 U.S.C. § 2607(a).
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Count II: Violations of the CFPA (By the Bureau against Wells Fargo, Chase, and Todd Cohen)
50.
The allegations in paragraphs 1-47 are incorporated by reference. 51.
Wells Fargo’s, Chase’s and Cohen’s RESPA violations, described in Count I, constitute violations of § 1036 of the CFPA. 12 U.S.C. § 5536(a)(1)(A).
Count III: Violations of the CPA (By the CPD against Wells Fargo, Chase, and Todd Cohen) 52.
The allegations in paragraphs 1-47 are incorporated by reference. 53.
Wells Fargo, Chase, and Todd Cohen participated in the Marketing Services Scheme and made implicit representations in any such scheme. Participation in the Marketing Services Scheme constitutes a false or misleading statement of material fact which has the capacity, tendency, or effect of deceiving or misleading consumers and constitutes an unfair and deceptive trade practices as defined by §§ 13-301(1) of the CPA and is prohibited under § 13-303 of the CPA. 54.
Wells Fargo, Chase, and Todd Cohen’s failure to disclose to consumers that they were participating in the Marketing Services Scheme constitutes the omission of a material fact which deceives or tends to deceive consumers and constitutes an unfair or deceptive trade practice, as defined by § 13-301(3) of the CPA and is prohibited under § 13-303 of the CPA. 55.
Wells Fargo, Chase, and Todd Cohen’s failure to advise consumers that in offering and selling mortgage services they were violating RESPA constitutes the omission of a material fact which deceives or tends to deceive consumers and constitutes an unfair or deceptive trade practice, as defined by § 13-301(3) of the CPA and is prohibited under § 13-303 of the CPA. 56.
Wells Fargo, Chase, and Todd Cohen’s practices are unfair because they have caused and are likely to cause substantial injury to consumers, which consumers cannot reasonably avoid. Case 1:15-cv-00179-RDB Document 1 Filed 01/22/15 Page 12 of 14
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The injuries that consumers have suffered as a result of the Marketing Services Scheme are not offset by any benefit to consumers or to competition.
57.
Wells Fargo, Chase, and Todd Cohen’s unfair and deceptive trade practices as described herein have been numerous and ongoing.
DEMAND FOR RELIEF
Plaintiffs request that the Court, as permitted by 12 U.S.C. § 5565 and 12 U.S.C. § 2607: a.
permanently enjoin Defendants from giving or receiving money or any thing of value pursuant to an understanding that any real-estate-settlement service business will be referred to any person;
b. permanently enjoin Defendants from engaging in unfair or deceptive trade practices, including but not limited to violations of the CPA, as permitted by § 13-406 of the CPA; c.
award damages or other monetary relief against Defendants; d. order Defendants to pay redress to consumers, as permitted by § 13-406 of the CPA; e.
order disgorgement of ill-gotten revenues by Defendants; f.
impose civil money penalties on Defendants under the CFPA; g.
impose civil money penalties on Defendants under the CPA, as permitted by § 13-410 of the CPA;
h. order Defendants to pay the Bureau’s costs incurred in connection with prosecuting this action;
i.
order Defendants to pay the CPD’s costs incurred in connection with prosecuting this action, as permitted by § 13-409 of the CPA; and j.
award additional relief as the Court may determine to be just and proper. Case 1:15-cv-00179-RDB Document 1 Filed 01/22/15 Page 13 of 14
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Respectfully submitted,
ANTHONY ALEXIS Enforcement Director JEFFREY PAUL EHRLICH Deputy Enforcement Director JOHN C. WELLS Assistant Litigation Deputy
_____/s/_________________
GENESSA STOUT, Bar No. 801353 LAWRENCE D. BROWN, Bar No. 801343 Enforcement Attorneys
Consumer Financial Protection Bureau 1700 G Street, NW Washington, DC 20552 Telephone (Stout): 202-435-7920 Telephone (Brown): 202-435-7116 Facsimile: 202-435-7722 e-mail: [email protected] e-mail: [email protected]
For the Consumer Financial Protection Bureau
DANIEL L. BARNETT Deputy Attorney General of Maryland
_____/s/_________________ (signed by Genessa Stout with permission of Jeffrey S. Evans) JEFFREY S. EVANS, Bar No. 26447 LUCY CARDWELL, Bar No. 7311 Assistant Attorneys General Office of the Attorney General Consumer Protection Division 200 St. Paul Place, 16th Floor Baltimore, MD 21202 Telephone (Evans): 410- 576-6407 Telephone (Cardwell): 410-576-6337 Facsimile: 410-576-6566 e-mail: [email protected] e-mail: [email protected]
For the State of Maryland, Office of the Attorney General, Consumer Protection Division
Case 1:15-cv-00179-RDB Document 1 Filed 01/22/15 Page 14 of 14
Consent order ()
PDF of this document (11 pages)
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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND BALTIMORE DIVISION
CONSUMER FINANCIAL PROTECTION BUREAU 1700 G Street NW Washington, D.C. 20552
STATE OF MARYLAND, Office of the Attorney General of Maryland, Consumer Protection Division 200 St. Paul Place, 16th Floor Baltimore, MD 21202 Baltimore County
Plaintiffs,
v.
