The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Rocket Homes, part of Rocket Companies, Inc. (RKT). They allege that Rocket Homes was involved in a kickback scheme. This means they supposedly pressured real estate agents to steer homebuyers toward Rocket Mortgage, LLC for loans.

The CFPB claims that Rocket Homes discouraged agents from sharing information about other loan options, including down payment assistance programs. This practice is concerning because it prevents homebuyers from comparing their options and finding the best deals.

CFPB Director Rohit Chopra stated, “Rocket engaged in a kickback scheme that discouraged homebuyers from comparison shopping.” He emphasized that in a time when many people struggle to afford homes, companies shouldn’t block competition in ways that drive up housing costs.

The CFPB also targeted Jason Mitchell and his brokerage, JMG Holding Partners LLC, known as The Jason Mitchell Group, for allegedly participating in this scheme. Rocket Homes denied the accusations, calling the lawsuit “flimsy” and suggesting it’s part of a “political agenda.” They asserted that the claims are false and misrepresent their operations.

In another case, the Securities and Exchange Commission (SEC) charged Tai Mo Shan Ltd. for misleading investors about Terra USD (UST). They allege that Tai Mo Shan misrepresented the stability of UST when it dropped from its $1 peg.

The SEC also accused Tai Mo Shan of conducting unregistered transactions by acting as a statutory underwriter for certain offers and sales of LUNA (LUNA/USD), a crypto asset from Terraform.

SEC Chair Gary Gensler noted, “This case reminds us that, too many times in the crypto markets, we’ve seen significant investor losses due to fraud.” He pointed out that such misleading practices have far-reaching effects, harming many investors.

As part of a settlement, Tai Mo Shan agreed to pay a total of $123,095,287. This includes $73,452,756 in disgorgement, $12,916,153 in prejudgment interest, and a civil penalty of $36,726,378. They also agreed to stop violating the registration and fraud provisions without admitting or denying the SEC's findings.