Law360, New York (May 23, 2016, 12:24 PM EDT) -- The Second Circuit on Monday threw out a New York district court judge’s $1.3 billion penalty against Bank of America over a financial crisis-era mortgage program, determining that the bank can’t be held liable for fraud for what may have been an intentional breach of contract.(Credit: AP) The government didn’t present sufficient evidence to prove that the three mortgages Bank of America sold show the “contemporaneous fraudulent intent necessary to prove a scheme to defraud through contractual promises,” a three-judge panel of the appeals court ruled. The court remanded the case with an order to enter judgement for the bank.... In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition. TRY LAW360 FREE FOR SEVEN DAYS
A $1.3bn penalty against Bank of America has been discounted after the Second Circuit of the US Court of Appeals found the bank cannot be held liable for the suspected intentional breach of contract. Bank of America was accused of a fraudulent crisis-era mortgage program; however, the judges noted the government did not present sufficient evidence proving the intent of the bank to defraud buyers of the mortgage packages.