WELLS FARGO BANK, N.A. 464 California Street San Francisco, CA 94104
JPMORGAN CHASE BANK, N.A. 270 Park Avenue New York City, NY 10017
ELAINE OLIPHANT COHEN 2100 Heritage Drive Baltimore, MD 21209 Baltimore County
TODD COHEN 2100 Heritage Drive Baltimore, MD 21209 Baltimore County
Defendants.
Case No. 1:15-cv-00179-RDB
STIPULATED FINAL JUDGMENT AND ORDER WITH RESPECT TO JPMORGAN CHASE BANK, N.A. Case 1:15-cv-00179-RDB Document 3-1 Filed 01/22/15 Page 1 of 11
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The Consumer Financial Protection Bureau (“Bureau”) and the State of Maryland’s Office of the Attorney General’s Consumer Protection Division (“CPD”) commenced this civil action against Defendant JPMorgan Chase Bank, N.A. (“Chase”) on January 22, 2015, to obtain damages or other monetary relief, civil penalties, and other relief. The Complaint alleges that from 2010 through 2013, Genuine Title, LLC provided Chase’s loan officers marketing services that assisted the loan officers in generating business and increasing the number of loans that Chase originated or refinanced. The Complaint alleges that under agreements or understandings between Genuine Title and the loan officers, the loan officers in return referred settlement-service business to Genuine Title, LLC.
The Complaint alleges violations of: (1) Section 8(a) of the Real Estate Settlement Procedures Act, 12 U.S.C. § 2607(a) (“RESPA”); (2) Section 1036(a)(1)(A) of the Consumer Financial Protection Act of 2010 (“CFPA”), 12 U.S.C. § 5536(a)(1)(A); and (3) the Maryland Consumer Protection Act, Md. Code Ann., Com. Law §§ 13-101 through 13-501 (2013 Repl. Vol.) (“CPA”).
Plaintiffs and JPMorgan Chase Bank, N.A., by and through respective counsel, have requested that the Court enter this Stipulated Final Judgment and Order (“Order”). FINDINGS 1.
This Court has jurisdiction over the parties and the subject matter or this action. 2.
Plaintiffs and Chase agree to entry of this Order, without adjudication of any issue of fact or law, to settle and resolve all matters in this dispute arising from the conduct alleged in the Complaint to the date this Order is entered.
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3.
Chase neither admits nor denies any allegations in the Complaint, except as specifically stated in this Order. For purposes of this Order, Chase admits the facts necessary to establish the Court’s jurisdiction over Chase and the subject matter of this action. 4.
Chase waives service under Rule 4(d) of the Federal Rules of Civil Procedure and waives all rights to seek judicial review or otherwise challenge or contest the validity of this Order. Chase also waives any claim it may have under the Equal Access to Justice Act, 28 U.S.C. § 2412, concerning the prosecution of this action to the date of this Order. Each party will bear its own costs and expenses, including without limitation attorneys’ fees. 5.
This Order is made without trial or adjudication of any issue of fact or law and does not contain any injunctive measures against Chase or any of its subsidiaries or affiliates. 6.
Entry of this Order is in the public interest.
DEFINITIONS 7.
The following definitions apply to this Order:
a.
“Affected Consumers” means all consumers who closed loans during the Relevant Period with Chase’s Specified Loan Officers for which Genuine Title, LLC provided settlement services.
b. “Defendant” means JPMorgan Chase Bank, N.A. and its successors and assigns. c.
“Effective Date” means the date on which the Order is issued. d. “Enforcement Director” means the Assistant Director of the Office of Enforcement for the Consumer Financial Protection Bureau, or his/her delegee. e.
