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New Leakers Accuse Bank of America of 'Corruption and Fraud' New Leakers Accuse Bank of America of 'Corruption and Fraud'

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TECH

New Leakers Accuse Bank of America of 'Corruption and Fraud'

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Mount Wilson is seen behind a Bank of America branch on July 28, 2009 in Pasadena, California. A bank spokesperson announced plans to close about 10 percent of its branchesf which will reduce its US network of 6,109-branches over the next three to five years, eliminating thousands of bank jobs, as customers do more online and telephone banking. The move reverses years of expansion by the nationÕs largest bank which faces growing losses from credit card and mortgage loans.((Photo by David McNew/Getty Images))

The online hacker group Anonymous, which is not affiliated with Wikileaks, released emails Monday morning that allegedly prove that Bank of America committed mortgage fraud. The bank has denied the allegations.

The leak comes from an anonymous former employee of Balboa Insurance, which was acquired by BoA in 2008 and sold to QBE Group. Balboa is a leader in insurance tracking and "forced-place insurance." That means if a homeowner falls behind on premiums, the insurance company buys a new policy on their behalf so that the home stays insured.

The source claims that the bank scrambled or deleted numbers used to identify loan insurance accounts, allegedly to help them foreclose on home loans. In the first of the leaked emails, which can be found online here, a asks for a group of tracking numbers to have their "images removed" from the insurance tracking system.

It is not clear in the emails, or in the early analysis of the emails, why the images were removed or whether the bank tried to deliberately confound auditors by deleting file numbers on insurance accounts.

In one leaked email, a Balboa employee asks about "huge red flags" for auditors over a change in record keeping, writing, "It just doesn't seem right to me."

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