Settlement Announced: $614 million Mortgage (HUD/HFA/VA) Fraud
The Department of Justice today announced that JPMorgan Chase (JPMC) will pay $614 million for violating the False Claims Act by knowingly originating and underwriting non-compliant mortgage loans submitted for insurance coverage and guarantees by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA).
Legal Ruling: Eighth Circuit Court of Appeals holding that Fed. R. Civ. P. 9(b) requires a relator to provide some representative examples of defendant’s fraudulent conduct, specifying the time, place, and content of their acts and the identity of the actors, and affirming dismissal of complaint for failing to identify even one example of an actual false claim submitted to the Center for Medicare and Medicaid Services for reimbursement. The lawsuit is captioned United States ex rel. Dunn v. North Mem’l Health Care, 2014 U.S. App. LEXIS 413 (8th Cir. Minn. 2014).
Read more:
http://www.justice.gov/opa/pr/2014/February/14-civ-120.html