“Related Consumer Action” means a private action by or on behalf of one or more consumers or an enforcement action by another governmental agency brought against Chase based on substantially the same facts as described in the Order or the Complaint. Case 1:15-cv-00179-RDB Document 3-1 Filed 01/22/15 Page 3 of 11
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f.
“Relevant Period” means from January 1, 2010 until Chase ceased doing business with Genuine Title, LLC.
g.
“Specified Loan Officers” means the loan officers employed by Chase during the Relevant Period that received marketing services paid for by Genuine Title, LLC. ORDER
IT IS ORDERED that:
I.
Compliance Plan 8.
In conjunction with the Bureau’s investigation and in resolution of this matter, Chase submitted a comprehensive compliance plan designed to ensure that Chase’s loan officers refrain from giving or accepting any fee, kickback, or thing of value and comply with the terms of this Order (“Compliance Plan”). The Bureau has not objected to Chase’s Compliance Plan.
II.
Monetary Provisions 9.
A judgment for monetary relief is entered in favor of the Bureau and the CPD against Chase in the amount of $300,753.
10.
Within 20 days of the Effective Date, Chase must pay to the Bureau, by wire transfer to the Bureau or to the Bureau’s agent, and according to the Bureau’s wiring instructions, $300,753 in full satisfaction of the judgment as ordered in Paragraph 11 of this Section. 11.
Any funds received by the Bureau in satisfaction of this judgment will be deposited into a fund or funds administered by the Bureau or to the Bureau’s agent according to applicable statutes and regulations to be used for redress for injured consumers, including but not limited to refund of moneys, restitution, damages, or other monetary relief, and for any attendant expenses for the administration of any such redress. Case 1:15-cv-00179-RDB Document 3-1 Filed 01/22/15 Page 4 of 11
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12.
If the Bureau determines, in its sole discretion, that redress to consumers is wholly or partially impracticable, or if funds remain after redress is completed, the Bureau may apply any remaining funds for such other equitable relief (including consumer-information remedies) as determined by the Bureau to be reasonably related to the violations described in the Complaint. Any funds not used for such equitable relief will be deposited in the U.S. Treasury as disgorgement. Chase will have no right to challenge any actions that the Bureau or its representatives may take under this paragraph. 13.
Payment of redress to any Affected Consumer under this Order shall not limit Affected Consumers’ rights in any way.
III.
Civil Money Penalties 14.
Chase must pay a civil money penalty of $500,000 to the Bureau. 15.
Within 20 days of the Effective Date, Chase must pay the civil money penalty by wire transfer to the Bureau or to the Bureau’s agent in compliance with the Bureau’s wiring instructions.
16.
The civil money penalty paid under this Order will be deposited in the Civil Penalty Fund of the Bureau as required by Section 1017(d) of the CFPA, 12 U.S.C. § 5497(d). 17.
Chase must treat the civil money penalty paid under this Order as a penalty paid to the government for all purposes. Regardless of how the Bureau ultimately uses those funds, Chase may not:
a.
claim, assert, or apply for a tax deduction, tax credit, or any other tax benefit for any civil money penalty paid under this Order; or Case 1:15-cv-00179-RDB Document 3-1 Filed 01/22/15 Page 5 of 11
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b. seek or accept, directly or indirectly, reimbursement or indemnification from any source, including but not limited to payment made under any insurance policy, with regard to any civil money penalty paid under this Order.
18.
To preserve the deterrent effect of the civil money penalty in any Related Consumer Action, Chase may not argue that Chase is entitled to, nor may Chase benefit by, any offset or reduction of any compensatory monetary remedies imposed in the Related Consumer Action because of the civil money penalty paid in this action (“Penalty Offset”). If the court in any Related Consumer Action grants such a Penalty Offset, Chase must, within 30 days after entry of a final order granting the Penalty Offset, notify the Bureau, and pay the amount of the Penalty Offset to the U.S. Treasury. Such a payment will not be considered an additional civil money penalty and will not change the amount of the civil money penalty imposed in this action.
19.
Chase must pay a civil money penalty of $100,000 to the CPD. 20.
Within 20 days of the Effective Date, Chase must pay the civil money penalty by wire transfer to the CPD or to the CPD’s agent in compliance with the CPD’s wiring instructions.
IV.
Additional Monetary Provisions
21.
In the event of any default on Chase’s obligations to make payment under this Order, interest, computed under 28 U.S.C. § 1961, as amended, will accrue on any outstanding amounts not paid from the date of default to the date of payment, and will immediately become due and payable.
