Updates to our Terms of Use

We are updating our Terms of Use. Please carefully review the updated Terms before proceeding to our website.

Saturday, June 15, 2024 | Back issues
Courthouse News Service Courthouse News Service

Citi Whistleblower Says|Bank Will Pay Her

O'FALLON, Mo. (CN) - A woman who says she suffered from "brute force" pressure to hide bad loans said she will receive $31 million after blowing the whistle on Citigroup.

Sherry Hunt worked on the quality-control team in Citigroup's O'Fallon outlet. She filed a sealed lawsuit against Citigroup in August 2011, which the government eventually joined.

Hunt told Bloomberg News that she will receive the money in a settlement.

Hunt said she was still finding flaws in new loans, including altered tax forms, straw buyers and borrowers who listed fictitious employers, 4 years after the collapse of the housing industry due to bad mortgages.

Hunt's payout is part of a $158.3 million settlement with the Federal Housing Administration, Bloomberg reported. The settlement encompasses misconduct from 2004 to the present.

Citigroup received a $45 billion bailout by taxpayers in 2008. The bank lost a total of $29.3 billion in 2008 and 2009.

Even so, Hunt claimed her co-workers continued approving risky loans. She claims Citigroup employees acted as "gatekeepers" and applied "what they describe as 'brute force' to pressure" Citigroup's quality control managers into playing down a loan's defects.

Hunt says she finally became convinced she was being asked to look the other way on some serious flaws last year, and she decided to blow the whistle.

"All a dishonest person had to do was change the reports to make things look better than they were," Hunt told Bloomberg. "I wouldn't play along."

Follow @@joeharris_stl
Categories / Uncategorized

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.