DOJ Announces False Claims Act Recoveries for 2017

The Department of Justice (DOJ) recently announced recoveries of more than $3.7 billion from False Claims Act case settlements and judgments for the fiscal year ending September 30, 2017.  Over $543 million of this amount was recovered from cases involving housing and mortgage fraud.

In one case, which went to trial, a jury found False Claims Act and FIRREA violations after hearing evidence that a mortgage lender: (i) falsely certified that thousands of high risk, low quality loans were eligible for FHA insurance, and submitted claims to FHA when those loans defaulted; (ii) originated FHA-insured loans from over one hundred “shadow” branches without HUD authorization; and (iii) submitted falsified quality control reports to HUD auditors and falsely certified compliance with HUD quality control guidelines.  The court entered judgment in favor of the government for over $296 million, and against the mortgage lender’s president and CEO for over $25 million.

The DOJ’s announcement can be viewed here: https://www.justice.gov/opa/pr/justice-department-recovers-over-37-billion-false-claims-act-cases-fiscal-year-2017.