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Karl Heideck Gives An Insight On Redlining

Karl Heideck Gives An Insight On Redlining
Karl Heideck Gives An Insight On Redlining

The City of Philadelphia is at loggerheads with Wells Fargo & Company after it emerged that the bank has been violating the Fair Housing Act of 1968 by using suspicious yet predatory money lending practices aimed at the minority race of mortgage borrowers based in some cities in Philadelphia.

Karl Heideck, one of the best contract attorneys in Philadelphia takes a look at this case and explains it in details. According to Karl and the lawsuit filed by the City of Philadelphia, it is alleged that the lending bank offered loans at higher interest rates to Hispanics and black Americans even though the same groups of people were eligible for lower-interest rates and lower-risk mortgages. The City of Philadelphia also alleges that the lending bank also made it difficult for the borrowers to refinance their mortgages hence forcing them to foreclosure.

According to Karl Heideck, the act of issuing loans with higher interest rates and higher mortgage rates to a particular group of people is known as redlining. Redlining is an illegal act especially if it is found out that it was done based on racial segregation and ethnicity.

The City of Philadelphia claims that the higher interest rates capped on the loans resulted in higher crime rates and vandalism. Apart from this, the city also claims that its reputation regarding affordable housing was significantly hurt since many of the borrowers lost their houses due to their inability to repay back the loans.

Wells Fargo & Co. on its part has come out guns blazing and referred to the lawsuit as being bogus and filled with false information. Though the company has not yet filed a formal complaint against the city of Philadelphia, it remains to be seen if the company will survive this onslaught.

Karl Heideck is a contract attorney who currently works for the Grant & Eisenhower PA law firm. Karl Heideck graduated from the Temple University Beasley School of Law with a Juris Doctor in Law in the year 2009. Before joining Temple University, Karl Heideck had graduated with a Bachelor of Arts in English Language and Literature from Swarthmore College.

With more than eight years in the industry and his unmatched experience, Karl Heideck is no doubt your best match when you need legal counsel.

Millions Awarded for Whistleblower Case

A Labaton Sucharow client was recently given seventeen million dollars, which was awarded as a result of blowing the whistle on corruption. The whistleblower, who was represented in court by Jordan A. Thomas, who is an SEC whistleblower lawyer and Chair of the firm, has become the recipient of the second largest payout to date. The protection act for whistleblowers was enacted in the year 2010, so it has been relatively new, but there are larger and larger paydays that are being reported. This likely stems from the fact that more and more people are seeing that whistleblowers not only have quite a bit of protection from prosecution and harassment, but they are getting awarded hefty amounts of money. While some people may see these types of results and assume that they are likely going to get a big payday by exposing some type of corruption, anyone that wants to come forward needs to get themselves an SEC whistleblower attorney. One of the biggest reasons why this is a must is the fact that these types of cases are fairly new, in terms of court cases that unfold with the current Dodd-Frank Act in place. Law firms have started to concentrate solely on these cases, so if you do decide that you want to come forward, it would be wise to work with one of these law firms.

When it comes to the actual seventeen million dollars that was paid out to Jordan A. Thomas’s client, the money actually comes down to a fraction of the sanctions that were levied against the business that was exposed. When a whistleblower comes forward and corruption, fraud, or some other illegal activity is exposed, a court is going to end up levying sanctions against that business. At the same time, the Dodd-Frank Act has allowed for ten to thirty percent of the total sanctions that are imposed to be paid directly to the whistleblower. The basis of this is the fact that the Securities Exchange Commission is cleaning up corruption and getting a monetary sum, which they would have only gotten because of the good nature of the whistleblower. The ten to thirty percent is an award that is absolutely fair and serves as a big incentive for anyone that possess some sort of information that could be deemed illegal to the SEC. Keep in mind, if you do want to become a whistleblower, make sure you do your research and bring your case to a highly qualified SEC whistleblower lawyer.