In late May of this year Karl Heideck, on behalf of the City of Philadelphia, filed a lawsuit against Wells Fargo & Co. The lawsuit alleges that Wells Fargo engaged in “redlining” in the Philadelphia metro area during the years 2004-2014.
Redlining dates back to the 1930s and got its name from illegal lending practices based on red circling on maps of low income minority neighborhoods. In the case of Wells Fargo the allegation is the bank made unwarranted high-interest and high-risk loans to African-Americans and Hispanic-Americans.
The City of Philadelphia claims foreclosures were many times disproportionate to similar mortgages made to white families. Studies showed foreclosures on minorities were 4.7 times more likely than whites. As a result, homes in many neighborhoods were devalued and crimes rates increased. The City is suing Wells Fargo for recompense of expenses incurred due to the foreclosures. Wells Fargo denies the allegations and will fight the lawsuit.
The lawsuit comes in the wake of the phony account scandal perpetrated by Wells Fargo bankers wherein the bankers set up phony customer accounts in order to meet sales goals. Also, a recent ruling by the US Supreme Courts states cities may sue banks for predatory practices.
The attorneys representing Philadelphia are the same who represented the City of Miami in cases against Bank of America and Wells Fargo. Included in those attorneys is Karl Heideck.
Karl Heideck is a successful Philadelphia contract attorney. From 2010 to 2014 Mr. Heideck practiced as a licensed attorney in Metro Philadelphia for the firms of Conrad O’Brien and Pepper Hamilton LLP. Since that time Karl Heideck has worked as a contract attorney specializing in litigation, compliance, and risk management.
In 2003 Karl Heideck obtained his Bachelor of Arts from Swarthmore College. In 2009 Mr. Heideck earned his Juris Doctor from University of Templeton’s James E. Beasley School of Law. He’s a prolific writer serving Pennsylvania on his blog at https://karlheideck.wordpress.com/. Karl Heideck resides in Jenkintown Pennsylvania located north of Philadelphia.