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22.
Chase must relinquish all dominion, control, and title to the funds paid to the fullest extent permitted by law and no part of the funds may be returned to Chase. 23.
Under 31 U.S.C. § 7701, Chase, unless it already has done so, must furnish to the Bureau its taxpayer identifying numbers, which may be used for purposes of collecting and reporting on any delinquent amount arising out of this Order. 24.
Within 30 days of the entry of a final judgment, consent order, or settlement in a Related Consumer Action, Chase must notify the Enforcement Director of the final judgment, consent order, or settlement in writing. That notification must indicate the amount of redress, if any, that Chase paid or is required to pay to consumers and describe the consumers or classes of consumers to whom that redress has been or will be paid. V.
Reporting Requirements 25.
Chase must notify the Bureau of any development that may affect compliance obligations arising under this Order, including but not limited to a dissolution, assignment, sale, merger, or other action that would result in the emergence of a successor company; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order; the filing of any bankruptcy or insolvency proceeding by or against Chase; or a change in Chase’s name or address. Chase must provide this notice at least 30 days before the development or as soon as practicable after the learning about the development, whichever is sooner.
26.
Chase designates the following points of contact, which the Bureau may use to communicate with Chase regarding this Order:
Case 1:15-cv-00179-RDB Document 3-1 Filed 01/22/15 Page 7 of 11
Page 23
Matthew P. Previn BuckleySandler LLP 1133 Avenue of the Americas Suite 3100 New York, NY 10036 [email protected] and
Jason Sabot Senior VP and Associate General Counsel JPMorgan Chase Bank, N.A.
4 New York Plaza 19th Floor New York, NY 10004 [email protected]
VI.
Order Distribution and Acknowledgment 27.
Within 30 days of the Effective Date, Chase must deliver a copy of this Order to board members, executive officers, and certain employees as described in the Compliance Plan. 28.
For 5 years from the Effective Date, Chase will provide a copy of this Order to certain individuals as described in the Compliance Plan.
29.
Chase must secure a signed and dated statement acknowledging receipt of a copy of this Order, ensuring that any electronic signatures comply with the requirements of the E-Sign Act, 15 U.S.C. § 7001 et seq., within 30 days of delivery, from all persons receiving a copy of this Order under this Section.
VII.
Recordkeeping 30.
Chase must create, for at least 5 years from the Effective Date, the following business records:
a.
all documents and records necessary to demonstrate full compliance with each provision of this Order, including all submissions to the Bureau; and Case 1:15-cv-00179-RDB Document 3-1 Filed 01/22/15 Page 8 of 11
Page 24
b. for each individual Affected Consumer, copies of any record of the consumer’s name; address; phone number; email address; amount of settlement service charges paid to Genuine Title; and the Affected Consumer’s loan file. 31.
Chase must retain the documents identified in Paragraph 30 for at least 5 years. 32.
Chase must make the documents identified in Paragraph 30 available to the Bureau upon the Bureau’s request.
VIII.
Notices 33.
Unless otherwise directed in writing by the Bureau, Chase must provide all submissions, requests, communications, or other documents relating to this Order in writing, with the subject line, “In re Genuine Title, LLC, Case No. 2013-0607-02,” and send them to: Assistant Director for Enforcement Consumer Financial Protection Bureau ATTN: Office of Enforcement 1700 G Street, NW Washington, DC 20552
IX.
Cooperation with the Bureau 34.
Chase must preserve consumer records and cooperate fully to help the Bureau determine the identity and location of, and the amount of injury sustained by, each Affected Consumer. Chase must provide such information in their or their agents’ possession or control within 14 days of receiving a written request from the Bureau. 35.
Chase must cooperate fully with the Bureau in this matter and in any investigation related to or associated with the conduct described in the Complaint. Chase must provide truthful and complete information, evidence, and testimony. Chase must appear and must cause its officers, employees, representatives, or agents to appear for interviews, discovery, Case 1:15-cv-00179-RDB Document 3-1 Filed 01/22/15 Page 9 of 11
Page 25
hearings, trials, and any other proceedings that the Bureau may reasonably request upon 5 days written notice, or other reasonable notice, at such places and times as the Bureau may designate, without the service of compulsory process.
X.
Compliance Monitoring 36.
Within 14 days of receipt of a written request from the Bureau, Chase must submit additional compliance reports or other requested information, which must be made under penalty of perjury; provide sworn testimony; or produce documents. 37.
