Sallie Mae Accused of Fraud: Connecticut investor...
From Times Staff and Wire Reports
Sallie Mae Accused of Fraud: Connecticut investor William F. Kalaboke has charged in a class-action suit that the Student Loan Marketing Assn. should not have purchased delinquent or cancelled student loans from banks. The suit in U.S. District Court in Washington asks unspecificed damages for persons who held Sallie Mae stock between Jan. 10 and Oct. 15. It comes in the wake of a federal investigation of the Sallie Mae office in Lawrence, Kan. Two former employees had charged that the organization, which makes a market in student loans, acquired worthless loans from banks. Sallie Mae has denied the charges.
