Case: United States v. First American Bank

1:04-cv-04585 | U.S. District Court for the Northern District of Illinois

Filed Date: July 13, 2004

Closed Date: 2009

Clearinghouse coding complete

Case Summary

On July 13, 2004, the Department of Justice filed suit in the U.S. District Court for the Northern District of Illinois against First American Bank under the Fair Housing Act, 42 U.S.C. 3601-3619, and the Equal Credit Opportunity Act, 15 U.S.C. 1691. The DOJ alleged that the bank engaged in a practice called redlining by unlawfully failing to market and provide its lending products and services on an equal basis to minority neighborhoods in Chicago and Kankakee, Illinois. The DOJ specifically a…

On July 13, 2004, the Department of Justice filed suit in the U.S. District Court for the Northern District of Illinois against First American Bank under the Fair Housing Act, 42 U.S.C. 3601-3619, and the Equal Credit Opportunity Act, 15 U.S.C. 1691. The DOJ alleged that the bank engaged in a practice called redlining by unlawfully failing to market and provide its lending products and services on an equal basis to minority neighborhoods in Chicago and Kankakee, Illinois. The DOJ specifically alleged that First American Bank intentionally failed to serve heavily African-American and Hispanic communities.

The parties entered a settlement agreement that was approved by the court (Judge Der−Yeghiayan) on July 16, 2004. Under the settlement agreement terms, First American Bank is enjoined from engaging in any practice which discriminates on the basis of race, color, or national origin in any aspect of a residential real estate-related or credit transaction.

First American Bank agreed to open four new branch offices in minority communities within a three year-term. First American Bank will also invest $5 million in a special financing program for home mortgage lending, $400,000 in marketing and outreach, and $300,000 in consumer education and financial literacy programs.

The order is designed to last five years. However, both parties agreed that if the Defendant-lender fulfilled all requirements of the order within four years, it has the option to terminate the order.

On February 13, 2009, both parties filed an agreement to terminate the consent order, which was agreed to by the court (Judge Der−Yeghiayan) on February 19, 2009.

Similar cases brought forth by the Department of Justice against lenders due to allegations of redlining include United States v. Centier Bank, United States v. Citizens Republic Bancorp, Inc., and United States v. Old Kent Financial Corporation.

Summary Authors

Megan Richardson (4/3/2014)

People


Judge(s)

Der-Yeghiayan, Samuel (Illinois)

Attorneys(s) for Plaintiff

Acosta, R. Alexander (District of Columbia)

Ashcroft, John (District of Columbia)

Dougherty , Burtis M. (District of Columbia)

Fitzgerald, Patrick J. (Illinois)

Laser, Joan (Illinois)

Murphy, Donna M. (District of Columbia)

O'Brian, Valerie R. (District of Columbia)

Rosenbaum, Steven H. (District of Columbia)

Attorneys(s) for Defendant

Feld, Jonathan S. (Illinois)

Judge(s)

Der-Yeghiayan, Samuel (Illinois)

Attorneys(s) for Plaintiff

Acosta, R. Alexander (District of Columbia)

Ashcroft, John (District of Columbia)

Dougherty , Burtis M. (District of Columbia)

Fitzgerald, Patrick J. (Illinois)

Laser, Joan (Illinois)

Murphy, Donna M. (District of Columbia)

O'Brian, Valerie R. (District of Columbia)

Rosenbaum, Steven H. (District of Columbia)

Attorneys(s) for Defendant

Feld, Jonathan S. (Illinois)

Rahilly, Sean (Illinois)

Documents in the Clearinghouse

Document

Docket

USA v. 1st Amer Bk

Feb. 19, 2009 Docket

Chicago Bank Charged With Discriminatory "Redlining" Lending

No Court

July 13, 2004 Press Release
1

Complaint

United States of America v. First American Bank

July 13, 2004 Complaint
4

Summary of $5.7 Million Consent Order

July 16, 2004 Order/Opinion
5

Judgment in a Civil Case

USA v. First American Bank

July 16, 2004 Order/Opinion
6

Joint Motion to Terminate Consent Order

Feb. 13, 2009 Pleading / Motion / Brief
6-2

Order

United States of America v. First American Bank

Feb. 13, 2009 Order/Opinion

Docket

Last updated May 12, 2022, 8 p.m.