Chase must permit Bureau representatives to interview any employee or other person affiliated with Chase who has agreed to such an interview. The person interviewed may have counsel present.
38.
Nothing in this Order will limit the Bureau’s lawful use of compulsory process, under 12 C.F.R. § 1080.6.
XI.
Release 39.
The Bureau and the CPD release and discharge Chase from all potential liability for law violations that the Bureau has or might have asserted based on the practices alleged in the Complaint, to the extent such practices occurred before the Effective Date and the Bureau knows about them as of the Effective Date. Notwithstanding this release, the Bureau may use the practices alleged in the Complaint in future enforcement actions against Chase or its affiliates to establish a pattern or practice of violations or the continuation of a pattern or practice of violations or to calculate the amount of any penalty. This release does not preclude or affect any right of the Bureau to determine and ensure compliance with this Order, or to seek penalties for any violations of this Order.
Case 1:15-cv-00179-RDB Document 3-1 Filed 01/22/15 Page 10 of 11
Page 26
XII.
Modifications to Non-Material Requirements 1.
Chase may seek a modification to non-material requirements of this Order (e.g., reasonable extensions of time and changes to reporting requirements) by submitting a written request to the Enforcement Director.
2.
The Enforcement Director may, in his discretion, modify any non-material requirements of this Order (e.g., reasonable extensions of time and changes to reporting requirements) if he determines good cause justifies the modification. Any such modification by the Enforcement Director must be in writing.
XIII.
Retention of Jurisdiction 3.
The Court will retain jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.
IT IS SO ORDERED.
DATED this ___ day of ______________, 2015.
_________________________________ Richard D. Bennett United States District Judge Case 1:15-cv-00179-RDB Document 3-1 Filed 01/22/15 Page 11 of 11
Consent order ()
PDF of this document (11 pages)
Page 27
Case 1:15-cv-00179-RDB Document 11 Filed 02/05/15 Page 1 of 11
———__FILED ENTERED
L006 —peveven FEB - 5 2015 IN THE UNITED STATES DISTRICT COURT corn ATPATIMORE. FOR THE DISTRICT OF MARYLAND ay DISTRICT OF MARV BALTIMORE DIVISION DEPUTY
CONSUMER FINANCIAL PROTECTION BUREAU 1700 G Street NW Washington, D.C. 20552
STATE OF MARYLAND, Office of the Attorney General of Maryland, Consumer Protection Division
200 St. Paul Place, 16" Floor Baltimore, MD 21202 Baltimore County
Plaintiffs, Vv.
WELLS FARGO BANK, N.A, 464 California Street San Francisco, CA 94104
JPMORGAN CHASE BANK, N.A.
270 Park Avenue New York City, NY 10017
ELAINE OLIPHANT COHEN 2100 Heritage Drive
Baltimore, MD 21209
Baltimore County
TODD COHEN 2100 Heritage Drive Baltimore, MD 21209 Baltimore County
Defendants.
Case No. 1:15-cv-00179-RDB
STIPULATED FINAL JUDGMENT AND ORDER WITH RESPECT TO WELLS
FARGO BANK, N.A.
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Case 1:15-cv-00179-RDB Document 11 Filed 02/05/15 Page 2 of 11
The Consumer Financial Protection Bureau (“Bureau’’) and the State of Maryland’s Office of the Attorney General’s Consumer Protection Division (“CPD”) commenced this civil action against Defendant Wells Fargo Bank, N.A. (“Wells Fargo”), on January 22, 2015, to obtain damages or other monetary relief, civil penalties, and other relief. The Complaint alleges that from 2009 through 2013, Genuine Title, LLC (“Genuine Title”) provided Wells Fargo’s loan officers marketing services that assisted the loan officers in generating business and increasing the number of loans that Wells Fargo originated or refinanced. The Complaint alleges that under agreements or understandings between Genuine Title and the loan officers, the loan officers in return referred settlement-service business to Genuine Title.
The Complaint alleges violations of: (1) Section 8(a) of the Real Estate Settlement Procedures Act, 12 U.S.C. §.2607(a) (““RESPA”); (2) Section 1036(a)(1)(A) of the Consumer Financial Protection Act of 2010 (“CFPA”), 12 U.S.C. § 5536(a)(1)(A); and (3) the Maryland Consumer Protection Act, Md. Code Ann., Com. Law §§ 13-101 through 13-501 (2013 Repl. Vol.) (“CPA”).
