HSBC Holdings PLC's U.S. unit will pay $10 million to settle a civil fraud case with U.S. authorities over alleged false claims for foreclosure-related fees, the Wall Street Journal reported today. The Justice Department said that HSBC admitted to misconduct for not properly overseeing claims made by third-party providers of foreclosure services, which the bank then submitted for reimbursement. "HSBC failed to live up to its legal obligation to monitor and review fees and expenses it was submitting to FHA and Fannie Mae for reimbursement, and in the process, cost the public millions of dollars," Manhattan U.S. Attorney Preet Bharara said. Before 2011, the Justice Department said, HSBC lacked adequate controls over fees and charges from outside parties it then submitted to the Federal Housing Administration for reimbursement. HSBC also failed to oversee the claims process, despite certifying to the agency that it had. Additionally, the bank lacked proper oversight of fees and charges submitted to mortgage-finance giant Fannie Mae, authorities said. (Subscription required.)
