#loan-fraud

#loan-fraud

The tension between Wall Street and Main Street was on display this week as the country's top banks reported blowout earnings, while regional lenders spooked investors about risks lurking in their loan books. In a regulatory filing on Thursday, Zions Bancorporation disclosed that it believes there were misrepresentations by certain borrowers who did business with its California Bank & Trust unit.

Earlier this year, SCOTUSblog co-founder and veteran Supreme Court litigator Tom Goldstein was arrested on a 22-count indictment alleging tax crimes and making false statements to lenders. According to the government, Goldstein participated in high-stakes poker games and failed to disclose his winnings (in tax filings) and losings (in loan applications). Over the course of several years, the indictment says that Goldstein racked up big winnings and bigger losses in high-stakes underground poker matches, both domestically and abroad.