Investigator Fired For Pushing Probe Into Bogus Loans & Refusing To Participate In Bank Coverup, Says Lawsuit

In North Carolina, The Charlotte Observer reports:

• BB&T, North Carolina's third-largest bank, vigorously denied charges Friday that a former internal investigator for the company was fired for refusing to participate in the coverup of a $20 million loan fraud. Amy Stroupe, who filed a lawsuit against the company [last] week, said she was fired for pursuing an investigation of more than 120 fraudulent real estate loans. The loans were connected to a failed development in Western North Carolina known as the Village of Penland that left investors owing banks about $120 million.

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• Stroupe, a former sheriff's detective who was hired in 2005, was fired June 20. She alleged in her suit that she pushed her investigation of Penland because many of the loan applications used the same loan officer, appraiser, attorney and picture of what appeared to be the same mountain lot. The lots were often appraised for more than market value and sold to people who had never visited the site or met the loan officer, the suit said.

For more, see BB&T denies unfair firing (if link expires, try here).

Representing Amy Stroupe in her lawsuit is attorney John Yanchunis, with the law firm James, Hoyer, Newcomer & Smiljanich PA., Tampa, Florida. (According to their website, the firm has a nationwide practice handling whistleblower cases, and consumer cases, - including mortgage servicing problem cases - among other cases.)

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The lawsuit referred to in this story is the second reported within a month alleging BB&T Bank's involvement in a sophisticated fraud in connection with the Village of Penland project. For the earlier story, see 2 N.C. banks accused in fraud suit (Investors owe millions of dollars on N.C. mountain property worth much less) (The Charlotte Observer).

For background information on the souring of the Village of Penland project that left investors holding the bag, see The Wall Street Journal article, 'I Feel Like an Idiot' (Land Project Gone Wrong Shows How Even Well-Off Lured By Go-Go Climate) (May be a free article; if not, try here).

Go here for other posts on the Village of Penland.

Go here for other posts on whistleblower suits involving alleged fraudulent mortgage lending practices. Tony Porter