Say Anything Blog

NEW YORK (Reuters) - A former underwriter who says she was forced to resign after blowing the whistle on fraud at Capital One Financial Corp’s (COF.N: Quote, Profile, Research, Stock Buzz) subprime mortgage unit filed a $51 million lawsuit against her former employer on Thursday.

According to the suit filed in U.S. District Court in Manhattan, Rachel Steinmetz said she was forced into an “involuntary resignation” by her superiors in retaliation for refusing “to approve fraudulent, unlawful and bad loans” and reporting the activities to her superiors and authorities.

...She claims she was forced by superiors to approve loans that contained fraudulent information and that her bosses waited until she was out of the office to approve loans that she had denied.