Exposing a Billion-Dollar Betrayal in America’s Military Housing
We are prosecuting a $900 million civil RICO claim on behalf of a group of private developers and Department of Defense military branches who formed joint ventures to develop improved military housing. The case alleges investment bank Jefferies and insurer Ambac fraudulently charged inflated interest rates and other misrepresented costs to bilk the developers and service branches out of hundreds of millions of dollars.
We represent dozens of developers of military housing in a $900 million RICO case alleging fraudulent lending by investment bank Jefferies, insurer Ambac Assurance, and their executives.
The suit alleges that for more than a decade, the defendants secretly inflated loan interest rates and insurance fees by concealing the availability of better financing and otherwise bilking developers participating in an initiative to privatize the construction of military housing.
Filed in California and now pending in New York federal court, the case accuses the defendants of operating a covert scheme that exploited the new privatized military housing market that began with a 2002 housing project at Fort Meade and continued for years—through manipulated interest rates, rigged credit enhancements, and conflicts of interest hidden from our clients.
We are seeking the full recovery of the ill-gotten gains siphoned from housing developments intended to serve military families.