{"id":6197,"date":"2017-09-11T19:05:36","date_gmt":"2017-09-12T00:05:36","guid":{"rendered":"https:\/\/www.institutionalinvestorsecuritiesblog.com\/?p=1769"},"modified":"2022-03-22T15:06:56","modified_gmt":"2022-03-22T20:06:56","slug":"us-sues-ex-head-deutsche-bank-trader-subprime-mortgage-fraud","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/us-sues-ex-head-deutsche-bank-trader-subprime-mortgage-fraud\/","title":{"rendered":"US Sues Ex-Head Deutsche Bank Trader for Subprime Mortgage Fraud"},"content":{"rendered":"<p>\t\t\t\tThe U.S. Justice Department has filed a civil <a href=\"https:\/\/www.securities-fraud-attorneys.com\">securities fraud case <\/a>against Paul Mangione, a former senior Deutsche Bank (DB) trader. According to the government, Mangione, who headed up the bank\u2019s subprime trading, took part in a fraudulent scam that involved misrepresenting the loans backing two residential mortgage-backed securities that the bank was selling, resulting in investors losing hundreds of millions of dollars.<\/p>\n<p>The DOJ\u2019s RMBS fraud complaint contends that Mangione committed fraud when selling the ACE 2007-HE5 and ACE 2007-HE4, which were $400M and $1B securities, respectively. He allegedly did this by misleading investors about the loans backing the investments and the originating practices of DB Home Lending, which is a Deutsche Bank subsidiary and was the primary loan originator. <\/p>\n<p>According to the US government, the former Deutsche Bank head trader \u201cfraudulently induced\u201d different investors, including financial institutions, pension plans, government-sponsored editions, and religious organizations, to invest almost $1.5B in the two RMBSs, resulting in \u201cextraordinary losses&#8221; for them.  Mangione allegedly provided offering documents for the HE5 and HE4 that he knew included misrepresentations about compliance lending guidelines, loan characteristics, appraisal accuracy, and other matters. The documents made it appear as if DB Home had put into place underwriting guidelines that  \u201cgenerated quality loans,\u201d as well as processes to properly oversee loan production. <\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/us-sues-ex-head-deutsche-bank-trader-subprime-mortgage-fraud\/#more-6197\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. Justice Department has filed a civil securities fraud case against Paul Mangione, a former senior Deutsche Bank (DB) trader. According to the government, Mangione, who headed up the bank\u2019s subprime trading, took part in a fraudulent scam that involved misrepresenting the loans backing two residential mortgage-backed securities that the bank was selling, resulting [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3818,3752,3864],"tags":[2650],"class_list":["post-6197","post","type-post","status-publish","format-standard","hentry","category-deutsche-bank","category-financial-firms","category-subprime-mortgage","tag-residential-mortgage-backed-securities"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>US Sues Ex-Head Deutsche Bank Trader for Subprime Mortgage Fraud &#8212; Investor Lawyers Blog &#8212; September 11, 2017<\/title>\n<meta name=\"description\" content=\"The U.S. Justice Department has filed a civil securities fraud case against Paul Mangione, a former senior Deutsche Bank (DB) trader. According to the &#8212; September 11, 2017\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/us-sues-ex-head-deutsche-bank-trader-subprime-mortgage-fraud\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"US Sues Ex-Head Deutsche Bank Trader for Subprime Mortgage Fraud &#8212; Investor Lawyers Blog &#8212; September 11, 2017\" \/>\n<meta name=\"twitter:description\" content=\"The U.S. Justice Department has filed a civil securities fraud case against Paul Mangione, a former senior Deutsche Bank (DB) trader. According to the &#8212; September 11, 2017\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"US Sues Ex-Head Deutsche Bank Trader for Subprime Mortgage Fraud &#8212; Investor Lawyers Blog &#8212; September 11, 2017","description":"The U.S. Justice Department has filed a civil securities fraud case against Paul Mangione, a former senior Deutsche Bank (DB) trader. 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