Plaintiffs and Wells Fargo, by and through respective counsel, have requested that the Court enter
this Stipulated Final Judgment and Order (“Order”).
FINDINGS t. This Court has jurisdiction over the parties and the subject matter or this action. a. Plaintiffs and Wells Fargo agree to entry of this Order, without adjudication of any issue of fact or
law, to settle and seaiiive all matters in this dispute arising from the conduct alleged in the Complaint to the date this Order is entered.
5: Wells Fargo neither admits nor denies any allegations in the Complaint, except as specifically stated in this Order. For purposes of this Order, Wells Fargo admits the facts necessary to
establish the Court’s jurisdiction over Wells Fargo and the subject matter of this action.
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Case 1:15-cv-00179-RDB Document 11 Filed 02/05/15 Page 3 of 11
t,
a.
Wells Fargo waives service under Rule 4(d) of the Federal Rules of Civil Procedure and waives all rights to seek judicial review or otherwise challenge or contest the validity of this Order. Wells Fargo also waives any claim it may have under the Equal Access to Justice Act, 28 U.S.C. § 2412, concerning the prosecution of this action to the date of this Order. Each party will bear its own costs and expenses, including without limitation attorneys’ fees. This Order is made without trial or adjudication of any issue of fact or law and does - contain any injunctive measures against Wells Fargo or any of its subsidiaries or affiliates. Entry of this Order is in the public interest.
DEFINITIONS The following definitions apply to this Order:
“Affected Consumers” means all consumers who closed loans during the Relevant Period with Wells Fargo’s Specified Loan Officers for which Genuine Title provided settlement services. “Wells Fargo” means Wells Fargo Bank, N.A. and its successors and assigns. “Effective Date” means the date on which this Order is issued. “Enforcement Director” means the Assistant Director of the Office of Enforcement for the Consumer Financial Protection Bureau, or his/her delegee.
“Related Consumer Action” means a private action by or on behalf of one or more consumers or an enforcement action by another governmental agency brought against Wells Fargo based on substantially the same facts as described in this Order or the Complaint. “Relevant Period” means from September 15, 2011 until Wells Fargo ceased doing business with Genuine Title.
“Specified Loan Officers” means the loan officers employed by Wells Fargo during the Relevant Period that received marketing services paid for by Genuine Title.
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Case 1:15-cv-00179-RDB. Document 11 Filed 02/05/15 Page 4 of 11
ORDER IT IS ORDERED that:
I, Compliance Plan 8. Within 90 days of the Effective Date, Wells Fargo must submit to the Enforcement Director for
review and determination of non-objection a comprehensive compliance plan (“Compliance Plan”) designed to ensure that Wells Fargo’s loan officers refrain from giving or accepting any fee, kickback, or thing of value and comply with the terms of this Order. The Compliance Plan must include, at a minimum:
a. detailed steps for addressing each action required by this Order; and b. specific timeframes and deadlines for implementation of the steps for addressing each action required by this Order.
9, The Enforcement Director will have the discretion to make a determination of non-objection to the Compliance Plan or direct the Wells Fargo to revise it. If the Enforcement Director directs the Wells Fargo to revise the Compliance Plan, the Wells Fargo must make the revisions and resubmit the Compliance Plan to the Enforcement Director within 30 days.
10. After receiving notification that the Enforcement Director has made a determination of nonobjection to the Compliance Plan, the Wells Fargo must implement and adhere to the steps, recommendations, deadlines, and timeframes outlined in the Compliance Plan.
II. Monetary Provisions
11. A judgment for monetary relief is entered in favor of the Bureau and the CPD against Wells Fargo
in the amount of $10,809,807.71. )
12. Wells Fargo will administer the payment of redress to Affected Consumers with Bureau oversight.
’
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13;
14.
15.
Ii.
16.
Ue
18.
19.
Case 1:15-cv-00179-RDB Document 11 Filed 02/05/15 Page 5of11
The funds paid by Wells Fargo in satisfaction of this judgment will be deposited into a fund or funds administered by Wells Fargo or Wells Fargo’s agent to be paid as redress to Affected Consumers, Affected Consumers will not be required to submit a claim form or take other similar action to receive the redress.
Any funds not used to provide monetary relief to Affected Consumers will be deposited in the U.S. Treasury as disgorgement. Wells Fargo will have no right to challenge any actions that the Bureau takes or any direction regarding administration of the monetary relief that the Bureau gives Wells Fargo or Wells Fargo’s agent under this paragraph.
