Marcia Langley
Senior Member
- Joined
- Aug 26, 2005
- Professional Status
- Certified Residential Appraiser
- State
- Missouri
This starts an investor class action suit against FirstAm/Eape for the reason of inflated appraisals.
I guess those memos are not through causing them trouble yet.
http://money.aol.com/news/articles/_a/grant-and-eisenhofer-issues-notice-of/n20080625182709990032
I guess those memos are not through causing them trouble yet.
http://money.aol.com/news/articles/_a/grant-and-eisenhofer-issues-notice-of/n20080625182709990032
The Complaint alleges that, during the Class Period, First American and certain of the Company's officers and directors engaged in an illegal scheme with Washington Mutual, Inc. ("WaMu"), whereby the defendants, through First American's real estate subsidiary, eAppraiseIT LLC, prepared artificially inflated appraisals of homes for use in connection with mortgages issued by WaMu. During the Class Period, in quarterly earnings reports, the Company's management reported increased earnings from appraisal fees and reassured investors that internal controls were adequate. The Complaint alleges that First American's fees from the improper appraisals resulted in the Company overstating its gross profit margins and net income during the Class Period and that throughout the Class Period the defendants made false and misleading statements regarding the Company's internal controls and financial performance.