Replies to post #346255 on Mr Cooper Group Inc (COOP)

[clawmann]

The law only says that she needs a "belief". However, there must be some basis for that belief or the judge would not refer to the DOJ. Her September ruling finding the IT claims colorable (plausible) based on the evidence taken in her courtroom is more than enough to justify such a belief. And the UST is a DOJ official (Iknow, I know, many here think that the current UST is not very active; but there is no way the UST, even this UST, could have possibly not reported the IT issue back to his/her superiors).

Mediation cannot "settle" any criminal liability. Even if the SNH's agree to give up all of their claiims (not going to happen IMO), the potential criminal liability is still out there. As is the possibility of a civil action by the SEC for disgorgement of IT profits, unless - somehow - the SEC is already involved and is negotiating with the SNH's on a settlement before the SEC even files a civil action. Lots of possibilities. I am pretty certain that both DOJ and the SEC are investigating already; but those investigations are highly confidential, so you won't be reading about them unless somebody blabs. And there is no way on God's Green Earth that either the SEC or the DOJ cannot investigate. A judge - a judge - finds that there is enough evidence of IT to justify a full trial on the issue and the DOJ and SEC just ignore it? No way. And I don't care what the conspiracy theory nuts on this board have to say because they have no understanding of how these things work.

DOJ handles the criminal aspect of IT (pursuing - if the investigation determines it is worth pursuing - criminal penalties, which can include monetary penalties and/or jail time). SEC handles the civil aspect (only monetary penalties, generally disgorgement of ill-gotten gains).

Walrath can not assess criminal penalties (this is not a criminal case) and she cannot order disgorgement (Chiron, please take note). Her remedy, if she determines there is cause to use it - which she has not yet done -is to disallow the guilty party's claims; that's a pretty serious weapon considering the SNH claims total between $2.5 and $3 billion).