Class Action Says Ocwen Loan Servicing Filed Fraudulent Tax Returns

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A class action out of Georgia claims Ocwen Loan Servicing, a mortgage loan servicer for creditors, knowingly filed false and fraudulent 1099 information returns with the IRS. The plaintiff claims the defendant has, in the last six years, filed more than 10,000 false 1099-A Acquisition or Abandonment of Secured Property Information Returns related to class members’ alleged foreclosures or abandonment or property. Upon filing these false forms, court documents continue, the defendants could then “fraudulently claim a business loss” on its federal income tax return, which increases the tax burden on class members.

The proposed class includes anyone for whom Ocwen filed a 1099-A Acquisition or Abandonment of Secured Property form with the IRS between October 28, 2010 and the present where the defendant was not a secured creditor.