Bank of America seems to be in the dock once again, on the issues of false claims in bankruptcy filing of condos. The bank has already been accused of lying and falsehood in acquisition of Merrill Lynch & Co. the bankruptcy filing case involves a developer of Bay condo towers, Cabi Downtown. It seemed as if Bank of America was moving a motion that this was an error and the judge did allow a Chapter 11 bankruptcy filing. But then the judge also expressed surprise and not a little consternation as to this ‘error’ and also said that the bank would have to show cause as to why the bank and the client should not be sanctioned.
There are those who argue that Bank of America was hauling Cabi over coals and also charging him, in a bid to ensure that his financial back is broken such that he is unable to compete with the many projects in Miami that the bank has now got into. The bank had claimed that Cabi was renting the project of the condo, to people convicted for felonies and also to people who had a poor credit rating. It seems these claims and charges by the Bank were not based on truth or facts.