A federal bankruptcy court has granted a $1 billion settlement to the mortgage lender Chase Bank for defrauding customers.
The Federal Deposit Insurance Corp. said in a statement that the bank agreed to pay $1,700 for each account that was compromised, as well as an additional $200 for each unauthorized account.
“Chase Bank was not a good company to be in,” said David Shulman, an attorney representing the bank.
“The company’s conduct over a very long period of time violated its fiduciary responsibilities and violated the U.S. Bankruptcies Code.
It is now time for the bank to pay those wrongdoings and ensure that it can be held accountable for its actions.”
The Federal Trade Commission will take over the investigation of the bank’s fraud, and a trial is scheduled to begin in February.
The bank’s case against the victims is still pending.
The bank, which has been under investigation by the Department of Justice since January, faces more than $1 trillion in federal criminal fines.
The U.K.-based lender also faces civil charges in Canada.
Chase’s $1-billion settlement is the largest U.F.T.O. ever, and is one of the largest ever for the mortgage industry.
In January, the bank paid $1 million to settle a fraud lawsuit filed by the U,S.
Consumer Financial Protection Bureau.