Payment of redress to any Affected Consumer under this Order shall not limit Affected Consumers’ rights in any way, but this Order is not intended to preclude Wells Fargo from arguing that any such payment to an Affected Consumer should constitute an offset of any
recovery such Affected Consumer may be entitled to.
Civil Money Penalties
Wells Fargo must pay a civil money penalty of $21,000,000 to the Bureau.
Within 10 days of the Effective Date, Wells Fargo must pay the civil money penalty by wire transfer to the Bureau or to the Bureau’s agent in compliance with the Bureau’s wiring instructions.
The civil money penalty paid under this Order will be deposited in the Civil Penalty Fund of the Bureau as required by Section 1017(d) of the CFPA, 12 U.S.C. § 5497(d).
Wells Fargo must treat the civil money penalty paid under this Order as a penalty paid to the
government for all purposes. Regardless of how the Bureau ultimately uses those funds, Wells
Fargo may not:
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20.
21.
22.
IV.
23.
24.
Case 1:15-cv-00179-RDB Document 11 Filed 02/05/15 Page 6 of 11
claim, assert, or apply for a tax deduction, tax credit, or any other tax benefit for any civil money
penalty paid under this Order; or
. seek or accept, directly or indirectly, reimbursement or indemnification from any source,
including but not limited to payment made under any insurance policy, with regard to any civil
money penalty paid under this Order.
To preserve the deterrent effect of the civil money penalty in any Related Consumer Action, Wells Fargo may not argue that Wells Fargo is entitled to, nor may Wells Fargo benefit by, any offset or reduction of any compensatory monetary remedies imposed in the Related Consumer Action because of the civil money penalty paid in this action (“Penalty Offset”). If the court in any Related Consumer Action grants such a Penalty Offset, Wells Fargo must, within 30 days after entry of a final order granting the Penalty Offset, notify the Bureau, and pay the amount of the
Penalty Offset to the U.S. Treasury. Such a payment will not be considered an additional civil
"money penalty and will not change the amount of the civil money penalty imposed in this action.
Wells Fargo must pay a civil money penalty of $3,000,000 to the CPD. Within 10 days of the Effective Date, Wells Fargo must pay the civil money penalty by wire
transfer to the CPD or to the CPD’s agent in compliance with the CPD’s wiring instructions.
Additional Monetary Provisions
In the event of any default on Wells Fargo’s obligations to make payment under this Order, interest, computed under 28 U.S.C. § 1961, as amended, will accrue on any outstanding amounts not paid from the date of default to the date of payment, and will immediately become due and payable. ,
Wells Fargo must relinquish all dominion, control, and title to the funds paid to the fullest extent » permitted by law and no part of the funds may be returned to Wells Fargo.
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25. Under 31 U.S.C. § 7701, Wells Fargo, unless it already has done so, must furnish to the Bureau its taxpayer identifying numbers, which may be used for purposes of collecting and reporting on any delinquent amount arising out of this Order.
26. Within 30 days of the entry of a final judgment, consent order, or settlement in a Related Consumer Action, Wells Fargo must notify the Enforcement Director of the final judgment, consent order, or settlement in writing. That notification must indicate the amount of redress, if any, that Wells Fargo paid or is required to pay to consumers and describe the consumers ot classes of consumers to whom that redress has been or will be paid.
Vv. Reporting Requirements
27. Wells Fargo must notify the Bureau of any development that may affect compliance obligations arising under this Order, including but not limited to a dissolution, assignment, sale, merger, or other action that would seul in the emergence of a successor company; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order; the filing of any bankruptcy or insolvency proceeding by or against Wells Fargo; ora change in Wells Fargo’s name or address. Wells Fargo must provide this notice at least 30 days before the development or as soon as practicable after the learning about the development, whichever is sooner.
28. Within 7 days of the Effective Date, Wells Fargo must designate at least one telephone number and email, physical, and postal address as points of contact, which the Bureau may use to communicate with Wells Fargo.
VI. Order Distribution and Acknowledgment
29. Within 30 days of the Effective Date, Wells Fargo must deliver a copy of this Order to each of
Wells Fargo’s board members and executive officers, as well as to all management personnel
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Case 1:15-cv-00179-RDB Document 11 Filed 02/05/15 Page 8 of 11
within its retail sales mortgage origination business down to the level of Home Mortgage Consultant.