ECF Number Description Date Link
1

COMPLAINT (Attachments); jury demand − Civil cover sheet − ( Summons(es), original and one copy, issued.) ( Documents: 1−1 and 1−2) (ar) (Entered: 07/14/2004)

July 13, 2004
2

ATTORNEY APPEARANCE for defendant 1st Amer Bk by Jonathan S. Feld. (jmp) (Entered: 07/19/2004)

July 16, 2004
3

ANSWER by defendant 1st Amer Bk to plaintiff's complaint [1−1]. (jmp) (Entered: 07/19/2004)

July 16, 2004
4

MINUTE ORDER of 7/16/04 by Hon. Samuel Der−Yeghiayan : The parties having entered into a consent order, this matter is hereby dismissed. The Court shall retain jurisdiction for the duration of the consent order to enforce the terms of the order, after which time the case shall be dismissed with prejudice. All pending dates ane motions are hereby stricken as moot. (Entered Consent Order (Attachment)). terminating case Mailed notice (jmp) (Entered: 07/19/2004)

July 16, 2004
6

MOTION by Plaintiff United States of America, Defendant First American Bank To Terminate Consent Order (Joint) (Attachments: # 1 Order)(Laser, Joan) (Entered: 02/13/2009)

Feb. 13, 2009
7

NOTICE of Motion by Joan Cagen Laser for presentment of motion for miscellaneous relief 6 before Honorable Samuel Der−Yeghiayan on 2/19/2009 at 09:00 AM. (Laser, Joan) (Entered: 02/13/2009)

Feb. 13, 2009
8

MINUTE entry before the Honorable Samuel Der−Yeghiayan:Motion by Plaintiff United States of America, and Defendant First American Bank To terminate consent order 6 is granted. Motion hearing held on 2/19/2009 6 . Mailed notice (tlp, ) (Entered: 02/19/2009)

Feb. 19, 2009

State / Territory: Illinois

Case Type(s):

Fair Housing/Lending/Insurance

Key Dates

Filing Date: July 13, 2004

Closing Date: 2009

Case Ongoing: No

Plaintiffs

Plaintiff Description:

United States Department of Justice Civil Rights Division Section on Housing and Civil Enforcement

Plaintiff Type(s):

U.S. Dept of Justice plaintiff

Attorney Organizations:

U.S. Dept. of Justice Civil Rights Division

Public Interest Lawyer: Yes

Filed Pro Se: No

Class Action Sought: No

Class Action Outcome: Not sought

Defendants

First American Bank, Private Entity/Person

Defendant Type(s):

Bank or credit provider

Case Details

Causes of Action:

Fair Housing Act/Fair Housing Amendments Act (FHAA), 42 U.S.C. §§ 3601 et seq.

Equal Credit Opportunity Act (ECOA), 15 U.S.C. § 1691

Availably Documents:

Trial Court Docket

Complaint (any)

Monetary Relief

Injunctive (or Injunctive-like) Relief

Outcome

Prevailing Party: Plaintiff

Nature of Relief:

Injunction / Injunctive-like Settlement

Damages

Source of Relief:

Settlement

Form of Settlement:

Court Approved Settlement or Consent Decree

Amount Defendant Pays: $5,700,000.

Order Duration: 2004 - 2009

Content of Injunction:

Develop anti-discrimination policy

Monitoring

Issues

General:

Predatory lending

Discrimination-area:

Lending

Discrimination-basis:

National origin discrimination

Race discrimination

Race:

Black

National Origin/Ethnicity:

Hispanic