West Town Bank Agrees to Pay $10 Million to End Kickbacks Case

West Town Bank & Trust will pay $10 million to end racketeering litigation over its alleged scheme to refer residential mortgage holders to a title insurer, All Star Title Inc., in exchange for kickbacks paid in postage stamps, according to federal court filings in Maryland.

If approved by a judge, the settlement would resolve class action claims facing West Town in the US District Court for the District of Maryland. The lawsuit didn’t target All Star Title, which has allegedly participated in at least two similar rackets involving other banks.

West Town continues to deny any wrongdoing, including claims ...