30. For 5 years from the Effective Date, Wells Fargo must deliver a copy of this Order to board members and executive officers, as well as to any future management personnel within its retail sales mortgage origination business down to the level of Home Mortgage Consultant.
31. | Wells Fargo must secure a signed and dated statement acknowledging receipt of a copy of this Order, ensuring that any electronic signatures comply with the requirements of the E-Sign Act, 15 U.S.C. § 7001 ef seq., within 30 days of delivery, from all persons receiving a copy of this Order under this Section.
VII. Recordkeeping
32. Wells Fargo must create, for at least 5 years from the Effective Date, the following business records:
a. all documents and records necessary to demonstrate full compliance with each provision of this Order, including all submissions to the Bureau; and
b. for each individual Affected Consumer, copies of any record of the consumer’s name; last known address; last known phone number; email address (if available); amount of settlement service charges paid to Genuine Title; and the Affected Consumer’s loan file.
33. Wells Fargo must retain the documents identified in Paragraph 33 for at least 5 years. Wells Fargo
must make the documents identified in Paragraph 33 available to the Bureau upon the Bureau’s
request.
VIII. Notices
34. Unless otherwise directed in writing by the Bureau, Wells Fargo must provide all submissions, requests, communications, or other documents relating to this Order in writing, with the subject
Page 35
IX.
35:
36.
X,
ST.
Case 1:15-cv-00179-RDB Document 11 Filed 02/05/15 Page 9 of 11
line, “In re Genuine Title, LLC, Case No. 2013-0607-02,” and send them to:
Assistant Director for Enforcement Consumer Financial Protection Bureau ATTN: Office of Enforcement
1700 G Street, NW
Washington, DC 20552
Enforcement _Compliance(@cfpb.gov
Cooperation with the Bureau
Wells Fargo must preserve consumer records and cooperate fully to help the Bureau determine the identity and location of, and the amount of injury sustained by, each Affected Consumer. Wells Fargo must provide such information in their or their agents’ possession or control within 14 days of receiving a written request from the Bureau.
Wells Fargo must cooperate fully with the Bureau in this matter and in any investigation related to or associated with the conduct described in the Complaint and Order. Wells Fargo must provide truthful and complete information, evidence, and testimony. Wells Fargo must appear and must cause its officers, employees, representatives, or agents to appear for interviews, discovery, hearings, trials, and any other proceedings that the Bureau may reasonably request upon 5 days written notice, or other reasonable notice, at such places and times as the Bureau may designate,
without the service of compulsory process.
Compliance Monitoring
Within 14 days of receipt of a written request from the Bureau, Wells Fargo must submit additional compliance reports or other requested information, which must be made under penalty
of perjury; provide sworn testimony; or produce documents.
Page 36
38.
39.
XI.
40.
XII.
41.
42.
Case 1:15-cv-00179-RDB Document 11 Filed 02/05/15 Page 10 of 11
Wells Fargo must permit Bureau representatives to interview any employee or other person affiliated with Wells Fargo who has agreed to such an interview. The person interviewed may have counsel present.
Nothing in this Order will limit the Bureau’s lawful use of compulsory process, under 12 C.F.R. §
1080.6.
Release
The Bureau and the CPD release and discharge from all potential liability for law violations that the Bureau has or might have asserted based on the practices alleged in the Complaint, to the extent such practices occurred before the Effective Date and the Bureau knows about them as of the Effective Date, Notwithstanding this release, the Bureau may use the practices alleged in the Complaint in future enforcement actions against Wells Fargo or its affiliates to establish a pattern or practice of violations or the continuation of a pattern or practice of violations or to calculate the amount of any penalty. This release does not preclude or affect any right of the Bureau to determine and ensure compliance with this Order, or to seek penalties for any violations of this
Order.
Modifications to Non-Material Requirements
Wells Fargo may seek a modification to non-material requirements of this Order (¢.g., reasonable extensions of time and changes to reporting requirements) by submitting a written request to the Enforcement Director.
The Enforcement Director may, in his discretion, modify any non-material requirements of this
Order (¢.g., reasonable extensions of time and changes to reporting requirements) if he determines
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Case 1:15-cv-00179-RDB Document 11 Filed 02/05/15 Page 11 of 11
good cause justifies the modification. Any such modification by the Enforcement Director must be in writing.
XIII. Retention of Jurisdiction 43. The Court will retain jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.
IT IS SO ORDERED.
ko
CEQ DATED this A. of _“Slrremater/ 2015.
Richard D, Bennett United States District Judge