In recent weeks, media outlets have been awash with reports about the lawsuit filed by the City of Philadelphia against Wells Fargo & Co. at the US District Court for the Eastern District of Philadelphia. The city claims that the bank failed to abide by the Fair Housing Act of 1968. It is alleged that Wells Fargo used predatory lending practices that targeted minority mortgage borrowers.
The bank has denied the allegations by stating that all its business practices are fair and therefore, the allegations made by the city are unsubstantiated. This is not the first major scandal to rock the San Francisco- based bank. The institution is still recovering from a 2016 scandal that involved its senior employees opening bogus accounts using clients’ names.
Debunking the Lawsuit
Prominent attorney Karl Heideck sought to debunk the allegations brought against the bank by the city. According to him, the city’s claim are substantial because Wells Fargo used a fraudulent lending strategy that made it difficult for mortgagors to refinance their mortgages. As a result, they had to put up with higher mortgage rates. This forced a number of them into foreclosure. The financial institution is yet to file a legal rejoinder to the lawsuit.
Karl Heideck in Brief
The Philadelphia-based attorney has had a successful career spanning more than 10 years in the legal field. His areas of specialization are commercial litigation, risk management, and corporate compliance. Karl is an alumnus of Temple University James Beasley School of Law from where he graduated with honors. He similarly holds a B.A in English and Literature from Swarthmore College. Since he started practicing, Mr. Heideck has won hundreds of cases on behalf of his clients. This is mainly attributed to his passion and in-depth legal knowledge.
At the moment, Karl is an attorney at Grant & Eisenhower PA, a notable law firm in Philadelphia. Here, he mainly handles complex banking litigation, security fraud, and mergers and acquisition cases. Prior to this, he was an attorney at Pepper Hamilton LLP, another equally prominent law firm. Mr. Heideck is affiliated with Hire Council. When not representing clients or giving legal advice, Karl revels in sharing his insights about various legal topics.