New York Post

WOE IN ‘MNUCH’ LAND

’13 probe unearthed

- By KEVIN DUGAN kdugan@nypost.com

California’s attorney general “uncovered evidence suggestive of widespread misconduct” at OneWest, the bank run by Presidente­lect Donald Trump’s pick for Treasury secretary, Steve Mnuchin — but never brought a suit against the company, according to a report.

OneWest, which Mnuchin controlled from 2009 to 2015, has been the target of housing advocates for foreclosin­g on as many as 36,000 homes in California in the wake of the financial crisis.

The California investigat­ion, which hasn’t been previously disclosed, claims that OneWest pushed people out of their homes by backdating hundreds of documents and gaming auctions, and “performed acts in the foreclosur­e process without valid legal authority,” according to a draft civil suit obtained by The Intercept.

The bank even backdated documents “years, months, and weeks before OneWest actually began operations,” according to the draft suit.

Investigat­ors at the California AG’s consumer law section also claim they were “hampered” since they couldn’t subpoena the bank and OneWest was causing “obstructio­n” of a related investigat­ion, according to a related 2012 memo posted by The Intercept.

The state was also reluctant to investigat­e third parties because it anticipate­d OneWest would seek relief from investigat­ion by a court, the memo said.

In 2013, the state investigat­ors recommende­d that Kamala Harris — then the attorney general — bring a suit against the bank, but a suit was never filed.

It’s unclear why Harris’ office declined to file the suit.

“State attorneys general have no jurisdicti­on to investigat­e federally chartered banks like OneWest,” Mnuchin spokeswoma­n Tara Bradshaw told The Intercept. “When OneWest pointed that out to the California attorney general’s office, they withdrew their subpoena.”

In 2010, OneWest gave $13,000 to Harris’ first campaign for AG, according to the Sacramento Bee. Last year, Mnuchin donated $2,000 to the AG’s campaign, according to Federal Election Commission data.

A spokeswoma­n for Harris’ office didn’t return a request for comment.

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