X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
The subprime mortgage business is risky enough, even without throwing in allegations of fraud against a fugitive who was shot in the head last year in Norway by a disgruntled business associate. Last week, the U.S. Court of Appeals for the 4th Circuit affirmed a $161 million jury verdict for the Federal Deposit Insurance Corp. in its suit over the implosion of First National Bank of Keystone, one of the costliest bank failures in U.S. history. The bank in West Virginia coal country collapsed in 1999, raking up an estimated $750 million to $850 million in losses. Harald Bakkebo and several co-conspirators convinced bank officials to invest hundreds of millions of dollars in a risky loan securitization enterprise involving the purchase of subprime home loans. Bakkebo � a native of Norway who fled there in 1999 to avoid criminal prosecution in an unrelated insurance fraud scheme in Louisiana � was shot and killed last year. The FDIC, which was represented by in-house attorney Jaclyn Chait Taner, may not see much of the $161 million judgment because the FDIC is proceeding under Norwegian law to seize his estate there from Bakkebo’s two sons.
Brendan Smith can be contacted at [email protected].

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at [email protected]

 
 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.